Thorpe Regulatory News (TFW)

F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2010

KEY POINTS:

·; Revenue increased by 11.5% to £31.5M (2009: £28.3M)  

·; Operating profits up by 7.7% to £4.9M (2009: £4.6M) 

·; Profit before tax up by 7.1% to £5.0M (2009: £4.7M) 

·; Interim dividend up by 4.9% to 4.3p (2009: 4.1p)

·; Basic earnings per share 30.9p (2009: 28.5p) up 8.4%

For further information please contact:

CHAIRMAN'S INTERIM STATEMENT

F W Thorpe Plc revenue improved 11.5% in the half year to December 2010 from £28.3M for the first half of 2009 to £31.5M this time. Your Group's operating profit also increased 7.7% during the same period from £4.6M for the half year to December 2009 to £4.9M for the half year to December 2010. Investment income remains depressed due to the continuing low levels of interest on offer.

This performance will allow your company to pay an increased dividend of 4.3p per share payable to shareholders on the register on 15 April 2011. The increase is 4.9% above the 2010 interim dividend figure.

The profit figure for this half year has been adversely affected by the well documented serious increase in commodity prices and in response, your company has been introducing a number of countermeasures designed to reduce these effects.

In general, whilst we worried about a lagged effect from the financial crisis of a year or two ago and then similarly in regard to the financial re-alignments being put in place by the coalition Government, our market continues to remain firm in most areas of the Group. Certain companies within the Group rely on their niche market expertise to maintain their marketing strength but in some more commercial areas of the Group, energy saving remains a major driver.

Globally, although our figures may not show it, your Group continues to make progress. In example, during this period, Thorlux Lighting serviced fewer one off 'large' jobs abroad but has improved performance in its own offices in Germany and Australia, with the Republic of Ireland holding up well despite that country's economic problems.

Notwithstanding our continuing investment in new products, your company has resumed some major capital investments around the Group including a new £80,000 glue dotting machine at Mackwell Electronics, a new £250,000 turret press at Compact Lighting and new £350,000 Applications Centre at Thorlux.

Your Chairman still remains cautiously optimistic!

Andrew Thorpe

Chairman

17 March 2011

F W Thorpe Plc

Merse Road

North Moons Moat

Redditch

Worcs.

B98 9HH

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2010

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

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2010

CONSOLIDATED BALANCE SHEET

as at 31 December 2010

GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2010

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2010

Notes to the Interim Financial Statements

1. Basis of Preparation

The consolidated interim financial statements for the six months to 31 December 2010 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 2010 and the comparative period to 31 December 2009 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2010 have been extracted from the financial statements for the year to 30 June 2010, 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 2010 have been applied consistently throughout the Group during the period.

2. Segmental analysis

With effect from 1 July 2009, the group adopted IFRS 8 "Operating segments". This accounting standard requires a "through the eyes of management" approach under which segment information 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 businesses are Thorlux which manufactures professional lighting systems for industrial, commercial and controls markets, and Mackwell which manufactures emergency lighting components. The four remaining operating segments have been aggregated into the "other companies" reportable segment based upon their size, which represents the entities Compact Lighting, Philip Payne, Sugg Lighting and Solite Europe.

F W Thorpe's chief operating decision-maker 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. In accordance with updates to IFRS 8, 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 11,723,559 (2009: 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 (2009: 11,723,559) as there are no dilutive potential ordinary shares.

4. Dividend

The interim dividend is at the rate of 4.3p per share (2009: 4.1p), and based on 11,723,559 shares in issue at the announcement date the dividend will amount to £504,000 (2009: £481,000). The interim dividend will be paid on Tuesday 10 May 2011 to shareholders on the register at the close of business on 15 April 2011 and the shares become ex-dividend on 13 April 2011.

A final dividend for the year ended 30 June 2010 of 12.6p (2009: final of 12.1p and special of 12.0p) per share, amounting to £1,477,000 (£2,825,000) was paid on 18 November 2010.

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 25 March 2011.