Thorpe Regulatory News (TFW)

F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2016

F W Thorpe Plc, designers, manufacturers and suppliers of professional lighting systems for the specification market is pleased to announce its interim results for the six months ended 31 December 2016.

Key points:

· Revenue and operating profit growth at Thorlux drives positive interim result

· Lightronics continues to perform well, driven by one off projects

· Interim dividend increased to 1.35p (Interim 2016: 1.20p)

For further information please contact:

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

CHAIRMAN'S INTERIM STATEMENT

I am pleased to be able to report a successful first half of the 2016/17 financial year with Group revenues increased by 23.8% and operating profit increased by 19.7%.

Whilst normally expecting a higher level of profit attainment on raised revenues the exceptionally buoyant first half at our largest entity, Thorlux Lighting, had to be met by the imposition of high levels of overtime, shift working etc. which inevitably has led to a higher cost of production than we would have liked. These actions were necessary to satisfy spikes in customer demand but it is unlikely that the need for such levels of activity will persist.

Generally, throughout the Group, the performances in both revenue and profit have improved with the exception of Compact Lighting which is still in a transitory state of merging many product ranges and sales platforms with Thorlux Lighting.

Offices abroad have also performed well with renewed optimism at the, now 100% owned, Australian office. Our UAE office is still finding its way, however.

Investments throughout the Group continue as desired where decided as prudent by your Board. Product investment, of course, continues not least with the notable recent introduction of "SmartScan" a new highly advanced wireless lighting control system, which has immediately found favour with many of our customers. Hardware investment also continues and this has most recently included the purchase, in Redditch, of a modern 1,800 square metre freehold factory unit for Group firm, TRT Lighting which, as mentioned in my last report, was being constrained through lack of space.

This new space will not only increase manufacturing capacity at TRT Lighting but will also house a new paint plant serving not only TRT but for use as a back-up facility in case of paint plant problems at nearby Thorlux where current capacity is stretched. In the same vein, it will house a new surface mount circuit board production line again for TRT use and as a Group back-up facility.

The Group carbon offsetting project in Devauden, Monmouthshire has recently partaken of an over doubling of tree stock to a total of some 150,000 plantings. This puts the company somewhat in advance of its carbon offsetting requirements.

Group performance for the "first half", therefore, allows your company to pay a dividend for the six months to 31st December 2016 of 1.35p (Interim 2015 1.20p) this being a 12.5% increase.

We remain optimistic of a satisfactory overall result for the year.

Andrew Thorpe

Chairman

16 March 2017

F W Thorpe Plc

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2016

*Finance costs represents payments made in relation to the acquisition of Lightronics Participaties BV.

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2016

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

* The profit on items that may be reclassified to profit or loss of £227,000 is due to the increase in market value of available for sale financial assets.

CONSOLIDATED BALANCE SHEET

as at 31 December 2016

GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2016

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2016

Notes to the Interim Financial Statements

1. Basis of Preparation

The consolidated interim financial statements for the six months to 31 December 2016 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 2016 and the comparative period to 31 December 2015 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2016 have been extracted from the financial statements for the year to 30 June 2016, 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 2016 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 nine 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 markets. The Lightronics business is a material subsidiary and therefore disclosed separately.

The seven remaining continuing operating segments have been aggregated into the 'other companies' segment based on their size, comprising the entities Compact Lighting Limited, Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited, Thorlux LLC and Thorlux Australasia PTY Limited.

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. Investment in Subsidiary

On 1 July 2016 the Group acquired 49% of the share capital of Thorlux Australasia PTY Limited for a nominal sum.

Previously Thorlux Australasia was a joint venture with a local partner and we therefore now own 100% of the company. This will give us the ability to exercise full control over the operations with a view to improving the operating results going forward.

The Group has fully consolidated the results of Thorlux Australasia in the figures for December 2016.

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 2016: 115,675,590) 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 116,347,665 (Interim 2016: 115,791,614) during the period.

5. Dividend

The interim dividend is at the rate of 1.35p per share (Interim 2016: 1.20p), and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £1,562,000 (Interim 2016: £1,388,000). The interim dividend will be paid on 6 April 2017 to shareholders on the register at the close of business on 24 March 2017, and the shares become ex-dividend on 23 March 2017.

A final dividend for the year ended 30 June 2016 of 2.85p (2015: final of 2.55p) per share, amounting to £3,297,000 (2015: £2,950,000) was paid on 24 November 2016.

6. Availability of interim statement

Copies of the interim 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 31 March 2017.