Somers Limited - Financial Results for the year ended September 30, 2015

Hamilton, Bermuda – 23 December, 2015 – In a filing with the BSX Somers Limited (“Somers”, the “Company” or the “Group”; Ticker: SOM.BH), announced the Financial Results for the year ended September 30, 2015.  The filing states:

Somers Limited, a financial services investment holding company, is pleased to announce its results for the quarter and the year ended September 30, 2015.

Investment Highlights for the year ended September 30, 2015:

·         BCB reported net income of $8.0 million (2014: $9.2 million);

·         BCB capital ratio of 21.3% (2014: 23.2%);

·         Waverton reported pre-tax income (excluding extraordinary items) of £9.1 million (2014: £9.5 million);

·         Waverton reported Assets under Management (“AuM”) as at September 30, 2015 of £4.3 billion;

·         Private & Commercial Finance Group plc (“PCFG”) reported profit before tax up 80% to £1.5 million for six months ended September 30, 2015;

·         Sale of PCFG holding to BCB and acquisition of holding in West Hamilton; and

·         Additional £4.0 million investment in Ascot Lloyd Holdings Limited (“Ascot Lloyd”).

Overview of the year ended September 30, 2015:

·         Shareholders’ equity of  $209.2 million as at September 30, 2015 (September 30, 2014: $215.1 million);

·         Diluted net asset value per share of $17.74 as at September 30, 2015 (2014; $18.96);

·         NAV decrease driven by combination of valuation reductions at Waverton Investment Management Limited (“Waverton”) and Bermuda commercial Bank Limited (“BCB”) and Sterling depreciation; and

·         Final dividend of $0.24 per share (2014: $0.22 per share) bringing the total dividend for the year to $0.42 per share (2014: $0.37 per share).

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

“Somers’ primary markets are the UK and Bermuda which together account for almost 98% of our portfolio. Both jurisdictions underperformed in 2015 with the UK’s FTSE 100, one of our primary benchmarks, down 8.5%. Somers was not immune to this downturn and our 2015 results were impacted by valuation reductions at our two largest holdings, BCB and Waverton. Offsetting this, two more of our UK investments, PCFG and Ascot Lloyd achieved strong growth for the year. Our investment weighting in these companies is however at a relatively lower level and the net overall result was a decrease in Somers’ NAV to $17.74 per share from $18.96 a year ago.

Of our core investments, BCB is going through a period of investment in its infrastructure and Waverton was impacted by the fall in the UK equity markets during the year. Despite this, both companies returned strong profits for 2015 albeit slightly below 2014 levels. Over the course of the year BCB’s Board and management team have been strengthened and post the year end the Bank successfully launched its new core banking system. This will allow the Bank to broaden its product offering and become more customer-centric enabling the Bank to compete for an increased market share. The carrying value of our investment in Waverton was reduced on account of lower earnings and reduced AuM resulting from the transfer of one of the Waverton funds.

Against the backdrop of market uncertainty, currency volatility was also a feature of 2015 and adverse currency movements negatively impacted Somers’ NAV. Many of our larger investments, in particular Waverton, PCFG and Ascot Lloyd are denominated in Sterling and over the course of the year Sterling declined by 6.7% versus the Dollar leading to a $6.7 million reduction in NAV.

Throughout 2015 Somers was fully invested with cash levels kept to an operating minimum. Investment activity was low in 2015 with the year’s main transactions being the acquisition of West Hamilton shares from BCB and the sale of our PCFG holdings to BCB. In addition, we invested a further £4.0 million in Ascot Lloyd. The PCFG transaction enables BCB to diversify and strengthen its earnings, improve its capital efficiency and diversify its geographic risk. BCB can assist PCFG in growing its loan book and PCFG will benefit from the strong and liquid balance sheet that a bank majority owner provides. Somers’ acquisition of the West Hamilton shares consolidates the Group’s share ownership in West Hamilton under one roof.

In 2015 we maintained our financial strength and kept our leverage position at a very conservative level. Our focus is to maintain strong returns in the medium and long term which we will do by maximising returns from our existing portfolio, adopting a measured and selective approach to new investments and keeping an absolute focus on improving every aspect of our business.”

Media Contacts:

Alasdair Younie                                                                  

Director                                                                           

Somers Limited                                    

Tel:  441-299-2897                                         

Email:  ay@icm.bm                                        

-ENDS-

Somers Limited is a listed financial services investment holding company whose major assets include its 100% owned subsidiary, Bermuda Commercial Bank Limited, one of Bermuda’s four licensed banks and a 62.5% holding in Waverton Investment Management Limited, a UK wealth manager with over US$7.2 billion assets under management. The Group’s other investments include an approximate 68% economic interest in the London Stock Exchange listed Private & Commercial Finance Group PLC, a UK asset financing company, an 84.6% stake in Westhouse Holdings PLC, a corporate and institutional stockbroking group, a 44% economic interest in Ascot Lloyd Holdings Limited, a UK independent financial adviser and a 21% economic interest in Merrion Capital Holdings Limited, an Irish financial services group. Somers has shareholders’ equity of $205 million. Somers’ shares are publicly traded and listed on the Bermuda Stock Exchange (Ticker: SOM.BH) and more details on the Company can be found at www.somers.bm.