PLC News 2009
29 September 2009
Interim Results for the six months ended 30 June 2009
Hanson Westhouse Holdings plc (the "Company"), the integrated corporate finance and broking house focusing on small and mid-cap companies, today announces its maiden interim results for the six months ended 30 June 2009.
In accordance with International Financial Reporting Standards these unaudited results comprise those of Hanson Westhouse Group Limited for the six month period ended 30 June 2009 together with those of Hanson Westhouse Holdings plc (previously SovGEM Limited) from 15 June 2009 to 30 June 2009.
Highlights:
- Reverse takeover of SovGEM and integration of businesses successfully completed
- Strong uplift in value of investments
- Well capitalised to continue growth of the business
- Regulatory capital now six times covered
- Significant improvement in fees and commissions since period end with consequential benefit to cash position
- Expansion plans in place and new hires to boost future growth
This is our first set of results after the reverse takeover on 15 June 2009, only a few days before the period end.
We are pleased that the reverse takeover of SovGEM Limited, which received the unqualified support of shareholders and staff, has been completed smoothly and successfully. The two businesses have been fully integrated as planned and we can look forward, with a strong capital base, to expanding our corporate advisory and broking activities as markets recover.
Trading conditions in the first half of the year, particularly on the AIM market, continued to be extremely difficult and this was reflected in the disappointing revenue for the period. However, the recent general market recovery has resulted in a significant up-turn in activity in both broking and corporate advisory work.
Despite these difficult conditions our portfolio of investments (including financial instruments) has seen a pleasing recovery in value. Our balance sheet at 30 June 2009 shows £4.2 million of value and in addition to this we have realised £260,000 in the period under review. From December 2008 to date this portfolio, including realised investments, has seen an increase of 34 per cent in value.
Current trading and business outlook
Since the period end we have seen a marked improvement and we have generated more trading revenue in the third quarter than in the whole of the first half. We have also significantly strengthened our cash position. Although it is difficult to predict the outcome for the remainder of the year, we are seeing an encouraging pipeline of business developing.
The Hon Robert Hanson
Mr Hanson, who has been enormously supportive, first as non-executive Chairman of Hanson Westhouse (the predecessor company) and lately as a member of the Advisory Panel, has informed the Board that he has decided to pursue other family business interests. As a consequence Mr Hanson has resigned from the Advisory Panel and he goes with our best wishes.
Mr Hanson remains supportive of the Company and his shares (which amount to 19.62 per cent of the issued share capital) are bound by the Orderly Market Agreement entered into at the time of the Company's admission to AIM in June.
It is proposed that the name of the Company will be changed to Westhouse Holdings plc and a notice of EGM will shortly be sent to shareholders to effect this change.
Staff
The Board appreciates the staff's support throughout what has been an extraordinary time in the financial markets. The Board wishes to reiterate that the business depends on the skill, experience and efforts of its dedicated and hard working staff.
We are continuing to strengthen our broking, advisory and research teams. We have already made a number of appointments and anticipate announcing further appointments in due course.
Commenting on the results, William Staple, Chief Executive said, "In the last 18 months we have seen very challenging trading conditions and these results reflect this. Despite these conditions, we have successfully weathered the storm and are now seeing a more positive trading climate. By combining the Hanson Westhouse business with SovGEM we have created a strong base which will enable us to take full advantage of the upturn we are beginning to see."
For further information:
| Hanson Westhouse Holdings plc | |
| William Staple, Chief Executive | Tel: +44 (0) 20 7601 6100 |
| william.staple@westhousesecurities.com |
Nominated Adviser
| Smith & Williamson Corporate Finance Limited | |
| Azhic Basirov | Tel: +44 (0) 20 7131 4000 |
| azhic.basirov@smith.williamson.co.uk | www.smith.williamson.co.uk |
Broker
| Hanson Westhouse Limited | |
| Tim Metcalfe | Tel: +44 (0) 20 7131 4000 |
| tim.metcalfe@westhousesecurities.com | www.westhousesecurities.com |
Media enquiries:
| Abchurch Communications Limited | |
| Quincy Allan | Tel: +44 (0) 20 7398 7714 |
| quincy.allan@abchurch-group.com | www.abchurch-group.com |