Thorpe Regulatory News (TFW)

25 Mar 2009 07:00



F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2008

KEY POINTS:

Turnover increased by 9% to £27.6M (2007 £25.3M)  

Operating profits up to £4.2M (2007: £4.0M)

Profit before tax increased by 5% to £4.8M (2007: 4.5M) 

Interim dividend increased to 4.1p (2007: 3.9p) up 5% 

Basic earnings per share 29.1p (2007: 26.9p) up 8%

For further information please contact:

F W Thorpe plc
Andrew Thorpe - Chairman	01527 583200
Peter Mason - Joint Chief Executive and Finance Director	01527 583200
Brewin Dolphin Limited - Nominated Adviser
Andrew Kitchingman  Sean Wyndham-Quin	0845 270 8613 0845 270 9518

  

CHAIRMAN'S INTERIM STATEMENT

Group revenue for the six months to 31 December 2008 increased 9% to £27.6M from £25.3M. Resulting profit before taxation has increased by 5% to £4.8M from £4.5M for the equivalent period last year.

An interim dividend of 4.1p (2008: 3.9p) will be paid on 12 May 2009 to shareholders on the register on 17 April 2009. This is an increase of 5% on last year's corresponding dividend.

The business has been increasingly difficult to manage over the last few months of credit crisis due to the varying effects on different parts of the Group of rapid changes in the value of Sterling against the Dollar and the Euro, the steep decline in retail sales, and quick realignment of commodity prices from their only recent very high peaks. The effects, as I have said, vary throughout the different companies within the Group but it is pertinent to mention that not only does the Group purchase items such as electronic components in Dollars, but it also exports a considerable amount of goods sold in Euros.

Potential order volumes will no doubt be hit by the current malaise, but our wide spread of product offerings and our cover of a wide variety of home and export markets have held us in good stead so far.

To update on some capital expenditure projects, Sugg Lighting are, at this moment, moving into a smaller factory, recently purchased by the Group, in Horsham which is some 9 miles from their current leased property in Crawley. The process continues in putting together our carbon off-setting project and the purchase has been completed of the 215 acres of land in Monmouthshire. Negotiation of the many and varied governmental control procedures that seem to be required is underway and we are on track to plant our first trees, some plantings of which have already been 'purchased' by our customers.

In regard to the remainder of the year, one will have to keep an open mind with things so difficult to predict at present. Although the balance sheet remains strong, investment income will fall away rapidly in the 2nd half of the financial year in line with the reduction in interest rates.

Andrew Thorpe

Chairman

25 March 2009

F W Thorpe PLCMerse Road

North Moons MoatRedditch

Worcs. 

B98 9HH

CONSOLIDATED INCOME STATEMENT 

for the six months to 31 December 2008

 

	Half year to	Half year to	Full year to
	31.12.08	31.12.07	30.6.08
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Revenue	27,564	25,304	51,780
	______	______	______
Operating Profit	4,163	4,031	10,507
Finance income	591	494	1,213
	______	______	______
Profit before income taxation	4,754	4,525	11,720
Income taxation	(1,284)	(1,328)	(2,989)
	______	______	______
Profit for the period	3,470	3,197	8,731
	______	______	______
Dividend rate per share:
Interim	4.1p	3.9p	3.9p
Final			12.1p

Earnings per share for profit attributable to the equity holders of the company during the period

 

Earnings per share - basic	29.1p	26.9p	73.3p
- diluted	29.1p	26.8p	73.2p

 

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSES 

for the six months to 31 December 2008

	Half year to	Half year to	Full year to
	31.12.08	31.12.07	30.6.08
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Profit for the period	3,470	3,197	8,731
Actuarial loss on pension scheme	-	-	(1,624)
Movement on associated deferred tax liability relating to the pension scheme	-	-	455
Revaluation of available for sale assets	(68)	(16)	(55)
	______	______	______
Net expense recognised directly in equity	(68)	(16)	(1,224)
	______	______	______
Total recognised gains and losses relating to the period	3,402	3,181	7,507
	______	______	______

 

CONSOLIDATED BALANCE SHEET 

as at 31 December 2008

 

	As at	As at	As at
	31.12.08	31.12.07	30.6.08
	(unaudited)	(unaudited)	(audited)
Assets	£'000	£'000	£'000
Non-Current Assets
Intangible assets	2,373	2,122	2,285
Investment property	1,017	184	184
Property, plant and equipment	9,517	9,936	9,612
Available for sale financial assets	47	87	115
Deferred tax assets	273	-	276
Retirement benefit surplus	-	1,146	-
	______	______	______
	13,227	13,475	12,472
Current assets
Inventories	8,556	7,436	8,646
Trade and other receivables	8,853	9,451	10,559
Other financial assets at fair value through profit or loss	384	368	377
Short term financial assets - deposits	14,737	13,051	13,332
Cash and cash equivalents	5,999	2,306	6,710
	______	______	______
	38,529	32,612	39,624
	______	______	______
Total Assets	51,756	46,087	52,096
	______	______	______
Liabilities
Current liabilities
Trade and other payables	(5,518)	(5,574)	(7,381)
Current tax liabilities	(1,657)	(1,529)	(1,916)
	______	______	______
	(7,175)	(7,103)	(9,297)
	______	______	______
Net current assets	31,354	25,509	30,327
	______	______	______
Non-current liabilities
Retirement benefit deficit	(141)	-	(281)
Provisions for liabilities and charges	(242)	(216)	(213)
Deferred tax liabilities	(670)	(964)	(640)
	______	______	______
Total liabilities	(8,228)	(8,283)	(10,431)
	______	______	______
Net assets	43,528	37,804	41,665
	______	______	______
Capital and Reserves attributable to equity holders of the company
Issued share capital	1,189	1,191	1,191
Capital Redemption Reserve	137	135	135
Share Premium account	624	624	624
Retained earnings	41,578	35,854	39,715
	______	______	______
Total equity	43,528	37,804	41,665
	______	______	______

 

CASH FLOW STATEMENT 

for the six months to 31 December 2008

	Half year to	Half year to	Full year to
	31.12.08	31.12.07	30.6.08
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Cash generated from operations
Profit before income tax	4,754	4,525	11,720
Adjustments for
- Depreciation charge	505	572	1,085
- Amortisation of intangibles	416	372	826
- Profit on disposal of property, plant and equipment	(2)	(43)	(37)
- Finance income - net	(591)	(494)	(1,213)
- Retirement benefit contributions in excess of current and past service charge	(140)	(265)	(283)
Changes in working capital
- Inventories	86	1,055	(155)
-Trade and other receivables	1,670	110	(937)
-Trade and other payables	(1,769)	(835)	1,034
	______	______	______
Cash generated from operations	4,929	4,997	12,040
Tax paid	(1,511)	(604)	(2,022)
Cash flow from investing activities
Purchase of property, plant and equipment	(470)	(419)	(749)
Proceeds of sale of property, plant and equipment	26	60	75
Purchase of intangibles - development costs and software	(504)	(451)	(983)
Purchase of available for sale financial assets	-	-	(67)
Purchase of investment property	(833)	-	-
Property rental and similar income	33	25	55
Dividend income	4	4	7
Net purchase of deposits	(1,405)	(4,186)	(4,467)
Interest received	617	394	858
	______	______	______
Net cash outflow from investing activities	(2,532)	(4,573)	(5,271)
Cash flow from financing activities
Proceeds from the issuance of ordinary shares	-	18	18
Purchase of own shares	(100)	-	-
Dividends paid to company shareholders	(1,439)	(1,190)	(1,655)
Lease payments	(58)	(58)	(116)
	______	______	______
Net cash outflow from financing activities	(1,597)	(1,230)	(1,753)
Net (decrease)/ increase in cash and cash equivalents	(711)	(1,410)	2,994
	______	______	______
Cash and cash equivalents at the beginning of the period	6,710	3,716	3,716
in net funds
(Decrease)/increase in cash and cash equivalents	(711)	(1,410)	2,994
	______	______	______
Cash and cash equivalents at the end of the period	5,999	2,306	6,710
	______	______	______

 

Notes to the Interim Financial Statements 1. Basis of Preparation

The consolidated interim financial statements for the six months to 31 December 2008 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 Alternative Investment Market (AIM) Rules for Companies.

The figures for the period to 31 December 2008 and the comparative period to 31 December 2007 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2008 have been extracted from the financial statements for the year to 30 June 2008, 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 1985.

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 2008 have been applied consistently throughout the Group during the period. 

 

 

 

2. Statement of changes in equity

 

	Share	Share	Capital	Retained	Total
	Capital	Premium	Redempt-ion	Earnings
		Account	Reserve
	£'000	£'000	£'000	£'000	£'000
As at 1 July 2007	1,190	607	135	33,863	35,795
Profit for six months to 31 Dec 07	-	-	-	3,181	3,181
Proceeds from the issuance of ordinary shares	1	17	-	-	18
Dividends paid to shareholders	-	-	-	(1,190)	(1,190)
	______	______	______	______	______
As at 31 December 2007	1,191	624	135	35,854	37,804
Profit for six months to 30 June 08	-	-	-	4,326	4,326
Dividends paid to shareholders				(465)	(465)
	______	______	______	______	______
As at 30 June 2008	1,191	624	135	39,715	41,665
Profit for six months to 31 Dec 08	-	-	-	3,402	3,402
Purchase of own shares	(2)	-	2	(100)	(100)
Dividends paid to shareholders	-	-	-	(1,439)	(1,439)
	______	______	______	______	______
As at 31 December 2008	1,189	624	137	41,578	43,528
	______	______	______	______	______

 

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 11,904,863 (2007: 11,904,394) during the period. For diluted earnings per share, the weighted average of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The adjusted weighted average number of ordinary shares is calculated at 11,927,799 (2007: 11,928,429).

 

4. Purchase of own shares

On 13 October 2008 the company purchased 20,000 of its own shares at a price of 497.5 pence per share, and cancelled with immediate effect.

 

5. Dividend

The interim dividend is at the rate of 4.1p per share (2008: 3.9p), and, based on 11,893,559 shares in issue at the announcement date the dividend will amount to £488,000 (2008: £465,000). The interim dividend will be paid on Tuesday 12 May to shareholders on the register at the close of business on 17 April 2009 and the shares become ex-dividend on 15 April 2009.

 

6. 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 from 9 April 2009.

 

ENDIR ILFITVDISFIA