Last checked at 15 Jun 2022 07:00
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Dewhurst Group plc (the "Group")
Interim Results for the 6 months ended 31 March 2022
Directors' Interim Report
FIRST HALF
The Group has performed well despite the challenges in the macroeconomic environment, particularly in some of our markets. We are pleased to report that the results for the first half are broadly in line with market expectations with an increased profit before tax figure for the first half of the current financial year on slightly reduced sales. Overall, Group revenue decreased by 6% to £27.1 million (2021: £28.9 million) and adjusted operating profit (before acquired intangible amortisation) decreased 12% to £3.8 million (2021: £4.4 million), while profit before tax increased 11% to £3.7 million (2021: £3.4 million) and earnings per share improved to 28.4p (2021: 26.4p).
Encouragingly, our UK Lift Division sales in the period were marginally up on last year's first half, but overseas lift sales were lower. Sales were down in Australia due to Covid-19 disruption, but sales in Canada and Hong Kong grew to partially offset that fall. Transport sales were significantly down compared to the previous year, which had been supported by a number of Government Cycle Projects. There was some recovery in Keypad sales but these remain quite volatile and unpredictable from month to month. First half currency movements had no material impact on Group revenue or profits.
The Group balance sheet remains strong with cash at the period end of £19.9 million (2021: £17.6 million).
OUTLOOK
Overall order books in Australia are reasonably strong, but it may take a few months for these orders to start to filter through to sales as material and labour constraints are leading to some project delays. In North America the market seems still to be relatively buoyant, at least for the remainder of this year. The UK has remained fairly steady, but with rapidly rising inflation and interest rates increasing there is a risk of demand tailing off. It has also been a considerable challenge to keep on top of cost increases in the first half and we do not anticipate this pressure is going to ease soon. We have been able to pass on some increases to customers, but not fully, so margins have been squeezed in a number of areas. With material challenges and extended lead times globally we are holding more stock around the Group, but consider this is a good investment in our efforts to maintain customer service levels.
As has been previously reported, the Group suffered a serious cyber-attack in May. The remediation costs will affect the profit in the second half, so the full year profit is now forecast to be below last year and below market expectations. The disruption to operations is expected to continue through June as we recover our systems and data, but we are continuing to sell, manufacture and despatch goods through the disruption.
DIVIDENDS
The Directors have declared an increased interim dividend of 4.50p per ordinary share (2021: 4.25p) which amounts to £364,000 (2021: £343,000). The interim dividend is payable on 16 August 2022 and will be posted on 11 August 2022 to shareholders appearing in the Register on 8 July 2022 (ex-dividend date being 7 July 2022).
A final 2021 dividend of 9.75p (2020: 9.25p) which amounted to £788,000 (2020: £748,000) was approved at the AGM held on 15 February 2022 and was paid on 23 February 2022 to members on the register at 21 January 2022.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
14 June 2022
Dewhurst Group plc (formerly Dewhurst 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 2022, as compared with the corresponding half-year ended 31 March 2021 and the year ended 30 September 2021, shows the following results:
Consolidated statement of comprehensive income
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
2022 | 2021 | 2021 | |
Continuing operations | £000's | £000's | £000's |
| |||
Revenue | 27,050 | 28,881 | 56,249 |
Operating costs | (23,232) | (25,354) | (46,395) |
Adjusted operating profit | 3,818 | 4,361 | 9,214 |
Profit on sale of property, plant and equipment^ | - | - | 1,751 |
Amortisation of acquired intangibles | - | (834) | (1,111) |
Operating profit | 3,818 | 3,527 | 9,854 |
Finance income | 12 | 6 | 20 |
Finance costs | (102) | (164) | (311) |
Profit before taxation | 3,728 | 3,369 | 9,563 |
Taxation | Est. (1,436) | Est. (1,237) | (2,110) |
Profit for the financial period | 2,292 | 2,132 | 7,453 |
| |||
Other comprehensive income: |
| ||
Actuarial gains/(losses) on the defined benefit pension scheme | Est. 3,879 | Est. 3,153 | 5,344 |
Deferred tax effect | (970) | (599) | (1,336) |
Current tax effect | Est. 159 | Est. 113 | 224 |
Total that will not be subsequently reclassified to income statement | 3,068 | 2,667 | 4,232 |
| |||
Exchange differences on translation of foreign operations | 1,414 | (44) | (425) |
Total that may be subsequently reclassified to income statement | 1,414 | (44) | (425) |
Other comprehensive income/(expense) for the period, net of tax | 4,482 | 2,623 | 3,807 |
Total comprehensive income for the period | 6,774 | 4,755 | 11,260 |
| |||
Profit for the period attributable to: |
| ||
Equity shareholders of the company | 2,179 | 1,925 | 7,030 |
Non-controlling interests | 113 | 207 | 423 |
2,292 | 2,132 | 7,453 | |
| |||
Total comprehensive income for the period attributable to: |
| ||
Equity shareholders of the company | 6,578 | 4,539 | 10,877 |
Non-controlling interests | 196 | 216 | 383 |
6,774 | 4,755 | 11,260 | |
| |||
Basic and diluted earnings per share | 28.36p | 26.38p | 86.98p |
Dividends per share | 4.50p | 4.25p | 14.00p |
^ Gain arising on the disposal of the old premises at Dupar Controls Inc.
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of financial position
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
| 2022 | 2021 | 2021 |
| £000's | £000's | £000's |
Non-current assets |
| ||
Goodwill | 9,890 | 9,766 | 9,626 |
Other intangibles | 24 | 305 | 24 |
Property, plant and equipment | 18,207 | 18,351 | 17,827 |
Right-of-use assets | 2,625 | 3,035 | 2,802 |
Deferred tax asset | - | 1,917 | 1,111 |
30,746 | 33,374 | 31,390 | |
| |||
Current assets |
| ||
Inventories | 7,011 | 5,792 | 6,597 |
Trade and other receivables | 12,116 | 11,790 | 10,008 |
Cash and cash equivalents | 19,854 | 17,627 | 20,463 |
38,981 | 35,209 | 37,068 | |
Total assets | 69,727 | 68,583 | 68,458 |
| |||
Current liabilities |
| ||
Trade and other payables | 7,703 | 9,666 | 7,571 |
Borrowings | - | 983 | - |
Current tax liabilities | 156 | 237 | 89 |
Short-term provisions | 344 | 343 | 343 |
Lease liabilities | 470 | 445 | 450 |
8,673 | 11,674 | 8,453 | |
Non-current liabilities |
| ||
Retirement benefit obligation | 219 | 7,522 | 4,737 |
Deferred tax liabilities | 10 | - | - |
Lease liabilities | 2,359 | 2,755 | 2,537 |
Total liabilities | 11,261 | 21,951 | 15,727 |
Net assets | 58,466 | 46,632 | 52,731 |
| |||
Equity |
| ||
Share capital | 808 | 808 | 808 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 329 | 329 | 329 |
Translation reserve | 2,992 | 1,994 | 1,662 |
Retained earnings | 52,672 | 41,887 | 48,213 |
Total attributable to equity shareholders of the company | 56,958 | 45,175 | 51,169 |
Non-controlling interests | 1,508 | 1,457 | 1,562 |
Total equity | 58,466 | 46,632 | 52,731 |
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of changes in equity
For the period ended 31 March 2022
|
|
|
|
|
|
|
| ||||||
| 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 2021 | 808 | 157 | 329 | 1,662 | 48,213 | 1,562 | 52,731 | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
1,330 |
- |
84 |
1,414 | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
3,879 |
- |
3,879 | ||||||
Deferred tax effect | - | - | - | - | (970) | - | (970) | ||||||
Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
159 |
- |
159 | ||||||
Dividends paid | - | - | - | - | (788) | (251) | (1,039) | ||||||
Profit for the period | - | - | - | - | 2,179 | 113 | 2,292 | ||||||
|
|
|
|
|
|
|
| ||||||
At 31 March 2022 | 808 | 157 | 329 | 2,992 | 52,672 | 1,508 | 58,466 | ||||||
For the period ended 31 March 2021
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 2020 | 808 | 157 | 329 | 2,047 | 38,042 | 1,443 | 42,826 | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(53) |
- |
9 |
(44) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
3,153 |
- |
3,153 | ||||||
Deferred tax effect | - | - | - | - | (599) | - | (599) | ||||||
Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
113 |
- |
113 | ||||||
Dividends paid | - | - | - | - | (747) | (202) | (949) | ||||||
Profit for the period | - | - | - | - | 1,925 | 207 | 2,132 | ||||||
At 31 March 2021 | 808 | 157 | 329 | 1,994 | 41,887 | 1,457 | 46,632 | ||||||
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 2021
|
| ||||||||||||
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 2020 | 808 | 157 | 329 | 2,047 | 38,042 | 1,443 | 42,826 | ||||||
Share repurchase | - | - | - | - | - | - | - | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(385) |
- |
(40) |
(425) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
5,344 |
- |
5,344 | ||||||
Deferred tax effect | - | - | - | - | (1,336) | - | (1,336) | ||||||
Tax on items taken directly to equity |
- |
- |
- |
- |
224 |
- |
224 | ||||||
Dividends paid | - | - | - | - | (1,091) | (264) | (1,355) | ||||||
Profit for the year | - | - | - | - | 7,030 | 423 | 7,453 | ||||||
At 30 September 2021 | 808 | 157 | 329 | 1,662 | 48,213 | 1,562 | 52,731 | ||||||
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 2020 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 2021 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2021 Interim Financial Statements to take into account any presentational changes made in the 2021 Financial Statements or in these Interim Financial Statements.
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated cash flow statement
Half year | Half year | Year | |
ended | ended | ended | |
31 March | 31 March | 30 Sept | |
| 2022 | 2021 | 2021 |
| £000's | £000's | £000's |
Cash flows from operating activities |
| ||
Operating profit | 3,818 | 3,527 | 9,854 |
Depreciation and amortisation | 510 | 1,283 | 2,317 |
Right-of-use asset depreciation | 238 | 245 | 489 |
Additional contributions to pension scheme | (683) | (683) | (1,357) |
Exchange adjustments | 240 | 595 | (49) |
(Profit)/loss on disposal of property, plant and equipment | (1) | (28) | (1,774) |
4,122 | 4,939 | 9,480 | |
(Increase)/decrease in inventories | (414) | 416 | (389) |
(Increase)/decrease in trade and other receivables | (2,108) | (2,237) | (455) |
Increase/(decrease) in trade and other payables | 132 | 233 | (1,213) |
Increase/(decrease) in provisions | 1 | - | - |
Cash generated from operations | 1,733 | 3,351 | 7,423 |
Interest paid | - | (13) | (25) |
Tax paid | (1,031) | (976) | (1,896) |
Net cash from operating activities | 702 | 2,362 | 5,502 |
| |||
Cash flows from investing activities |
| ||
Acquisition of business and assets | - | (649) | (649) |
Proceeds on disposal of a subsidiary (net of cash disposed) | - | - | - |
Proceeds from sale of property, plant and equipment | 10 | 58 | 2,122 |
Purchase of property, plant and equipment | (309) | (1,888) | (2,500) |
Development costs capitalised | - | - | (15) |
Interest received | 12 | 6 | 20 |
Net cash generated from/(used in) investing activities | (287) | (2,473) | (1,022) |
| |||
Cash flows from financing activities |
| ||
Dividends paid | (1,039) | (949) | (1,355) |
Purchase of own shares | - | - | - |
Repayment of lease liabilities including interest | (277) | (285) | (562) |
Proceeds from bank borrowings | - | 908 | (69) |
Net cash used in financing activities | (1,316) | (326) | (1,986) |
| |||
Net increase/(decrease) in cash and cash equivalents | (901) | (437) | 2,494 |
Cash and cash equivalents at beginning of period | 20,463 | 18,139 | 18,139 |
Exchange adjustments on cash and cash equivalents | 292 | (75) | (170) |
Cash and cash equivalents at end of period | 19,854 | 17,627 | 20,463 |
Contacts:
Dewhurst Group Plc Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst-group.com
Singer Capital Markets (Nominated Adviser and Sole Broker) Tel: +44 (0)207 496 3000
Will Goode / James Fischer