(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
Results for the year
The Company’s profit on ordinary activities after tax for the year was £784,000 (2017 – profit after tax £850,000). Western sold 200,000 shares of its holding of 1,500,000 shares in Swallowfield during the year, realising an exceptional profit of £443,000 (2017 - £845,000).
Dividend income from
During the year Western increased its investment in Northbridge by £95,000.
Net assets per share have increased by 1% from 95p to 96p.
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
During the year, Western invested £95,000 in acquiring 76,368 new ordinary shares in Northbridge pursuant to a share placing. Western now holds 3,300,000 Northbridge shares which represents 12.6% of Northbridge’s enlarged issued share capital. The value of this investment at 30th
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 their website: www.swallowfield.com
Swallowfield, which is admitted to trading on AIM, announced its results for the 53 weeks ended 30th
In March this year, Western sold 200,000 Swallowfield shares, realising a profit of £443,000, during the year. At the reporting date, being 30th
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 approximately 6.7% of Bilby’s issued share capital. The market value of this investment on 30th
Western holds 441,090 A ordinary shares in
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
As part of its continued efforts to obtain planning permission for the development of the land at Milngavie, ICH appointed
M & M in respect of the bulk of its landholding in Milngavie,
The Agreement includes a formula for setting the net sale price based on the market value of the site once planning permission has been granted. The net sale price will include a minimum of three instalment payments of £25,000 each with the first payment having been made on the signing of the Agreement and the second and third instalments being paid on an annual basis thereafter. Both parties expect the planning and development process to run over the course of the next few years. However, M & M may terminate the Agreement early without completing the purchase of the property, but in doing so M & M will still be required to pay any remaining instalment(s).
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
There has been strong growth across global stock markets in the last twelve months, but political and economic uncertainty continues. The
Despite these uncertainties, we are confident that our
Dividend Declaration and Timetable
The Company paid an interim dividend of 1.1p per share on 20th
A final dividend of 1.15p per share is proposed by the Board, making 2.25p for the year, compared to 2.2p for 2017. The dividend timetable, if the dividend is approved by shareholders at the forthcoming AGM, is as follows:
Shares trade ex-dividend Thursday 22nd
Record date Friday 23rd
Payment date Tuesday 11th
The Company’s 2018 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 P.L.C. +44(0) 20 7796 9060 Cairn Financial Advisers LLPJames Caithie / Liam Murray+44(0) 20 7213 0880
Statement of Comprehensive Income
For the year ended 30th June 2018 2017 £000 £000 Income from investments in: Listed Core holdings 132 120 Other listed undertakings 135 136 267 256 Administrative expenses (348) (325) Profit on partial disposal of investment in core holdings 443 845 Profit on disposal of other investments 483 50 Operating profit 845 826 Share of (losses)/ profits of associated companies (17) 49 Finance income 26 26 Finance costs (52) (33) Profit before taxation 802 868 Taxation (18) (18) Profit after taxation attributable to equity shareholders 784 850 Other comprehensive income Items that may be reclassified subsequently to profit and loss: - Fair value recycled from equity on disposal (1,023) (348) Fair value adjustment on available for sale investments 851 2,792 Total other comprehensive (expense)/income (172) 2,444 Total comprehensive income 612 3,294 Basic and diluted earnings per share attributable to equity holders 4.4p 4.7p
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 2017 Balances at 1st July 2016 7,180 2,654 3 3,574 (200) 1,006 14,217 Profit for - - - - 49 801 850 the period Items that - - - 2,444 - - 2,444 can be reclassified to the income statements – Other comprehensive income Fair values net of tax Total comprehensive - - - 2,444 49 801 3,294 income Transactions with shareholders Final - - - - - (188) (188) dividend paid in respect of prior year Interim dividends - - - - - (198) (198) paid in respect of the year Total transactions - - - - - (386) (386) with shareholders Balances at 30th June 7,180 2,654 3 6,018 (151) 1,421) 17,125) 2017 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 2018 Balances at 1st July 2017 7,180 2,654 3 6,018 (151) 1,421 17,125 (Loss)/Profit - - - - (17) 801 784 for the period Items that - - - (172) - - (172) can be reclassified to the income statements – Other comprehensive 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 5,846 (168) 1,827 17,342 2018
Statement of Financial Position
Registered Number 00234871
At 30th June 2018 2017 £000 £000 Non-current Assets: Investment in Associated companies 1,830 1,846 Investments classified as available for sale 15,549 16,285 Other receivables 192 192 17,571 18,323 Current Assets Trade and other receivables 808 40 Cash and cash equivalents 35 78 843 118 Current Liabilities Trade and other payables (97) (91) Net Current Assets 746 27 Financial Liabilities falling due in more than one year (975) (1,225) Net Assets 17,342 17,125 Equity Share capital 7,180 7,180 Share premium account 2,654 2,654 Capital reserve account 3 3 Unrealised profits on investments 5,846 6,018 Share of undistributed losses of associates (168) (151) Realised profits 1,827 1,421 Shareholders’ Funds 17,342 17,125
Statement of Cash Flow
For the year ended 30th June 2018 2018 2017 2017 £000 £000 £000 £000 Profit before taxation 802 868 Profit on disposal of investments in core holdings (443) (845) Profit on disposal of other investments (483) (50) Share of results of associates 17 (49) Net finance costs 26 7 Changes in working capital Increase/(decrease) in trade and other receivables (19) 45 (Decrease) in trade and other payables 6 (8) Cash absorbed by operations (94) (32) Taxation paid (18) (18) Net finance costs (26) (7) Net cash absorbed by operations (138) (57) Cash flow from investment activities Investments in associated companies (750) (500) Purchase of Core Holdings (95) (190) Proceeds on disposal of Core Holdings 666 1,385 Proceeds on disposal of other financial instruments 919 112 Purchase of other financial instruments - (623) Net cash generated by investment activities 740 184 Financing activities Loan drawdown 2,525 225 Loan repayment (2,775) - Equity dividends paid (395) (386) Net cash outflow from financing activities (645) (161) Movement in cash and cash equivalents (43) (34) Cash and cash equivalents at start of year 78 112 Cash and cash equivalents at end of year 35 78
Analysis of net debt At start of year Cash Flow £000 At end of year £000 £000 2018 Cash and cash equivalents 78 (43) 35 Bank borrowings (1,225) 250 (975) Total net debt (1,147) 207 (940) 2017 Cash and cash equivalents 112 (34) 78 Bank overdraft (1,000) (225) (1,225) Total net debt (888) (259) (1,147)
1. Earnings per share
Earnings per share are based on the profit on ordinary activities after taxation of £784,000 (2017 - £850,000) and on 17,949,872 (2017 – 17,949,872) being the weighted average number of shares in issue during the period.
2018 2017 Basic earnings per share 4.4p 4.7p
Diluted earnings per share at 30th
1. Net assets per share
The net assets per share are calculated taking investments at market value.
1. 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
1. 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 2. 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 June 2018and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. 3. The accounts for the year ended 30th June 2017, which were prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the EU, have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under section 498(2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 30th June 2017will be finalised on the basis of the financial information presented by the directors in this preliminary announcement. The auditors anticipate issuing an unmodified opinion. 4. Copies of this notification are held at the Company’s office, 6 Middle Street, London, EC1A 7JA (tel. 020 7796 9060) and are available for a period of 14 days from the date of this announcement.