On behalf of
Western’s objective is 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 at a pre-IPO or IPO stage, and have directors in common through which we can provide advice and support for these growing companies. These may or may not be associated companies. Our aim is that these core holdings will grow to a stage at which our support is no longer required and our stake can then be sold over time into the market. Companies that are targeted as core holdings will have an experienced management team and a credible business model, and other good prospects for growth.
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 core investment holdings, we need to be able to react quickly, and so we need to have readily available funds to invest. To achieve this we will maintain a treasury operation consisting of cash, debt facilities and liquid investments. We have ceased to have a general portfolio of investments.
The Directors are pleased to present the unaudited interim results of the Company for the six months ended
Our net assets per share increased 6% to 80p at
The Company achieved a profit for the half year of £77,000 (0.4p per share) compared with £222,000 for the same period last year (1.2p per share).
Dividend income from
An analysis of assets is shown on the face of the Statement of Financial Position.
During the period we invested £643,000 into investments held in
Northbridge Industrial Services plc (“Northbridge”)
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
During the period we increased our investment in Northbridge by 600,000 shares at a cost of £422,000 and Western now owns 2,500,000 shares, representing 13.57% of the total voting rights in Northbridge’s issued share capital. The market value of this investment at
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 30th
Western owns 1,869,149 shares in Swallowfield (16.5% of their issued share capital). The market value of the Company’s holding in Swallowfield on 31st
Bilby Plc (“Bilby”)
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
The market value of the Company’s holding in Bilby on 31st
Our share of Hartim’s estimated results for the period ended
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 in the local authority’s next five year plan, but it may take some time for permission to be received. The Company’s share of ICH’s loss for the period was £9,000. ICH is in the process of converting into a private limited company and is then planning to undertake a fundraising to raise circa £100,000 of additional funding.
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
We expect a continuing period of low growth or decline in asset prices which will provide buying opportunities for long term investors such as ourselves.
The Board has declared an interim dividend of 1.05p per share (prior year: 1.05p) that will be paid on Thursday, 24th
Unaudited Statement of Comprehensive Income
Half year ended Year ended 31st December 30th June 2015 2014 2015 £000 £000 £000 Income from investments in: Core holdings 100 163 238 Other listed investments 32 39 85 Profit on disposal of investment in - - 2,615 Creston plc Surplus on disposal of listed - 139 143 undertakings 132 341 3,081 Administrative expenses – normal (133) (166) (324) Operating (loss)/profit (1) 175 2,757 Share of results of associated 67 38 (3) companies Interest receivable 21 20 41 Finance expense (7) (8) (11) Profit on ordinary activities before 80 225 2,784 taxation Taxation (3) (3) (10) Profit on ordinary activities after 77 222 2,774 taxation Other Comprehensive Income Fair value recycled from equity on - (159) (1,885) disposal Fair value adjustment on listed 897 (1,673) (5,470) undertakings Deferred taxation on fair values - 137 137 Total Other Comprehensive profit/ 897 (1,695) (7,218) (loss) Total comprehensive income 974 (1,473) (4,444)
Earnings per share 0.4p 1.2p 15.5p Interim dividend per share 1.05p 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 20152014 2015 £000 £000 £000
Total comprehensive income 974 (1,473) (4,444) Dividends paid (188) (188) (377) 786 (1,661) (4,821) Equity shareholders’ funds at start of period 13,487 18,308 18,308 Equity shareholders’ funds at end of period 14,273 13,487 16,647
Unaudited Statement of Financial Position
31st December 30th June 2015 2014 2015 £000 £000 £000 Non-current assets Core holdings Bilby plc 2,775 - - Northbridge Industrial Services 2,050 7,406 3,895 plc Swallowfield plc 3,570 1,589 2,019 Creston plc - 3,840 - Investments in Associates 733 708 666 Treasury investments 3,430 2,424 2,450 Trade and other receivables 660 660 660 13,218 16,627 9,690 Current assets - trade and other 85 64 24 receivables Cash at bank 1,089 68 3,889 Other current liabilities - trade (120) (112) (116) and other payables Net current assets/(liabilities) 1,054 20 3,797 Total assets less current 14,272 16,647 13,487 liabilities 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 3,428 5,035 2,532 investments Share of undistributed (186) (211) (252) (losses)/profits of associates Realised profits 1,193 1,986 1,370 Equity shareholders’ funds 14,272 16,647 13,487 Net assets per share 80p 93p 75p Number of shares in issue 17,949,872 17,949,872 17,949,872
Unaudited Statement of Cash Flow
Half year ended Year ended 31st December 30th June 2015 2014 2015 £000 £000 £000 Profit before taxation 80 225 2,784 Adjustments for non-cash and non-operating expenses: Profits on sale of Creston - - (2,615) Profits on sale of investments - (139) (143) Share of results of associates (67) (38) 3 Net interest received (14) (12) (30) Increase in debtors and accrued (61) (40) - income Increase in creditors 4 18 22 (58) 14 21 Taxation paid (3) (3) (10) Net interest received 14 12 30 Cash (absorbed)/generated by (47) 23 41 operations Investment activities Proceeds of disposal of treasury - 926 931 investments Purchase of treasury investments (643) (103) (104) (643) 823 827 Disposal of part of core holdings - - 4,040 Purchase of core holdings (1,922) - (52) Net cash (outflow)/inflow from (2,565) 823 4,815 investment activities Financing activities Equity dividend paid (188) (188) (377) Net cash outflow from financing (188) (188) (377) activities Movement in cash and cash (2,800) 658 4,479 equivalents Net cash and cash equivalents at 3,889 (590) (590) start of year Net cash and cash equivalents at end 1,089 68 3,889 of year
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 2015 Cash and cash equivalents 3,889 (2,800) 1,089 31st December 2014 Bank overdraft (590) 658 68 Year ended
30th June 2015Cash and cash equivalents - 3,889 3,889 Bank overdraft (590) 590 - Net cash and cash equivalents (590) 4,479 3,889
1. Basis of preparation: The results for the half-year are unaudited. The information contained in this report 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 2015have 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 report has been prepared in accordance with the accounting policies contained in the Company’s Annual Report and Accounts 2015. 2. Earnings per share: The calculation of earnings per share is based on the weighted average number of shares in issue for the period and the profit on ordinary activities after tax.