Last checked at 10 Jun 2014 07:00
Dewhurst plc
("Dewhurst" or the "Group")
Interim Results for the 6 months ended 31 March 2014
Directors' Interim Report
FIRST HALF
I am pleased to report it has been a much better first half for the Group than last year. Group turnover was up 7% at £23.0 million (2013: £21.6 million) and profit before tax rose 38% to £2.1 million (2013: £1.5 million). Adjusted operating profit* of £2.5 million (2013: £1.8 million) is close to the Group's previous record high of £2.6 million achieved in 2012 and is up 36% on last year. Earnings per share grew by 45% to 17.8p (2013: 12.3p). The Group balance sheet remains strong with cash of £10.4 million (2013: £8.1 million).
The growth in turnover was principally generated by the Lift division. We gained from a full half year of sales from Dual Engraving and strong UK lift controller and monitoring sales, but faced difficult trading conditions in some East coast areas of Australia. Overall we still achieved a 10% increase on Lift division sales compared to last year. Transport and Keypad divisions sales have stabilised, following the falls experienced last year. The weaker Australian and Canadian Dollars reduced reported Group sales by a little over £1 million in the six months.
OUTLOOK
After a busy Spring, some of the steam seems to have gone out of the UK lift market, with some renewed reluctance to commit to significant projects. So although the second half has started reasonably positively, we are expecting a quieter period over the summer, albeit not as quiet as last year. The market for highways products is continuing to recover slowly and demand has also been bolstered by our new products.
Overseas, North America continues to be buoyant, although competition is fierce. In Australia, although the mining boom is over, there is still a backlog of planned infrastructure spending and development in Western Australia. In the east there is some uncertainty following the recent introduction of austerity measures by the Government. However we have continued to invest in expanding our range of escalator products and services to help offset any overall market stagnation.
DIVIDENDS
In line with the previously stated dividend strategy, the Directors have declared an increased interim dividend of 2.80p (2013: 2.34p) which amounts to £238,000 (2013: £199,000). The interim dividend is payable on 26 August 2014 and will be posted on 21 August 2014 to shareholders appearing in the Register on 11 July 2014 (ex-dividend date being 9 July 2014).
A final 2013 dividend of 5.66p which amounted to £482,000, compared with 4.68p (plus 5.00p special) the previous year (2013: £824,000) was approved at the AGM held on 4 February 2014 and was paid on 20 February 2014 to members on the register at 17 January 2014.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
9 June 2014
* Operating profit before goodwill write down, amortisation of acquired intangibles and gain on property disposal
Dewhurst plc
The unaudited consolidated income statement, statement of recognised income and expense, balance sheet and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2014, as compared with the corresponding half-year ended 31 March 2013 and the year ended 30 September 2013, shows the following results:
Consolidated income statement | Half year ended | Half year ended | Year ended |
31 March 2014 | 31 March 2013 | 30 September 2013 | |
Continuing operations | £000's | £000's | £000's |
Revenue | 23,021 | 21,592 | 43,698 |
Operating costs | (20,698) | (19,841) | (41,104) |
Adjusted operating profit* | 2,471 | 1,811 | 4,084 |
Goodwill write down | - | - | (1,266) |
Amortisation of acquired intangibles | (148) | (60) | (224) |
Operating profit | 2,323 | 1,751 | 2,594 |
Finance income | 39 | 62 | 100 |
Finance costs | (226) | (266) | (392) |
Profit before taxation | 2,136 | 1,547 | 2,302 |
Tax on profits | Est. (619) | Est. (499) | (1,307) |
Profit for the period | 1,517 | 1,048 | 995 |
Attributable to: | |||
Equity shareholders of the Company | 1,506 | 1,059 | 1,043 |
Non-controlling interests | 11 | (11) | (48) |
1,517 | 1,048 | 995 | |
Basic and diluted earnings per share | 17.82p | 12.31p | 11.69p |
Dividends per share | 2.80p | 2.34p | 8.00p |
Consolidated statement of recognised income and expense | Half year ended | Half year ended | Year ended |
Net income/(expense) recognised | 31 March 2014 | 31 March 2013 | 30 September 2013 |
directly in equity: | £000's | £000's | £000's |
Actuarial gains/(losses) on the defined benefit pension scheme |
Est. 127 |
Est. 1,789 |
361 |
Exchange differences on translation of foreign operations |
(482) |
458 |
(947) |
Tax on items taken directly to equity | 15 | (673) | 184 |
Net income / (expense) recognised directly in equity in the period | (340) | 1,574 | (402) |
Profit for the financial period | 1,517 | 1,048 | 995 |
Total recognised income and expense | |||
for the period | 1,177 | 2,622 | 593 |
Attributable to: | |||
Equity shareholders of the Company | 1,181 | 2,571 | 717 |
Non-controlling interests | (4) | 51 | (124) |
1,177 | 2,622 | 593 |
* Operating profit before goodwill write down, amortisation of acquired intangibles and gain on property disposal
Dewhurst plc
Consolidated balance sheet | Half year ended | Half year ended | Year ended |
31 March 2014 | 31 March 2013 | 30 September 2013 | |
£000's | £000's | £000's | |
Non-current assets | |||
Goodwill | 3,251 | 4,991 | 3,173 |
Other intangibles | 664 | 1,166 | 836 |
Property, plant and equipment | 8,882 | 9,924 | 9,240 |
Deferred tax asset | 1,689 | 1,303 | 1,709 |
14,486 | 17,384 | 14,958 | |
Current assets | |||
Inventories | 4,191 | 4,676 | 4,557 |
Trade and other receivables Current tax assets | 9,722 - | 9,412 - | 8,556 20 |
Cash and cash equivalents | 10,407 | 8,112 | 10,506 |
24,320 | 22,200 | 23,639 | |
Total assets | 38,806 | 39,584 | 38,597 |
Current liabilities | |||
Trade and other payables | 5,305 | 4,910 | 5,445 |
Current tax liabilities | 228 | 146 | - |
Short term provisions | 757 | 759 | 752 |
6,290 | 5,815 | 6,197 | |
Non-current liabilities | |||
Retirement benefit obligation | 9,951 | 9,631 | 10,530 |
Total liabilities | 16,241 | 15,446 | 16,727 |
Net assets | 22,565 | 24,138 | 21,870 |
Equity | |||
Share capital | 851 | 851 | 851 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 286 | 286 | 286 |
Translation reserve | 1,043 | 2,453 | 1,425 |
Retained earnings | 19,572 | 19,615 | 18,540 |
Total attributable to equity shareholders of the Company | 21,909 | 23,362 | 21,259 |
Non-controlling interests | 656 | 776 | 611 |
Total equity | 22,565 | 24,138 | 21,870 |
These half-year condensed 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 2013 year 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 2013 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2013 Interim Financial Statements to take into account any presentational changes made in the 2013 Financial Statements or in these Interim Financial Statements. Reported figures for the current half year and all comparatives have been amended as a result of IAS19 (revised), which requires the recalculation of net interest costs on the defined benefit pension scheme reported through finance costs in the income statement.
Dewhurst plc
Consolidated cash flow statement | Half year ended | Half year ended | Year ended |
31 March 2014 | 31 March 2013 | 30 September 2013 | |
£000's | £000's | £000's | |
Cash flows from operating activities | |||
Operating profit | 2,323 | 1,751 | 2,594 |
Goodwill write down | - | - | 1,266 |
Depreciation and amortisation | 514 | 446 | 1,198 |
Additional income to pension scheme | (663) | (662) | (1,356) |
Exchange adjustments | (171) | (73) | 35 |
(Profit)/loss on disposal of property, plant and equipment |
(7) |
(3) |
75 |
1,996 | 1,459 | 3,812 | |
(Increase)/decrease in inventories | 366 | 176 | 415 |
(Increase)/decrease in trade and other receivables | (1,166) | (991) | (135) |
Increase/(decrease) in trade and other payables | (140) | (672) | (308) |
Increase/(decrease) in provisions | 5 | 37 | 30 |
Cash generated from operations | 1,061 | 9 | 3,814 |
Interest paid | - | - | (1) |
Income tax paid | (325) | (376) | (869) |
Net cash (used in) / from operating activities | 736 | (367) | 2,944 |
Cash flows from investing activities | |||
Acquisition of subsidiary undertakings Acquisition of business and assets | (112) - | (1,803) - | - (1,716) |
Proceeds from sale of property, plant and equipment | 11 | 8 | 22 |
Purchase of property, plant and equipment | (123) | (321) | (587) |
Development costs capitalised | - | - | (112) |
Interest received | 39 | 62 | 100 |
Net cash (used in) / from investing activities | (185) | (2,054) | (2,293) |
Cash flows from financing activities | |||
Dividends paid | (482) | (824) | (1,023) |
Net cash used in financing activities | (482) | (824) | (1,023) |
Net increase/(decrease) in cash and cash equivalents |
69 |
(3,245) |
(372) |
Cash and cash equivalents at beginning of period | 10,506 | 11,101 | 11,101 |
Exchange adjustments on cash and cash equivalents | (168) | 256 | (223) |
Cash and cash equivalents at end of period |
10,407 |
8,112 |
10,506 |
For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
Cantor Fitzgerald Europe (Nominated Adviser) Tel: +44 (0) 207 894 7000
David Foreman / Rick Thompson (Corporate Finance)
Paul Jewell (Corporate Broking)