WESTERN SELECTION PLC - Half-yearly Report PR Newswire


Date:         26th February 2014

On behalf of: Western Selection P.L.C. ("the Company" or "Western")

              For immediate release






                           Western Selection P.L.C.

                                Interim Results


Western Selection P.L.C. (ISDX: WESP), a strategic investment company with a
mix of Strategic Investments and a General Portfolio of mainly listed stocks,
today announces its unaudited interim results for the six months ended 31st
December 2013.




Chairman's Statement

The Directors are pleased to present the unaudited interim results of the
Company for the six months ended 31st December 2013.

Our net assets per share increased 13% to 93p at 31st December 2013 from 82p
at 30th June 2013. Our Strategic Investments increased in value by 15%.  Our
General Portfolio increased by 2% compared with increases of 14% in the
FTSEurofirst 300 index and 15% in the S&P 500 index over the half year.
At the close of business on 25th February 2014, our net asset value was
93.4p per share.

Dividend income from Strategic Investments has decreased from £198,000 to
£120,000 from the comparative period last year as Swallowfield did not pay a
final dividend in respect of its year ended June 2013(2012 - £77,000, 4.1p per share).
Our share of the results of associates has improved compared with the comparative
period and we have been able to release some of the surplus provisions relating
to the closure of Hartim's Australian subsidiary.

The Company achieved a profit for the half year of £336,000 (1.9p per share)
compared with £78,000 for the same period last year (0.4p per share).
Operating profit before associates was £28,000, compared to £90,000 last year.


Investment policy and management

Western's investment policy is to hold strategic stakes in a few special
situations and maintain a diversified portfolio of high quality U.K. and
internationally listed equities.  Strategic investments are minority positions
where we seek to maintain a close working relationship with the management of
the investee.  Western has nominees on the boards of three of our four strategic
investments and is working to improve relations with the Swallowfield board.

An analysis of assets is shown on the face of the Statement of Financial Position.


General Portfolio

The value of our General Portfolio increased over the period by 2% to £2,966,000.
The General Portfolio represents 18% of Western's assets.


Strategic Investments

Creston plc ("Creston")

Creston is a digitally focussed insight and communications group with a strategy
to grow within its sector to become a substantial, diversified international group.
Further information about Creston is available on its website: www.creston.com.

Creston's results for the half-year to 30th September 2013 show a profit after tax
of £1,148,000 (2012: £8,259,000 - including one off items of £3,450,000 primarily
deferred consideration write-back).  Creston declared an interim dividend of 1.20p
per share, an increase of 20% on the prior year.

Western owns 3,000,000 shares in Creston (5.0%) with a market value at 31st December
2013 of £2,790,000 (30th June 2013: £3,240,000), being 17% of Western's assets.

I am a Non-Executive Director of Creston.


Northbridge Industrial Services plc ("Northbridge")

Northbridge hires and sells specialist industrial equipment to a non-cyclical
customer base.  With offices or agents in the U.K., U.S.A., Dubai, Germany,Belgium,
France, Australia, Singapore, India, Brazil, Korea and Azerbaijan, Northbridge has a
global customer base.  This includes utility companies, the oil and gas sector,
shipping, construction and the public sector.  The product range includes loadbanks,
transformers, generators, compressors, loadcells and oil tools.  Further information
about Northbridge is available on its website: www.northbridgegroup.co.uk.

Northbridge's latest results, for the half year to 30th June 2013, showed profit
after tax of £1,949,000(2012:£1,027,000).  Northbridge declared an interim dividend
of 2.00p per share, an increase of 8% on the prior year.

Western owns 2,000,000 shares, representing 11.6% of Northbridge's share capital.
The market value of this investment has increased substantially and at 31st December
2013 was £9,200,000 (30th June 2013: £7,040,000), representing 55% of Western's assets.

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's latest results, for the year to 30th June 2013, showed a loss
after tax (and after restructuring costs of £491,000), of £815,000
(2012: profit of £1,263,000).  Swallowfield did not declare a final dividend
(2012: 4.1p).

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 December 2013
was £1,570,000(30th June 2013: £1,495,000) representing 9% of the Company's assets.


Hartim Limited ("Hartim")

Hartim offers a complete export sales, marketing and logistical service to a
number of well known UK branded fast moving consumer goods companies.  This
investment was acquired on 28th March 2009 and is accounted for as an associated
company.

Our share of Hartim's estimated results for the period ended 31st December 2013
is a profit of £161,000 (2012 - £1,000) after tax, plus an exceptional profit of
£167,000 due to the release of surplus provisions relating to the closure of its
Australian subsidiary.

On 18th December 2013 we announced that we were making a loan of £500,000 to Hartim
to provide funds to support its continuing growth.  The loan is convertible into
equity if not repaid by 31st December 2016, carries interest at 6% over base rate
and is secured over Hartim's principal asset, its operating subsidiary, Tudor Rose Ltd.

We also announced loans of £160,000 to Hartim's executive management team to
assist them with the purchase of shares in Hartim formerly owned by the retiring
managing director.  These loans bear interest at 4.5% over base rate, are repayable
by 31st December 2018, and are secured over shares in Hartim. The Western board has
decided that it is in the best interests of Western's shareholders that the current
executive directors of Hartim should have a material stake in the success of Hartim,
and these loans are a pragmatic way of achieving this objective.

These loans substantially increase Western's exposure to Hartim, but the business is
performing well, the loans generate a positive return to Western, and the structure
encourages the payment of a dividend on Western's original investment.

At 31st December 2013, Western owned 49.5% of Hartim.  The carrying value of the
Company's equity investment in Hartim on 31st December 2013 was £514,000
(30th June 2013: £185,000) representing 3% of the Company's assets.  In addition,
loans of £660,000 (equivalent to a further 4% of the Company's assets) have been made
to Hartim and its executive directors.

Mr. Beale is a Non-Executive Director of Hartim.


Conclusion & Outlook

We remain convinced that equity investments are the best opportunity for real
growth in shareholder value in these uncertain times.

The Board has declared an increased interim dividend of 0.95p per share (2013: 0.85p)
that will be paid on Friday 21st March 2014 to shareholders on the register at the
close of business on 7th March 2014.  Subject to unforeseen circumstances, we expect
to show satisfactory results for the period to 30th June 2014 and to declare a
similar final dividend for the current year, which the Board anticipates paying
in October 2014.



                                                                  D.C. MARSHALL

Chairman





Unaudited Statement of Comprehensive Income



                                                           Half year
                                                              ended  Year ended
                                                       31st December  30th June
                                                        2013    2012       2013
                                                        £000    £000       £000

Income from investments in:

Listed strategic undertakings                           120      198        340

Other listed investments                                 39       46        103

Surplus on disposal of listed undertakings                6        -        529
                                                     -------   ------    ------
                                                        165      244        972

Administrative expenses - normal                       (134)    (143)      (260)
                                                     -------   ------    ------
Operating profit                                         31      101        712

Share of results of associated companies                143       91        426

Share of exceptional profit/(loss) of associated
company                                                 167     (101)    (1,390)

Finance expense                                          (3)     (11)       (31)
                                                     -------   ------    -------
Profit/(Loss) on ordinary activities before taxation    338       80       (283)

Taxation                                                 (2)      (2)        (8)
                                                     -------   ------    -------
Profit/(Loss) on ordinary activities after taxation     336       78       (291)

Other Comprehensive Income

Fair value recycled from equity on disposal               2        -       (340)

Fair value adjustment on listed undertakings          1,820     (239)     2,849
                                                     -------   ------    ------
Total comprehensive income                            2,158     (161)     2,218
                                                     -------   ------    ------


Earnings/(loss) per share                               1.9p     0.4p     (1.6)p



Interim dividend per share                             0.95p    0.85p    0.85p

Final dividend per share                                  -        -      1.05p
                                                                        -------
Total dividends in respect of the year                    -        -      1.90p
                                                                        -------







Unaudited Changes in Shareholders' Equity

                                                                           Year
                                                     Half year ended      ended
                                                       31st December  30th June
                                                      2013      2012       2013
                                                      £000      £000       £000


Total comprehensive income                           2,158     (161)      2,218

Dividends paid                                        (188)    (162)       (314)
                                                    -------   ------     ------
                                                      1,970    (323)      1,904
Equity shareholders' funds at start of period        14,799  12,895      12,895
                                                    -------  -------     ------
Equity shareholders' funds at end of period          16,769  12,572      14,799
                                                    _______  _______     ______




Unaudited Statement of Financial Position



                                                   31st December      30th June
                                                 2013         2012         2013
                                                 £000         £000         £000

Non-current assets

Strategic Investments

  Creston plc                                  2,790         2,370        3,240

  Northbridge Industrial Services plc          9,200         5,170        7,040

  Swallowfield plc                             1,570         1,925        1,496

  Associates                                   1,279         1,263          308

General Portfolio investments                  2,966         2,652        2,919
                                            --------       -------       ------
                                              17,805        13,380       15,003
                                            --------       -------       ------


Current assets - trade and other
receivables                                       17            20           22

Bank overdraft                                  (976)         (725)        (129)

Other current liabilities - trade and
other payables                                   (77)         (103)         (97)
                                             --------       -------      -------
Net current liabilities                       (1,036)         (808)        (204)
                                             --------       -------      -------
Total assets less current liabilities         16,769         12,572       14,799
                                             --------       -------      -------


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                                    5,486           917         3,666

Share of undistributed (losses)/profits of
associates                                      (300)          344         (610)

Realised profits                               1,746         1,474         1,906
                                             --------       -------       ------
Equity shareholders' funds                    16,769        12,572        14,799
                                             --------       -------       ------




Net assets per share                              93p          70p           82p


Number of shares in issue                  17,949,872   17,949,872    17,949,872



Notes:-



1. 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 2013 have been reported on by the Company's
   auditors and have been delivered to the Registrar of Companies.  The report
   of the auditors was unqualified.

2. This report has been prepared in accordance with the accounting policies
   contained in the Company's Annual Report and Accounts 2013.

3. 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.










Unaudited Statement of Cash Flow

                                                    Half year ended  Year ended
                                                     31st   December  30th June
                                                     2013       2012       2013
                                                     £000       £000       £000

Profit/(Loss) before taxation                         338         80       (283)

Profits on sale of investments                        (6)          -       (529)

Share of results of associates                      (143)        (91)      (426)

Share of exceptional results of associates          (167)        101      1,390

Net interest paid                                      3          11         31

Decrease in debtors and accrued income                 6          51         49

(Decrease)/Increase in creditors                     (20)          5          1
                                                   ------      ------     -----
                                                      11         157        233



Taxation paid                                         (2)         (2)        (8)

Net interest paid                                     (3)        (11)       (31)
                                                   ------      ------     ------
Cash generated by operations                           6         144        194
                                                   ------      ------     ------


Investment activities

Proceeds of disposal of fixed asset investments      169           -        312

Purchase of fixed asset investments                 (174)          -       (352)
                                                   ------      ------     ------
                                                      (5)          -        (40)

Disposal of strategic investments                       -          -        738

Loans to Hartim and its directors                   (660)          -          -
                                                   ------     -------     ------
Net cash (outflow)/inflow from investment
activities                                          (665)          -        698
                                                   ------     -------     ------


Financing activities

Equity dividend paid                                (188)       (162)      (314)
                                                   ------     -------     ------
Net cash outflow from financing activities          (188)       (162)      (314)
                                                   ------     -------     ------


Movement in cash and cash equivalents               (847)        (18)       578

Net cash and cash equivalents at start of year      (129)       (707)      (707)
                                                   ------     -------     ------
Net cash and cash equivalents at end of year        (976)       (725)      (129)
                                                   ------     -------     ------




Reconciliation to movements in cash and cash equivalents

                                                  At start     Cash       At end
                                                    Period     Flow       Period
                                                      £000     £000         £000

Half year ended
31st December 2013
Bank overdraft                                        (129)    (847)        (976)
                                                   --------   ------     --------

31st December 2012
Bank overdraft                                        (707)     (18)        (725)
                                                   --------   ------     --------

Year ended 30th June 2013
Bank overdraft                                        (707)     578         (129)
                                                   --------   ------     --------











Composition of General Portfolio
at 31st December 2013

                                                       Carrying
                                                          value
                                                           £000           %


Diageo                                                      193         6.5

British American Tobacco                                    191         6.4

Becton Dickinson                                            175         5.9

Lockheed Martin                                             168         5.7

Chevron                                                     166         5.6

Royal Dutch Shell                                           162         5.5

Philip Morris International                                 152         5.1

Unilever                                                    149         5.0

Sarasin International Equity Income Fund (A Class Inc)      147         5.0

Reckitt Benckiser                                           138         4.7

Brown Forman                                                133         4.5

Exxon Mobil                                                 128         4.3

Imperial Tobacco                                            127         4.3

Colgate Palmolive                                           122         4.1

Procter and Gamble                                          113         3.8

Novartis                                                     87         2.9

L'Oreal                                                      72         2.4

Schindler-Holdings                                           69         2.3

United Tecnologies                                           69         2.3

BASF                                                         68         2.3

Nestlé                                                       62         2.1

Pernod Ricard                                                61         2.0

Heineken                                                     58         2.0

Zurich Financial Services                                    54         1.8

ABB                                                          52         1.8

Danone                                                       50         1.7
                                                         ------        ----
Total                                                     2,966         100
                                                         ------        ----



Copies of this notification are held at the Company's office, 30 City Road,
London, EC1Y 2AG (tel. 020 7448 8950) and are available for a period of 14 days
from the date of this announcement.


Enquiries to:

Western Selection P.L.C.                       020 7448 8950
Edward Beale


Loeb Aron & Co. Ltd.                           020 7628 1128
Peter Freeman / Jonathan Willis-Richards






Notes to Editors:



The Company is an investment company and the investment policy is to hold
strategic stakes in a few smaller UK quoted companies and maintain a diversified
portfolio of U.K. and overseas quoted multinational stocks,together with a few
holdings on AIM and some unlisted shares.  Strategic Investments are minority
positions where the Board seeks to maintain a close working relationship with the
management of the investee.  Western is represented on the boards of three of its
four Strategic Investments.