Last checked at 12 Jun 2013 07:00
Dewhurst plc - Interim Results for the 6 months ended 31 March 2013
Directors' Interim Report
FIRST HALF
It has been a difficult six months for the Group after the record performance last year. Group turnover was down 17% at £21.6 million (2012: £26.0 million) and profit before tax fell 41% to £1.7 million (2012: £2.9 million). Operating profit before exceptional items dropped 32% to £1.8 million (2012: £2.6 million). Earnings per share fell 41% to 14.4p (2012: 24.2p). However the Group balance sheet remains strong and we have paid £1.8 million for our 70% acquisition of Dual Engraving yet still have net cash of £8.1 million.
The biggest drop in sales was in the Keypad division, which was expected. The most significant reason for the decrease is as a result of a major customer's change in product content. Essentially a significant component that was previously added to both our costs and revenues has been removed from our remit. Lift division sales have fallen principally in the UK and Europe, where confidence seems most fragile. However sales have been weak in almost all areas other than North America. The Transport division has also seen a significant fall in sales with cutbacks in local authority and central government spending really starting to bite this year. We are looking at the structure of our Transport businesses to more closely align them to current levels of demand.
OUTLOOK
Sales are currently at a disappointing level and there is no sign of short term improvement. Nevertheless confidence is improving in some markets albeit slowly and fitfully. Customers suggest that there are projects coming, but their timing is uncertain and we do not expect them to impact this financial year. We have introduced some new products for the lift market which have been well received by customers, but it will take time for these products to filter through the project chain to orders.
Dual Engraving, our acquisition in Perth, Western Australia (WA) is currently performing within management expectations. Although there is talk of the Australian economy facing a more difficult period, there are a good number of committed projects in WA that should help the company prosper in the short to medium term. However, the amortisation of intangible assets capitalised on the acquisition of Dual Engraving will impact on its immediate contribution to the Group's profit.
DIVIDENDS
The Directors have declared an interim dividend of 2.34p which amounts to £199,000; this is the same as last year. The interim dividend is payable on 27 August 2013 and will be posted on 22 August 2013 to shareholders appearing in the Register at 3:00 p.m. on 12 July 2013 (ex-dividend date being 10 July 2013).
A final 2012 dividend of 9.68p which amounted to £834,000, compared with 4.46p previous year (£380,000) was approved at the AGM held on 5 February 2013 and was paid on 21 February 2013 to members on the register at 18 January 2013.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
11 June 2013
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 2013, as compared with the corresponding half-year ended 31 March 2012 and the year ended 30 September 2012, shows the following results:
Consolidated income statement | Half year ended | Half year ended | Year ended |
31 March 2013 | 31 March 2012 | 30 September 2012 | |
Continuing operations | £000's | £000's | £000's |
Revenue | 21,592 | 25,997 | 51,555 |
Operating costs | (19,841) | (22,981) | (45,895) |
Operating profit before goodwill write down and gain on disposal of property |
1,751 |
2,568 |
5,605 |
Goodwill write down | - | (3,498) | (3,889) |
Gain on disposal of property | - | 3,946 | 3,944 |
Operating profit | 1,751 | 3,016 | 5,660 |
Finance income | 62 | 32 | 124 |
Finance costs | (92) | (152) | (342) |
Profit before taxation | 1,721 | 2,896 | 5,442 |
Tax on profits | Est. (499) | Est. (840) | (1,688) |
Profit for the period | 1,222 | 2,056 | 3,754 |
Attributable to: | |||
Equity shareholders of the Company | 1,233 | 2,077 | 3,786 |
Non-controlling interests | (11) | (21) | (32) |
1,222 | 2,056 | 3,754 | |
Basic and diluted earnings per share | 14.36p | 24.16p | 44.48p |
Dividends per share | 2.34p | 2.34p | 12.02p |
Consolidated statement of recognised income and expense | Half year ended | Half year ended | Year ended |
Net income/(expense) recognised | 31 March 2013 | 31 March 2012 | 30 September 2012 |
directly in equity: | £000's | £000's | £000's |
Actuarial gains/(losses) on the defined benefit pension scheme |
Est. 1,615 |
Est. 768 |
(3,619) |
Exchange differences on translation of foreign operations |
458 |
104 |
49 |
Tax on items taken directly to equity | (673) | (227) | 821 |
Net income / (expense) recognised directly in equity in the period | 1,400 | 645 | (2,749) |
Profit for the financial period | 1,222 | 2,056 | 3,754 |
Total recognised income and expense | |||
for the period | 2,622 | 2,701 | 1,005 |
Attributable to: | |||
Equity shareholders of the Company | 2,571 | 2,721 | 1,004 |
Non-controlling interests | 51 | (20) | 1 |
2,622 | 2,701 | 1,005 |
Dewhurst plc
Consolidated balance sheet | Half year ended | Half year ended | Year ended |
31 March 2013 | 31 March 2012 | 30 September 2012 | |
£000's | £000's | £000's | |
Non-current assets | |||
Goodwill | 4,991 | 3,980 | 3,555 |
Other intangibles | 1,166 | 122 | 125 |
Property, plant and equipment | 9,924 | 9,808 | 9,669 |
Deferred tax asset | 1,303 | 1,408 | 2,037 |
17,384 | 15,318 | 15,386 | |
Current assets | |||
Inventories | 4,676 | 4,505 | 4,852 |
Trade and other receivables | 9,412 | 10,032 | 8,421 |
Cash and cash equivalents | 8,112 | 9,982 | 11,101 |
22,200 | 24,519 | 24,374 | |
Total assets | 39,584 | 39,837 | 39,760 |
Current liabilities | |||
Trade and other payables | 4,910 | 6,970 | 5,583 |
Current tax liabilities | 146 | 237 | 35 |
Short term provisions | 759 | 596 | 722 |
5,815 | 7,803 | 6,340 | |
Non-current liabilities | |||
Retirement benefit obligation | 9,631 | 7,979 | 11,856 |
Total liabilities | 15,446 | 15,782 | 18,196 |
Net assets | 24,138 | 24,055 | 21,564 |
Equity | |||
Share capital | 851 | 851 | 851 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 286 | 286 | 286 |
Translation reserve | 2,453 | 2,137 | 2,097 |
Retained earnings | 19,615 | 20,495 | 18,173 |
Total attributable to equity shareholders of the Company | 23,362 | 23,926 | 21,564 |
Non-controlling interests | 776 | 129 | - |
Total equity | 24,138 | 24,055 | 21,564 |
Dewhurst plc
Consolidated cash flow statement | Half year ended | Half year ended | Year ended |
31 March 2013 | 31 March 2012 | 30 September 2012 | |
£000's | £000's | £000's | |
Cash flows from operating activities | |||
Operating profit | 1,751 | 3,016 | 5,660 |
Goodwill write down | - | 3,498 | 3,889 |
Depreciation and amortisation | 446 | 300 | 875 |
Additional income to pension scheme | (662) | (640) | (1,399) |
Exchange adjustments | (73) | (7) | (155) |
(Profit)/loss on disposal of property, plant and equipment |
(3) |
(3,946) |
(3,964) |
1,459 | 2,221 | 4,906 | |
(Increase)/decrease in inventories | 176 | (236) | (583) |
(Increase)/decrease in trade and other receivables | (991) | (1,638) | (27) |
Increase/(decrease) in trade and other payables | (672) | 1,748 | 361 |
Increase/(decrease) in provisions | 37 | 121 | 247 |
Cash generated from operations | 9 | 2,216 | 4,904 |
Interest paid | - | (2) | (5) |
Income tax paid | (376) | (418) | (889) |
Net cash (used in) / from operating activities | (367) | 1,796 | 4,010 |
Cash flows from investing activities | |||
Acquisition of subsidiary undertakings | (1,803) | - | (585) |
Proceeds from sale of property, plant and equipment | 8 | 4,538 | 4,588 |
Purchase of property, plant and equipment | (321) | (1,061) | (1,374) |
Development costs capitalised | - | - | (104) |
Interest received | 62 | 32 | 124 |
Net cash (used in) / from investing activities | (2,054) | 3,509 | 2,649 |
Cash flows from financing activities | |||
Dividends paid | (824) | (380) | (579) |
Net cash used in financing activities | (824) | (380) | (579) |
Net increase/(decrease) in cash and cash equivalents |
(3,245) |
4,925 |
6,080 |
Cash and cash equivalents at beginning of period | 11,101 | 5,009 | 5,009 |
Exchange adjustments on cash and cash equivalents | 256 | 48 | 12 |
Cash and cash equivalents at end of period |
8,112 |
9,982 |
11,101 |
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 2012 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 2012 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2012 Interim Financial Statements to take into account any presentational changes made in the 2012 Financial Statements or in these Interim Financial Statements.
For further information, please contact
Dewhurst Plc | |
Richard Dewhurst / Jared Sinclair | Tel: +44 (0)20 8744 8251 |
Cantor Fitzgerald Europe (Nominated Adviser) | |
David Foreman / Rick Thompson (Corporate Finance) | Tel: +44 (0)20 7894 7000 |
Paul Jewell (Corporate Broking) |
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