Interim Results

9 Jun 2005 07:00

Dewhurst PLC09 June 2005 Dewhurst plc Directors' Interim Report FIRST HALF Turnover at the Group increased by 6% to £15.1 million. Profit before tax rose4% to £1.45 million (£1.40 million). Earnings per share rose to 9.57p (9.01p),an increase of 6%. The Keypad Division had a strong start to the year with the demand for retrofitEPP encrypting pinpads continuing for the first few months. However, asexpected, this demand has now fallen back from its peak to normal levels. Thisfactor, together with price erosion over the period, meant it was necessary toimplement a reduction in staffing at the main Hounslow factory by a little over10% during March. The Lift Division achieved another improvement compared to the prior year helpedby the introduction of the new Ethos lift controller and continuing demand forlift equipment to meet the disabled access codes. There have been considerable rises in base material costs during the period thatwe have been unable to pass on to our customers. We have been able to containmost of the increases through improved component sourcing and greater efficiencywith our Lean manufacturing programme, so overall margins have only fallenslightly. ACQUISTION We are pleased to report that we have exchanged contracts for the acquisition ofthe business and assets of the partnership trading as Lift Material in Australiafor a maximum consideration of £875,000 in cash. Lift Material distributes awide range of lift products to the industry throughout Australia, includingDewhurst pushbuttons. The final price is dependent on stock values and profitsfor the year to June 30, 2005. Sales and profits before taxes for the year toJune 30, 2004 were £1.3 million and £290,000 respectively at current exchangerates. The net assets of the business at June 30, 2004 were £290,000. AIM We are currently investigating whether it would be appropriate to transfer theGroup's listing to AIM. There should be considerable potential benefits toshareholders in lower capital gains tax and inheritance tax under currentlegislation. There do not appear to be any significant disadvantages. No firmdecision has yet been taken, but we are aiming to reach a conclusion in the nextsix months. OUTLOOK In addition to the fall in keypad demand from the high level in the early partof the year, we have had to implement price reductions that will impact thesecond half. However, our new keypad products have been well received and shouldgradually build sales in the longer term. There are indications that theworldwide economy is slowing and customers in the UK are becoming more cautious.The Monitoring Division, which depends on major contracts, is finding that thesecontracts are being deferred or scaled down. In addition, margin pressures arelikely to intensify as demand falls. As a result we expect the second half to bea challenging period for the Group. DIVIDENDS The Directors have declared an interim dividend of 1.63p, compared with 1.55plast year. The interim dividend is payable on 30th August 2005 and warrants willbe posted on 25th August 2005 to shareholders appearing in the Register at 3:00p.m. on 15th July 2005. By Order of the Board M N GREENSecretary9th June 2005 Dewhurst plc The unaudited consolidated profit and loss account, balance sheet and cash flowstatement of Dewhurst plc and its subsidiaries for the half-year ended 31stMarch 2005, as compared with the corresponding half-year ended 31st March 2004and the year ended 30th September 2004, shows the following results: Consolidated profit and loss account Half year ended Half year ended Year ended 31st March 2005 31st March 2004 30th September 2004 £(000)'s £(000)'s £(000)'s----------------------- ---------- ---------- ----------- Turnover 15,134 14,343 29,265 Operating costs (13,778) (12,986) (26,039) ----------------------- ---------- ---------- -----------Operating profit 1,356 1,357 3,226 Net interest 97 44 107----------------------- ---------- ---------- -----------Profit on ordinaryactivities beforetax 1,453 1,401 3,333 Taxation Est. (510) Est. (513) (1,142)----------------------- ---------- ---------- -----------Profit for thefinancial period 943 888 2,191 Dividends (161) (153) (458)----------------------- ---------- ---------- -----------Retained profit forthe period 782 735 1,733----------------------- ---------- ---------- ----------- Basic earnings per share 9.57p 9.01p 22.24pDiluted earnings per share 9.57p 9.01p 22.24pDividends per share 1.63p 1.55p 4.65p All disclosures relate only to continuing operations Dewhurst plc Consolidated balance sheet Half year Half year Year ended ended ended 31st March 31st March 30th September 2005 2004 2004 £(000)'s £(000)'s £(000)'s------------------------ --------- ---------- -----------Fixed assetsIntangible 767 936 812Tangible- Land and buildings 1,535 1,541 1,535- Plant and machinery 1,420 1,686 1,509------------------------ --------- ---------- ----------- 2,955 3,227 3,044------------------------ --------- ---------- ----------- 3,722 4,163 3,856 Current assetsStocks 4,067 3,683 4,153Debtors 5,083 5,493 5,067Short-term deposits 3,270 2,015 2,982Cash 2,053 1,272 2,465------------------------ --------- ---------- ----------- 14,473 12,463 14,667Creditors: amounts falling duewithin one year (3,717) (4,052) (5,066)------------------------ --------- ---------- ----------- Net current assets 10,756 8,411 9,601------------------------ --------- ---------- ----------- Total assets less currentliabilities 14,478 12,574 13,457 Creditors: amounts falling dueafter one year - - (1)Provisions for liabilities andcharges (210) (250) (210)------------------------ --------- ---------- ----------- Net assets 14,268 12,324 13,246------------------------ --------- ---------- ----------- Capital and reservesCalled up share capital 985 985 985Share premium account 157 157 157Revaluation reserve 423 423 423Capital redemption reserve 152 152 152Profit and loss account 12,551 10,607 11,529------------------------ --------- ---------- ----------- Equity shareholders' funds 14,268 12,324 13,246------------------------ --------- ---------- ----------- The results for the 2004 year set out above are abridged. Full accounts for thatyear, on which the auditors of the company made an unqualified report, have beendelivered to the Registrar of Companies. Dewhurst plc Consolidated cash flow statement Half year ended Half year ended Year ended 31st March 31st March 30th September 2005 2004 2004 £(000)'s £(000)'s £(000)'s----------------------- ---------- ----------- ---------- Net cash inflow fromoperating activities 939 1,108 3,865 Returns on investment andservicing of finance:Interest anddividends received 97 44 108Interest elementfrom finance leaserental payments - - (1)----------------------- ---------- ----------- ----------Net cashinflow/(outflow)from returns oninvestment andservicing of finance 97 44 107 Taxation:UK taxation (502) (416) (724)Overseas taxation (252) (185) (282)----------------------- ---------- ----------- ----------Net cash outflowfrom taxation (754) (601) (1006) Capital expenditure and financialinvestment:Purchase of fixedassets (112) (531) (768)Sale of tangiblefixed assets 10 37 176----------------------- ---------- ----------- ----------Net cash outflowfrom capitalexpenditure &financial investment (102) (494) (592) Equity dividendspaid (305) (288) (440)----------------------- ---------- ----------- ----------Net cashinflow/(outflow)before use of liquidresources andfinancing (125) (231) 1,934 Management of liquid resources(Placed)/withdrawnfrom short-termdeposit (288) (791) (1,758)----------------------- ---------- ----------- ---------- (288) (791) (1,758)FinancingCapital element offinance lease rentalpayments - (7) (11)----------------------- ---------- ----------- ---------- - (7) (11) Increase/(decrease)in cash in period (413) (1,029) 165----------------------- ---------- ----------- ---------- This information is provided by RNS The company news service from the London Stock Exchange