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24 Jun 2024 07:00
Dewhurst Group plc
Interim Results for the 6 months ended 31 March 2024
Directors' Interim Report
FIRST HALF
We are pleased to report a busy, but solid performance for the first half of the current financial year, in line with management expectations. Overall, Group revenue increased by 2% to £31.0 million (2023: £30.4 million). Our operating profits have been impacted by the initial investment and set-up costs required to get Dewhurst displays operational quickly in Singapore and decreased slightly by 7% to £3.7 million (2023: £4.0 million). However, it is pleasing to report that we are seeing steady growth in lift display sales and increased profitability, as customers deplete their Avire display inventory and start purchasing Dewhurst displays. Profit before tax decreased 3% to £3.9 million (2023: £4.0 million). Earnings per share improved 2% to 32.9p (2023: 32.1p). First half currency movements decreased Group revenue and profit by 4%.
Lift Division sales grew in most regions, led by a stronger performance in the UK, as well as growth resulting from new lift display sales mentioned above. There was a further modest recovery in Transport sales, although these continue to be volatile. Keypad Division sales continued to experience the low demand seen last year in the first quarter, but picked up in the second quarter.
The Group balance sheet remains strong with cash at the period end of £19.9 million (2023: £22.6 million). This is after paying £1.5 million to acquire the remaining 25% stake in P&R on 14 March 2024 as well as spending £1.8 million on a share buyback programme that ran throughout February and March 2024. These shares will be cancelled in early July when we are no longer in a close period.
OUTLOOK
In North America the market has softened this year, due to the effect of increases in interest rates on property investment. The impact of this will feed gradually into sales during the rest of the year. Orders in Australia have been healthy this year, which should generate sales growth in the second half. The UK should continue its encouraging performance, although the impact of the election is an uncertainty. On balance, we expect overall growth in the second half, although this will be dampened if the pound continues to strengthen in the rest of the year. As such, the Board is confident the Company is well positioned to achieve market expectations for FY24[1].
DIVIDENDS
The Directors have declared an increased interim dividend of 5.00p per ordinary share (2023: 4.75p) which amounts to £387,000 (2023: £384,000). The interim dividend is payable on 13 August 2024 and will be posted on 8 August 2024 to shareholders appearing in the Register on 19 July 2024 (ex-dividend date being 18 July 2024).
A final 2023 dividend of 11.00p (2022: 10.25p) which amounted to £882,000 (2022: £828,000) was approved at the AGM held on 20 February 2024 and was paid on 26 February 2024 to members on the register at 19 January 2024.
By Order of the Board
J C SINCLAIR
Chief Financial Officer & Secretary
21 June 2024
Dewhurst Group plc
The unaudited consolidated statement of comprehensive income, statement of financial position, statement of changes in equity and cash flow statement of Dewhurst Group plc and its subsidiaries for the half-year ended 31 March 2024, as compared with the corresponding half-year ended 31 March 2023 and the year ended 30 September 2023, shows the following results:
Consolidated statement of comprehensive income
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
2024 | 2023 | 2023 | |
Continuing operations | £000's | £000's | £000's |
| |||
Revenue | 30,962 | 30,379 | 57,962 |
Operating costs | (27,301) | (26,423) | (50,212) |
Adjusted operating profit | 3,661 | 3,956 | 7,750 |
- | - | - | |
Operating profit | 3,661 | 3,956 | 7,750 |
Finance income | 343 | 181 | 494 |
Finance costs | (88) | (95) | (156) |
Profit before taxation | 3,916 | 4,042 | 8,088 |
Taxation | Est. (1,293) | Est. (1,448) | (2,966) |
Profit for the financial period | 2,623 | 2,594 | 5,122 |
| |||
Other comprehensive income: |
| ||
Actuarial gains/(losses) on the defined benefit pension scheme | Est. 649 | Est. (1,453) | (1,896) |
Deferred tax effect | (162) | 363 | 474 |
Current tax effect | Est. 157 | Est. 218 | 348 |
Total that will not be subsequently reclassified to income statement | 644 | (872) | (1,074) |
| |||
Exchange differences on translation of foreign operations | (702) | (3,236) | (3,544) |
Total that may be subsequently reclassified to income statement | (702) | (3,236) | (3,544) |
Other comprehensive income/(expense) for the period, net of tax | (58) | (4,108) | (4,618) |
Total comprehensive income for the period | 2,565 | (1,514) | 504 |
| |||
Profit for the period attributable to: |
| ||
Equity shareholders of the company | 2,495 | 2,532 | 5,037 |
Non-controlling interests | 128 | 62 | 85 |
2,623 | 2,594 | 5,122 | |
| |||
Total comprehensive income for the period attributable to: |
| ||
Equity shareholders of the company | 2,443 | (1,425) | 623 |
Non-controlling interests | 122 | (89) | (119) |
2,565 | (1,514) | 504 | |
| |||
Basic and diluted earnings per share | 32.92p | 32.10p | 62.45p |
Dividends per share | 5.00p | 4.75p | 15.75p |
Dewhurst Group plc
Consolidated statement of financial position
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
| 2024 | 2023 | 2023 |
| £000's | £000's | £000's |
Non-current assets |
| ||
Goodwill | 9,474 | 9,672 | 9,516 |
Other intangibles | 676 | 17 | 389 |
Property, plant and equipment | 17,016 | 17,573 | 17,443 |
Right-of-use assets | 2,228 | 2,159 | 2,426 |
Deferred tax asset | - | 262 | 54 |
29,394 | 29,683 | 29,828 | |
| |||
Current assets |
| ||
Inventories | 8,127 | 7,377 | 8,337 |
Trade and other receivables | 11,766 | 12,475 | 10,182 |
Current tax asset | 21 | - | - |
Cash and cash equivalents | 19,914 | 22,590 | 24,374 |
39,828 | 42,442 | 42,893 | |
Total assets | 69,222 | 72,125 | 72,721 |
| |||
Current liabilities |
| ||
Trade and other payables | 6,755 | 7,618 | 6,899 |
Current tax liabilities | - | 319 | 578 |
Short-term provisions | 157 | 343 | 158 |
Lease liabilities | 716 | 501 | 719 |
7,628 | 8,781 | 8,354 | |
Non-current liabilities |
| ||
Retirement benefit obligation | 837 | 2,377 | 2,112 |
Deferred tax liabilities | 364 | - | - |
Lease liabilities | 1,741 | 1,894 | 1,938 |
Total liabilities | 10,570 | 13,052 | 12,404 |
Net assets | 58,652 | 59,073 | 60,317 |
| |||
Equity |
| ||
Share capital | 773 | 808 | 802 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 363 | 329 | 334 |
Translation reserve | 1,031 | 1,980 | 1,726 |
Retained earnings | 55,676 | 54,357 | 55,916 |
Total attributable to equity shareholders of the company | 58,000 | 57,631 | 58,935 |
Non-controlling interests | 652 | 1,442 | 1,382 |
Total equity | 58,652 | 59,073 | 60,317 |
Dewhurst Group plc
Consolidated statement of changes in equity
For the period ended 31 March 2024
|
|
|
|
|
|
|
| ||||||
| 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 30 September 2023 | 802 | 157 | 334 | 1,726 | 55,916 | 1,382 | 60,317 | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(695) |
- |
(7) |
(702) | ||||||
Share Repurchase | (29) | - | 29 | - | (1,776) | - | (1,776) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
649 |
- |
649 | ||||||
Deferred tax effect | - | - | - | - | (162) | - | (162) | ||||||
Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
157 |
- |
157 | ||||||
Dividends paid | - | - | - | - | (882) | (84) | (966) | ||||||
Purchase of subsidiary and business undertakings |
- |
- |
- |
- |
(721) |
(767) |
(1,488) | ||||||
Profit for the period | - | - | - | - | 2,495 | 128 | 2,623 | ||||||
|
|
|
|
|
|
|
| ||||||
At 31 March 2024 | 773 | 157 | 363 | 1,031 | 55,676 | 652 | 58,652 | ||||||
For the period ended 31 March 2023
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 30 September 2022 | 808 | 157 | 329 | 5,065 | 53,525 | 1,649 | 61,533 | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(3,085) |
- |
(151) |
(3,236) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(1,453) |
- |
(1,453) | ||||||
Deferred tax effect | - | - | - | - | 363 | - | 363 | ||||||
Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
218 |
- |
218 | ||||||
Dividends paid | - | - | - | - | (828) | (118) | (946) | ||||||
Profit for the period | - | - | - | - | 2,532 | 62 | 2,594 | ||||||
At 31 March 2023 | 808 | 157 | 329 | 1,980 | 54,357 | 1,442 | 59,073 | ||||||
Dewhurst Group plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 2023
|
| ||||||||||||
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 30 September 2022 Share Repurchase | 808 (6) | 157 -- | 329 6 | 5,065 -- | 53,525 (375) | 1,649 -- | 61,533 (375) | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(3,340) |
- |
(204) |
(3,544) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(1,896) |
- |
(1,896) | ||||||
Deferred tax effect | - | - | - | - | 474 | - | 474 | ||||||
Tax on items taken directly to equity |
- |
- |
- |
- |
348 |
- |
348 | ||||||
Dividends paid | - | - | - | - | (1,197) | (148) | (1,345) | ||||||
Profit for the year | - | - | - | - | 5,037 | 85 | 5,122 | ||||||
At 30 September 2023 | 802 | 157 | 335 | 1,725 | 55,916 | 1,382 | 60,317 | ||||||
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 2023 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 2023 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2023 Interim Financial Statements to take into account any presentational changes made in the 2023 Financial Statements or in these Interim Financial Statements.
Dewhurst Group plc
Consolidated cash flow statement
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
| 2024 | 2023 | 2023 |
| £000's | £000's | £000's |
Cash flows from operating activities |
| ||
Operating profit | 3,661 | 3,956 | 7,750 |
Depreciation and amortisation | 621 | 533 | 1,090 |
Right-of-use asset depreciation | 186 | 251 | 605 |
Additional contributions to pension scheme | (685) | (919) | (1,634) |
Exchange adjustments | (503) | (759) | (878) |
(Profit)/loss on disposal of property, plant and equipment | (33) | (17) | (4) |
3,247 | 3,045 | 6,929 | |
(Increase)/decrease in inventories | 210 | 554 | (406) |
(Increase)/decrease in trade and other receivables | (1,584) | (157) | 2,136 |
Increase/(decrease) in trade and other payables | (144) | (165) | (884) |
Increase/(decrease) in provisions | (1) | (1) | (186) |
Cash generated from operations | 1,728 | 3,276 | 7,589 |
Interest paid | - | - | (1) |
Tax paid | (1,471) | (398) | (1,218) |
Net cash from operating activities | 257 | 2,878 | 6,370 |
| |||
Cash flows from investing activities |
| ||
Purchase of subsidiary and business undertakings | (1,488) | - | - |
Proceeds from sale of property, plant and equipment | 38 | 28 | 67 |
Purchase of property, plant and equipment | (485) | (298) | (830) |
Development costs capitalised | - | - | (384) |
Interest received | 343 | 181 | 494 |
Net cash generated from/(used in) investing activities | (1,592) | (89) | (653) |
| |||
Cash flows from financing activities |
| ||
Dividends paid | (966) | (946) | (1,345) |
Repayment of lease liabilities including interest | (217) | (291) | (688) |
Purchase of own shares | (1,776) | - | (375) |
Net cash used in financing activities | (2,959) | (1,237) | (2,408) |
| |||
Net increase/(decrease) in cash and cash equivalents | (4,294) | 1,552 | 3,309 |
Cash and cash equivalents at beginning of period | 24,374 | 21,764 | 21,764 |
Exchange adjustments on cash and cash equivalents | (166) | (726) | (699) |
Cash and cash equivalents at end of period | 19,914 | 22,590 | 24,374 |
Contacts:
Dewhurst Group Plc Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Chief Financial Officer
www.dewhurst-group.com
Singer Capital Markets (Nominated Adviser and Sole Broker) Tel: +44 (0)207 496 3000
Rick Thompson / Alex Bond
[1] As at the date of this announcement, the Company understands that market expectations for FY24 are Revenues of £60.2m, Adj. PBT of £8.4m
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