Thorpe Regulatory News (TFW)

F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2013

Key points:

Growth in LED product sales continues - 35% of revenue

Continued investment in manufacturing facilities

Interim dividend increased to 1.05p (Interim 2013: 1.00p)

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CHAIRMAN'S INTERIM STATEMENT

I am pleased to say that revenues for the half year ending on December 31st 2013 increased by 12% resulting in a group operating profit increase of 7%. Investment income and other factors gave a basic earnings per share increase of 8% on continuing operations.

My last half year and full year reports explained a number of reasons why our 2012/13 year had fallen short of our expectations but I did indicate that order input had resumed to more satisfactory levels.

The general improvement has been seen in all parts of the business over the first six months of the financial year with the march of the LED light source being ever more prominent in all sectors. I can report that the group is currently producing 35% of its revenue in LED format, up from 25% at the turn of the financial year.

Group export efforts continue with sales growth in excess of 10% compared to the equivalent six months last year. Some notable successes have been achieved by Sugg in Canada, Solite in Ireland, Thorlux with a welcome modest step-change upwards at its German operation, improvements in Australia and better vibrations coming now from the Republic of Ireland.

Notwithstanding continuing investment in the design of these sophisticated LED luminaires and systems, the list of plant investments includes installation of the previously mentioned powder coating facility at Philip Payne and the £0.5m cleanroom facility at Thorlux to produce populated LED electronic circuit boards for the group. This line augments the small line previously reported as working 24/7 at the time of the last report.

Our quest for improved sales ability also continues with further appointments at field sales level both home and abroad, and further, at business development level in the UK.

A brief comment should be made at this time in isolation about TRT Lighting, our start-up street and road tunnel lighting enterprise. TRT, having completed design and tooling operations for its initial products, is now increasing production as orders gather pace, providing a welcome narrowing of group financial support.

In the light of the results outlined above your company will pay a dividend of 1.05p per share (Interim 2013 1.00p) for the half year to December 31st 2013, representing an increase of 5%.

Andrew Thorpe

Chairman

20 March 2014

F W Thorpe Plc

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2013

All share calculations have been rebased and restated following the sub-division of shares (10 for 1) which became effective on 19 August 2013.

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2013

All comprehensive income is attributable to the owners of the company.

CONSOLIDATED BALANCE SHEET

as at 31 December 2013

GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2013

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2013

Notes to the Interim Financial Statements

1. Basis of Preparation

The consolidated interim financial statements for the six months to 31 December 2013 have been prepared in accordance with the recognition and measurement principles of applicable International Financial Reporting Standards (IFRS) in issue as adopted by the European Union (EU) and International Financial Reporting Standards as issued by the International Accounting Standards Board and the AIM Rules for Companies.

The figures for the period to 31 December 2013 and the comparative period to 31 December 2012 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2013 have been extracted from the financial statements for the year to 30 June 2013, which have been delivered to the Registrar of Companies. The interim financial statements do not constitute statutory accounts within the meaning of the Companies Act 2006.

The financial statements are presented in Pounds Sterling, rounded to the nearest thousand.

The interim financial statements are prepared under the historical cost convention, modified by the revaluation of certain current and non-current investments at fair value through profit or loss.

The accounting policies set out in the financial statements for the year ended 30 June 2013 have been applied consistently throughout the group during the period.

2. Segmental analysis

The segmental analysis is presented on the same basis as that used for internal reporting purposes. For internal reporting F W Thorpe is organised into seven operating segments based on the products and customer base in the lighting market. The largest business is Thorlux which manufactures professional lighting systems for the industrial, commercial and controls market. The six remaining operating segments have been aggregated into the 'other companies' segment based on their size and comprise Compact Lighting, Philip Payne, Sugg Lighting, Solite Europe, Portland Lighting and TRT Lighting.

F W Thorpe's chief operating decision-maker (CODM) is the group board. The group board reviews the group's internal reporting in order to monitor and assess the performance of the operating segments for the purpose of making decisions about resources to be allocated. Performance is evaluated based on a combination of revenue and operating profit. Assets and liabilities have not been segmented which is consistent with the group's internal reporting.

2. Segmental analysis (continued)

Inter-segment adjustments to operating profit consist of property rentals on premises owned by FW Thorpe Plc, adjustments to profit related to stocks held within the group that were supplied by another segment and adjustments to investment provisions relating to group companies.

3. Earnings per share

The earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 116,975,590 (Interim 2013: 117,235,590) during the period. The company does not have any dilutive potential ordinary shares; hence there is no difference between basic and diluted earnings per share.

All share calculations have been rebased and restated following the sub-division of shares (10 for 1) which became effective on 19 August 2013.

4. Dividend

The interim dividend is at the rate of 1.05p per share (Interim 2013: 1.00p), and based on 116,975,590 shares in issue at the announcement date the dividend will amount to £1,228,000 (Interim 2013: £1,172,000). The interim dividend will be paid on Tuesday 6 May 2014 to shareholders on the register at the close of business on 11 April 2014 and the shares become ex-dividend on 9 April 2014.

A final dividend for the year ended 30 June 2013 of 2.00p (2012: final of 1.46p) per share, amounting to £2,340,000 (2012: £1,712,000) was paid on 21 November 2013.

5. Availability of interim statement

Copies of this report are being sent to shareholders and will also be available from the company's registered office or on the company's website (www.fwthorpe.co.uk) from 4 April 2014.