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Western Selection PLC - AQSE-listed activist investor in small UK companies - Fair value adjustments on treasury investments turns out costly for firm as loss widens. Pretax loss in the year that ended June 30 widens to £422,000 from £103,000 a year prior. Turns to loss on disposal of treasury investments of £127,000, compared to a profit of £76,000. Fair value adjustment on treasury investments turns negative £142,000 from positive £209,000.
Looking ahead, firm notes difficult outlook: ‘The outlook for the UK and world economy is very uncertain. The war in Ukraine has disrupted energy and food supplies and exacerbated inflationary pressures. Interest rates are rising, but real rates remain negative. Discretionary expenditure is being trimmed. The diverse nature of our investments and the liquid funds available to the company will allow us to capitalise on the opportunities that market changes will undoubtedly throw up.’
Firm adds it aims to pay a progressive dividend, as long as ‘any dividend paid would not have a negative effect on the ability to maintain continued growth.’
Current stock price: 35 pence
12-month change: down 7.9%
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