Last checked at 13 Jun 2017 07:00
Dewhurst plc (the "Group")
Interim Results for the 6 months ended 31 March 2017
Directors' Interim Report
FIRST HALF
The board is pleased to report record interim sales and profits for the Group's half year results to 31 March 2017. Overall, Group revenue increased 22% to £26.1 million (2016: £21.3 million), with profit before tax increasing by 76% to £3.0 million (2016: £1.7 million). Adjusted operating profit* of £3.1 million (2016: £1.9 million) is also up 61% on last year and earnings per share rose to 25.8p (2016: 13.1p). The Group balance sheet remains strong with cash at the period end of £16.0 million (2016: £14.0 million).
The weaker pound continued to benefit our reported figures throughout the period. Currency movements increased Group revenue by approximately £2.6 million in the first half. However we also achieved growth in local sales values at all our companies other than those in North America, which fell back slightly. At constant currency, the main revenue improvements were at the Transport and Keypad Divisions, which both achieved double digit growth; the Lift Division overall grew by around 5%, including a first time contribution of £0.4 million from the acquisition of P&R in Australia.
OUTLOOK
After strong first half sales, the UK seems to be pausing at the moment. Whether this is a short term lull or a longer term trend is not yet clear. But it is possible that the greater political and economic uncertainty in the UK since the general election may cause nervousness in our markets. Overseas the outlook is more positive. We have seen a good recovery in the last couple of months in some areas of North America, but it is not across the board. Demand in Australia, on the other hand, continues to be positive in all areas. The pound has strengthened a little against our main operating currencies since the end of March and that will, if maintained, reduce second half reported sales and profits. However the Directors believe that the underlying performance of the Group as a whole is encouraging.
DIVIDENDS
The Directors have declared an interim dividend of 3.50p per ordinary share (2016: 3.00p) which amounts to £295,000 (2016: £254,000). The interim dividend is payable on 22 August 2017 and will be posted on 17 August 2017 to shareholders appearing in the Register on 7 July 2017 (ex-dividend date being 6 July 2017).
A final 2016 dividend of 8.00p (2015: 10.00p) which amounted to £678,000 (2015: £847,000) was approved at the AGM held on 7 February 2017 and was paid on 15 February 2017 to members on the register at 20 January 2017.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
12 June 2017
* Operating profit before amortisation of acquired intangibles
Dewhurst plc
The unaudited consolidated statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2017, as compared with the corresponding half-year ended 31 March 2016 and the year ended 30 September 2016, shows the following results:
Consolidated statement of comprehensive income
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 September | |
2017 | 2016 | 2016 | |
Continuing operations | £000's | £000's | £000's |
Revenue | 26,070 | 21,332 | 47,159 |
Operating costs | (22,960) | (19,488) | (41,749) |
Adjusted operating profit* | 3,110 | 1,931 | 5,502 |
Amortisation of acquired intangibles | - | (87) | (92) |
Operating profit | 3,110 | 1,844 | 5,410 |
Finance income | 52 | 62 | 126 |
Finance costs | (204) | (226) | (451) |
Profit before taxation | 2,958 | 1,680 | 5,085 |
Taxation | Est. (773) | Est. (571) | (1,577) |
Profit for the financial period | 2,185 | 1,109 | 3,508 |
Other comprehensive income: | |||
Actuarial gains/(losses) on the defined benefit pension scheme | Est. 1,009 | Est. (1,249) | (5,071) |
Current tax effect | - | - | - |
Deferred tax effect | (172) | 225 | 862 |
Total that will not be subsequently reclassified to income statement | 837 | (1,024) | (4,209) |
Exchange differences on translation of foreign operations | 577 | 1,247 | 2,621 |
Deferred tax effect | (98) | (224) | (446) |
Total that may be subsequently reclassified to income statement | 479 | 1,023 | 2,175 |
Other comprehensive income/(expense) for the period, net of tax | 1,316 | (1) | (2,034) |
Total comprehensive income for the period | 3,501 | 1,108 | 1,474 |
Profit for the period attributable to: | |||
Equity shareholders of the company | 2,112 | 1,079 | 3,453 |
Non-controlling interests | 73 | 30 | 55 |
2,185 | 1,109 | 3,508 | |
Total comprehensive income for the period attributable to: | |||
Equity shareholders of the company | 3,396 | 1,006 | 1,289 |
Non-controlling interests | 105 | 102 | 185 |
3,501 | 1,108 | 1,474 | |
Basic and diluted earnings per share | 25.82p | 13.09p | 40.75p |
Dividends per share | 3.50p | 3.00p | 11.00p |
* Operating profit before amortisation of acquired intangibles
Dewhurst plc
Consolidated balance sheet
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 September | |
2017 | 2016 | 2016 | |
£000's | £000's | £000's | |
Non-current assets | |||
Goodwill | 4,829 | 3,096 | 3,444 |
Other intangibles | 89 | 90 | 91 |
Property, plant and equipment | 9,554 | 9,139 | 9,240 |
Deferred tax asset | 2,086 | 2,350 | 2,423 |
16,558 | 14,675 | 15,198 | |
Current assets | |||
Inventories | 5,108 | 4,346 | 4,863 |
Trade and other receivables | 11,275 | 9,515 | 10,301 |
Cash and cash equivalents | 16,010 | 14,038 | 16,674 |
32,393 | 27,899 | 31,838 | |
Total assets | 48,951 | 42,574 | 47,036 |
Current liabilities | |||
Trade and other payables | 5,824 | 4,196 | 5,365 |
Current tax liabilities | 223 | 443 | 164 |
Short-term provisions | 544 | 428 | 554 |
6,591 | 5,067 | 6,083 | |
Non-current liabilities | |||
Retirement benefit obligation | 14,890 | 12,994 | 16,373 |
Total liabilities | 21,481 | 18,061 | 22,456 |
Net assets | 27,470 | 24,513 | 24,580 |
Equity | |||
Share capital | 842 | 847 | 847 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 295 | 290 | 290 |
Translation reserve | 2,481 | 940 | 2,034 |
Retained earnings | 22,717 | 21,729 | 20,663 |
Total attributable to equity shareholders of the company | 26,492 | 23,963 | 23,991 |
Non-controlling interests | 978 | 550 | 589 |
Total equity | 27,470 | 24,513 | 24,580 |
Dewhurst plc
Consolidated statement of changes in equity
For the period ended 31 March 2017
Share | Share | Capital | Translation | Retained | Non | Total | |||||||
capital | premium | redemption | reserve | earnings | controlling | equity | |||||||
account | reserve | interest | |||||||||||
£(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | |||||||
At 1 October 2016 | 847 | 157 | 290 | 2,034 | 20,663 | 589 | 24,580 | ||||||
Profit for the period | - | - | - | - | 2,112 | 73 | 2,185 | ||||||
Other comprehensive income and expense | |||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
545 |
- |
32 |
577 | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
1,009 |
- |
1,009 | ||||||
Deferred tax effect | - | - | - | (98) | (172) | - | (270) | ||||||
Total comprehensive income | - | - | - | 447 | 2,949 | 105 | 3,501 | ||||||
Shares repurchased | (5) | - | 5 | - | (217) | - | (217) | ||||||
Shares Issued 2 | - | - | - | - | - | 311 | 311 | ||||||
Dividends paid | - | - | - | - | (678) | (27) | (705) | ||||||
At 31 March 2017 | 842 | 157 | 295 | 2,481 | 22,717 | 978 | 27,470 | ||||||
For the period ended 31 March 2016
Share | Share | Capital | Translation | Retained | Non | Total | |||||||
capital | premium | redemption | reserve | earnings | controlling | equity | |||||||
account | reserve | interest | |||||||||||
£(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | |||||||
At 1 October 2015 | 847 | 157 | 290 | (11) | 22,521 | 534 | 24,338 | ||||||
Profit for the period | - | - | - | - | 1,079 | 30 | 1,109 | ||||||
Other comprehensive income and expense | |||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
1,175 |
- |
72 |
1,247 | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(1,249) |
- |
(1,249) | ||||||
Deferred tax effect | - | - | - | (224) | 225 | - | 1 | ||||||
Total comprehensive income | - | - | - | 951 | 55 | 102 | 1,108 | ||||||
Shares repaid 1 | - | - | - | - | - | (86) | (86) | ||||||
Dividends paid | - | - | - | - | (847) | - | (847) | ||||||
At 31 March 2016 | 847 | 157 | 290 | 940 | 21,729 | 550 | 24,513 | ||||||
1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.
2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.
Dewhurst plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 2016
Share | Share | Capital | Translation | Retained | Non | Total | |||||||
capital | premium | redemption | reserve | earnings | controlling | equity | |||||||
account | reserve | interest | |||||||||||
£(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | |||||||
At 1 October 2015 | 847 | 157 | 290 | (11) | 22,521 | 534 | 24,338 | ||||||
Profit for the year | - | - | - | - | 3,453 | 55 | 3,508 | ||||||
Other comprehensive income and expense | |||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
2,491 |
- |
130 |
2,621 | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(5,071) |
- |
(5,071) | ||||||
Deferred tax effect | - | - | - | (446) | 862 | - | 416 | ||||||
Total comprehensive income | - | - | - | 2,045 | (756) | 185 | 1,474 | ||||||
Shares repaid 1 | - | - | - | - | - | (86) | (86) | ||||||
Dividends paid | - | - | - | - | (1,102) | (44) | (1,146) | ||||||
At 30 September 2016 | 847 | 157 | 290 | 2,034 | 20,663 | 589 | 24,580 | ||||||
1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.
These half-year abbreviated financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 30 September 2016 set out above are abridged. Full accounts for that year reported under IFRS, on which the auditors of the Company made an unqualified report have been delivered to the Registrar of Companies.
The presentation of these Interim Financial Statements is consistent with the 2016 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2016 Interim Financial Statements to take into account any presentational changes made in the 2016 Financial Statements or in these Interim Financial Statements.
Dewhurst plc
Consolidated cash flow statement
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 September | |
2017 | 2016 | 2016 | |
£000's | £000's | £000's | |
Cash flows from operating activities | |||
Operating profit | 3,110 | 1,844 | 5,410 |
Depreciation and amortisation | 406 | 418 | 907 |
Additional contributions to pension scheme | (673) | (662) | (1,346) |
Exchange adjustments | 178 | 201 | 383 |
(Profit)/loss on disposal of property, plant and equipment | (9) | (8) | (10) |
3,012 | 1,793 | 5,344 | |
(Increase)/decrease in inventories | (8) | 405 | (112) |
(Increase)/decrease in trade and other receivables | (974) | (1,459) | (2,245) |
Increase/(decrease) in trade and other payables | 337 | (306) | 863 |
Increase/(decrease) in provisions | (10) | 110 | 236 |
Cash generated from operations | 2,357 | 543 | 4,086 |
Tax paid | (725) | (435) | (1,302) |
Net cash from operating activities | 1,632 | 108 | 2,784 |
Cash flows from investing activities | |||
Acquisition of business and assets | (1,356) | - | - |
Subsidiary share repurchase - non-controlling interest element 1 | - | (86) | (86) |
Proceeds from sale of property, plant and equipment | 25 | 10 | 18 |
Purchase of property, plant and equipment | (601) | (622) | (901) |
Development costs capitalised | - | - | (62) |
Interest received | 52 | 62 | 126 |
Net cash generated from/(used in) investing activities | (1,880) | (636) | (905) |
Cash flows from financing activities | |||
Issue of share capital - non-controlling interest element 2 | 311 | - | - |
Purchase of own shares | (217) | - | - |
Dividends paid | (705) | (847) | (1,145) |
Net cash used in financing activities | (611) | (847) | (1,145) |
Net increase/(decrease) in cash and cash equivalents | (859) | (1,375) | 734 |
Cash and cash equivalents at beginning of period | 16,674 | 14,958 | 14,958 |
Exchange adjustments on cash and cash equivalents | 195 | 455 | 982 |
Cash and cash equivalents at end of period | 16,010 | 14,038 | 16,674 |
1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.
2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.
For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst.plc.uk
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
Alex Pollen (Equity Sales)
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.