Friday
28th September 2018
LONDON FINANCE & INVESTMENT GROUP
P.L.C.
(“Lonfin”, “the Company” or “the Group”)
Unaudited
Preliminary Results for the year ended 30th June 2018
Dividend Declaration
London Finance & Investment Group P.L.C. (LSE: LFI, JSE:
LNF), the investment company `whose assets primarily consist of
Strategic Investments and a General Portfolio, today announces its
unaudited Preliminary Results for the year ended 30th
June 2018 and the Board’s Dividend
Declaration.
Strategy, Business Model and
Investment Policy
Lonfin is an investment company whose objective is to generate
growth in shareholder value in real terms over the medium to long
term whilst maintaining a progressive dividend policy.
The Group’s investment policy is to invest in a range of
‘Strategic’, ‘General Portfolio’ and from time to time ‘Other
Investments’. General Portfolio Investments comprise liquid
stock market investments, both in equity instruments and bonds,
and, at the Board’s discretion, ‘Other Investments’ which are
typically property and other physical assets. Strategic Investments
are significant investments in smaller UK quoted companies; these
are balanced by the General Portfolio, which consists of a broad
range of investments in major USA,
UK and other European companies which provides a diversified
exposure to international equity markets.
The Group’s net assets per share for 2018 have remained broadly
unchanged over the previous year at 65.4p and net assets per share
have increased 107% over the last five years. Shareholders’
dividends for 2018 have increased by 4.5% over the previous year
and by 37.5% over the last five years.
Results
·
Net assets have remained broadly unchanged at 65.4p per share (2017
– 65.6p per share)
·
Strategic Investments have decreased in value slightly, over the
year, from £10,673,000 to £10,650,000 due to the fluctuation in
share price of Finsbury Food Group Plc.
·
Strategic investments are yielding 3.4% (2017 – 3.1%)
·
The General Portfolio has decreased, adjusting for investment
purchases and sales, over the year, by 0.8% from £10,766,000 to
£10,676,000.
·
Fair value movement is £140,000
· No
significant increase in Group operating costs
· A
final dividend of 0.60p per share is recommended, making a total of
1.15p per share for the year (2017 – 1.1p)
The Company and its subsidiaries (“Group”) achieved an operating
profit for the year, before interest, tax and changes to the fair
value adjustments of investments of £306,000, compared to an
operating profit for the previous year, before tax and changes to
the fair value adjustments of investments, of £275,000. The
significant increases in fair value of investments that occurred
last year have not been repeated this year and, as a result, the
Total Comprehensive Income for the year, comprising profit after
tax and the other comprehensive income (the fair value adjustments,
net of tax, of Strategic Investments) was £256,000 compared to
£1,658,000 for the previous year. Basic earnings per share
are 0.6p (2017- 3.5p) and headline earnings per share are 0.8p
(2017 – 1.0p).
Strategic Investments
Strategic Investments have reduced in value by £23,000 due to
the market movements in the share prices.
Western Selection P.L.C.
(“Western”)
The Group owns 7,860,515 ordinary shares, being 43.8% of the
issued share capital of the Western.
On 26th September 2018,
Western announced unaudited preliminary results showing a profit
after tax of £784,000 for the year to 30th June 2018 (2017 – profit after tax, of
£850,000). Earnings per share were 4.4p (2017- 4.7p).
Western paid an interim dividend of 1.1p in March this year and
proposes a final dividend of 1.15p making 2.25p for the year (2017
– 2.2p). Western’s net assets at market value at
30th June 2018 were
£17,342,000 equivalent to 96p per share, an increase of 1% from 95p
last year.
Our share of the net assets of Western, including the value of
Western’s investments at market value, was £7,595,000 (2017 -
£7,500,000). The fair value for Western recorded in the
Statement of Financial Position is the market value of £3,930,000
(2017 - £3,773,000). This represents 19% (2017 – 18%) of the
net assets of the group.
Western’s objective is to generate growth in value for
shareholders over the medium to long term and pay a progressive
dividend. Western’s business model is to take sizeable
minority stakes in relatively small companies usually before or as
their shares are admitted to trading on one of the UK’s stock
exchanges and have directors in common through which they 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 Western’s
support is no longer required and its stake can be sold over time
into the relevant stock market. Companies that are targeted
as Core Holdings will have an experienced management team, a
credible business model and good prospects for growth.
Western is a strategic investment which is technically a
subsidiary of the Company that has not been consolidated due to the
application of the investment entity exemption under IFRS 10.
David Marshall is the Chairman of
Western and Edward Beale is
non-executive director.
Western’s main Core Holdings are Northbridge Industrial Services
Plc, Swallowfield Plc, Bilby Plc and Tudor Rose International
Limited.
An extract from Western’s announcement on 26th
September 2018 relating to its main
Core Holdings is set out below:
Core Holdings
Northbridge Industrial Services plc
(“Northbridge”)
Northbridge hires and sells specialist industrial equipment to a
non-cyclical customer base. With offices or agents in the UK,
USA, Dubai, Germany, Belgium, France, Australia, New
Zealand, Singapore,
Brazil and Korea, 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 and oil
tools. Further information about Northbridge is available on
their website: www.northbridgegroup.co.uk
Northbridge, which is admitted to trading on AIM, announced its
results for the year ended 31st December 2017 on 12th April 2018 and recorded a loss after tax of
£4,626,000 for the year. No dividend was recommended by
Northbridge and no dividends were received by Western from
Northbridge during the year.
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 June 2018 was £4,290,000 (2017 - £3,320,000)
which represents approximately 25% (2017 - 19%) of Western’s net
assets.
David Marshall is 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 their website:
www.swallowfield.com
Swallowfield, which is admitted to trading on AIM, announced its
results for the 53 weeks ended 30th June 2018 on 25th September 2018 and recorded a profit after tax of
£3,633,000 compared to a profit after tax of £2,572,000 for the
comparable period last year. Dividends of £78,500 were
received from Swallowfield during the year (2017 – £66,900).
A final dividend of 4.2p per share has been declared and, if
approved, Western will receive a further £54,600 of income in
December 2018.
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 June
2018, Western held 1,300,000 Swallowfield shares which
represented 7.7% of Swallowfield’s issued share capital. The
market value of our reduced holding in Swallowfield on
30th June 2018 had
decreased to £4,095,000 from the value of our holding at
30th June 2017 of
£5,700,000. The value of this investment represents approximately
23.6% (2017 - 33%) of Western’s net assets.
Edward Beale is a non-executive
director of Swallowfield.
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 London and South East England. They have
a strategy of growing organically and by acquisition. Further
information about Bilby is available on their website:
www.bilbyplc.com.
Bilby, which is admitted to trading on AIM, announced its
results for the year ended 31st March 2018 on 16th July 2018 showing a profit after tax of
£3,450,000 compared to a loss after tax of £180,000 for the
previous year ended 31st March 2017. Dividends of
£54,000 were received from Bilby during the year (2017 -
£53,000). Bilby announced a final dividend of 2.0p per share
which was paid in July 2018 and which
provided Western with further income of £54,000.
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 June 2018 was £2,835,000 (2017- £1,917,000) which
represents approximately 16% (2017 – 11%) of Western’s net
assets.
Tudor Rose International Limited
(“Tudor Rose International”)
Tudor Rose International works closely with a number of leading
UK branded fast-moving consumer goods companies, offering a
complete sale, marketing and logistical service. Based in
Stroud, Gloucestershire, Tudor Rose International
sells into 78 countries worldwide including USA, Spain,
Portugal, Italy, Czech
Republic, Russia,
Turkey, South Africa, Saudi
Arabia, UAE, Malaysia,
Australia and China.
Western holds 441,090 A ordinary shares in Tudor Rose
International which represents 49.5% of the company’s issued share
capital. Western also holds £1,000,000 of redeemable
preference shares in Tudor Rose International at a par value of 1p
per share. The Company has made available to Tudor Rose
International a working capital facility of £750,000, bearing
interest at the rate of base + 5% per annum, which has been fully
drawn down at the year end.
Tudor Rose International, which is a private company, has a
31st December year end and, in the year to
30th June 2018, generated
a trading profit before tax of £130,140. Turnover in the period was
£19,032,000 (2017 - £17,145,000). Western’s share of a profit
after tax for the twelve months to 30th June 2018 was £41,000 (2017 – profit £49,550) and
the book value of the investment at 30th June 2018 was £1,633,000 (2017 - £1,647,000)
being 9.4 % (2017 –10%) of Western’s net assets. Including the
loans to Tudor Rose International and its directors (£942,000), the
total book value of the investment comes to £2,575,000 which is 15%
of Western’s net assets.
Western has two nominees on the board of Tudor Rose
International: Edward Beale and
David Marshall.
Finsbury Food Group plc
(“Finsbury”)
Finsbury is one of the largest producers and suppliers of
premium cakes, bread and morning goods in the UK and currently
supplies most of the UK's major supermarket chains. Further
information about Finsbury, which is admitted to trading on AIM, is
available on its website: www.finsburyfoods.co.uk
At 30th June 2018,
Lonfin held 6,000,000 Finsbury shares, representing 4.6% of
Finsbury’s issued share capital. The market value of the
holding was £6,720,000 as at 30th June 2018 (cost - £1,724,000) and represents
approximately 33% (2017 – 34%) of Lonfin’s net assets.
On 17th September 2018,
Finsbury announced audited adjusted profits on continuing
operations after tax and minority interests of £13,508,000 for the
52 weeks ended 30th June
2018 (2017 – adjusted profits £12,958,000).
Finsbury paid an interim dividend of 1.1p in April 2018 and has recommended to its
shareholders a final dividend of 2.2p per share, making 3.3p for
the year (2017 – 3p). The final dividend, if approved, will be paid
in December 2018 and will provide the
Company with further income of £132,000.
Edward Beale was a non-executive
director of Finsbury up until 23rd November 2017.
General Portfolio
The investments comprising the General Portfolio at
30th June 2018 are listed
below.
Composition of General Portfolio
At 30th June 2018
|
£000 |
|
% |
LVMH Moet
Hennessey |
504 |
|
4.7 |
Diageo |
463 |
|
4.3 |
Schindler
Holdings |
457 |
|
4.3 |
Investor AB |
429 |
|
4.0 |
Pernod Ricard |
427 |
|
4.0 |
Unilever |
423 |
|
4.0 |
Heineken Holding |
411 |
|
3.8 |
Henkel |
400 |
|
3.7 |
Antofagasta |
396 |
|
3.7 |
L'Oreal |
395 |
|
3.7 |
HSBC Holdings |
391 |
|
3.7 |
Royal Dutch Shell |
387 |
|
3.6 |
Brown-Forman |
380 |
|
3.6 |
British American
Tobacco |
375 |
|
3.5 |
Chevron Corp |
373 |
|
3.5 |
Givaudan |
361 |
|
3.4 |
Nestle |
346 |
|
3.2 |
Danone |
334 |
|
3.1 |
3M Co |
328 |
|
3.1 |
United Technologies
Corp |
322 |
|
3.0 |
Exxon Mobil Corp |
313 |
|
2.9 |
Phillip Morris
International Inc |
311 |
|
2.9 |
Reckitt Benckiser
Group |
306 |
|
2.9 |
BASF |
304 |
|
2.8 |
Anheuser Busch
Inbev |
285 |
|
2.7 |
Kimberley Clark
Corp |
271 |
|
2.5 |
Procter & Gamble
Co |
266 |
|
2.5 |
Becton Dickinson &
Co |
254 |
|
2.4 |
Imperial Brands |
251 |
|
2.4 |
Compagnie Financiere
Richemont |
213 |
|
2.1 |
|
10,676 |
|
100.0 |
|
|
|
|
|
|
|
|
Analysis by
currency |
£000 |
|
% |
Euro |
3,060 |
|
29 |
Sterling |
2,991 |
|
28 |
US Dollar |
2,820 |
|
26 |
Swiss Franc |
1,376 |
|
13 |
Swedish Kronas |
429 |
|
4 |
|
10,676 |
|
100.0 |
The General Portfolio is diverse with material interests in Food
and Beverages, Natural Resources, Chemicals and Tobacco. We
believe that the portfolio of quality companies we hold has the
potential to outperform the market in the medium to long term.
At 30th June 2018, the
number of holdings in the General Portfolio was 30 (2017 – 30). We
have increased the amount invested in the General Portfolio over
the year by £1,000 (2017 - increased by £2,767,000).
The opening value of our General Portfolio investments at
30th June 2017 was
£10,766,000 which compared with a cost of such investments at the
same date of £6,053,000. After investment purchases during the year
of £699,000 and investment sales (including selling expenses)
during the same period of £698,000, the value of the General
Portfolio investments as at 30th June 2018 had decreased by 0.8% to
£10,676,492.
Board Changes
Following Michael Robotham’s retirement on 6th
December 2017, after a long period of
service to the Company as a non-executive director, it is with
regret that the Board reports to shareholders that Michael passed
away peacefully on 16th April 2018. Along with his
family and friends, he will be greatly missed by members of the
Board who he, as a fellow director, supported and provided good
counsel to the Company for many years.
Following Michael Robotham’s retirement, the Board looked to
strengthen the Board and on 31st January 2018, the Company announced the
appointment of Warwick Marshall.
Warwick is the son of David Marshall, the Chairman. In 1996,
Warwick established the trading
division of the Monteagle Group initially trading in retailer
branded fast moving consumer goods, and then later diversifying
into metals, minerals and logistics. This profitable division
of the Monteagle Group now turns over in excess of US$350 million annually. He also has extensive
investment experience in his private capacity.
Whilst the Board is satisfied that it now has a sufficient
spread of skills, experience and support within the Board to
operate the Company and to develop the Company’s investment
business, the Board will be seeking to identify further suitable
Board candidates who can add value.
Operations, Directors and
Employees
All of our operations and those of Western, with the exception
of investment selection, are outsourced to our subsidiary, City
Group PLC (“City Group”). City Group also provides office
accommodation, company secretarial and head office finance services
to a number of other companies. City Group is responsible for
the initial identification and appraisal of potential new strategic
investments for the Company and the day to day monitoring of
existing strategic investments.
Dividend
The Board recommends a final dividend of 0.60p per share, making
a total of 1.15p per ordinary share for the year (2017 –
1.1p). Subject to shareholders’ approval at the Company’s AGM
to be held on 4th December
2018, the dividend will be paid on Tuesday, 18th
December 2018 to those shareholders
on the register at the close of business on Friday, 23rd
November 2018.
Shareholders on the South African register will receive their
dividend in South African rand converted from sterling at the
closing rate of exchange on Thursday, 20th September 2018 being GBP1= ZAR
18.73341.
JSE Disclosure Requirements
In respect of the normal gross cash dividend, and in terms of
the South African Tax Act, the following dividend tax ruling only
applies to those shareholders who are registered on the South
African register on Friday, 23rd November 2018.
·
The number of shares in issue as at the dividend declaration date
is 31,207,479;
·
The dividend has been declared from income reserves, funds are
sourced from the Company’s main bank account in London and is regarded as a foreign dividend
by South African shareholders; and
·
The Company’s UK Income Tax reference number is 948/L32120.
Dividend dates:
Last date to trade
(SA) |
Tuesday,
20th November 2018 |
Shares trade
ex-dividend (SA) |
Wednesday,
21st November 2018 |
Shares trade
ex-dividend (UK) |
Thursday,
22nd November 2018 |
Record date (UK and
SA) |
Friday,
23rd November 2018 |
Pay date |
Tuesday,
18th December 2018 |
The JSE Listings Requirements requires disclosure of additional
information in relation to any dividend payments.
Shareholders registered on the South African register are
advised that a dividend withholding tax will be withheld from the
gross final dividend amount of 11.24005 SA cents per share at a
rate of 20% unless a shareholder qualifies for an exemption;
shareholders registered on the South African register who do not
qualify for an exemption will therefore receive a net dividend of
8.99204 SA cents per share. The dividend withholding tax and
the information contained in this paragraph is only of direct
application to shareholders registered on the South African
register, who should direct any questions about the application of
the dividend withholding tax to Computershare Investor Services
(Pty) Limited, Tel: +27 11 370 5000.
Share certificates may not be de-materialised or re-materialised
between Wednesday, 21st November
2018 and Friday, 23rd November 2018, both days inclusive. Shares
may not be transferred between the registers in London and South
Africa during this period either.
Outlook
Political and economic uncertainty around the world continues
and in particular in the UK given the ongoing negotiations with the
EU over the terms for Brexit. There are clearly greater challenges
ahead but your Board believes the Company’s mix of Strategic
Investments and the Company’s General Portfolio of international
investments will give us opportunity to outperform the broader
market in the medium to long term.
Future Developments
The future development of the Group is dependent on the success
of the Group’s Investment Strategy in the light of economic and
equity market developments and the continued support of its
Shareholders. A resolution will be put to Shareholders at the
forthcoming AGM to amend the Company’s Investment Policy so that up
to 40 investments may be held in the Company’s General Portfolio at
any time. Aside from this change, the Board will maintain the
current Investment Policy for the foreseeable future and has no
plans to make any further changes to the policy.
28th September 2018
The annual report and accounts will be finalised shortly 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:
London Finance & Investment Group P.L.C.: 020 7796
9060
(David Marshall/Edward Beale)
Johannesburg Sponsor:
Sasfin Capital (a member of the Sasfin Group)
Consolidated Statement of Total Comprehensive Income
For the year ended 30th
June
|
|
|
Operating Income |
|
2018 |
|
2017 |
|
|
£000 |
|
£000 |
|
|
|
|
|
Dividends received |
|
674 |
|
608 |
Rental and other income |
|
107 |
|
109 |
Profits on sales of investments |
|
26 |
|
3 |
Management service fees |
|
274 |
|
296 |
|
|
1,081 |
|
1,016 |
Administrative expenses |
|
|
|
|
Investment operations |
|
(411) |
|
(352) |
Management services |
|
(364) |
|
(389) |
Total administrative
expenses |
|
(775) |
|
(741) |
Operating profit |
|
306 |
|
275 |
|
|
|
|
|
Unrealised changes in the carrying
value of General Portfolio investments |
|
(117) |
|
989 |
Interest payable |
|
(14) |
|
(33) |
Profit before taxation |
|
175 |
|
1,231 |
Tax Income/ (expense) |
|
20 |
|
(121) |
Profit after taxation |
|
195 |
|
1,110 |
Non-controlling interest |
|
(8) |
|
(7) |
Profit attributable to
shareholders |
|
187 |
|
1,103 |
|
|
|
|
|
Other comprehensive
income/(expense) |
|
|
|
|
Unrealised changes in the carrying
value of Strategic investments |
|
(23) |
|
477 |
Profit on sale of investments |
|
- |
|
217 |
Other taxation - |
|
|
|
|
Deferred
tax |
|
42 |
|
99 |
Corporation
tax |
|
50 |
|
(238) |
Total Other Comprehensive
Income |
|
69 |
|
555 |
|
|
|
|
|
Total Comprehensive Income
attributable to owners of the parent |
|
256 |
|
1,658 |
|
|
|
|
|
Reconciliation of headline
earnings |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
share |
|
0.6p |
|
3.5p |
Adjustment for the unrealised
changes in the carrying value of investments, net of tax |
|
0.2p |
|
(2.5)p |
Headline earnings per share |
|
0.8p |
|
1.0p |
Consolidated Statement of Financial Position
At 30th June
|
|
2018 |
|
2017 |
|
|
£000 |
|
£000 |
Non-current Assets |
|
|
|
|
Property, Plant and Equipment |
|
13 |
|
14 |
Investments |
|
10,650 |
|
10,673 |
|
|
10,663 |
|
10,687 |
Current Assets |
|
|
|
|
Listed investments |
|
10,676 |
|
10,766 |
Trade and other receivables |
|
251 |
|
220 |
Cash and cash
equivalents |
|
304 |
|
222 |
|
|
11,231 |
|
11,208 |
Current Liabilities |
|
|
|
|
Trade and other payables |
|
(346) |
|
(250) |
Current tax liabilities |
|
- |
|
(236) |
Borrowings |
|
(325) |
|
- |
|
|
(671) |
|
(486) |
|
|
|
|
|
Net Current Assets |
|
10,560 |
|
10,722 |
|
|
|
|
|
Deferred Taxation |
|
(722) |
|
(829) |
Total Assets less Total
Liabilities |
|
20,501 |
|
20,580 |
|
|
|
|
|
Capital and Reserves |
|
|
|
|
Ordinary share capital |
|
1,560 |
|
1,560 |
Share premium account |
|
2,320 |
|
2,320 |
Unrealised profits and losses on
investments |
|
8,056 |
|
8,265 |
Share of retained realised profits
and losses of subsidiaries |
|
4,207 |
|
3,794 |
Company’s retained realised profits
and losses |
|
4,253 |
|
4,544 |
Capital and reserves attributable to
owners |
|
20,396 |
|
20,483 |
Non-controlling equity
interests |
|
105 |
|
97 |
Total Capital and
Reserves |
|
20,501 |
|
20,580 |
|
|
|
|
|
Company Statement of Financial Position
At 30th June
|
|
2018 |
|
2017 |
|
|
£000 |
|
£000 |
Non-current Assets |
|
|
|
|
Investments in Group companies |
|
902 |
|
1,071 |
|
|
|
|
|
Current Assets |
|
|
|
|
Listed investments |
|
10,676 |
|
10,766 |
Trade and other receivables |
|
36 |
|
26 |
Cash and cash equivalents |
|
99 |
|
101 |
|
|
10,811 |
|
10,893 |
Current Liabilities |
|
|
|
|
Trade and other payables |
|
(126) |
|
(117) |
Borrowings |
|
(325) |
|
- |
|
|
(451) |
|
(117) |
Net Current Assets |
|
10,360 |
|
10,776 |
|
|
|
|
|
Deferred Taxation |
|
(343) |
|
(408) |
Total Assets less Total
Liabilities |
|
10,919 |
|
11,439 |
Capital and Reserves |
|
|
|
|
Ordinary share capital |
|
1,560 |
|
1,560 |
Share premium account |
|
2,320 |
|
2,320 |
Unrealised profits and losses on
investments |
|
2,786 |
|
3,015 |
|
|
6,666 |
|
6,895 |
Realised Profit and Loss |
|
|
|
|
Balance at 1st July |
|
4,544 |
|
4,928 |
Net Profit/(Loss) for the
period |
|
52 |
|
(41) |
Dividends paid |
|
(343) |
|
(343) |
Balance at
30th June |
|
4,253 |
|
4,544 |
Equity shareholders’
funds |
|
10,919 |
|
11,439 |
Consolidated Statement of Cash Flows
For the year ended 30th
June
|
|
|
|
|
|
Not |
2018 |
|
2017 |
|
|
£000 |
|
£000 |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
Profit before tax |
|
175 |
|
1,231 |
Adjustments for non-cash - |
|
|
|
|
Finance expense |
|
14 |
|
33 |
Depreciation charges |
|
9 |
|
8 |
Unrealised changes in the fair value
of investments |
|
117 |
|
(989) |
Realised gain on disposal of
investments |
|
(26) |
|
(3) |
Decrease/(Increase)in trade and
other receivables |
|
(32) |
|
52 |
(Decrease)/Increase in trade and
other payables |
|
96 |
|
(66) |
Taxes paid |
7 |
(230) |
|
(45) |
Net cash inflow from operating
activities |
|
123 |
|
221 |
|
|
|
|
|
Cash flows from investment
activity |
|
|
|
|
|
|
|
|
|
Acquisition of property, plant and
equipment |
|
(8) |
|
- |
Acquisition of current
investments |
|
(699) |
|
(2,856) |
Disposal of current investment |
12 |
698 |
|
207 |
Disposal of non-current
investment |
|
- |
|
2,438 |
Net cash inflow/(outflow) from
investment activity |
|
(9) |
|
(211) |
|
|
|
|
|
Cash flows from
financing |
|
|
|
|
|
|
|
|
|
Interest paid |
|
(14) |
|
(33) |
Equity dividends paid |
|
(343) |
|
(343) |
Net drawdown of loan facilities |
15 |
325 |
|
- |
Net cash outflow from
financing |
|
(32) |
|
(376) |
|
|
|
|
|
(Decrease)/Increase in cash and
cash equivalents |
19 |
82 |
|
(366) |
Cash and cash equivalents at the
beginning of the year |
|
222 |
|
588 |
Cash and cash equivalents at end
of the year |
|
304 |
|
222 |
|
|
|
|
|
Company Statement of Cash Flows
For the year ended 30th
June
|
|
2018 |
|
2017 |
|
|
£000 |
|
£000 |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
(Loss)/Profit before tax |
|
(197) |
|
878 |
Adjustments for non-cash and
non-operating activities - |
|
|
|
|
Finance expense |
|
14 |
|
33 |
Unrealised changes in the fair value
of investments |
|
117 |
|
(989) |
Realised gain on disposal of
investments |
|
(26) |
|
(3) |
(Increase)/Decrease in trade and
other receivables |
|
(10) |
|
1 |
Increase in trade and other
payables |
|
8 |
|
24 |
Overseas Taxes paid |
|
(44) |
|
(45) |
Net cash (outflow) from operating
activities |
|
(138) |
|
(101) |
|
|
|
|
|
Cash flows from investment
activity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of investments |
|
(699) |
|
(2,856) |
Disposal of investments |
|
698 |
|
207 |
Net cash inflow/(outflow) from
investment activity |
|
(1) |
|
(2,649) |
|
|
|
|
|
Cash flows from
financing |
|
|
|
|
|
|
|
|
|
Interest paid |
|
(14) |
|
(33) |
Equity dividends paid |
|
(343) |
|
(343) |
Decrease in loan to subsidiary |
|
169 |
|
2,776 |
Net drawdown/(repayment) of loan
facilities |
|
325 |
|
- |
Net cash inflow from
financing |
|
137 |
|
2,400 |
|
|
|
|
|
(Decrease)/Increase in cash and
cash equivalents |
|
(2) |
|
(350) |
Cash and cash equivalents at the
beginning of the year |
|
101 |
|
451 |
Cash and cash equivalents at end
of the year |
|
99 |
|
101 |
|
|
|
|
|
Consolidated Statement of Changes in Shareholders’
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary Share
Capital |
Share Premium Account |
Unrealised Profits and Losses on Investments |
Share of Retained
Profits and Losses of Subsidiaries |
Retained Realised Profits & Losses |
Total |
Non-Controlling Interests |
Total
Equity |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
Year ended
30th June 2017 |
|
|
|
|
|
|
|
|
Balances at
1st July 2016 |
1,560 |
2,320 |
8,539 |
1,821 |
4,928 |
19,168 |
90 |
19,258 |
Profit for the
Year |
- |
- |
913 |
231 |
(41) |
1,103 |
7 |
1,110 |
Other Comprehensive
Income/(Expense) |
- |
- |
(1,187) |
1,742 |
- |
555 |
- |
555 |
Total
comprehensive income |
- |
- |
(274) |
1,973 |
(41) |
1,658 |
7 |
1,665 |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
- |
(343) |
(343) |
- |
(343) |
Balances at
30th June 2017 |
1,560 |
2,320 |
8,265 |
3,794 |
4,544 |
20,483 |
97 |
20,580 |
Year ended
30th June 2018 |
|
|
|
|
|
|
|
|
Balances at
1st July 2017 |
1,560 |
2,320 |
8,265 |
3,794 |
4,544 |
20,483 |
97 |
20,580 |
Profit/(loss) for the
Year |
- |
- |
(228) |
363 |
52 |
187 |
8 |
195 |
Other Comprehensive
Income/(Expense) |
- |
- |
19 |
50 |
- |
69 |
- |
69 |
Total comprehensive
income |
- |
- |
(209) |
413 |
52 |
256 |
8 |
264 |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
- |
(343) |
(343) |
- |
(343) |
Balances at
30th June 2018 |
1,560 |
2,320 |
8,056 |
4,207 |
4,253 |
20,396 |
105 |
20,501 |
Company Statement of Changes in Shareholders’ Equity
|
Ordinary Share Capital |
Share Premium Account |
Unrealised Profits and Losses on Investments |
Realised Profits & Losses |
Equity Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
Year ended
30th June 2017 |
|
|
|
|
|
Balances at
1st July 2016 |
1,560 |
2,320 |
2,219 |
4,928 |
11,027 |
Profit/(loss)for the
Year and total comprehensive income |
- |
- |
796 |
(41) |
755 |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
(343) |
(343) |
|
|
|
|
|
|
Balances at
30th June 2017 |
1,560 |
2,320 |
3,015 |
4,544 |
11,439 |
Year ended
30th June 2018 |
|
|
|
|
|
Balances at
1st July 2017 |
1,560 |
2,320 |
3,015 |
4,544 |
11,439 |
Profit/(loss) for the
Year and total comprehensive income |
- |
- |
(229) |
52 |
(177) |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
(343) |
(343) |
|
|
|
|
|
|
Balances at
30th June 2018 |
1,560 |
2,320 |
2,786 |
4,253 |
10,919 |
Notes:
1.
Basic earnings per share and Headline earnings per share
Basic earnings per share are based on the profit attributable to
the shareholders after tax and non-controlling interests of
£187,000 (2017 - £1,103,000) and on 31,207,479 shares (2017 –
31,207,479) being the weighted average of the number of shares in
issue during the year.
Headline earnings are required to be
disclosed by the JSE.
Headline earnings per share are based on the profit attributable
to the shareholders after tax and non-controlling interests, before
unrealised changes in the fair value of investments net of tax, of
£240,000 (2017 - £309,000) and on 31,207,479 (2017 – 31,207,479)
shares being the weighted average of the number of shares in issue
during the year.
The adjustments for the unrealised changes in the carrying value
of investments, net of tax, are £53,000 (2017 - £794,000).
2.
Net assets per share
The net assets per share are calculated taking investments at
fair value and on 31,207,479 shares (2017 – 31,207,479) being the
weighted average of the number of shares in issue during the
year.
3.
Financial information
The financial information in this preliminary announcement does
not constitute the Company’s statutory accounts for the year ended
30th June 2018.
The accounts have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. The accounts are prepared on
the historical cost bases, except for certain assets and
liabilities which are measured at fair value, in accordance with
IFRS. The audited accounts for the Group for the year ended
30th June 2017 were
reported on with an unqualified audit report and did not contain an
emphasis of matter paragraph or any statement under section 498 of
the Companies Act 2006 and have been delivered to the Registrar of
Companies.
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.