Hamilton, Bermuda – August 8, 2018 – In a filing with the Bermuda Stock Exchange (“BSX”), Somers Limited (“Somers”, the “Company” or the “Group”; Ticker: SOM.BH) a financial services investment holding company, announced financial results for the nine months ended June 30, 2018.  The full filing stated:

For Immediate Release- (Hamilton, Bermuda) Somers Limited, a financial services investment holding company, is pleased to announce its results for the quarter and nine months ended June 30, 2018.

 

 

Overview of the quarter ended June 30, 2018:

 

• Net asset value (“NAV”) per share of $19.09 as at June 30, 2018 (September 30, 2017: $18.55); and

 

·         Shareholders’ equity of $378.3 million as at June 30, 2018 (September 30, 2017: $361.2 million).

 

Investment highlights for the quarter ended June 30, 2018:

 

• Somers increases its direct investment in PCF Group plc (“PCF”) to 56% following the acquisition of 94.5 million shares from Bermuda Commercial Bank Limited (“BCB”);

 

• Following the sale of its PCF shares, BCB reports a high capital ratio of 40.3%;

 

• PCF reports profit before tax up 20% to £2.1 million for the six months ended March 31, 2018 (2017: £1.7 million);

 

• Homeloans Limited (“Homeloans”) to report its annual results shortly with strong book growth and ongoing solid settlement flows in their half year anticipated to result in increased Assets under Management (“AuM”); and

 

• Waverton Investment Management Limited (“Waverton”) AuM at June 30, 2018 of £5.6 billion.

 

 

 

Commenting on the financial results, Warren McLeland, Chairman of Somers said:

 

“The investee companies are performing strongly with excellent financial results reported by Homeloans, Waverton and PCF in their most recent announcements. Despite more volatile market conditions driven by quantitative tightening in the US, our investee company operating results continue to be positive. The valuation of a number of our larger investments were however adversely impacted during the quarter by foreign exchange movements with both Sterling and the Australian Dollar weakening against the US Dollar.

 

During the quarter the Company acquired 94.5 million shares in PCF from BCB. The holding in PCF is now more suited to Somers. We are still awaiting confirmation of approval from the Central Bank of Ireland (“CBI”) on the sale of Merrion Capital Holdings Limited but we anticipate that the CBI will respond during the current quarter.”

 

 

Summary of Somers’ results for the nine months ended June 30, 2018

 

Summary

 

Profits for the nine months ended June 30, 2018 were $17.8 million (2017: loss of $0.6 million). During the June quarter Somers recorded a net loss of $16.2 million (2017: profit of $6.0 million) and earnings per share for the nine months were $0.91 (2017: basic and diluted loss per share of $0.05 and $0.04 respectively). The Company’s net asset value per share was $19.09 as at June 30, 2018 (September 2017: $18.55).

 

During the quarter there was an $8.8 million loss on the Company’s investment portfolio (2017: gain of $2.7 million). This reduced the year to date investment gain to $22.1 million (2017: loss of $1.4 million). Investment gains and losses result from changes in the valuations of the Company’s investments and the year to date gain was principally due to increased valuations of the Company’s holdings in Homeloans and PCF due to strong financial performances at these entities.

 

Net foreign exchange losses were $9.5 million for the quarter (nine month year to date foreign exchange losses were $6.4 million). As at June 30, 2018, 70% of Somers' investment portfolio is denominated in foreign currencies, primarily Sterling and the Australian Dollar and the main driver of the Q3 currency losses was the 5.9% depreciation of Sterling versus the Dollar while the Australian Dollar depreciated by 3.6%. These exchange losses were primarily unrealised. With the level of FX hedging continuing to increase we anticipate that the impact of FX movements will reduce over time.

 

Total assets were $424.0 million at June 30, 2018 (September 30, 2017: $368.1 million). The investment portfolio was $418.7 million as at June 30, 2018 (September 30, 2017: $361.0 million) with equity investments ($414.8 million) accounting for 99.0% of this total. Within investments, Homeloans at $134.9 million, BCB at $97.3 million, Waverton at $82.7 million and PCF at $56.3 million together represent 88.7% of total investments.

 

Borrowings

 

During the quarter the Company entered into a £25 million ($33.0 million) loan facility to part fund the acquisition of PCF shares from BCB. Somers’ total borrowings therefore increased to $43.3 million at June 30, 2018 (September 30, 2017: $4.5 million).  

 

Shareholders’ Equity

 

Shareholders’ equity ended the period at $378.3 million (September 30, 2017: $361.2 million). Somers' share price ended the period at $16.25, a discount of 14.9% to the Company’s NAV per share.

 

Directors and Officers Interest in Somers’ Share Capital

 

At June 30, 2018 the Directors and Officers of the Company and their related interests had combined interests totalling 9,869,377common shares out of 19,818,843 common shares in issue on that date. No rights to subscribe to shares or debt securities in the Company have been granted to, or exercised by, any Director or Officer of the Company during the quarter.

 

 

 

 

 

 

 

 

 

 

 

 

Media Contacts:

 

Alasdair Younie                                                                 

Director                                                                          

Somers Limited                                    

Tel:  441-299-2897                                        

Email:  ay@icm.bm

 

ENDS-

    Somers Limited (“Somers”) is a listed financial services investment holding company whose major assets include: a 62.3% holding in Homeloans Limited, a leading non-bank Australian financial institution with A$11.1 billion assets under management; 100% shareholding in Bermuda Commercial Bank Limited, one of Bermuda’s four licensed banks, a 65.7% shareholding in UK specialist bank, PCF Group plc; and, a 62.5% holding in Waverton Investment Management Limited, a UK wealth manager with £5.6 billion assets under management. Somers has shareholders’ funds of approximately US$378 million. Somers’ shares are publicly traded and listed on the Bermuda Stock Exchange (Ticker: SOM.BH). More details on the Company can be found at www.somers.limited

                                                           

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For more information on the Bermuda Stock Exchange (BSX), contact Jacintha Pogson-Hughes at 1-441-292-7212 or jphughes@bsx.com . Information is also available at www.bsx.com and on Bloomberg at BSX .

 

Established in 1971 the Bermuda Stock Exchange (BSX) is now the leading fully electronic offshore securities market. The BSX specializes in listing and trading of capital market instruments such as equities, debt issues, funds, hedge funds, derivative warrants and Insurance Linked Securities.

 

The BSX, recognised by the US SEC as a Designated Offshore Securities Market, is a member of the World Federation of Exchanges and is located in an O.E.C.D. member nation. The BSX has Approved Stock Exchange status under Australia’s Foreign Investment Fund (FIF) taxation rules; Designated Investment Exchange status by the UK’s Financial Services Authority; Recognised Stock Exchange by the UK HM Revenue and Customs; Designated Exchange status under Canada’s Income Tax Act and is a member of America’s Central Securities Depository Association.