Latest Results
Interim Results
Westhouse Holdings plc (AIM:WHL), the corporate and institutional broking group, today announces its interim results for the six months ended 30 June 2011.
Highlights
- Operating revenues increased by 163% to £5.18 million (2010 £1.97 million)
- Reduced loss after tax of £0.2 million (2010 £0.6 million)
- Total assets increased to £12.9 million (2010 £8.2 million)
- Strong cash position of £3.8 million (2010 £0.6 million)
- Costs have risen due to the addition of the Investment Funds team and the Smith's Corporate Advisory team both of which have been integrated successfully
- Growth in corporate client numbers at Westhouse Securities from 28 to 36 with an average market capitalisation of £69 million.
Commenting on the results, Christopher Getley, Chief Executive said:
“Westhouse's focus on growing its business towards substantial profitability has been demonstrated during the first half of 2011. The strong growth in corporate client numbers, growth in revenues and quick and successful integration of the new teams give the Board reason to be encouraged. Equally, recognising the uncertainties that are affecting equity markets generally, the Board has sought to remain risk averse through maintaining appropriate market exposure and bearing down on unnecessary expenditure.”
Chairman and Chief Executive's statement
Westhouse Holdings plc has grown its business during the first half of 2011 in line with Board strategy. The Investment Funds Team which joined in late 2010 and Smith's Corporate Advisory which was acquired at the turn of the year have integrated well and contributed substantially to the Company. The Board is confident that its strategy to achieve growth through clear focus on sectoral expertise is one that will deliver a profitable future for shareholders.
Results
Operating revenues of (£5.18 million) were up (163%) compared with those for the same period in 2010 (£1.97 million). Each of the business areas generated increased revenue and the increase in corporate client numbers is encouraging both in terms of retainer fees and the opportunities for future transactional revenues. Whilst a reduced loss of £0.24 million (2010: £0.59 million) represents an improvement it is not satisfactory and the Board is focussed on both further revenue growth and cost control in order to achieve profitability. The Company maintains a strong cash position of £3.8 million (2010 £0.6 million).
Westhouse Securities acted for its clients in six transactions and was involved in placing shares valued at £89 million during the period. Secondary commissions also grew during the period and a review of stock coverage by the analyst team has been undertaken to ensure that Westhouse is addressing the requirements of its institutional investor clients. The market making desks have been consistently profitable, operate within clear risk boundaries and focus largely on facilitating trades in the shares of client companies.
Smith's Corporate Advisory has performed well in its own right and has also enabled Westhouse to broaden and inform its offering to clients.
Outlook
Market conditions are challenging and that is expected to continue for the remainder of the year. Accordingly the maintenance of both a liquid balance sheet and tight control of cost are high priorities.
Equally the pipeline of corporate work for the remainder of this year and into next gives the Board encouragement for the months to come, whilst not being complacent about the risks of slippage due to market movements.
| Garth Milne | Christopher Getley |
| Chairman | Chief Executive |
| 8 September 2011 | 8 September 2011 |
Consolidated income statement
| Note | Unaudited Six months ended 30 June 2011 £ |
Unaudited Six months ended 30 June 2010 £ |
Audited Year ended 31 December 2010 £ |
|
| Revenue | 4 | 5,175,371 | 1,966,373 | 6,038,648 |
| Gains on sale of investments | 80,745 | 428,132 | 994,220 | |
| Gains / (losses) in fair value of assets held at fair value through profit or loss | (58,372) | 684,229 | (246,954) | |
| Gains / (losses) on available for sale assets - impairments | (244,594) | (22,738) | (315,325) | |
| Finance revenue | 3,024 | 1,991 | 5,239 | |
| Total income | 4,956,174 | 3,057,987 | 6,475,828 | |
| Administration expenses | (5,040,332) | (3,335,459) | (8,026,960) | |
| Finance costs | (87,906) | - | (71,142) | |
| Embedded derivative finance charge | (68,867) | - | - | |
| Operating (loss) before restructuring costs | (240,931) | (277,472) | (1,622,274) | |
| Restructuring costs | - | (337,837) | - | |
| (Loss) before tax | (240,931) | (615,309) | (1,622,274) | |
| Taxation | - | 26,965 | 9,155 | |
| Net result for the period | (240,931) | (588,344) | (1,613,119) | |
| Attributable to owners of the parent | (240,931) | (588,344) | (1,613,119) | |
| (Loss) per share – basic | 2 | (0.02) | (0.05) | (0.14) |
| (Loss) per share – diluted | 2 | (0.02) | (0.05) | (0.14) |
All activities relate to continuing operations.
Consolidated statement of comprehensive income
| Unaudited Six months ended 30 June 2011 £ |
Unaudited Six months ended 30 June 2010 £ |
Audited Year ended 31 December 2010 £ |
||
| (Loss) for the period | (240,931) | (588,344) | (1,613,119) | |
| Other comprehensive income: | ||||
| Reclassification adjustments on disposals of available for sale financial instruments | (80,745) | (482,070) | (994,220) | |
| Change in value of available for sale financial instruments (net of tax) | 32,695 | (472,759) | (49,475) | |
| Total comprehensive (loss) for the period attributable to owners of the parent | (288,981) | (1,543,173) | (2,656,814) | |
Consolidated statement of financial position
As at 30 June 2011
| Note | Unaudited 30 June 2011 |
Unaudited 30 June 2010 |
Audited 31 December 2010 (Restated) |
|
| £ | £ | £ | ||
| Assets Non current assets |
||||
| Goodwill | 6 | 718,015 | 306,750 | 718,015 |
| Intangible assets | 77,593 | - | 86,215 | |
| Property plant and equipment | 351,918 | 328,336 | 411,873 | |
| 1,147,526 | 635,086 | 1,216,103 | ||
| Current assets | ||||
| Available for sale assets | 3.1 | 695,616 | 1,293,924 | 377,839 |
| Financial assets held at fair value | 3.2 | 380,798 | 1,462,453 | 439,170 |
| Financial assets held for trading | 3.2 | 1,656,741 | 353,008 | 1,990,650 |
| Market counterparties | 3.2 | 3,452,771 | 2,464,001 | 1,594,876 |
| Trade and other receivables | 270,324 | 715,114 | 402,434 | |
| Prepaid expenses | 1,471,952 | 726,585 | 858,443 | |
| Tax | - | - | 3,301 | |
| Cash and cash equivalents | 3,795,529 | 596,696 | 3,902,867 | |
| Total current assets | 11,723,731 | 7,611,781 | 9,569,580 | |
| Total assets | 12,871,257 | 8,246,867 | 10,785,683 | |
| Equity | ||||
| Share capital | 7 | 607 | 572 | 607 |
| Share premium account | 3,993,744 | 3,652,377 | 3,993,744 | |
| Merger reserve | 2,025,707 | 2,025,707 | 2,025,707 | |
| Reserve in respect of share based payments | 370,376 | 334,610 | 360,094 | |
| Reverse acquisition reserve | 1.2 | (1,686,801) | (1,686,801) | (1,686,801) |
| Revaluation reserve | 26,982 | 163,898 | 75,032 | |
| Profit and loss account | (782,424) | 475,236 | (541,493) | |
| Equity attributable to owners of the parent | 3,948,191 | 4,965,599 | 4,226,890 | |
| Liabilities Current liabilities |
||||
| Accounts payable and accrued liabilities | 1,234,521 | 900,778 | 1,538,367 | |
| Market counterparties | 474,051 | 2,353,918 | 1,050,844 | |
| Financial liabilities held for trading | 3,628,004 | 26,572 | 456,710 | |
| Tax | 7,869 | - | - | |
| Total current liabilities | 5,344,445 | 3,281,268 | 3,045,921 | |
| Non-current liabilities | ||||
| Finance lease | 9,754 | - | 12,872 | |
| Perpetual convertible loan | 5 | 2,773,200 | - | 2,773,200 |
| Embedded derivative | 5 | 795,667 | - | 726,800 |
| Total non-current liabilities | 3,578,621 | - | 3,512,872 | |
| Total liabilities | 8,923,066 | 3,281,268 | 6,558,793 | |
| Total equity and liabilities | 12,871,257 | 8,246,867 | 10,785,683 |
Consolidated statement of cash flows
| Unaudited Six months ended 30 June 2011 |
Unaudited Six months ended 30 June 2010 |
Audited Year ended 31 December 2010 Restated |
|
| £ | £ | £ | |
| Cash flows from operating activities | |||
| Operating (Loss) | (240,931) | (615,309) | (1,622,274) |
| Adjustments for: | |||
| (Gains) / losses on investments | (80,745) | (428,132) | (994,220) |
| (Gains) / losses in fair value assets held at fair value | 58,372 | (684,229) | 246,954 |
| (Gains) / losses on investments – impairments | 244,594 | 22,738 | 315,325 |
| Finance revenue | (3,024) | (1,991) | (5,239) |
| Finance cost | 87,906 | - | 71,142 |
| Embedded derivative finance charge | 68,867 | - | - |
| Depreciation and amortisation | 81,516 | 67,781 | 155,905 |
| Loss on disposal of assets | 45,885 | - | - |
| Shares received in kind | - | - | (300,000) |
| Dividends received in kind | (15,151) | - | - |
| Share based expense | 10,282 | 36,520 | 70,049 |
| Decrease / (increase) in receivables | (2,248,377) | (2,746,013) | (3,785,361) |
| Increase / (decrease) in payables | 2,684,296 | 2,660,198 | 2,031,191 |
| Tax (paid) / refund in period | 11,167 | - | (17,810) |
| Net cash flows from operating activities | 704,657 | (1,688,437) | (3,834,338) |
| Cash flows from investing activities | |||
| Purchase of equipment | (77,540) | (134,032) | (242,002) |
| Proceeds from sale of investments | 167,156 | 1,478,093 | 3,808,274 |
| Purchase of investments | (681,681) | (437,110) | (568,997) |
| Payment to Smith's shareholders | (134,866) | - | - |
| Interest received | 3,024 | 1,991 | 5,239 |
| Cash acquired from acquisitions | - | - | 190,522 |
| Net cash flows from investing activities | (723,907) | 908,942 | 3,193,036 |
| Cash flows from financing activities | |||
| Purchase of own shares | - | - | (258,597) |
| Net repayment of perpetual subordinated loan | - | (375,000) | (375,000) |
| Receipt from perpetual convertible loan | - | - | 3,500,000 |
| Capital element of finance lease | (2,485) | - | (2,283) |
| Interest paid | (85,603) | - | (71,142) |
| Net cash flows from financing activities | (88,088) | (375,000) | 2,792,978 |
| Net increase / (decrease) in cash and cash equivalents | (107,338) | (1,154,495) | 2,151,676 |
| Cash and cash equivalents at beginning of period | 3,902,867 | 1,751,191 | 1,751,191 |
| Cash and cash equivalents at end of period | 3,795,529 | 596,696 | 3,902,867 |
Consolidated statement of changes in equity
| Share capital | Other reserves | Merger reserve | Share based payments | Reverse acquisition reserve | Revaluation reserve | Retained earnings | Total equity |
|
| £ | £ | £ | £ | £ | ||||
| Balance at 1 January 2011 | 607 | 3,993,744 | 2,025,707 | 360,094 | (1,686,801) | 75,032 | (541,493) | 4,226,890 |
| Share option expense | - | - | - | 10,282 | - | - | - | 10,282 |
| Transactions with owners | 607 | 3,993,744 | 2,025,707 | 370,376 | (1,686,801) | 75,032 | (541,493) | 4,237,172 |
| Loss for the period | - | - | - | - | - | - | (240,931) | (240,931) |
| Other comprehensive income | ||||||||
| Movements on disposals of available for sale financial instruments | - | - | - | - | - | (80,745) | - | (80,745) |
| Change in value of available for sale financial instruments | - | - | - | - | - | 32,695 | - | 32,695 |
| Total comprehensive loss for the period | - | - | - | - | - | (48,050) | (240,931) | (288,981) |
| Balance at 30 June 2011 | 607 | 3,993,744 | 2,025,707 | 370,376 | (1,686,801) | 26,982 | (782,424) | 3,948,191 |
| Share capital |
Other reserves |
Merger reserve |
Perpetual subordinated loan |
Share based payments |
Reverse acquisition reserve |
Revaluation reserve |
Retained earnings |
Total equity |
|
| £ | £ | £ | £ | £ | £ | ||||
| Balance at 1 January 2010 | 572 | 3,652,377 | 2,025,707 | 375,000 | 298,090 | (1,686,801) | 1,118,727 | 1,064,354 | 6,848,026 |
| Perpetual subordinated loan | - | - | - | (375,000) | - | - | - | - | (375,000) |
| Share option expense | - | - | - | - | 36,520 | - | - | - | 36,520 |
| Distributions | - | - | - | - | - | - | - | (774) | (774) |
| Transactions with owners | 572 | 3,652,377 | 2,025,707 | - | 334,610 | (1,686,801) | 1,118,727 | 1,063,580 | 6,508,772 |
| Profit for the period | - | - | - | - | - | - | - | (588,344) | (588,344) |
| Other comprehensive income | |||||||||
| Movements on disposals of available for sale financial instruments | - | - | - | - | - | - | (482,070) | - | (482,070) |
| Change in value of available for sale financial instruments | - | - | - | - | - | - | (472,759) | - | (472,759) |
| Total comprehensive income for the period | - | - | - | - | - | - | (954,829) | (588,344) | (1,543,173) |
| Balance at 30 June 2010 | 572 | 3,652,377 | 2,025,707 | - | 334,610 | (1,686,801) | 163,898 | 475,236 | 4,965,599 |
Consolidated statement of changes in equity, continued
| Share capital |
Other reserves |
Merger reserve |
Perpetual subordinated loan |
Share based payments |
Reverse acquisition reserve |
Revaluation reserve |
Retained earnings |
Total equity |
|
| £ | £ | £ | £ | £ | £ | ||||
| Balance at 1 January 2010 | 572 | 3,652,376 | 2,025,707 | 375,000 | 298,090 | (1,686,801) | 1,118,727 | 1,064,355 | 6,848,026 |
| Buy back of own shares in treasury | (26) | (258,571) | - | - | - | - | - | - | (258,597) |
| Issued share capital | 61 | 599,939 | - | - | - | - | - | - | 600,000 |
| Perpetual subordinated loan | - | - | - | (375,000) | - | - | - | - | (375,000) |
| Share option expense | - | - | - | - | 70,049 | - | - | - | 70,049 |
| Reverse of share option expense | - | - | - | - | (8,045) | - | - | 8,045 | - |
| Interest on perpetual subordinated loan | - | - | - | - | - | - | - | (774) | (774) |
| Transactions with owners | 607 | 3,993,744 | 2,025,707 | - | 360,094 | (1,686,801) | 1,118,727 | 1,071,626 | 6,883,704 |
| Profit for the period | - | - | - | - | - | - | - | (1,613,119) | (1,613,119) |
| Other comprehensive income | |||||||||
| Disposals of available for sale financial instruments | - | - | - | - | - | - | (994,220) | - | (994,220) |
| Change in value of available for sale financial instruments | - | - | - | - | - | - | (49,475) | - | (49,475) |
| Total comprehensive income for the period | - | - | - | - | - | - | (1,043,695) | (1,613,119) | (2,656,814) |
| Balance at 31 December 2010 | 607 | 3,993,744 | 2,025,707 | - | 360,094 | (1,686,801) | 75,032 | (541,493) | 4,226,890 |
Other reserves
These relate to the share premium on the acquisition of Westhouse Securities Ltd (previously called Hanson Westhouse Ltd) which was acquired on 22 May 2007 in exchange for the issue of shares by the Company. The acquisition of Westhouse Securities Ltd was a result of a share exchange re-organisation and has been accounted for as a pooling of interests.
Notes:
The notes are available in the printable pdf of the results. To download it, please click here