WSE.L Regulatory News (WSE)

24 Aug 2006 12:33

Western Selection P.L.C. Preliminary announcement of unaudited results for the year ended 30th June 2006 The Company made a pre-tax profit for the year of ‚£316,000 (2005 - ‚£157,000);the profit after tax is ‚£315,000 - 2.75p per share (2005 - ‚£153,000 - 1.4p pershare). The directors have declared an increased dividend of ‚£286,000,equivalent to 2.45p per share (1995 - ‚£252,000 - 2.32p per share) which will bepaid on 6th October 2006.Western Selection is an investment company with a mix of Strategic Investmentsand a General Portfolio. The investment objective is to generate real growth invalue for shareholders over the medium to long term.During the year a strategic investment of ‚£1.5 million was made in NorthbridgeIndustrial Services Limited financed largely from the proceeds of disposal ofour remaining overseas investments. International diversification has beenretained through the overseas interests of our larger investments, but thecompany's primary focus is investment in the U.K.Taking investments at market value, the net asset value per share increasedduring the year to 30th June 2006 from 89p to 90p. Although partially offset byrises in Creston's and Northbridge's share prices, the value of our StrategicInvestments fell because of the under performance at Swallowfield.Strategic InvestmentsCreston plcCreston is a marketing services group whose strategy is to grow within itssector both by organic growth and through selective acquisition to become asubstantial, diversified international marketing services group. The resultsfor the year to 31st March 2006 show a profit after tax of ‚£2,927,000 (2005 - ‚£2,640,000), equivalent to earnings of 8.04p per share (2005 - 7.04p).At 1st July 2005, Western owned 2,873,998 shares in Creston. During the year afurther 126,002 shares were acquired at a cost of ‚£207,903 by way of exerciseof our warrants and participation in Creston's fundraising. At the year end,the total holding of 3,000,000 shares represented 8.6% of Creston's issuedshare capital. The market value of the Company's holding in Creston on 30thJune 2006 was ‚£4,845,000 (2005 - ‚£4,455,000), being 40% of Western's netassets.I am the non-executive chairman of Creston.Swallowfield plcSwallowfield has a long history of developing and producing aerosol, cosmeticand toiletry products stretching back to 1950. As one of Europe's premiercontract manufacturers of toiletries and cosmetics it offers an unrivalledbreadth of product capabilities. Its skill in design, developing and producinggift packs and themed product ranges compliments its production capability.Swallowfield's latest published results were for the 28 weeks to 7th January2006 and showed a loss of ‚£695,000, after reorganisation costs of ‚£677,000 (28weeks to 8th January 2005 - profit of ‚£353,000).Western owns 1,000,000 shares in Swallowfield being 8.9% of the issued sharecapital. The market value of the Company's holding in Swallowfield on 30th June2006 was ‚£455,000 (2005 - ‚£775,000), being 4% of Westerns' net assets.Northbridge Industrial Services PLCWestern announced in March that it was making an investment of ‚£1.5 million inNorthbridge Industrial Services PLC. That company placed 6,437,500 shares at ‚£1and at the same time its shares were admitted to trading on AIM. WesternSelection was allotted 1.5 million shares, representing 20.3% of Northbridge'sshare capital. The value of the investment at 30th June 2006 was ‚£1,598,000.Northbridge was formed for the purpose of acquiring companies that hire andsell specialist industrial equipment such as generators, load banks, pumps, aircompressors, heaters and chillers. Northbridge is seeking to acquire specialistniche businesses to give it the potential for expansion into outsourcingproviders, capable of supplying a non-cyclical customer base. Northbridge'sfirst acquisition is Crestchic Limited, one of the largest specialist load bankequipment manufacturers in the world; selling and hiring to a national andinternational customer base.Industrial & Commercial Holdings PLCICH is a small unlisted PLC in which Western holds 29.9%. It holds land withpotential to receive planning permission for housing at Milngavie, adjacent toDougalston golf course, just north east of Glasgow. As it may take many yearsfor the permission to be received, we are in discussion with the board of ICHto consider an acquisition of an active business. Mr. Robotham and I aredirectors of ICH.General PortfolioWith the exception of the investment in UCM, all areas of the General Portfolioperformed well, with an overall increase of 9%. Investments in FTSE100 andFTSE250 stocks, which comprise 59% of the General Portfolio, increased in valueby 20%. Investments in FTSE Small Cap and FTSE Fledgling stocks, which make up32% of the General Portfolio, fared less well with growth of 7%, primarily dueto poor performance by UCM. Our AIM stocks grew in value by 17%, marginallyahead of the FTSE AIM index, and growth in our overseas holdings, prior todisposal, was 20%.DividendThe Directors are pleased to recommend an increased dividend of 2.45p per sharefor the year, compared to 2.32p per share for 2005, an increase of 5% per cent.The dividend will be paid on 6th October 2006 to shareholders on the registerat the close of business on 8th September 2006.D.C. MarshallChairman24th August 2006 Profit and Loss AccountFor the year ended 30thJune 2006 2006 2005 ‚£000 ‚£000 Income from investments in: Listed strategic undertakings 43 106 Other listed undertakings 159 173 ------- ------- 202 279 Interest receivable 1 - Administrative expenses (292) (308) Surplus on disposal of listed undertakings 335 461 Net release/(charge) of provisions against investments 132 (209) ------- ------- Operating profit 378 223 Interest payable (62) (66) ------- ------- Profit on ordinary activities before taxation 316 157 Taxation (1) (4) ------- ------- Profit on ordinary activities after taxation 315 153 ------- ------- Basic and fully diluted earnings per share 2.75p 1.40pAll recognised gains or losses for the current and prior year are includedabove.All profits and losses are on continuing activities. Balance SheetAt 30thJune 2006 2006 2005 ‚£000 ‚£000 Fixed Assets Investments 11,425 10,932 ------- ------- Current Assets Debtors 33 67 Cash at bank and in hand 5 25 ------- ------- 38 92 Creditors (amounts falling due within one year) (1,557) (1,721) ------- ------- Net Current Liabilities (1,519) (1,629) ------- ------- Net Assets 9,906 9,303 ===== ===== Capital and Reserves Called up share capital 4,675 4,351 Share premium account 2,035 1,646 Warrants reserve 161 355 Profit and loss account 3,035 2,951 ------- ------- Shareholders' Funds 9,906 9,303 ===== ===== Cash Flow StatementFor the year ended 30thJune 2006 2006 2005 2005 ‚£000 ‚£000 ‚£000 ‚£000 Net cash outflow from operating activities (97) (2) Returns on investments and servicing of finance Interest paid (63) (66) Interest received 1 - ------- ------- (62) (66) Taxation paid (1) (4) Financial investment Proceeds on disposal of fixed asset 3,374 2,362 investments Purchase of fixed asset investments (3,399) (3,368) ------- ------- Net cash outflow from financial investment (25) (1,006)activities Equity dividend paid (252) (239) Financing Proceeds from issue of new shares 519 - Proceeds/(cost) of treasury shares arising 20 (27)on consolidation ------- ------- Decrease/(Increase) in net debt 102 (1,344) Net debt at start of year (1,612) (268) ------- ------- Net debt at end of year (1,510) (1,612) ===== ===== Notes:- 1. The dividend for the year of 2.45p per share (2005 - 2.32p) will be paid on 6th October 2006 to shareholders on the register at the close of business on 8th September 2006. 2. Earnings per share are based on the profit on ordinary activities after taxation and on 11,444,996 (2005 - 10,878,005) being the weighted average number of shares in issue during the period. At 30th June 2006 and 2005 the warrants in issue were not dilutive. 3. The net assets per share are calculated taking investments at market value and before providing for any tax that may arise on realisation. 4. The financial information in this preliminary announcement of unaudited results does not constitute statutory accounts within the meaning of Section 240(5) of the Companies Act 1985. The audited accounts of Western Selection P.L.C. for the year ended 30th June 2005 have been reported on with an unqualified report by the company's auditors in accordance with Section 235 of the Companies Act 1985 and have been delivered to the Registrar of Companies. 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 daysfrom that date of this announcement.ENDWESTERN SELECTION PLC