(the “Company” or “Western”)
Unaudited Preliminary Results for the Year Ended 30th
The Company today announces its unaudited preliminary financial results for the year ended 30th
Western’s objective is to generate growth in value for shareholders over the medium to long-term and pay a progressive dividend.
Our 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. The 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 into 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
There has been an increased focus on Environmental, Social and Governance (ESG) issues in recent years. The Company acknowledges the benefits of socially responsible long-term investment and consideration of ESG issues is integrated in its investment decision-making processes.
Results for the year
Accounts have been prepared under IFRS 9 for the first time and comparatives have been restated. This has no effect on the Company’s Statement of Financial Position or cash flow but does move some amounts between profit and loss and other comprehensive income.
2019 has been a challenging year for the Company. Political uncertainty coupled with economic uncertainty in the form of stock market and exchange rate volatility have continued to impact on the
Dividend income from
Following this, the Company is reporting a loss on ordinary activities after tax for the year of £2,611,000 (2018 – restated loss after tax £241,000).
Net assets per share have decreased by 34% from 96p to 64p.
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, which is admitted to trading on AIM, announced its results for the year ended 31st
Western holds 3,300,000 Northbridge shares which represents 11.8% of Northbridge’s enlarged issued share capital. The market value of this investment at 30th
Brand Architekts Group plc (“BAG” formerly Swallowfield plc)
BAG is now a brands business following the sale of its contract manufacturing operations and the change of name to Brand Architekts Group plc. Further information about BAG is available on their website: https://www.brandarchitekts.com.
BAG, which is admitted to trading on AIM, announced its results for the 52 weeks ended 29th
Western holds 1,300,000 BAG shares which represents 7.6% of BAG’s issued share capital. The market value has decreased to £2,502,000 (2018 - £4,095,000), which represents approximately 21.4% (2018 – 23.6%) of Western’s net assets.
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, which is admitted to trading on AIM, announced its results for the year ended 31st
Western holds 2,700,000 Bilby shares which represents 6.7% of Bilby’s issued share capital. The market value of this investment on 30th
Western holds 441,090 A ordinary shares in
In recent years changes in ownership and strategy of major brands that
Western has two nominees on the board of
ICH is a small unquoted PLC in which Western holds 15,252,774 shares which represents a 29.9% interest. ICH owns land at Milngavie, adjacent to Dougalston golf course, just north east of
Western holds 48.6% and London Finance & Investment Group PLC (Western’s largest shareholder) holds 51.4% of
At the year-end the Company had net cash of £3,093,000 (2018 – net debt of £940,000) and no stock market investments (2018 - £4,329,000). The Company had no outstanding bank borrowing at the year-end (2018 – £975,000). The Company has an Interest rate swap agreement with
An agreed Brexit withdrawal process remains unresolved and the eventual outcome of Brexit is still unknown. In addition, rising political and trading policy uncertainty across the globe have negatively affected trading conditions. In light of these factors, the Company aims to reinvest the proceeds from the sale of its liquid investments when opportunities arise to buy good companies at sensible prices.
The Company paid an interim dividend of 1.1p per share on 20th
As market uncertainty continues and Western is no longer receiving dividend income from its liquid investments, the Board did not consider it prudent to recommend payment of a final dividend. Dividend payments for the year amounted to 1.1p per share compared to 2.25p for 2018.
The Company’s 2019 Report and Accounts will shortly be finalised and sent to shareholders.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact:
Western Selection PLC+44(0) 20 7796 9060 Cairn Financial Advisers LLPJames Caithie / Liam Murray+44(0) 20 7213 0880
Statement of Comprehensive Income
Restated for IFRS 9 For the year ended 30th June 2019 2018 2018 £000 £000 £000 Income from investments in: Listed core holdings 150 132 132 Other listed undertakings 117 135 135 267 267 267 Administrative expenses (332) (348) (348) Profit on partial disposal of investment in - - 443 core holdings Profit on disposal of other investments 156 (3) 483 Operating profit 91 (84) 845 Share of losses of associated companies (218) (17) (17) Impairment provisions (2,424) - - Fair value movement on other investments - (96) - Finance income 14 26 26 Finance costs (59) (52) (52) (Loss)/Profit before taxation (2,596) (223) 802 Taxation (15) (18) (18) (Loss)/Profit after taxation attributable to equity shareholders (2,611) (241) 784 Other comprehensive income Exchange differences on bank revaluation 38 - - Profit on partial disposal of investment in - 443 - core holdings Fair value recycled on disposal - (537) (1,023) Fair value adjustment on Core holdings /available for sale investments (2,939) 947 851 Total other comprehensive (loss)/ income (2,901) 853 (172) Total comprehensive (loss)/income (5,512) 612 612 Basic and diluted (loss)/earnings per share attributable to equity holders (14.5)p (1.3)p 4.4p
Statement of Changes of Equity
Share Share Capital Unrealised Share of Realised Total capital premium reserve profits on undistributed profits account account investments profits/ (losses) of associates £000 £000 £000 £000 £000 £000 £000 Year ended 30th June 2018 Balances at 7,180 2,654 3 6,018 (151) 1,421 17,125 1st July 2017 Restated Impairment - - - 293 - (293) - reserves Revised opening 7,180 2,654 3 6,311 (151) 1,128 17,125 balance (Loss)/Profit - - - - (17) 358 341 for the year Other comprehensive income Profit on - - - - - 443 443 disposal of core investments reclassified to realised equity Other comprehensive - - - (172) - - (172) income Fair values net of tax Total comprehensive - - - (172) (17) 801 612 income Transactions with shareholders Final - - - - - (197) (197) dividend paid in respect of prior year Interim dividends - - - - - (198) (198) paid in respect of the year Total transactions - - - - - (395) (395) with shareholders Balances at 30th June 7,180 2,654 3 6,139 (168) 1,534 17,342) 2018 Share Share Capital Unrealised Realised Total capital premium reserve profits on Share of profits account account investments undistributed profits/ (losses) of associates £000 £000 £000 £000 £000 £000 £000 Year ended 30th June 2019 Restated balances at 1st July 2018 7,180 2,654 3 6,139 (168) 1,534 17,342 (Loss)/Profit - - - (1,691) (218) (702) (2,611) for the year Other - - - (2,901) - - (2,901) comprehensive income – Fair values net of tax Total comprehensive - - - (4,592) (218) (702) (5,512) Income Transactions with shareholders Final - - - - - (207) (207) dividend paid in respect of prior year Interim dividends - - - - - (197) (197) paid in respect of the year Total transactions - - - - - (404) (404) with shareholders Balances at 30th June 7,180 2,654 3 1,547 (386) 428 11,426 2019
Statement of Financial Position
Registered Number 00234871
Restated At 30th June 2019 2018 2018 £000 £000 £000 Non-current Assets: Investment in Associated companies 153 1,830 1,830 Investments classified as available for sale 8,281 15,549 15,549 Other receivables - 192 192 8,434 17,571 17,571 Current Assets Trade and other receivables 22 808 808 Cash and cash equivalents 3,093 35 35 3,115 843 843 Current Liabilities Trade and other payables (123) (97) (97) Net Current Assets 2,992 746 746 Financial Liabilities falling due in more than one year - (975) (975) Net Assets 11,426 17,342 17,342 Equity Share capital 7,180 7,180 7,180 Share premium account 2,654 2,654 2,654 Capital reserve account 3 3 3 Unrealised profits on investments 1,547 6,089 5,846 Share of undistributed losses of associates (386) (168) (168) Realised profits 428 1,584 1,827 Shareholders’ Funds 11,426 17,342 17,342
Statement of Cash Flow
Restated for IFRS 9 For the year ended 30th June 2019 2018 2018 £000 £000 £000 (Loss)/Profit before taxation (2,596) (223) 802 Profit on sale of investments in core - - (443) holdings Profit on sale of other investments (1,847) 3 (483) FV adjustment on other investments 1,691 96 - FX on bank balances 38 - - Impairment provisions 2,424 - - Share of results of associates 218 17 17 Net interest payable 44 26 26 Changes in working capital Increase/(Decrease) in trade and other 13 (19) (19) receivables Increase in trade and other payables 18 6 6 Cash generated /(absorbed) by operations 3 (94) (94) Taxation paid (15) (18) (18) Net interest paid (37) (26) (26) Net cash absorbed by operations (49) (138) (138) Cash flow from investment activities Investments in associated companies - (750) (750) Purchase of Core Holdings - (95) (95) Proceeds on disposal of Core Holdings - 666 666 Proceeds on disposal of other financial 4,586 919 919 instruments Purchase of other financial instruments (100) - - Net cash generated by investment activities 4,486 740 740 Financing activities Loan drawdown - 2,525 2,525 Loan repayment - (2,775) (2,775) Equity dividends paid - (395) (395) Net cash outflow from financing activities (1,379) (645) (645) Movement in cash and cash equivalents 3,058 (43) (43) Cash and cash equivalents at start of year 35 78 78 Cash and cash equivalents at end of year 3,093 35 35
Analysis of net cash At start of year Cash Flow £000 At end of year £000 £000 2019 Cash and cash equivalents 35 3,058 3,093 Bank borrowings (975) 975 - Total net debt (940) 4,033 3,093 2018 Cash and cash equivalents 78 (43) 35 Bank overdraft (1,225) 250 (975) Total net debt (1,147) 207 (940)
1.Earnings per share
Earnings per share are based on the (loss)/profit on ordinary activities after taxation of £(2,611,000) (2018, restated for IFRS 9 - £241,000) and on 17,949,872 (2018 – 17,949,872) being the weighted average number of shares in issue during the period.
2019 2018 Restated for IFRS 9 Basic and diluted (loss)/earnings per share (14.5)p (1.3)p
Diluted earnings per share at 30th
2.Net assets per share
The net assets per share are calculated taking investments at market value.
The Company has estimated Corporation Tax losses which cover the potential liability on the unrealised gains on investments.
The financial information contained in this preliminary announcement of results has been prepared under the recognition and measurement principles of International Financial Reporting Standards and Interpretations issued by the
The financial information does not give sufficient information to comply with IFRS which will be contained in the statutory accounts to be sent to shareholders.
The information in this preliminary results announcement has been prepared on the basis of the accounting policies which have been set out in the Company’s Report & Accounts for the year ended 30th
The accounts for the year ended 30th
The statutory accounts for the year ended 30th
4. Copies of this Announcement
Copies of this announcement are held at the Company’s registered office,