WELSH INDUSTRIAL INVESTMENT TRUST PLC
PRELIMINARY FINANCIAL STATEMENT
YEAR ENDED 5 APRIL 2009
Welsh Industrial Investment Trust plc (WII) today announces its preliminary
Results for the year ended 5 April 2009.
CHAIRMAN'S STATEMENT
The year ended 5th April, 2009 has been a difficult one for your company and, as
a consequence, the results for the year to 5 April 2009 show a profit in the
revenue account amounting to £107,334 (2008: £205,354) and a capital loss of
£2,633,450(2008: £1,618,293).
The fall in the revenue profits for the year ended 5 April 2009 arose as a
result of a general reduction in income levels overall but particularly a fall
in interest receivable of £25,899 to £16,898 and a fall in share dealing profits
of £91,820 to £21,985 offset to some extent by a reduction of £35,610 in the
unrealised losses on the securities held for trading in by Welsh Industrial
Securities Limited. As a result the revenue earnings per share were 8.0p
compared to 15.2p last year.
The loss recorded in the capital account is attributable to the fall in value of
the majority of our investments and, in particular, those investments traded on
the AIM Market which overall fell by £1.74m. Of this total SpaceandPeople plc
accounted for £945,000, a fall in value since 5 April 2008 of 63.6%.
As a consequence of these results the net asset value as at 5 April 2009 was
266.0p compared with 461.8p as at 5th April, 2008, a decrease of 42.4%. By
comparison, the FTSE All Shares Index over the same period declined by 32.5%.
From the financial year end to 3 July 2009 the value of the investment
portfolio has increased by 16.6%. This may be compared with an increase in the
FTSE All Shares Index of 5.5% over the same period.
In my statement last year, I warned shareholders that the increase in dividend
should be treated as exceptional and that the level was unlikely to be repeated.
Accordingly your Board now proposes an ordinary dividend of 6.0p per share for
this year.
We continue to seek interesting investment opportunities in these difficult
market conditions.
A P Stirling
Chairman
10 July 2009
WELSH INDUSTRIAL INVESTMENT TRUST PLC
PRELIMINARY FINANCIAL STATEMENT
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 5 APRIL 2009
2009 2008
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Income:
Dividend and interest
income 179,441 - 179,441 221,957 - 221,957
Other operating income 17,909 - 17,909 74,749 - 74,749
------- ------- ------- ------- -------- -------
Total Income 197,350 - 197,350 296,706 - 296,706
Loss on investments
held at fair value - (2,633,450)(2,633,450) - (1,618,293)(1,618,293)
Total income and ------- --------- --------- ------- --------- ---------
gains/(losses) on
investments 197,350 (2,633,450)(2,436,100) 296,706 (1,618,293)(1,321,587)
------- --------- --------- ------- --------- ---------
Expenses
Operating expenses (86,078) - (86,078) (87,414) - (87,414)
Finance costs (3,938) - (3,938) (3,938) - (3,938)
------ --------- ------ ------ ------- --------
(90,016) - (90,016) (91,352) - (91,352)
------ --------- ------ ------ ------- --------
Profit/(loss)
before taxation 107,334 (2,633,450)(2,526,116) 205,354 (1,618,293)(1,412,939)
Taxation - - - - - -
------- --------- --------- ------- --------- ---------
Profit/(loss)
for the period 107,334 (2,633,450)(2,526,116) 205,354 (1,618,293)(1,412,939)
======= ========= ========= ======= ========= =========
Basic and diluted loss
per ordinary share (187.1)p (104.7)p
===== =====
Notes
(i) The total column of this statement represents the Group's Income Statement
prepared in accordance with IFRSs.
(ii) Dividends - Ordinary shares:
proposed final dividend of 6p per share (2008: 8.75p) payable
on 14 August 2009 to shareholders on the register at 24 July 2009
81,000 118,125
======= =========
(iii) The summary of results for the year ended 5 April 2009 does not constitute
statutory accounts within the meaning of s434 of the Companies Act 2006. The
consolidated income statement, consolidated balance sheet, consolidated
statement of changes in equity and consolidated cash flow statement have been
extracted from the Group's 2009 statutory financial statements on which the
auditors have given an unqualified audit report. The full statutory accounts
for the year ended 5 April 2009 are available on the Company's website
www.welshindustrial.com and will be posted to shareholders.
(iv)Basic and diluted loss per ordinary share are based on the loss
attributable to equity shareholders of £2,526,116 (2008: £1,412,939), and on
1,350,000 (2008:1,350,000) ordinary shares being the weighted average number of
those in issue during the year.
WELSH INDUSTRIAL INVESTMENT TRUST PLC
PRELIMINARY FINANCIAL STATEMENT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 5 APRIL 2009
Year ended 5 April 2009
Ordinary
share Capital Retained
capital reserve earnings Total
£ £ £ £
Balance as at 6 April 2008 67,500 5,765,285 401,824 6,234,609
Profit/(loss) for the period - (2,633,450) 107,334 (2,526,116)
Ordinary dividend paid - - (118,125) (118,125)
--------- --------- --------- ---------
Balance at 5 April 2009 67,500 3,131,835 391,033 3,590,368
========= ========= ========= =========
Year ended 5 April 2008
Ordinary
share Capital Retained
capital reserve earnings Total
£ £ £ £
Balance as at 6 April 2007 67,500 7,383,578 281,520 7,732,598
Profit/(loss) for the period - (1,618,293) 205,354 (1,412,939)
Ordinary dividend paid - - (85,050) (85,050)
--------- --------- --------- ---------
Balance at 5 April 2008 67,500 5,765,285 401,824 6,234,609
========= ========= ========= =========
WELSH INDUSTRIAL INVESTMENT TRUST PLC
PRELIMINARY FINANCIAL STATEMENT
CONSOLIDATED BALANCE SHEET
AS AT 5 APRIL 2009
2009 2008
Assets £ £
Non current assets
Financial assets 2,936,139 5,424,270
--------- ---------
Total non current assets 2,936,139 5,424,270
========= =========
Current assets
Accrued income and prepaid expenses 15,338 15,027
Other current assets 770 5,543
Cash 723,463 877,049
--------- ---------
Total current assets 739,571 897,619
--------- ---------
Total assets 3,675,710 6,321,889
--------- ---------
Current liabilities
Trade and other payables (40,342) (42,280)
--------- ---------
Total current liabilities (40,342) (42,280)
--------- ---------
Total assets less current liabilities 3,635,368 6,279,609
Non current liabilities
8.75% cumulative preference shares (45,000) (45,000)
--------- ---------
(45,000) (45,000)
--------- ---------
Net assets 3,590,368 6,234,609
========= =========
Capital and reserves
Ordinary share capital 67,500 67,500
Capital reserve 3,131,835 5,765,285
Retained earnings 391,033 401,824
--------- ---------
Total equity attributable to equity
shareholders of the parent 3,590,368 6,234,609
========= =========
Net asset value per ordinary share 266.0p 461.8p
===== =====
Notes
Net asset value per ordinary share is based on total equity attributable
to equity shareholders of the parent at the year end and on 1,350,000
(2008:1,350,000) ordinary shares being the number of ordinary shares
in issue at the year end.
WELSH INDUSTRIAL INVESTMENT TRUST PLC
PRELIMINARY FINANCIAL STATEMENT
CASH FLOW STATEMENT
FOR THE YEAR ENDED 5 APRIL 2009
2009 2009 2008 2008
£ £ £ £
Cashflow from operating activities
Investment income received 162,543 179,160
Deposit interest received 16,898 42,797
Cashflow on margin trading 14,888 85,680
Other income 697 1,327
Other cash payments (88,327) (89,277)
------- ------
Net cash flows from operating activities 106,699 219,687
Cash flows from investing activities
Purchase of investments (491,103) (955,957)
Sale of investments 352,881 645,953
------- -------
(138,222) (310,004)
Cash flows from financing activities
Preference dividends paid (3,938) (3,938)
Equity dividends paid (118,125) (84,488)
------- -------
(122,063) (88,426)
--------- -------
Decrease in cash and cash equivalents (153,586) (178,743)
Cash and cash equivalents at start
of period 877,049 1,055,792
Cash and cash equivalents at end --------- ---------
of period 723,463 877,049
========= =========
NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT
RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
2009 2008
£ £
Revenue return before taxation 107,334 205,354
Interest payable 3,938 3,938
(Loss)/Profit on sales of securities
held for dealing (2,324) 12,258
Increase in debtors (311) (2,977)
(Decrease)/increase in creditors (1,938) 1,114
------- -------
106,699 219,687
======= =======
The principal accounting policies adopted by the Group are fundamentally the same
as the previous year. Full disclosure of the principal accounting policies and
related party transactions are included in the financial statements which can be
found on the Company's website www.welshindustrial.com.