Last checked at 9 Jun 2015 07:00
Dewhurst plc
("Dewhurst" or the "Group")
Interim Results for the 6 months ended 31 March 2015
Directors' Interim Report
FIRST HALF
I am pleased to report a better first half profit performance for the Group compared to last year. Weakness in the UK market resulted in lower revenue domestically, but the overseas companies of the Group performed strongly. Overall Group revenue decreased marginally to £22.8 million (2014: £23.0 million), but profit before tax increased by 4% to £2.2 million (2014: £2.1 million). Adjusted operating profit* of £2.6 million (2014: £2.5 million) is up 3% on last year and earnings per share grew by 5% to 18.6p (2014: 17.8p). The Group balance sheet remains strong with cash of £13.0 million (2014: £10.4 million).
After a positive start to the year, UK sales fell back in the second quarter, possibly affected by the General Election. In the six months ended 31 March 2015, UK sales were weaker across both Lift and Transport divisions, but the impact was greatest in the Lift division after a very strong first half for those products last year. The fall in UK sales was almost completely offset by stronger North American, Asian and Australian performance; however the weaker Australian and Canadian Dollars reduced reported Group revenue by approximately £0.2 million in the first six months.
OUTLOOK
The UK Government has indicated that constraints on public spending will increase further and this is likely to impact our public sector sales. In our overseas markets the short term outlook is reasonably positive, suggesting that current trends are likely to continue. Consequently we expect our markets in the UK to remain weaker, whilst our overseas markets should remain buoyant, at least for the second half of the year. However a further fall in the Australian and Canadian currencies will have some negative impact on the profitability of our operations in those countries and their contribution to Group performance.
DIVIDENDS
The Directors have declared an increased interim dividend of 3.00p (2014: 2.80p) which amounts to £254,000 (2014: £238,000). The interim dividend is payable on 25 August 2015 and will be posted on 20 August 2015 to shareholders appearing in the Register on 10 July 2015 (ex-dividend date being 9 July 2015).
A final 2014 dividend of 6.20p (2014: 5.66p) which amounted to £525,000 (2014: £482,000) was approved at the AGM held on 3 February 2015 and was paid on 19 February 2015 to members on the register at 16 January 2015.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
8 June 2015
* 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 2015, as compared with the corresponding half-year ended 31 March 2014 and the year ended 30 September 2014, shows the following results:
Consolidated income statement | Half year ended | Half year ended | Year ended |
31 March 2015 | 31 March 2014 | 30 September 2014 | |
Continuing operations | £000's | £000's | £000's |
Revenue | 22,772 | 23,021 | 46,616 |
Operating costs | (20,364) | (20,698) | (41,437) |
Adjusted operating profit* | 2,549 | 2,471 | 5,475 |
Amortisation of acquired intangibles | (141) | (148) | (296) |
Operating profit | 2,408 | 2,323 | 5,179 |
Finance income | 48 | 39 | 85 |
Finance costs | (232) | (226) | (452) |
Profit before taxation | 2,224 | 2,136 | 4,812 |
Tax on profits | Est. (645) | Est. (619) | (866) |
Profit for the period | 1,579 | 1,517 | 3,946 |
Attributable to: | |||
Equity shareholders of the Company | 1,565 | 1,506 | 3,930 |
Non-controlling interests | 14 | 11 | 16 |
1,579 | 1,517 | 3,946 | |
Basic and diluted earnings per share | 18.63p | 17.82p | 46.22p |
Dividends per share | 3.00p | 2.80p | 9.00p |
Consolidated statement of recognised income and expense | Half year ended | Half year ended | Year ended |
Net income/(expense) recognised | 31 March 2015 | 31 March 2014 | 30 September 2014 |
directly in equity: | £000's | £000's | £000's |
Actuarial gains/(losses) on the defined benefit pension scheme |
Est. (122) |
Est. 127 |
(2,570) |
Exchange differences on translation of foreign operations |
(256) |
(482) |
(669) |
Tax on items taken directly to equity | (15) | 15 | 648 |
Net income / (expense) recognised directly in equity in the period | (393) | (340) | (2,591) |
Profit for the financial period | 1,579 | 1,517 | 3,946 |
Total recognised income and expense | |||
for the period | 1,186 | 1,177 | 1,355 |
Attributable to: | |||
Equity shareholders of the Company | 1,195 | 1,181 | 1,379 |
Non-controlling interests | (9) | (4) | (24) |
1,186 | 1,177 | 1,355 |
* 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 2015 | 31 March 2014 | 30 September 2014 | |
£000's | £000's | £000's | |
Non-current assets | |||
Goodwill | 3,016 | 3,251 | 3,129 |
Other intangibles | 307 | 664 | 463 |
Property, plant and equipment | 8,458 | 8,882 | 8,665 |
Deferred tax asset | 2,073 | 1,689 | 2,086 |
13,854 | 14,486 | 14,343 | |
Current assets | |||
Inventories | 4,496 | 4,191 | 4,501 |
Trade and other receivables Current tax assets | 10,087 - | 9,722 - | 9,199 26 |
Cash and cash equivalents | 13,045 | 10,407 | 12,928 |
27,628 | 24,320 | 26,654 | |
Total assets | 41,482 | 38,806 | 40,997 |
Current liabilities | |||
Trade and other payables | 5,381 | 5,305 | 5,398 |
Current tax liabilities | 172 | 228 | - |
Short term provisions | 1,031 | 757 | 959 |
6,584 | 6,290 | 6,357 | |
Non-current liabilities | |||
Retirement benefit obligation | 11,868 | 9,951 | 12,192 |
Total liabilities | 18,452 | 16,241 | 18,549 |
Net assets | 23,030 | 22,565 | 22,448 |
Equity | |||
Share capital | 847 | 851 | 847 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 290 | 286 | 290 |
Translation reserve | 724 | 1,043 | 929 |
Retained earnings | 20,464 | 19,572 | 19,590 |
Total attributable to equity shareholders of the Company | 22,482 | 21,909 | 21,813 |
Non-controlling interests | 548 | 656 | 635 |
Total equity | 23,030 | 22,565 | 22,448 |
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 year ended 30 September 2014 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 2014 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2014 Interim Financial Statements to take into account any presentational changes made in the 2014 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 2015 | 31 March 2014 | 30 September 2014 | |
£000's | £000's | £000's | |
Cash flows from operating activities | |||
Operating profit | 2,408 | 2,323 | 5,179 |
Depreciation and amortisation | 450 | 514 | 1,194 |
Additional income to pension scheme | (663) | (663) | (1,360) |
Exchange adjustments | (368) | (171) | (57) |
(Profit)/loss on disposal of property, plant and equipment | - | (7) | (21) |
1,827 | 1,996 | 4,935 | |
(Increase)/decrease in inventories | 5 | 366 | 56 |
(Increase)/decrease in trade and other receivables | (888) | (1,166) | (643) |
Increase/(decrease) in trade and other payables | (17) | (140) | (47) |
Increase/(decrease) in provisions | 72 | 5 | 207 |
Cash generated from operations | 999 | 1,061 | 4,508 |
Income tax paid | (136) | (325) | (605) |
Net cash (used in) / from operating activities | 863 | 736 | 3,903 |
Cash flows from investing activities | |||
Acquisition of business and assets | - | (112) | (112) |
Proceeds from sale of property, plant and equipment | - | 11 | 47 |
Purchase of property, plant and equipment | (161) | (123) | (408) |
Development costs capitalised | - | - | (70) |
Interest received | 48 | 39 | 85 |
Net cash (used in) / from investing activities | (113) | (185) | (458) |
Cash flows from financing activities | |||
Dividends paid | (525) | (482) | (720) |
Purchase of own shares | (78)1 | - | (104) |
Net cash used in financing activities | (603) | (482) | (824) |
Net increase/(decrease) in cash and cash equivalents |
147 |
69 |
2,621 |
Cash and cash equivalents at beginning of period | 12,928 | 10,506 | 10,506 |
Exchange adjustments on cash and cash equivalents
| (30) | (168) | (199) |
Cash and cash equivalents at end of period | 13,045 | 10,407 | 12,928 |
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 (Nominated Adviser and Broker) Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
David Banks / Tessa Sillars (Corporate Broking)