LONDON FINANCE & INVESTMENT GROUP PLC
Final Results
30th September 2019
LONDON FINANCE & INVESTMENT GROUP PLC
(“Lonfin”, “the Company” or “the
Group”)
Unaudited
Preliminary Results for the year ended 30th June 2019
Dividend
Declaration
London Finance & Investment Group PLC. (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 2019 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’ 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 2019 have decreased from
the previous year to 59p and net assets per share have increased
17.7% over the last five years. Shareholders’ dividends for 2019
remains the same at 1.15p and increased by 15% over the last five
years.
Results
-
Net assets have reduced to 59p per share (2018 – 65.4p per
share)
-
Strategic Investments have decreased in value over the year,
from £10,650,000 to £7,596,000 largely due to the fluctuation in
share price of Finsbury Food Group Plc.
-
Strategic investments are yielding 3.6% (2018 – 3.4%)
* The General Portfolio has increased,
adjusting for investment purchases and sales, over the year, by 7%
from £10,676,000 to £11,383,000
* Fair value movement is £755,000
* 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 (2018 – 1.15p)
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 £360,000, compared to an
operating profit for the previous year, before tax and changes to
the fair value adjustments of investments, of £306,000. The
significant decrease in fair value of strategic investments that
occurred during the year has led to Total Comprehensive Loss for
the year of £1,759,000 compared to profit of £256,000 for the
previous year. Basic earnings per share are 2.9p (2018- 0.6p) and
headline earnings per share are 0.6p (2018 – 0.8p).
Strategic Investments
Strategic Investments have reduced in value by £3,054,000 due to
the market movements in the share prices.
Western Selection PLC (“Western”)
The Group holds 7,860,515 ordinary shares, being 43.8%, of the
issued share capital of Western.
On 30th September 2019,
Western announced unaudited preliminary results showing a loss
after tax of £2,611,000 for the year to 30th
June 2019 (2018 Restated for IFRS 9
loss – £241,000). Losses per share are 14.5p (2018 Restated for
IFRS 9 loss of 1.3p).
Whilst Western paid an interim dividend of 1.1p in March this
year, Western’s Board does not recommend payment of a final
dividend, making a total dividend of 1.1p per share for the year,
compared to 2.25p for 2018.
Western’s net assets at market value at 30th
June 2019 were £11,426,000 equivalent
to 64p per share, a decrease of 33% from 96p last year.
Our share of the net assets of Western, including the value of
Western’s investments at market value, was £5,005,000 (2018 -
£7,595,000). The fair value for Western recorded in the Statement
of Financial Position is the market value of £3,576,000 (2018 -
£3,930,000). This represents 19.3% (2018 – 19%) 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, Brand Architekts Group plc (formerly Swallowfield plc), Bilby
Plc and Tudor Rose International Limited.
An extract from Western’s announcement on 30th
September 2019 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 2018 on 11th April 2019 and recorded a loss after tax of
£2,409,000 for the year (2017- loss after tax £4,626,000). No
dividend was recommended by Northbridge and no dividends were
received by Western from Northbridge during the year.
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
2019 was £4,900,500 (2018 - £4,290,000) which represents
approximately 42% (2018 - 25%) of Western’s net assets.
David Marshall was a
non-executive director of Northbridge up until 4th
June 2019.
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 June
2019 on 30th September
2019 and recorded a profit after tax of £3,640,000 compared
to a profit after tax of £3,633,000 for the comparable period last
year. Dividends of £82,550 were received from BAG during the year
(2018 – £78,500). A final dividend of 4.35p per share has been
declared and, if approved, Western will receive a further £56,550
of income in December 2019.
At the reporting date, being 30th June 2019, Western held 1,300,000 BAG shares
which represented 7.7% of BAG’s issued share capital. The market
value of our holding in BAG on 30th June 2019 had decreased to £2,502,000 from the
value of our holding at 30th June
2018 of £4,095,000. The value of this investment represents
approximately 21.4% (2018 – 23.6%) of Western’s net assets.
Edward Beale is a non-executive
director of BAG.
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 2019 on 19th September 2019 showing a loss after tax of
£8,596,000 compared to a profit after tax of £3,450,000 for the
previous year ended 31st March
2018. Dividends of £67,500 were received from Bilby during
the year (2018 - £54,000). Due to the results in the year, Bilby’s
Board did not recommend a final dividend
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 2019 was £877,000 (2018- £2,835,000) which
represents approximately 7.5% (2018 – 16%) 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 £1,750,000 of redeemable preference
shares in Tudor Rose International at a par value of 1p per
share.
Tudor Rose International, which is a private company, has a
31st December year end and, in the year to
30th June 2019, generated
a trading loss of £478,723. Turnover in the period was £11,430,000
(2018 - £19,032,000). Western’s share of the loss for the twelve
months to 30th June 2019
was 206,486 (2018 – profit £41,000) and the book value of the
investment at 30th June
2019 was 2,177,159 (2018 - £1,633,000).
In recent years changes in ownership and strategy of major
brands that Tudor Rose International represented have led to
significant losses in business, which have not been fully replaced.
This business has a significant deficit on net assets excluding
goodwill and a mixed trading record since 2010. Uncertainties
surrounding Brexit have impeded its efforts to profitably grow
turnover, and may well impede future growth. As no return on
this investment can be forecast an impairment provision of
£2,177,159 has been made against its full carrying value.
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 2019,
Lonfin held 6,000,000 Finsbury shares, representing 4.6% of
Finsbury’s issued share capital. The market value of the holding
was £4,020,000 as at 30th June
2019 (cost - £1,724,000) and represents approximately 22%
(2018 – 33%) of Lonfin’s net assets.
On 16th September 2019,
Finsbury announced audited profits on continuing operations after
tax of £10,293,000 for the 52 weeks ended 29th
June 2019 (2018 –£3,164,000).
Dividends of £201,600 were received from Finsbury during the
year (2018 - £198,000). Finsbury has recommended to its
shareholders a final dividend of 2.34p per share for 2019 which,
with the interim dividend of 1.16p, makes total dividends of 3.5p
for the year (2018 – 2.2p). The final dividend, if approved, will
be paid in December 2019 and will
provide the Company with further income of £140,400.
Edward Beale was a non-executive
director of Finsbury up until 23rd November 2016.
General Portfolio
The investments comprising the General Portfolio at
30th June 2019 are listed
below.
Composition of General Portfolio
At 30th June 2019
|
£000 |
|
% |
LVMH Moet
Hennessey |
670 |
|
5.9 |
Diageo |
575 |
|
5.1 |
Investor AB |
525 |
|
4.6 |
Pernod Ricard |
501 |
|
4.4 |
Unilever |
493 |
|
4.3 |
Nestle |
492 |
|
4.3 |
Schindler |
490 |
|
4.3 |
Heineken Holding |
474 |
|
4.2 |
L’Oréal |
473 |
|
4.2 |
Royal Dutch Shell |
465 |
|
4.1 |
Givaudan |
462 |
|
4.1 |
Brown-Forman |
446 |
|
3.9 |
Danone |
400 |
|
3.5 |
Exxon Mobil Corp |
397 |
|
3.5 |
Procter & Gamble
Co |
388 |
|
3.4 |
Antofagasta |
372 |
|
3.3 |
HSBC Holdings |
361 |
|
3.2 |
United Technologies
Corp |
348 |
|
3.1 |
Phillip Morris
International Inc |
314 |
|
2.8 |
Reckitt Benckiser
Group |
305 |
|
2.7 |
3M Co |
300 |
|
2.6 |
Henkel |
298 |
|
2.6 |
Becton Dickinson &
Co |
277 |
|
2.4 |
British American
Tobacco |
269 |
|
2.4 |
Anheuser Busch
Inbev |
260 |
|
2.3 |
BASF |
240 |
|
2.1 |
Compagnie Financiere
Richemont |
220 |
|
1.9 |
AP Moeller-Maersk
A/S |
209 |
|
1.8 |
Deutsche Post |
194 |
|
1.6 |
Imperial Brands |
165 |
|
1.4 |
|
11,383 |
|
100.0 |
|
|
|
|
|
|
|
|
Analysis by
currency |
£000 |
|
% |
Euro |
3,510 |
|
30.8 |
Sterling |
3,005 |
|
26.5 |
US Dollar |
2,470 |
|
21.7 |
Swiss Franc |
1,664 |
|
14.6 |
Swedish Kronas |
525 |
|
4.6 |
Danish Kronas |
209 |
|
1.8 |
|
11,383 |
|
100.0 |
The 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 2019, the
number of holdings in the General Portfolio was 30 (2018 – 30). We
have decreased the amount invested in the General Portfolio over
the year by £49,000 (2018 - increased by £1,000).
The opening value of our General Portfolio investments at
30th June 2018 was
£10,676,000 which compared with a cost of such investments at the
same date of £6,257,000. After investment purchases during the year
of £611,000 and investment sales (including selling expenses)
during the same period of £667,000, the value of the General
Portfolio investments as at 30th June 2019 had increased by 7% to
£11,383,000.
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 (2018 –
1.15p). Subject to shareholders’ approval at the Company’s
AGM to be held on Wednesday, 13th November 2019, the dividend will be paid on
Wednesday, 4th December
2019 to those shareholders on the register at the close of
business on Friday, 8th November 2019.
Shareholders on the South African register will receive their
dividend in South African rand converted from sterling at the
closing rate of exchange on Wednesday, 25th September 2019 being GBP1= ZAR
18.5292.
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, 8th November 2019.
-
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,
5th November 2019 |
Shares trade
ex-dividend (SA) |
Wednesday,
6th November 2019 |
Shares trade
ex-dividend (UK) |
Thursday,
7th November 2019 |
Record date (UK and
SA) |
Friday, 8th
November 2019 |
Pay date |
Wednesday,
4th December 2019 |
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 11.11752 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
8.89402 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, 6th November
2019 and Friday, 8th November 2019, both days inclusive. Shares
may not be transferred between the registers in London and South
Africa during this period either.
Outlook
The continued political and economic uncertainty in Europe, where Brexit has yet to be delivered,
and globally, with the negative impact from tariff issues, will
clearly impact on world economies and we can expect further
volatility and turbulence in the markets ahead. Whilst the last 12
months have been challenging for the Company’s investments,
particularly its Strategic Investments, and we can expect further
challenges ahead, the Board is confident that the Company has a
solid base of investments which can lead to further capital growth
in the medium to long term.
Future Developments
The Group’s development and its financial performance are
dependent on the success of its Investment Strategy and the
continued support of its Shareholders. Against a background of
challenging and uncertain times in the markets, the Board continues
to seek out investments which will generate growth in shareholder
value. The Board also continues to monitor and enhance the quality
of investments in the General Portfolio. A resolution was put to
Shareholders at last year’s 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. The resolution was approved. Aside
from this change, the Board continues to pursue its current
Investment Policy and has no plans to make any further changes to
the policy in the near future. As at 30th June 2019, the Company held 30 investments in the
General Portfolio.
30th September 2019
The Company’s 2019 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 PLC: 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 |
|
2019 |
|
2018 |
|
|
£000 |
|
£000 |
|
|
|
|
|
Dividends receivable |
|
687 |
|
674 |
Rental and other income |
|
130 |
|
107 |
Profits on sales of investments |
|
15 |
|
26 |
Management service fees |
|
260 |
|
274 |
|
|
1,092 |
|
1,081 |
Administrative expenses |
|
|
|
|
Investment operations |
|
(398) |
|
(411) |
Management services |
|
(334) |
|
(364) |
Total administrative
expenses |
|
(732) |
|
(775) |
Operating profit |
|
360 |
|
306 |
|
|
|
|
|
Unrealised changes in the carrying
value of General Portfolio investments |
|
748 |
|
(117) |
Exceptional costs |
|
(67) |
|
- |
Interest payable |
|
(34) |
|
(14) |
Profit before
taxation |
|
1,007 |
|
175 |
Tax (expense)/income |
|
(95) |
|
20 |
Profit after taxation |
|
912 |
|
195 |
Non-controlling interest |
|
5 |
|
(8) |
Profit attributable to
shareholders |
|
917 |
|
187 |
|
|
|
|
|
Other comprehensive
income/(expense) |
|
|
|
|
Items that will not be
reclassified to profit or loss |
|
|
|
|
Unrealised changes in the carrying
value of Strategic investments |
|
(3,054) |
|
(23) |
Profit on sale of investments |
|
- |
|
- |
Other taxation - |
|
|
|
|
Deferred
tax |
|
379 |
|
42 |
Corporation
tax |
|
- |
|
50 |
Total Other Comprehensive
(Loss)/Income attributable to shareholders |
|
(2,675) |
|
69 |
|
|
|
|
|
Total Comprehensive (Loss)/Income
attributable to owners of the parent |
|
(1,758) |
|
256 |
|
|
|
|
|
Reconciliation of headline
earnings |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
share |
|
2.9p |
|
0.6p |
Adjustment for the unrealised
changes in the carrying value of investments, net of tax |
|
(2.3)p |
|
0.2p |
Headline earnings per share |
|
0.6p |
|
0.8p |
|
|
|
|
|
Consolidated Statement of Financial Position
At 30th June
|
|
2019 |
|
2018 |
|
|
£000 |
|
£000 |
Non-current Assets |
|
|
|
|
Property, Plant and Equipment |
|
39 |
|
13 |
Investments |
|
7,596 |
|
10,650 |
|
|
7,635 |
|
10,663 |
Current Assets |
|
|
|
|
Listed investments |
|
11,383 |
|
10,676 |
Trade and other receivables |
|
194 |
|
251 |
Cash and cash
equivalents |
|
240 |
|
304 |
|
|
11,817 |
|
11,231 |
Current Liabilities |
|
|
|
|
Trade and other payables |
|
(279) |
|
(346) |
Borrowings |
|
(400) |
|
(325) |
|
|
(679) |
|
(671) |
|
|
|
|
|
Net Current Assets |
|
11,138 |
|
10,560 |
|
|
|
|
|
Deferred Taxation |
|
(395) |
|
(722) |
Total Assets less Total
Liabilities |
|
18,378 |
|
20,501 |
|
|
|
|
|
Capital and Reserves |
|
|
|
|
Ordinary share capital |
|
1,560 |
|
1,560 |
Share premium account |
|
2,320 |
|
2,320 |
Unrealised profits and losses on
investments |
|
6,085 |
|
8,056 |
Share of retained realised profits
and losses of subsidiaries |
|
4,574 |
|
4,207 |
Company’s retained realised profits
and losses |
|
3,739 |
|
4,253 |
Capital and reserves attributable to
owners |
|
18,278 |
|
20,396 |
Non-controlling interests |
|
100 |
|
105 |
Total Capital and
Reserves |
|
18,378 |
|
20,501 |
|
|
|
|
|
Company Statement of Financial Position
At 30th June
|
|
2019 |
|
2018 |
|
|
£000 |
|
£000 |
Non-current Assets |
|
|
|
|
Investments in Group companies |
|
528 |
|
902 |
|
|
|
|
|
Current Assets |
|
|
|
|
Listed investments |
|
11,383 |
|
10,676 |
Trade and other receivables |
|
23 |
|
36 |
Cash and cash equivalents |
|
101 |
|
99 |
|
|
11,507 |
|
10,811 |
Current Liabilities |
|
|
|
|
Trade and other payables |
|
(131) |
|
(126) |
Borrowings |
|
(400) |
|
(325) |
|
|
(531) |
|
(451) |
Net Current Assets |
|
10,976 |
|
10,360 |
|
|
|
|
|
Deferred Taxation |
|
(395) |
|
(343) |
Total Assets less Total
Liabilities |
|
11,109 |
|
10,919 |
Capital and Reserves |
|
|
|
|
Ordinary share capital |
|
1,560 |
|
1,560 |
Share premium account |
|
2,320 |
|
2,320 |
Unrealised profits and losses on
investments |
|
3,490 |
|
2,786 |
|
|
7,370 |
|
6,666 |
Realised Profit and Loss |
|
|
|
|
Balance at 1st July |
|
4,253 |
|
4,544 |
Net (Loss)/Profit for the
period |
|
(154) |
|
52 |
Dividends paid |
|
(360) |
|
(343) |
Balance at
30th June |
|
3,739 |
|
4,253 |
Equity shareholders’
funds |
|
11,109 |
|
10,919 |
|
|
|
|
|
Under Section 408 of the Companies Act 2006, the Parent Company is
exempt from the requirement to present its own income
statement. |
Consolidated Statement of Cash Flows
For the year ended 30th June
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
£000 |
|
£000 |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
Profit before tax |
|
1,007 |
|
175 |
Adjustments for non-cash
- |
|
|
|
|
Finance expense |
|
34 |
|
14 |
Depreciation charges |
|
13 |
|
9 |
Unrealised changes in the fair value
of investments |
|
(756) |
|
117 |
Realised gain on disposal of
investments |
|
(7) |
|
(26) |
|
|
|
|
|
Decrease/(Increase)in trade and
other receivables |
|
58 |
|
(32) |
(Decrease)/Increase in trade and
other payables |
|
(83) |
|
96 |
Taxes paid |
|
(44) |
|
(230) |
Net cash inflow from operating
activities |
|
222 |
|
123 |
|
|
|
|
|
Cash flows from investment
activity |
|
|
|
|
|
|
|
|
|
Acquisition of property, plant and
equipment |
|
(39) |
|
(8) |
Acquisition of current
investments |
|
(611) |
|
(699) |
Disposal of current investment |
|
667 |
|
698 |
Net cash inflow/(outflow) from
investment activity |
|
17 |
|
(9) |
|
|
|
|
|
Cash flows from
financing |
|
|
|
|
|
|
|
|
|
Interest paid |
|
(18) |
|
(14) |
Equity dividends paid |
|
(360) |
|
(343) |
Net drawdown of loan facilities |
|
75 |
|
325 |
Net cash outflow from
financing |
|
(303) |
|
(32) |
|
|
|
|
|
(Decrease)/Increase in cash and
cash equivalents |
|
(64) |
|
82 |
Cash and cash equivalents at the
beginning of the year |
|
304 |
|
222 |
Cash and cash equivalents at end
of the year |
|
240 |
|
304 |
|
|
|
|
|
Company Statement of Cash Flows
For the year ended 30th
June
|
|
2019 |
|
2018 |
|
|
£000 |
|
£000 |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
Profit/(Loss) before tax |
|
644 |
|
(197) |
Adjustments for non-cash and
non-operating activities - |
|
|
|
|
Finance expense |
|
35 |
|
14 |
Unrealised changes in the fair value
of investments |
|
(756) |
|
117 |
Realised gain on disposal of
investments |
|
(7) |
|
(26) |
Decrease/(Increase) in trade and
other receivables |
|
13 |
|
(10) |
(Decrease)/Increase in trade and
other payables |
|
(11) |
|
8 |
Overseas Taxes paid |
|
(43) |
|
(44) |
Net cash outflow from operating
activities |
|
(125) |
|
(138) |
|
|
|
|
|
Cash flows from investment
activity |
|
|
|
|
|
|
|
|
|
Acquisition of investments |
|
(611) |
|
(699) |
Disposal of investments |
|
667 |
|
698 |
Net cash inflow/(outflow) from
investment activity |
|
56 |
|
(1) |
|
|
|
|
|
Cash flows from
financing |
|
|
|
|
|
|
|
|
|
Interest paid |
|
(18) |
|
(14) |
Equity dividends paid |
|
(360) |
|
(343) |
Decrease in loan to subsidiary |
|
374 |
|
169 |
Net drawdown of loan facilities |
|
75 |
|
325 |
Net cash inflow from
financing |
|
71 |
|
137 |
|
|
|
|
|
Increase/(Decrease) in cash and
cash equivalents |
|
2 |
|
(2) |
Cash and cash equivalents at the
beginning of the year |
|
99 |
|
101 |
Cash and cash equivalents at end
of the year |
|
101 |
|
99 |
|
|
|
|
|
Consolidated Statement of Changes in Shareholders’
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary Share
Capital |
Share Premium
Account |
Unrealised profits
and losses on Investments |
Share of Retained
realised profits and losses of Subsidiaries |
Company’s retained
realised profits and losses |
Total |
Non-Controlling
Interests |
Total
Equity |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
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 for the
Year |
- |
- |
(228) |
363 |
52 |
187 |
8 |
195 |
Other Comprehensive
Income |
- |
- |
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 |
Year ended
30th June 2019 |
|
|
|
|
|
|
|
|
Balances at
1st July 2018 |
1,560 |
2,320 |
8,056 |
4,207 |
4,253 |
20,396 |
105 |
20,501 |
Profit/(loss) for the
Year |
- |
- |
704 |
367 |
(154) |
917 |
(5) |
912 |
Other Comprehensive
Income |
- |
- |
(2,675) |
- |
- |
(2,675) |
- |
(2,675) |
Total comprehensive
income |
- |
- |
(1,971) |
367 |
(154) |
(1,768) |
(5) |
(1,773) |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
- |
(360) |
(360) |
- |
(360) |
Balances at
30th June 2019 |
1,560 |
2,320 |
6,085 |
4,574 |
3,739 |
18,268 |
100 |
18,378 |
Company Statement of Changes in Shareholders’ Equity
|
Ordinary Share Capital |
Share
Premium Account |
Unrealised profits and losses on Investments |
Realised profits and losses |
Equity
Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
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 |
Year ended
30th June 2019 |
|
|
|
|
|
Balances at
1st July 2018 |
1,560 |
2,320 |
2,786 |
4,253 |
10,919 |
Profit/(loss) for the
Year and total comprehensive income |
- |
- |
704 |
(154) |
550 |
Dividends paid and
total transactions with shareholders |
- |
- |
- |
(360) |
(360) |
|
|
|
|
|
|
Balances at
30th June 2019 |
1,560 |
2,320 |
3,490 |
3,739 |
11,109 |
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
£917,000 (2018 - £187,000) and on 31,207,479 shares (2018 –
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
£212,000 (2018 - £240,000) and on 31,207,479 (2018 – 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 £704,000 (2018 - £53,000).
2. Net assets per share
The net assets per share are calculated taking investments at
fair value and on 31,207,479 shares (2018 – 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 2019.
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 2018 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.
4. Copies of this Announcement
Copies of this announcement are held at the Company’s registered
office, 1 Ely Place, London, EC1N
6RY (tel. 020 7796 9060) and are available for a period of 14 days
from the date of this announcement.