Last checked at 20 Mar 2013 07:00
F W Thorpe Plc
INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2012
Key points:
Half Year 2012 | Half Year 2011 | ||
Revenue | £27.1m | £29.9m | 9% decrease |
Operating profit | £4.7m | £5.4m | 13% decrease |
Profit before tax expense | £5.1m | £5.7m | 11% decrease |
Basic earnings per share - continuing operations | 33.1p | 36.6p | 10% decrease |
Operating profit margins maintained despite reduced revenues
Growth in LED product sales
TRT Lighting investment continues
Interim dividend increased to 10.0p (2011: 4.8p)
For further information please contact:
F W Thorpe Plc |
|
Andrew Thorpe - Chairman and Joint Chief Executive | 01527 583200 |
Craig Muncaster - Financial Director | 01527 583200
|
N+1 Singer - Nominated Adviser |
|
Richard Lindley
| 0113 388 4789 |
CHAIRMAN'S INTERIM STATEMENT
Revenues for the half year to 31st December 2012 decreased by 9% with a corresponding decrease in operating profit of 13% and profit before tax expense of 11%. Basic earnings per share from continuing operations were down 10%.
I stated in the last annual report that, for reasons not readily apparent to us, there was a lull in order intake towards the end of 2011/12 financial year. These final months' orders usually create a substantial backlog giving the following year an initial kick-start. Unfortunately, this was not the case this time around.
Our order intake during the first six months of this financial year has not been rising in a continual upward trajectory but I can report that the orders for the last three months prior to writing have resumed the upward trend at our largest company Thorlux Lighting with other subsidiaries above, equivalent to, or below last year's performance.
The move to LED light sources continues with some 25% of group products now being LED compared to only 3% this time last year. Our product development of LED products and systems continues apace.
Investment in the group continues with the largest project being the moving to completion of a new 2,400 square metre high roof finished goods warehouse for Thorlux sanctioned due to the serious capacity problems during 2011. This new facility will allow more finished goods stock as well as freeing up a deal of existing floor space for increased manufacturing facilities.
The company has further, during this period, been absorbing the cost of bolstering sales capabilities in a number of areas and not least, absorbing the costs of our start-up TRT Lighting, as mentioned in my last report, to design, manufacture and supply LED roadway, road tunnel and area lighting for the future. First production at TRT is planned for summer 2013.
Your company will pay an increased dividend of 10.0p per share (2011: 4.8p) for the half year to 31st December 2012, an increase of 108%, recognising that the dividend yield has been reducing in recent years.
Finally, and being a little on the defensive, may I confirm that although the company has taken a step back, it is the first for some years and our figures still represent an 18% return on sales at operating profit level.
Andrew Thorpe
Chairman
20 March 2013
F W Thorpe Plc
CONSOLIDATED INCOME STATEMENT
for the six months to 31 December 2012
Half year to | Half year to | Full year to | |
Continuing Operations | 31.12.12 | 31.12.11 | 30.6.12 |
(restated) | |||
(unaudited) | (unaudited) | (audited) | |
£'000 | £'000 | £'000 | |
Revenue | 27,076 | 29,924 | 55,559 |
Operating Profit | 4,744 | 5,388 | 11,850 |
Finance income | 352 | 278 | 831 |
Share of loss of joint venture | (19) | - | (23) |
Profit before tax expense | 5,077 | 5,666 | 12,658 |
Tax expense | (1,200) | (1,379) | (2,718) |
Profit for the period from continuing operations | 3,877 | 4,287 | 9,940 |
Profit for the period from discontinued operations* | - | 1,377 | 1,377 |
Profit for the period | 3,877 | 5,664 | 11,317 |
* Profit for the year from discontinued operations in 201 1 includes the exceptional item of the profit on sale from disposal of a subsidiary. There is no other income from discontinued operations.
Dividend rate per share: | |||
Interim | 10.0p | 4.8p | 4.8p |
Final | - | - | 14.6p |
Earnings per share for profit attributable to the equity holders of the company during the period
Basic and diluted earnings per share
Continuing operations | - basic | 33.1p | 36.6p | 84.8p |
Continuing operations | - diluted | 33.1p | 36.6p | 84.8p |
Discontinued operations | - basic | - | 11.7p | 11.7p |
Discontinued operations | - diluted | - | 11.7p | 11.7p |
Total | - basic | 33.1p | 48.3p | 96.5p |
Total | - diluted | 33.1p | 48.3p | 96.5p |
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the six months to 31 December 2012
Half year to | Half year to | Full year to | |
31.12.12 | 31.12.11 | 30.6.12 | |
(restated) | |||
(unaudited) | (unaudited) | (audited) | |
£'000 | £'000 | £'000 | |
Profit for the period | 3,877 | 5,664 | 11,317 |
Actuarial loss on pension scheme | - | - | (1,410) |
Movement on associated deferred tax asset relating to the pension scheme | - | - | 468 |
Revaluation of available for sale assets | - | (5) | 29 |
Movement on associated deferred tax | - | - | (8) |
Impact of deferred tax rate change | - | - | 56 |
Exchange rate movement on investment in joint venture | - | - | (2) |
Other comprehensive income for the period net of tax | - | (5) | (867) |
Total comprehensive income for the period | 3,877 | 5,659 | 10,450 |
Total comprehensive income attributable to equity shareholders arises from: | |||
-Continuing operations | 3,877 | 4,282 | 9,073 |
-Discontinued operations | - | 1,377 | 1,377 |
3,877 | 5,659 | 10,450 | |
CONSOLIDATED BALANCE SHEET
as at 31 December 2012
As at | As at | As at | |
31.12.12 | 31.12.11 | 30.6.12 | |
(restated) | |||
(unaudited) | (unaudited) | (audited) | |
Assets | £'000 | £'000 | £'000 |
Non-Current Assets | |||
Property, plant and equipment | 11,909 | 10,834 | 11,204 |
Intangible assets | 6,177 | 5,172 | 5,984 |
Investment property | 2,083 | 2,081 | 2,081 |
Loans and receivables | 1,728 | 1,828 | 1,828 |
Investment in joint venture | 92 | 135 | 111 |
Available for sale financial assets | 1,967 | 1,300 | 1,841 |
Deferred tax assets | - | 27 | 15 |
23,956 | 21,377 | 23,064 | |
Current assets | |||
Inventories | 10,146 | 10,275 | 11,144 |
Trade and other receivables | 9,778 | 10,244 | 10,942 |
Other financial assets at fair value through profit or loss | 387 | 387 | 387 |
Short term financial assets - deposits | 17,205 | 13,971 | 17,108 |
Cash and cash equivalents | 15,477 | 16,066 | 14,120 |
Total current assets | 52,993 | 50,943 | 53,701 |
Total Assets | 76,949 | 72,320 | 76,765 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (5,938) | (7,461) | (7,677) |
Current tax liabilities | (1,073) | (1,409) | (1,395) |
Total current liabilities | (7,011) | (8,870) | (9,072) |
Net current assets | 45,982 | 42,073 | 44,629 |
Non-current liabilities | |||
Retirement benefit deficit | - | - | - |
Provisions for liabilities and charges | (102) | (102) | (102) |
Deferred tax liabilities | (858) | (763) | (778) |
Total liabilities | (7,971) | (9,735) | (9,952) |
Net assets | 68,978 | 62,585 | 66,813 |
Equity attributable to owners of the company | |||
Issued share capital | 1,189 | 1,189 | 1,189 |
Share premium account | 656 | 656 | 656 |
Capital redemption reserve | 137 | 137 | 137 |
Retained earnings | 66,996 | 60,603 | 64,831 |
Total equity | 68,978 | 62,585 | 66,813 |
GROUP STATEMENT OF CHANGES IN EQUITY
for the six months to 31 December 2012
Share | Share | Capital | Retained | Total | |
Capital | Premium | Redemption | Earnings | Equity | |
Reserve | |||||
£'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 30 June 2011 | 1,189 | 656 | 137 | 56,503 | 58,485 |
Comprehensive income | |||||
Profit for six months to 31 December 2011 | - | - | - | 5,664 | 5,664 |
Revaluation of available for sale assets | - | - | - | (5) | (5) |
Total comprehensive income | - | - | - | 5,659 | 5,659 |
Transactions with owners | |||||
Dividends paid to shareholders | - | - | - | (1,559) | (1,559) |
Total transactions with owners | - | - | - | (1,559) | (1,559) |
Balance at 31 December 2011 | 1,189 | 656 | 137 | 60,603 | 62,585 |
Comprehensive income | |||||
Profit for six months to 30 June 2012 | - | - | - | 5,653 | 5,653 |
Actuarial loss on pension scheme | - | - | - | (1,410) | (1,410) |
Movement on unrecognised pension surplus | - | - | - | 468 | 468 |
Revaluation of available-for-sale financial assets | - | - | - | 34 | 34 |
Movement on associated deferred tax | - | - | - | (8) | (8) |
Impact of deferred tax rate change | - | - | - | 56 | 56 |
Exchange rate movement on joint venture | - | - | - | (2) | (2) |
Total comprehensive income | - | - | - | 4,791 | 4,791 |
Transactions with owners | |||||
Dividends paid to shareholders | - | - | - | (563) | (563) |
Total transactions with owners | - | - | - | (563) | (563) |
Balance at 30 June 2012 | 1,189 | 656 | 137 | 64,831 | 66,813 |
Comprehensive income | |||||
Profit for six months to 31 December 2012 | - | - | - | 3,877 | 3,877 |
Total comprehensive income | - | - | - | 3,877 | 3,877 |
Transactions with owners | |||||
Dividends paid to shareholders | - | - | - | (1,712) | (1,712) |
Total transactions with owners | - | - | - | (1,712) | (1,712) |
Balance at 31 December 2012 | 1,189 | 656 | 137 | 66,996 | 68,978 |
GROUP STATEMENT OF CASH FLOWS
for the six months to 31 December 2012
Half year to | Half year to | Full year to | |
31.12.12 | 31.12.11 | 30.6.12 | |
(restated) | |||
(unaudited) | (unaudited) | (audited) | |
£'000 | £'000 | £'000 | |
Cash generated from operations | |||
Profit before income tax | 5,077 | 5,666 | 12,658 |
Adjustments for | |||
- Depreciation charge | 613 | 514 | 1,062 |
- Amortisation of intangibles | 512 | 405 | 993 |
- Profit on disposal of property, plant and equipment | (37) | (27) | (71) |
- Finance income - net | (352) | (278) | (831) |
- Retirement benefit contributions in excess of current and past service charge | (329) | (348) | (774) |
- Share of loss from joint venture | 19 | - | 23 |
Changes in working capital | |||
- Inventories | 998 | 1,173 | 304 |
- Trade and other receivables | 1,140 | 1,562 | 918 |
- Trade and other payables | (988) | (1,964) | (1,583) |
Discontinued operations | - | - | (8) |
Cash generated from operations | 6,653 | 6,703 | 12,691 |
Tax paid | (1,433) | (1,637) | (3,223) |
Cash flow from investing activities | |||
Purchase of property, plant and equipment | (1,362) | (524) | (2,198) |
Proceeds of sale of property, plant and equipment | 50 | 46 | 120 |
Purchase of intangibles - development costs and software | (707) | (484) | (1,341) |
Purchase of subsidiary net of cash acquired | (383) | (2,530) | (2,502) |
Purchase of investment property | (3) | - | (35) |
Purchase of available for sale financial assets | (125) | (198) | (706) |
Property rental and similar income | 107 | 121 | 195 |
Dividend income | 71 | - | 69 |
Net (purchase)/sale of deposits | (96) | (2,355) | (5,492) |
Interest received | 197 | 141 | 322 |
Net proceeds of disposal of subsidiary | - | 4,106 | 4,106 |
Repayment of loans and receivables | 100 | - | - |
Net cash outflow from investing activities | (2,151) | (1,677) | (7,462) |
Cash flow from financing activities | |||
Dividends paid to company shareholders | (1,712) | (1,559) | (2,122) |
Net cash outflow from financing activities | (1,712) | (1,559) | (2,122) |
Net increase/(decrease) in cash and cash equivalents | 1,357 | 1,830 | (116) |
Cash and cash equivalents at the beginning of the period | 14,120 | 14,236 | 14,236 |
Increase/(decrease) in cash and cash equivalents | 1,357 | 1,830 | (116) |
Cash and cash equivalents at the end of the period | 15,477 | 16,066 | 14,120 |
Notes to the Interim Financial Statements
1. Basis of Preparation
The consolidated interim financial statements for the six months to 31 December 2012 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 2012 and the comparative period to 31 December 2011 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2012 have been extracted from the financial statements for the year to 30 June 2012, 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 2012 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 six 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 five 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 and Portland 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 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)
Thorlux | Other | Inter- | Total | |
Companies | Segment | Continuing | ||
Adjust- | Operations | |||
ments | ||||
£'000 | £'000 | £'000 | £'000 | |
6 months to 31 December 2012 | ||||
Revenue to external customers | 22,259 | 4,817 | - | 27,076 |
Revenue to other group companies | 46 | 275 | (321) | - |
Total revenue | 22,305 | 5,092 | (321) | 27,076 |
Operating Profit | 4,526 | 121 | 97 | 4,744 |
Net finance income | 352 | |||
Share of loss in joint venture | (19) | |||
Profit before tax expense | 5,077 | |||
6 months to 31 December 2011 | ||||
Revenue to external customers | 24,363 | 5,561 | - | 29,924 |
Revenue to other group companies | 65 | 287 | (352) | - |
Total revenue | 24,428 | 5,848 | (352) | 29,924 |
Operating Profit | 4,757 | 459 | 172 | 5,388 |
Net finance income | 278 | |||
Share of loss in joint venture | - | |||
Profit before tax expense | 5,666 | |||
Year to 30 June 2012 | ||||
Revenue to external customers | 44,869 | 10,690 | - | 55,559 |
Revenue to other group companies | 80 | 507 | (587) | - |
Total revenue | 44,949 | 11,197 | (587) | 55,559 |
Operating Profit | 10,740 | 828 | 282 | 11,850 |
Net finance income | 831 | |||
Share of loss in joint venture | (23) | |||
Profit before tax expense | 12,658 | |||
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 11,723,559 (2011: 11,723,559) 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 11,723,559 (2011: 11,723,559) as there are no dilutive potential ordinary shares.
4. Dividend
The interim dividend is at the rate of 10.0p per share (2011: 4.8p), and based on 11,723,559 shares in issue at the announcement date the dividend will amount to £1,172,000 (2011: £563,000). The interim dividend will be paid on Tuesday 7 May 2013 to shareholders on the register at the close of business on 12 April 2013 and the shares become ex-dividend on 10 April 2013.
A final dividend for the year ended 30 June 2012 of 14.6p (2011: final of 13.3p) per share, amounting to £1,712,000 (2011: £1,559,000) was paid on 22 November 2012.
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 from 5 April 2013.