Interim Results Pt I

Interim Results

Westside Acquisitions plc, the AIM listed investment vehicle, announces its results for the six months ended 30 June 2008.

Chairman’s Statement

In our Annual Report for 2007 we anticipated that operating conditions in 2008 would continue to be difficult.  Although there has been co-ordinated action by government and financial authorities around the World, such activities can - in the main - be interpreted more as a series of protective measures designed to prevent economic and financial collapse rather than any concerted and convincing plan to “kick start” a recovery. 

So although it may be some time before a healthy recovery is delivered - in the context of the wider market, we do feel encouraged by the operating progress announced by our subsidiaries and/or the majority of the companies in which we hold stakes.

In this context we report a pre-tax loss for the 6 months of £314,644 (2007:  pre-tax profit £236,948).

Subsidiaries

We have two active operating subsidiaries: Reverse Takeover Investments plc (‘RTI’ – 100%) and Pantheon Leisure plc (‘Pantheon’ – 62.5%).

RTI

RTI specialises in creating shell companies, which act as investment vehicles used to make substantial acquisitions, with a view to obtaining a public quotation for the shell.  It has significant holdings in five diverse AIM listed companies and continues to explore further investment opportunities.  The market value of the RTI investment portfolio as of the 30 June 2008 was £1.7 million (2007: £4.68 million) against a cost of £849,500 (2007: £849,500).  In the six months to 30th June 2008, RTI incurred a pre-tax loss of £ £118,069 (2007: profit £505,314).

•           RTI holds 22.54 million ordinary shares in ADDleisure plc

ADDleisure develops products and services in the health and leisure sectors.  During the period, ADDleisure continued to develop its portfolio - particularly the stake in Movers & Shapers Ltd, ADDleisure held 50:50 with BUPA.  BUPA also holds a direct stake of 29.9% in the share capital of ADDleisure, and so - with BUPA’s support and involvement - we remain confident that ADDleisure’s brands and services will generate further growth.

•           RTI holds 1.8 million shares in York Pharma Plc

York is a pharmaceutical group, established in 2003, which markets supplies branded prescription products to pharmaceutical wholesalers, hospitals and general practitioners within the field of dermatology.  The Group has a portfolio of dermatology products and technology platforms in the key therapeutic areas of infection, eczema/dermatitis, psoriasis and acne.  York is progressing its strategy of expanding internationally through the selected development of subsidiary companies and entering partnership agreements with established pharmaceutical companies and distributors.  Most recently York announced a fund raising of £3.9 million and the acquisition of Derma and wound-care products from Solvay.

•           RTI holds 23 million ordinary shares in Messaging International plc

In the period, Messaging International has made further steps towards strengthening its position as a leading provider of messaging services, forming new agreements with blue-chip companies and expanding its offering.  It works with a growing number of blue chip telecom operators such as Verizon, SprintNextel and Rogers Wireless, and has a highly innovative R&D team focussed on delivering new patented products.

•           RTI holds 800,000 ordinary shares in Cheerful Scout plc

Multi media specialist, Cheerful Scout has maintained its creative excellence and added further to both technology and innovation, resulting in prestigious contracts being won in the period under review.  In addition to its DVD and production divisions, the Company also stages large live events and conferences, utilising its new cutting edge presentation and visualisation technology.

Cheerful Scout enjoys a strong cash position which exceeds its current market capitalisation.

•           RTI holds 20 million ordinary shares in Astek Group plc

Astek, a dental equipment designer, manufacturer and distributor, has focused on building its distributor network and expanding its product offering since listing on AIM in October 2006.  It has an extensive portfolio of products including prosthetic products for dentures, consumable products for general use, new innovative products relating to the prevention of cross infection and a strong pipeline of new products being brought to the market.

Pantheon Leisure plc

Westside holds 75 million ordinary shares in Pantheon Leisure plc.

Pantheon, an AIM listed company, operates various sports and leisure based activities through its subsidiaries, The Elms Group Limited and Sport in Schools Limited.  The Board continues to believe that Pantheon’s growth prospects are potentially very exciting in light of current social and government initiatives with regard to health and wellbeing.

Whilst its core business is the operation of five-a-side football leagues in Greater London, Pantheon is making considerable headway with its Sport in Schools offering, a unique new sports programme for primary schools.  A growing number of schools and children are taking part in the programme, which is ideally positioned to tackle the much publicised and rapidly growing problem of child obesity.

Additionally, the board is actively exploring a number of acquisition opportunities to build on and broaden its existing portfolio.

Financial Overview

The accounts for the six months ended 30 June 2008 show a pre-tax loss on ordinary activities of £314,644 (2007: profit of £236,948).  Westside’s cash balances as at 30 June 2008 were £1,442,510 (2007: £1,735,103) or 1.28p per Westside share (2007: 1.55p).  The Directors are not recommending the payment of a dividend.

Our financial position remains strong with the combined value of cash balances and the market value of our investment portfolio exceeding £3.14 million. In accordance with International Financial Reporting Standards, the investment portfolio is recognised on the balance sheet at its market value.  The portfolio is considered to fall into the category of ‘available-for-sale investments’ and therefore any unrealised profits and losses are taken to equity rather than through the income statement.  When an investment is sold the profit or loss recognised in the income statement represents the difference between original cost and sale proceeds (net of transaction costs).

Outlook

Market conditions will dictate the results for the second half of the year – but, we continue to work with the management of each of the investments in our portfolio in our efforts to secure progress in the valuation of our investment portfolio.  We look forward to updating shareholders with our progress.

Richard Owen
Chairman

Geoffrey Simmonds
Chief Executive

25 September 2008

Consolidated income statement for the six months ended 30 June 2008

   

Unaudited
 6 months ended 30 June 2008

 

Unaudited
 6 months ended 30 June 2007

 

Audited
Year ended 31 December 2007

   

£

 

£

 

£

             

Continuing operations

           
             

Revenues

 

548,509

 

1,068,364

 

1,575,055

             

Cost of sales

 

(298,402)

 

(308,438)

 

(693,868)

             

Gross profit

 

250,107

 

759,926

 

881,187)

             

Administrative expenses

 

(602,437)

 

(566,916)

 

(1,096,184)

             

Operating (loss)/profit

 

(352,330)

 

193,010

 

(214,997)

             

Financial income

 

37,686

 

43,938

 

92,143)

           

)

             

(Loss)/profit before taxation

 

(314,644)

 

236,948

 

(122,854)

             

Taxation

 

27,837

 

(164,907)

 

(111,512)

(Loss)/profit for the year from continuing operations

 

(286,807)

 

72,041

 

(234,366)

Discontinued operations

           

Profit for the year from discontinued operations

 

-

 

-

 

6,426

(Loss)/profit after taxation

 

       (286,807)

 

72,041

 

(227,940)

Attributable to:

           

Equity holders of the parent company

 

(257,478)

 

122,268

 

(148,949)

Minority interest

 

(29,329)

 

(50,227)

 

(78,991)

             
   

(286,807)

 

72,041

 

(227,940)

             

Continuing operations

           

Basic (loss)/earnings per share

 

          (0.231)p

 

0.110p

 

(0.136)p

Diluted (loss)/earnings per share

 

        (0.231)p

 

             0.106p

 

            (0.136)p

             

Discontinued operations

           

Basic and diluted earnings per share

 

-

 

-

 

0.003p

Continuing and discontinued operations


Basic (loss)/earnings per share

      (0.231)p

 

0.110p         

 

        (0.133)p

Diluted (loss)/earnings per share

      (0.231)p

 

0.106p         

 

        (0.133)p

Consolidated statement of recognised income and expense for the six months ended 30 June 2008

   

Unaudited
 6 months ended 30 June 2008

 

Unaudited
 6 months ended 30 June 2007

 

Audited
Year ended 31 December 2007

   

£

 

£

 

£

             
             

Revaluation (losses)/gains on available-for-sale investments taken to equity

 

(1,017,752)

 

632,965

 

(1,484,094)

             

Tax on items taken directly to equity

 

284,971

 

(110,259)

 

482,518)

             

Net (expense)/income recognised directly in equity

 

(732,781)

 

522,706

 

(1,001,576)

             

Transferred to profit or loss on sale of available-for-sale investments

 

-

 

(487,500)

 

(487,500)

             

Tax on items transferred from equity

 

-

 

146,250

 

146,250)

             
   

(732,781)

 

181,456

 

(1,342,826)

             

(Loss)/profit for the period/year

 

(286,807)

 

72,041

 

(227,940)

             
             

Total recognised income and expense for the period/year

 

(1,019,588)

 

253,497

 

(1,570,766)

             
             

Attributable to equity holders of the parent

 

(990,259)

 

303,724

 

(1,491,775)

             

Attributable to minority interests

 

(29,329)

 

(50,227)

 

(78,991)

             
   

(1,019,588)

 

253,497

 

(1,570,766)

Consolidated balance sheet as at 30 June 2008

 

Unaudited
as at 30 June

Unaudited
as at 30 June
2007

Audited
As at December
2007

 

2008

 

£

£

    £

   

( Restated)

 

Non current assets

     

Goodwill

59,954

59,954

59,954

Plant and equipment

93,308

7

13,618

Deferred tax asset

22,451

-

16,181

Total non-current assets

175,713

59,961

89,753

       

Current assets

     

Available-for-sale investments

1,696,190

4,681,001

2,713,942

Trade and other receivables

184,439

916,561

123,558

Cash and cash equivalents

1,442,510

1,735,103

1,787,500

Total current assets

3,323,139

7,332,665

4,625,000

       

Total assets

3,498,852

7,392,626

4,714,753

       

Current liabilities

     

Trade and other payables

360,619

446,716

284,292

Bank overdraft

52,959

61,303

104,800

Total current liabilities

413,578

508,019

389,092

       

Non-current liabilities

     

Deferred taxation

-

936,528

306,537

Hire purchase obligations

85,738

-

-

Total non-current liabilities

85,738

936,528

306,537

       

Total liabilities

499,316

1,444,547

695,629

       
       

Net assets

2,999,536

5,948,079

4,019,124

       

Equity

     
       

Share capital

1,112,378

1,112,373

1,112,378

Share premium account

292,179

292,139

292,179

Capital redemption reserve

182,512

182,512

182,512

Merger reserve

325,584

325,584

325,584

Fair value reserve

458,657

2,715,426

1,191,144

Retained earnings

439,871

1,089,909

713,955

       

Equity attributable to shareholders’ of the parent company

2,811,181

5,717,943

3,817,752

Minority interest

188,355

230,136

201,372

       
       

Total Equity

2,999,536

5,948,079

4,019,124

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