Unaudited Interim Results for the six months ended 31st
The Company today announces its unaudited interim results for the six months ended 31st
The Company’s Business Model
Western’s objectives are to generate growth in value for shareholders over the medium to long term and pay a progressive dividend.
The Company’s business model is to take sizeable minority stakes in relatively small companies, usually immediately before or as their shares are admitted to trading on one of the UK’s stock exchanges and have directors in common through which we can provide advice and support for these growing companies. These may or may not become associated companies. Our aim is that these companies (“Core Holdings”) will grow to a stage at which our support is no longer required and our stake can then be sold over time through the relevant stock market. Companies that are targeted as
Our objective is not to build a diversified portfolio, but to identify a limited number of good opportunities for growth in value. This may well see risk concentrated even further than it has previously been.
To acquire these stakes in new
Our net assets per share increased 6.3% to 84p at 31st
Dividend income during the period from
The value of our investment in Swallowfield was becoming too large relative to our other investments and so a decision was taken to reduce our holding. In
As a result, operating profit before associates was £404,000 compared to an operating loss of £1,000 last year. Our share of the results of associates has decreased slightly to £48,000 compared to £67,000 in the comparative period.
The Company achieved a profit before tax for the half year of £460,000 with earnings per share of 2.5p compared with profit before tax of £80,000 for the same period last year and earnings per share of 0.4p.
An analysis of assets is shown in the unaudited Statement of Financial Position.
During the period we invested £624,000 into investments held in
Northbridge hires and sells specialist industrial equipment to a non-cyclical customer base. With offices or agents in the
Northbridge’s latest results, for the half year to 30th
Western owns 3,223,632 Northbridge shares, representing 12.45% of Northbridge’s issued share capital. The market value of this investment at 31st
I am a Non-Executive Director of Northbridge.
Swallowfield plc (“Swallowfield”)
Swallowfield is a market leader in the development, formulation, manufacture and supply of cosmetics, toiletries and related household products for global brands and retailers operating in the cosmetics, personal care and household goods market. Further information about Swallowfield is available on its website: www.swallowfield.com
Swallowfield announced its annual results to 25th
In January this year, we disposed of a further 120,000 Swallowfield shares for £318,000 (before selling expenses). Western now owns 1,630,000 Swallowfield shares (representing 9.66% of Swallowfield’s issued share capital).
Bilby is an established, and award winning, provider of gas installation, maintenance and general building services to local authority and housing associations across
Bilby announced its interim results for the six month period to 30th
Our share of Tudor Rose International’s estimated results for the period ended 31st
ICH is a small unquoted PLC in which Western holds a 29.9% interest. It owns land with potential for residential planning permission at Milngavie, adjacent to Dougalston golf course, just north east of Glasgow. ICH is currently making representations for its land to be included for housing development in the local authority’s next five year plan, but it may take some time for permission to be received.
Western subscribed £80,750 for 8,074,982 shares in ICH pursuant to a rights issue, which was completed in
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
Changes to the Board
It was with great sadness that we announced on 23rd
In a period of increasing uncertainty characterised by Brexit and the inauguration of a new US President, the Company’s strong balance sheet provides it with the opportunity to capitalise on any opportunities that may arise.
The Board has declared an interim dividend of 1.1p per share (prior year: 1.05p) that will be paid on 23rd
10th February 2017
For further information, please contact:
Western Selection P.L.C. +44(0) 20 7796 9060 Cairn Financial Advisers LLPJames Caithie / Liam Murray+44 (0) 20 7213 0880
The dividend timetable is as follows:
Shares trade ex-dividend Thursday
9th March 2017Record date Friday 10th March 2017Payment date Thursday 23rd March 2017
Unaudited Statement of Comprehensive Income
Half year Year ended ended 31st 30th December June 2016 2015 2016 £000 £000 £000 Income from investments in: Core holdings 88 100 129 Other listed investments 49 32 101 Surplus on disposal of listed undertakings 430 - 49 567 132 279 Administrative expenses – normal (163) (133) (290) Operating profit/(loss) 404 (1) (11) Share of results of associated companies 48 67 52 Interest receivable 22 21 45 Finance expense (14) (7) (9) Profit on ordinary activities before taxation 460 80 77 Taxation (5) (3) (13) Profit on ordinary activities after taxation 455 77 64 Other Comprehensive Income Fair value recycled from equity on disposal (199) - (31) Fair value adjustment on listed undertakings 733 897 1,073 Deferred taxation on fair values - - - Total Other Comprehensive profit/(loss) 534 897 1,042 Total comprehensive income 989 974 1,106
Earnings per share 2.5p 0.4p 0.4p Interim dividend per share 1.10p 1.05p 1.05p Final dividend per share 1.05p Total dividends in respect of the year 2.10p
Unaudited Changes in Shareholders’ Equity
Half year Year ended ended 31st 30th December
June 20162015 2016 £000 £000 £000
Total comprehensive income 989 974 1,106 Dividends paid (188) (188) (376) 801 786 730 Equity shareholders’ funds at start of period 14,217 13,487 13,487 Equity shareholders’ funds at end of period 15,018 14,217 14,273
Unaudited Statement of Financial Position
31st December 30th June 2016 2015 2016 £000 £000 £000 Non-current assets Core holdings Bilby plc 1,344 2,775 2,968 Northbridge Industrial Services plc 3,546 2,050 2,772 Swallowfield plc 4,550 3,570 3,400 Investments in Associates 847 733 799 Treasury investments 5,043 3,430 4,488 Trade and other receivables 442 660 692 15,772 13,218 15,119 Current assets - trade and other receivables 44 85 85 Cash at bank - 1,089 112 Other current liabilities - trade and other (100) (120) (99) payables Net current (liabilities)/assets (56) 1,054 98 Financial Liabilities due after more than one (698) - (1,000) year Net assets 15,018 14,272 14,217 Capital and Reserves Called up share capital 7,180 7,180 7,180 Share premium account 2,654 2,654 2,654 Capital reserve 3 3 3 Unrealised profits and losses on investments 4,107 3,428 3,574 Share of undistributed (losses)/profits of (152) (186) (200) associates Realised profits 1,226 1,193 1,006 Equity shareholders’ funds 15,018 14,272 14,217 Net assets per share 84p 80p 79p Number of shares in issue 17,949,872 17,949,872 17,949,872
Unaudited Statement of Cash Flow
Half year Year ended ended 31st December 30th June 2016 2015 2016 £000 £000 £000 Profit before taxation 460 80 77 Adjustments for non-cash and non-operating expenses: Profits on sale of investments (430) - (49) Share of results of associates (48) (67) (52) Net interest received (8) (14) (36) Increase in debtors and accrued income 291 (61) (93) Increase in creditors 1 4 (17) 266 (58) (170) Taxation paid (5) (3) (13) Net interest received 8 14 36 Cash (absorbed)/generated by operations 269 (47) (147) Investment activities Proceeds of disposal of treasury investments 112 - 78 Purchase of treasury investments (624) (643) (1,038) (512) (643) (960) Investment in associate (81) Disposal of part of core holdings 653 - - Purchase of core holdings (32) (1,922) (3,213) Net cash (outflow)/inflow from investment activities 109 (2,565) (4,254) Financing activities Loan draw down 175 - 1,000 Equity dividend paid (188) (188) (376) Net cash outflow from financing activities (13) (188) 624 Movement in cash and cash equivalents 365 (2,800) (3,777) Net cash and cash equivalents at start of year 112 3,889 3,889 Net cash and cash equivalents at end of year 477 1,089 112
Reconciliation to movements in cash and cash equivalents
At start Cash At end of Period Flow of Period £000 £000 £000 Half year ended 31st December 2016 Cash and cash equivalents 112 365 477 Bank overdraft (1,000) (175) (1,175) Net cash and cash equivalents (888) 190 (698) 31st December 2015 Bank overdraft 3,889 (2,800) 1,089 Year ended
30th June 2016Cash and cash equivalents 3,889 (3,777) 112 Bank overdraft - (1,000) (1,000) Net cash and cash equivalents 3,889 (4,777) (888)
1. Basis of preparation: The results for the six months ended
31st December 2016are unaudited. The information contained in this Interim Statement does not constitute statutory accounts within the meaning of the Companies Act 2006. The statutory accounts of Western Selection P.L.C. for the year ended 30th June 2016have been reported on by the Company's auditors and have been delivered to the Registrar of Companies. The report of the auditors was unqualified. This Interim Statement has been prepared in accordance with the accounting policies contained in the Company’s 2016 Annual Report and Accounts. 2. Earnings per share: The calculation of earnings per share is based on the weighted average number of shares in issue for the period (17,949,872) and the profit on ordinary activities after tax.
Statement of Directors’ responsibility
The Directors confirm that, to the best of their knowledge:
- the unaudited interim results for the six months ended 31st
- the Interim Statement includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules.
The Directors accept responsibility for the contents of this Interim Statement.
Neither this Interim Statement nor any future interim statements of the Company will be posted to shareholders. The Interim Statement is available as follows:
-- on the Company’s website at www.westernselection.co.uk ; and -- by writing to
City Group P.L.C., the Company Secretary, at 6 Middle Street, LondonEC1A 7JA
This Interim Statement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.