(“Western” or the “Company”)
Unaudited Interim Results for the six months ended 31st
The Company today announces its unaudited interim results for the six months ended 31st
Chairman’s Statement
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
Change in accounting policies
The company has implemented IFRS9 “Financial Instruments” for the first time in these results. Under IFRS9, the company has elected to classify its long-term
This change in accounting policy will have no effect on the Statement of Financial Position.
Activities
Our net assets per share have decreased by 22% to 75p at 31st
Dividend income during the period from
The Company is reporting a loss before tax for the half year of £427,000 with loss per share of 2.4p compared with restated profit before tax of £164,000 and restated earnings per share of 0.9p for the same period last year.
An analysis of assets is shown in the unaudited Statement of Financial Position.
Treasury Operations
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 3,300,000 Northbridge shares, representing 11.8% 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 for the 53 weeks ended 30th
The market value of the Company’s holding of shares in Swallowfield on 31st
Western owns 1,300,000 Swallowfield shares (representing 7.6% of Swallowfield’s issued share capital).
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 30th
Western owns 2,700,000 Bilby shares, which represent 6.7% of Bilby’s issued share capital. The market value of the Company’s holding in Bilby on 31st
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. Through its development partner,
Western holds 15,252,744 shares in ICH (which represents approximately 29.9% of ICH’s issued share capital).
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
Outlook
As Brexit negotiations draw to a close, the eventual outcome of Brexit is still unknown. Stock markets and exchange rates remain volatile. Global interest rates have recently started to stabilise. All these factors have impacted on the value of the Company’s investments. Nevertheless, the Company’s balance sheet remains strong and provides a solid base from which the Company can capitalise on investment opportunities in the future.
Interim Dividend
The Board has declared an interim dividend of 1.1p per share (prior year: 1.1p) that will be paid on
Chairman
For further information, please contact:
Western Selection P.L.C . +44 (0) 20 7796 9060Cairn Financial Advisers LLP +44 (0) 20 7213 0880 James Caithie /Liam Murray
Dividend Timetable
The dividend timetable is as follows:
Shares trade ex-dividend7 March 2019 Record date8 March 2019 Payment date25 March 2019
Statement of Comprehensive Income (Unaudited)
Half year ended Year
ended
31st December 30th June
2018 2017 2018
Restated Restated
GBP000 GBP000 GBP000
Income from investments in:
Core holdings 108 93 132
Other listed investments 53 59 135
161 152 267
Administrative expenses – normal (172) (157) (348)
Profit on disposal of treasury investments - 175 483
Operating (loss)/profit (11) 170 402
Share of (losses)/profits of associated companies (108) 23 (17)
Fair value adjustment on treasury investments (312) (6) (582)
Interest receivable 28 5 26
Finance expense (24) (28) (52)
(Loss)/Profit before taxation (427) 164 (223)
Taxation (5) (6) (18)
(Loss)/Profit after taxation attributable to equity (432) 158 (241)
shareholders
Other comprehensive income
Profit on partial disposal of investment in - - 443
Swallowfield plc
Fair value adjustment on Core Holdings (3,279) 29 410
Total comprehensive (loss)/income (3,711) 187 612
Basic and diluted (losses)/earnings per share (2.4)p 0.9p (1.3)p
attributable to equity holders
Interim dividend per share 1.1p 1.1p 1.10p
Final dividend per share - - 1.15p
Total dividends in respect of the period 1.1p 1.1p 2.25p
Changes in Shareholders’ Equity (Unaudited)
Share of
undistributed
Share Capital Unrealised profits/
Share premium reserve profits on (losses) of Realised
capital account account investments associates profits Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Period ended
31st Dec 2018
Balances at 7,180 2,654 3 5,846 (168) 1,827 17,342
1st July 2018
Loss for the - - - (312) (108) (12) (432)
period
Other - - - (3,279) - - (3,279)
comprehensive
loss
Dividends - - - - - (206) (206)
paid
Balances at 7,180 2,654 3 2,255 (276) 1,609 13,425
31st Dec 2018
Period ended
31st Dec 2017
(Restated)
Balances at 7,180 2,654 3 6,018 (151) 1,421 17,125
1st July 2017
Profit/(Loss) - - - (7) 24 141 158
for the
period
Other - - - 29 - - 29
comprehensive
income
Dividends - - - - - (197) (197)
paid
Balances at 7,180 2,654 3 6,040 (127) 1,365 17,115
31st Dec 2017
Statement of Financial Position (Unaudited)
Half year ended Year ended
31st December 30th June
2018 2017 2018
Non-current assets GBP000 GBP000 GBP000
Core holdings
Bilby plc 1,647 3,051 2,835
Northbridge Industrial Services plc 3,564 2,966 4,290
Swallowfield plc 2,730 4,950 4,095
Investments in Associates 1,721 1,870 1,830
Treasury investments 4,117 5,266 4,329
Trade and other receivables - 192 192
13,779 18,295 17,571
Current assets - trade and other receivables 992 54 808
Cash at bank 146 69 35
Other current liabilities - trade and other (92) (103) (97)
payables
Net current assets/(liabilities) 1,046 20 746
Financial Liabilities due after more than one (1,400) (1,200) (975)
year
Net assets 13,425 17,115 17,342
Equity
Share capital 7,180 7,180 7,180
Share premium account 2,654 2,654 2,654
Capital reserve 3 3 3
Unrealised profits on investments 2,255 6,040 5,846
Share of undistributed (losses) of associates (276) (127) (168)
Realised profits 1,609 1,365 1,827
Shareholders’ funds 13,425 17,115 17,342
Net assets per share 75p 84p 96p
Number of shares in issue 17,949,872 17,949,872 17,949,872
Statement of Cash Flows (Unaudited)
Half year ended Year
ended
31st December 30th June
2018 2017 2018
Restated Restated
GBP000 GBP000 GBP000
Profit before taxation (427) 164 (223)
Adjustments for non-cash and non-operating expenses:
Profits on sale of treasury investments - (175) (483)
Fair value adjustment on treasury investments 312 6 582
Share of results of associates 108 (23) 17
Net interest paid/(received) (4) 23 26
Increase in debtors and accrued income 8 (14) (19)
Increase in creditors (4) 11 6
(7) (8) (94)
Taxation paid (5) (6) (18)
Net interest (paid)/received 4 (23) (26)
Cash (absorbed)/generated by operations (7) (37) (138)
Cash flow from Investment activities
Proceeds of disposal of treasury investments - 250 919
Purchase of treasury investments (100) - -
250 919
Investment in associate - - (750)
Disposal of part of core holdings - - 666
Purchase of core holdings - - (95)
Net cash inflow/(outflow) from investment activities (100) 250 740
Financing activities
Loan drawdown 425 675 2,525
Loan repayment - (700) (2,775)
Equity dividend paid (206) (197) (395)
Net cash outflow from financing activities 219 (222) (645)
Movement in cash and cash equivalents 111 (9) (43)
Cash and cash equivalents at start of year 35 78 78
Cash and cash equivalents at end of year 146 69 35
Reconciliation to movements in cash and cash equivalents
At start Cash At end
of Period Flow of Period
Half year ended GBP000 GBP000 GBP000
31st December 2018
Cash and cash equivalents 35 111 146
Bank borrowings (975) (425) (1,400)
Net debt (940) (314) (1,254)
31st December 2017
Cash and cash equivalents 78 (9) 69
Bank borrowings (1,225) 25 (1,200)
Net debt (1,147) 16 (1,131)
Year ended 30th June 2018
Cash and cash equivalents 78 (43) 35
Bank borrowings (1,225) 250 (975)
Net debt (1,147) 207 (940)
Notes: -
1. Basis of preparation: The results for the six months ended31st December 2018 are unaudited. The information contained in this Interim Statement does not constitute statutory accounts within the meaning of the Companies Act 2006. The statutory accounts ofWestern Selection P.L.C . for the year ended30th June 2018 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. The company has implemented IFRS9 “Financial Instruments” for the first time in these results. Under IFRS9, the company has elected to classify its long-termCore Holdings as financial instruments which are held at fair value with unrealised changes in value taken to Other Comprehensive Income. Gains and losses on disposal ofCore Holdings are not recycled to profit or loss. Changes in the fair values of the treasury investments, previously recognised in the Other Comprehensive Income, will now be recorded in Other income/expenses through profit and loss. Gains and losses realised on the sale of these financial assets will be recorded in the profit and loss to the extent of the difference between sale price and original cost. This change in accounting policy will have no effect on the Statement of Financial Position This re-categorisation has led to restated Profit after tax for the year ended30th June 2018 from £784,000 to a loss after tax of £241,000. Except for this change in accounting policy, this Interim Statement has been prepared in accordance with the accounting policies contained in the Company’s 2018 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.
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 1 Ely Place ,
London , EC1N 6RY
This Interim Statement contains information that was previously inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors accept responsibility for the contents of this Interim Statement.
