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7 Jun 2016 07:00
Dewhurst plc (the "Group")
Interim Results for the 6 months ended 31 March 2016
Directors' Interim Report
FIRST HALF
As we expected and indicated in our statement at the AGM, market conditions were challenging during the first half resulting in sales and profits both lower than last year. Overall, Group revenue decreased 6% to £21.3 million (2015: £22.8 million), with profit before tax decreasing by 24% to £1.7 million (2015: £2.2 million). Adjusted operating profit* of £1.9 million (2015: £2.5 million) is also down 24% on last year and earnings per share dropped to 13.1p (2015: 18.6p). The Group balance sheet remains strong with cash of £14.0 million (2015: £13.0 million).
The first quarter performance was particularly weak. Sales did recover in the second quarter but confidence remains somewhat fragile. In our lift businesses the UK and Australia were generally weaker, while North American sales were up. Keypad sales were well down and there was also a change in the mix of our customers' products. Transport products, however, bounced back from last year's low levels to record an improvement. Currency movements reduced reported Group revenue by approximately £0.4 million in the first six months. The weaker Australian and Canadian Dollars caused the reduction but were partially offset by other currencies.
OUTLOOK
At the moment demand overall seems to be continuing at the level of the second quarter. Looking forward there is a great deal of uncertainty in the political and economic situation and there are outcomes that might have a positive or negative impact on the business. We do know that public sector spending restraints are unlikely to ease any time soon and customers' concerns about pricing are unlikely to diminish; so we are focussed on trying to carefully control our expenditure whilst continuing to push ahead with appropriate investments to improve the business for the longer term.
DIVIDENDS
The Directors have declared an interim dividend of 3.00p (2015: 3.00p) which amounts to £254,000 (2015: £254,000). The interim dividend is payable on 23 August 2016 and will be posted on 18 August 2016 to shareholders appearing in the Register on 8 July 2016 (ex-dividend date being 7 July 2016).
A final 2015 dividend of 10.00p (2014: 6.20p) which amounted to £847,000 (2014: £525,000) was approved at the AGM held on 2 February 2016 and was paid on 17 February 2016 to members on the register at 22 January 2016.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
6 June 2016
* Operating profit before goodwill write down, amortisation of acquired intangibles and gain on property disposal
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 2016, as compared with the corresponding half-year ended 31 March 2015 and the year ended 30 September 2015, shows the following results:
Consolidated statement of comprehensive income
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 September | |
2016 | 2015 | 2015 | |
Continuing operations | £000's | £000's | £000's |
Revenue | 21,332 | 22,772 | 45,946 |
Operating costs | (19,488) | (20,364) | (40,271) |
Adjusted operating profit* | 1,931 | 2,549 | 5,588 |
Gain on disposal of property | - | - | 357 |
Amortisation of acquired intangibles | (87) | (141) | (270) |
Operating profit | 1,844 | 2,408 | 5,675 |
Finance income | 62 | 48 | 107 |
Finance costs | (226) | (232) | (464) |
Profit before taxation | 1,680 | 2,224 | 5,318 |
Taxation | Est. (571) | Est. (645) | (851) |
Profit for the financial period | 1,109 | 1,579 | 4,467 |
Other comprehensive income: | |||
Actuarial gains/(losses) on the defined benefit pension scheme | Est. (1,249) | Est. (122) | (884) |
Deferred tax effect | 225 | (44) | 177 |
Total that will not be subsequently reclassified to income statement | (1,024) | (166) | (707) |
Exchange differences on translation of foreign operations | 1,247 | (256) | (1,282) |
Deferred tax effect | (224) | 28 | 257 |
Total that may be subsequently reclassified to income statement | 1,023 | (228) | (1,025) |
Other comprehensive income/(expense) for the period, net of tax | (1) | (394) | (1,732) |
Total comprehensive income for the period | 1,108 | 1,185 | 2,735 |
Profit for the period attributable to: | |||
Equity shareholders of the company | 1,079 | 1,565 | 4,406 |
Non-controlling interests | 30 | 14 | 61 |
1,109 | 1,579 | 4,467 | |
Total comprehensive income for the period attributable to: | |||
Equity shareholders of the company | 1,006 | 1,194 | 2,759 |
Non-controlling interests | 102 | (9) | (24) |
1,108 | 1,185 | 2,735 | |
Basic and diluted earnings per share | 13.09p | 18.63p | 51.99p |
Dividends per share | 3.00p | 3.00p | 13.00p |
* Operating profit before goodwill write down, gain on disposal of property and amortisation of acquired intangibles
Dewhurst plc
Consolidated balance sheet
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 September | |
2016 | 2015 | 2015 | |
£000's | £000's | £000's | |
Non-current assets | |||
Goodwill | 3,096 | 3,016 | 2,695 |
Other intangibles | 90 | 307 | 171 |
Property, plant and equipment | 9,139 | 8,458 | 8,581 |
Deferred tax asset | 2,350 | 2,073 | 2,491 |
14,675 | 13,854 | 13,938 | |
Current assets | |||
Inventories | 4,346 | 4,496 | 4,751 |
Trade and other receivables | 9,515 | 10,087 | 8,056 |
Current tax assets | - | - | - |
Cash and cash equivalents | 14,038 | 13,045 | 14,958 |
27,899 | 27,628 | 27,765 | |
Total assets | 42,574 | 41,482 | 41,703 |
Current liabilities | |||
Trade and other payables | 4,196 | 5,085 | 4,502 |
Current tax liabilities | 443 | 468 | 348 |
Short-term provisions | 428 | 1,031 | 318 |
5,067 | 6,584 | 5,168 | |
Non-current liabilities | |||
Retirement benefit obligation | 12,994 | 11,868 | 12,197 |
Total liabilities | 18,061 | 18,452 | 17,365 |
Net assets | 24,513 | 23,030 | 24,338 |
Equity | |||
Share capital | 847 | 847 | 847 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 290 | 290 | 290 |
Translation reserve | 940 | 724 | (11) |
Retained earnings | 21,729 | 20,464 | 22,521 |
Total attributable to equity shareholders of the company | 23,963 | 22,482 | 23,804 |
Non-controlling interests | 550 | 548 | 534 |
Total equity | 24,513 | 23,030 | 24,338 |
Dewhurst plc
Consolidated statement of changes in equity
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 | ||||||
For the period ended 31 March 2015
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 2014 | 847 | 157 | 290 | 929 | 19,590 | 635 | 22,448 | ||||||
Profit for the period | - | - | - | - | 1,565 | 14 | 1,579 | ||||||
Other comprehensive income and expense | |||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(233) |
- |
(23) |
(256) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(122) |
- |
(122) | ||||||
Deferred tax effect | - | - | - | 28 | (44) | - | (16) | ||||||
Total comprehensive income | - | - | - | (205) | 1,399 | (9) | 1,185 | ||||||
Shares repaid 1 | - | - | - | - | - | (78) | (78) | ||||||
Dividends paid | - | - | - | - | (525) | - | (525) | ||||||
At 31 March 2015 | 847 | 157 | 290 | 724 | 20,464 | 548 | 23,030 | ||||||
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.
Dewhurst plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 2015
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 2014 | 847 | 157 | 290 | 929 | 19,590 | 635 | 22,448 | ||||||
Profit for the year | - | - | - | - | 4,406 | 61 | 4,467 | ||||||
Other comprehensive income and expense | |||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(1,197) |
- |
(85) |
(1,282) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(884) |
- |
(884) | ||||||
Deferred tax effect | - | - | - | 257 | 177 | - | 434 | ||||||
Total comprehensive income | - | - | - | (940) | 3,699 | (24) | 2,735 | ||||||
Shares repaid 1 | - | - | - | - | - | (77) | (77) | ||||||
Dividends paid | - | - | - | - | (768) | - | (768) | ||||||
At 30 September 2015 | 847 | 157 | 290 | (11) | 22,521 | 534 | 24,338 | ||||||
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 2015 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 2015 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2015 Interim Financial Statements to take into account any presentational changes made in the 2015 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 | |
2016 | 2015 | 2015 | |
£000's | £000's | £000's | |
Cash flows from operating activities | |||
Operating profit | 1,844 | 2,408 | 5,675 |
Depreciation and amortisation | 418 | 450 | 991 |
Additional contributions to pension scheme | (662) | (663) | (1,343) |
Exchange adjustments | 201 | (368) | (251) |
(Profit)/loss on disposal of property, plant and equipment | (8) | - | (423) |
1,793 | 1,827 | 4,649 | |
(Increase)/decrease in inventories | 405 | 5 | (250) |
(Increase)/decrease in trade and other receivables | (1,459) | (888) | 1,143 |
Increase/(decrease) in trade and other payables | (306) | (17) | (896) |
Increase/(decrease) in provisions | 110 | 72 | (641) |
Cash generated from operations | 543 | 999 | 4,005 |
Tax paid | (435) | (136) | (428) |
Net cash from operating activities | 108 | 863 | 3,577 |
Cash flows from investing activities | |||
Subsidiary share repurchase - non-controlling interest element 1 | (86) | (78) | (77) |
Proceeds from sale of property, plant and equipment | 10 | - | 458 |
Purchase of property, plant and equipment | (622) | (161) | (893) |
Development costs capitalised | - | - | (61) |
Interest received | 62 | 48 | 107 |
Net cash generated from/(used in) investing activities | (636) | (191) | (466) |
Cash flows from financing activities | |||
Dividends paid | (847) | (525) | (768) |
Net cash used in financing activities | (847) | (525) | (768) |
Net increase/(decrease) in cash and cash equivalents | (1,375) | 147 | 2,343 |
Cash and cash equivalents at beginning of period | 14,958 | 12,928 | 12,928 |
Exchange adjustments on cash and cash equivalents | 455 | (30) | (313) |
Cash and cash equivalents at end of period | 14,038 | 13,045 | 14,958 |
|
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.
For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
David Banks (Sales)
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