Thorpe Regulatory News (TFW)

F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2014

Key highlights (continuing operations):

Growth in LED product sales continues, now 58% of revenue

Sugg Lighting disposal effective 6 February 2015

TRT Lighting profitable year to date

Continued investment in manufacturing facilities

Interim dividend increased to 1.10p (Interim 2014: 1.05p) - 5% increase

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CHAIRMAN'S INTERIM STATEMENT

The half year to 31 December 2014 produced revenues up 10% with an increase in operating profit of 8% from continuing operations resulting, after taking into account investment income and taxation, in an increase of earnings per share of 9%.

These figures reflect your company's success in achieving a continued upward trajectory in its activities with most subsidiaries performing well and building further on the strengthened foundations put in place in recent years in regards to sales penetration capacity and the upgrading of product ranges.

Forward momentum has, however, continued to prove difficult at one subsidiary, its products being "retro" in nature and at odds with the company's forward-looking philosophy. I must, therefore, report that Sugg Lighting was sold for a nominal consideration on 6 February 2015 and is no longer part of your group. Sugg Lighting has been purchased by a company specialising in traditional English heritage brands.

This sale should hold advantage for Sugg Lighting and allow your own company's directors to devote more time to future projects.

LED products now represent around 58% of group revenues but Thorlux Lighting, in particular, still suffers from the parallel demand for substantial quantities of "old technology" products. Measured and careful steps are being taken to withdraw these older products where possible without disruption to customer sentiment or causing stock obsolescence.

Investment has continued on funding growth rather than start-up costs at street and road tunnel lighting company TRT Lighting, the completion of the now occupied new factory for Solite Europe, costing £1.4m, and the installation of the second new LED circuit board line at Thorlux. This latter investment increases board assembly capacity by 100%, notwithstanding the ability to make larger more cost effective units.

On a more sombre note it is with regret that I must, at this time, report the death of ex-Chairman, Mr Ernest Thorpe, aged 97. "EGT" as he was known was a co-founder of F W Thorpe Plc and devoted in excess of 55 years' service broken only by such necessary requirements as his participation in the Second World War. We hope his light shines on elsewhere.

Group performance outlined at the beginning of this report allows your company to pay a dividend for the half year to 31 December 2014 of 1.10p per share (Interim 2014: 1.05p), an increase of 5%.

Andrew Thorpe

Chairman

19 March 2015

F W Thorpe Plc

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2014

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2014

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

CONSOLIDATED BALANCE SHEET

as at 31 December 2014

GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2014

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2014

Notes to the Interim Financial Statements

1. Basis of Preparation

The consolidated interim financial statements for the six months to 31 December 2014 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 2014 and the comparative period to 31 December 2013 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2014 have been extracted from the financial statements for the year to 30 June 2014, 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. Prior period figures on the Income Statement and Cash Flow Statement have been restated to disclose the results of Sugg Lighting Limited as discontinued operations.

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 2014 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 continuing operating segments, and one discontinued operation, 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 continuing operating segments have been aggregated into the 'other companies' segment based on their size and comprise Compact Lighting Limited, Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited and Thorlux LLC.

Sugg Lighting Limited is a discontinued operation, and its results are not included in the segmental analysis.

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. Discontinued operations

At the balance sheet date, the group had entered substantive discussions and was committed to a plan to dispose of its' subsidiary Sugg Lighting Limited. The disposal was concluded on 6 February 2015.

The results of Sugg Lighting Limited for the current and prior periods are disclosed as discontinued operations.A loss on disposal of subsidiary of £120,000 has been provided, representing the excess of net assets disposed over consideration receivable. The assets disposed of include the freehold of the premises occupied by Sugg Lighting Limited.

4. Earnings per share

The basic earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 115,675,590 (Interim 2014: 116,975,590) during the period. The diluted earnings per share is calculated on profit after taxation and the weighted average number of potentially dilutive ordinary shares in issue of 116,313,090 (Interim 2014: 116,975,590) during the period.

5. Dividend

The interim dividend is at the rate of 1.10p per share (Interim 2014: 1.05p), and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £1,272,000 (Interim 2014: £1,228,000). The interim dividend will be paid on 2 April 2015 to shareholders on the register at the close of business on 27 March 2015, and the shares become ex-dividend on 26 March 2015.

A final dividend for the year ended 30 June 2014 of 2.20p (2013: final of 2.00p) per share, amounting to £2,545,000 (2013: £2,340,000), and a special dividend of 1.50p per share (2013: nil) amounting to £1,735,000 (2013: nil) was paid on 20 November 2014.

6. Share-based payment expense

During the period, the company introduced an Executive Share Ownership Plan ('ESOP'), under which 1.7 million share options were granted on 24 October 2014 at an exercise price of 124p per share each.Under IFRS2 an expense is recognised in the Income Statement, calculated on the fair value at the date of grant. The application of IFRS2 gave rise to a charge of £14,000 (2013: nil) for the period ended 31 December 2014, using a Black Scholes valuation model.

7. 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 7 April 2015.