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Dewhurst PLC  -  DWHT   

Half-year Report

Released 07:00 13-Jun-2017

RNS Number : 8459H
Dewhurst PLC
13 June 2017
 

Dewhurst plc (the "Group")

 

Interim Results for the 6 months ended 31 March 2017

 

 

 

Directors' Interim Report

 

FIRST HALF

The board is pleased to report record interim sales and profits for the Group's half year results to 31 March 2017. Overall, Group revenue increased 22% to £26.1 million (2016: £21.3 million), with profit before tax increasing by 76% to £3.0 million (2016: £1.7 million). Adjusted operating profit* of £3.1 million (2016: £1.9 million) is also up 61% on last year and earnings per share rose to 25.8p (2016: 13.1p). The Group balance sheet remains strong with cash at the period end of £16.0 million (2016: £14.0 million).

 

The weaker pound continued to benefit our reported figures throughout the period. Currency movements increased Group revenue by approximately £2.6 million in the first half.  However we also achieved growth in local sales values at all our companies other than those in North America, which fell back slightly. At constant currency, the main revenue improvements were at the Transport and Keypad Divisions, which both achieved double digit growth; the Lift Division overall grew by around 5%, including a first time contribution of £0.4 million from the acquisition of P&R in Australia.

 

OUTLOOK

After strong first half sales, the UK seems to be pausing at the moment.  Whether this is a short term lull or a longer term trend is not yet clear.  But it is possible that the greater political and economic uncertainty in the UK since the general election may cause nervousness in our markets.  Overseas the outlook is more positive.  We have seen a good recovery in the last couple of months in some areas of North America, but it is not across the board.  Demand in Australia, on the other hand, continues to be positive in all areas.  The pound has strengthened a little against our main operating currencies since the end of March and that will, if maintained, reduce second half reported sales and profits. However the Directors believe that the underlying performance of the Group as a whole is encouraging.

 

DIVIDENDS

The Directors have declared an interim dividend of 3.50p per ordinary share (2016: 3.00p) which amounts to £295,000 (2016: £254,000). The interim dividend is payable on 22 August 2017 and will be posted on 17 August 2017 to shareholders appearing in the Register on 7 July 2017 (ex-dividend date being 6 July 2017).

 

A final 2016 dividend of 8.00p (2015: 10.00p) which amounted to £678,000 (2015: £847,000) was approved at the AGM held on 7 February 2017 and was paid on 15 February 2017 to members on the register at 20 January 2017.

 

By Order of the Board

 

J C SINCLAIR

Finance Director & Secretary

12 June 2017

 

 

* Operating profit before amortisation of acquired intangibles



Dewhurst plc

 

The unaudited consolidated statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2017, as compared with the corresponding half-year ended 31 March 2016 and the year ended 30 September 2016, shows the following results:

 

Consolidated statement of comprehensive income


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 September


2017

2016

2016

Continuing operations

£000's

£000's

£000's





Revenue

26,070

21,332

47,159

Operating costs

(22,960)

(19,488)

(41,749)

Adjusted operating profit*

3,110

1,931

5,502

Amortisation of acquired intangibles

-

(87)

(92)

Operating profit

3,110

1,844

5,410





Finance income

52

62

126

Finance costs

(204)

(226)

(451)

Profit before taxation

2,958

1,680

5,085

Taxation

Est. (773)

Est. (571)

(1,577)

Profit for the financial period

2,185

1,109

3,508





Other comprehensive income:




Actuarial gains/(losses) on the defined benefit pension scheme

Est. 1,009

Est. (1,249)

(5,071)

Current tax effect

-

-

-

Deferred tax effect

(172)

225

862

Total that will not be subsequently reclassified to income statement

837

(1,024)

(4,209)





Exchange differences on translation of foreign operations

577

1,247

2,621

Deferred tax effect

(98)

(224)

(446)

Total that may be subsequently reclassified to income statement

479

1,023

2,175

Other comprehensive income/(expense) for the period, net of tax

1,316

(1)

(2,034)

Total comprehensive income for the period

3,501

1,108

1,474





Profit for the period attributable to:




Equity shareholders of the company

2,112

1,079

3,453

Non-controlling interests

73

30

55


2,185

1,109

3,508





Total comprehensive income for the period attributable to:




Equity shareholders of the company

3,396

1,006

1,289

Non-controlling interests

105

102

185


3,501

1,108

1,474





Basic and diluted earnings per share

25.82p

13.09p

40.75p

Dividends per share

3.50p

3.00p

11.00p

 

* Operating profit before amortisation of acquired intangibles

Dewhurst plc

 

Consolidated balance sheet


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 September


2017

2016

2016


£000's

£000's

£000's

Non-current assets




Goodwill

4,829

3,096

3,444

Other intangibles

89

90

91

Property, plant and equipment

9,554

9,139

9,240

Deferred tax asset

2,086

2,350

2,423


16,558

14,675

15,198





Current assets




Inventories

5,108

4,346

4,863

Trade and other receivables

11,275

9,515

10,301

Cash and cash equivalents

16,010

14,038

16,674


32,393

27,899

31,838

Total assets

48,951

42,574

47,036





Current liabilities




Trade and other payables

5,824

4,196

5,365

Current tax liabilities

223

443

164

Short-term provisions

544

428

554


6,591

5,067

6,083

Non-current liabilities




Retirement benefit obligation

14,890

12,994

16,373

Total liabilities

21,481

18,061

22,456

Net assets

27,470

24,513

24,580





Equity




Share capital

842

847

847

Share premium account

157

157

157

Capital redemption reserve

295

290

290

Translation reserve

2,481

940

2,034

Retained earnings

22,717

21,729

20,663

Total attributable to equity shareholders of the company

26,492

23,963

23,991

Non-controlling interests

978

550

589

Total equity

27,470

24,513

24,580

 

 



 

Dewhurst plc

 

Consolidated statement of changes in equity

 

For the period ended 31 March 2017










Share

Share

Capital

Translation

Retained

Non

Total


capital

premium

redemption

reserve

earnings

controlling

equity



account

reserve



interest



£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)









At 1 October 2016

847

157

290

2,034

20,663

589

24,580

Profit for the period

-

-

-

-

2,112

73

2,185

Other comprehensive income and expense








Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

545

 

-

 

32

 

577

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

1,009

 

-

 

1,009

Deferred tax effect

-

-

-

(98)

(172)

-

(270)

Total comprehensive income

-

-

-

447

2,949

105

3,501

Shares repurchased

(5)

-

5

-

(217)

-

(217)

Shares Issued 2

-

-

-

-

-

311

311

Dividends paid

-

-

-

-

(678)

(27)

(705)









At 31 March 2017

842

157

295

2,481

22,717

978

27,470

 

 

For the period ended 31 March 2016










Share

Share

Capital

Translation

Retained

Non

Total


capital

premium

redemption

reserve

earnings

controlling

equity



account

reserve



interest



£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)









At 1 October 2015

847

157

290

(11)

22,521

534

24,338

Profit for the period

-

-

-

-

1,079

30

1,109

Other comprehensive income and expense








Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

1,175

 

-

 

72

 

1,247

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

(1,249)

 

-

 

(1,249)

Deferred tax effect

-

-

-

(224)

225

-

1

Total comprehensive income

-

-

-

951

55

102

1,108

Shares repaid 1

-

-

-

-

-

(86)

(86)

Dividends paid

-

-

-

-

(847)

-

(847)









At 31 March 2016

847

157

290

940

21,729

550

24,513

1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.

2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.

Dewhurst plc

 

Consolidated statement of changes in equity (cont'd)

 

For the year ended 30 September 2016










Share

Share

Capital

Translation

Retained

Non

Total


capital

premium

redemption

reserve

earnings

controlling

equity



account

reserve



interest



£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)









At 1 October 2015

847

157

290

(11)

22,521

534

24,338

Profit for the year

-

-

-

-

3,453

55

3,508

Other comprehensive income and expense








Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

2,491

 

-

 

130

 

2,621

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

(5,071)

 

-

 

(5,071)

Deferred tax effect

-

-

-

(446)

862

-

416

Total comprehensive income

-

-

-

2,045

(756)

185

1,474

Shares repaid 1

-

-

-

-

-

(86)

(86)

Dividends paid

-

-

-

-

(1,102)

(44)

(1,146)









At 30 September 2016

847

157

290

2,034

20,663

589

24,580

 

 

1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.

 

 

 

These half-year abbreviated financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 30 September 2016 set out above are abridged.  Full accounts for that year reported under IFRS, on which the auditors of the Company made an unqualified report have been delivered to the Registrar of Companies.

 

The presentation of these Interim Financial Statements is consistent with the 2016 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2016 Interim Financial Statements to take into account any presentational changes made in the 2016 Financial Statements or in these Interim Financial Statements.



 

Dewhurst plc

 

Consolidated cash flow statement


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 September


2017

2016

2016


£000's

£000's

£000's

Cash flows from operating activities




Operating profit

3,110

1,844

5,410

Depreciation and amortisation

406

418

907

Additional contributions to pension scheme

(673)

(662)

(1,346)

Exchange adjustments

178

201

383

(Profit)/loss on disposal of property, plant and equipment

(9)

(8)

(10)


3,012

1,793

5,344

(Increase)/decrease in inventories

(8)

405

(112)

(Increase)/decrease in trade and other receivables

(974)

(1,459)

(2,245)

Increase/(decrease) in trade and other payables

337

(306)

863

Increase/(decrease) in provisions

(10)

110

236

Cash generated from operations

2,357

543

4,086

Tax paid

(725)

(435)

(1,302)

Net cash from operating activities

1,632

108

2,784





Cash flows from investing activities




Acquisition of business and assets

(1,356)

-

-

Subsidiary share repurchase - non-controlling interest element 1

-

(86)

(86)

Proceeds from sale of property, plant and equipment

25

10

18

Purchase of property, plant and equipment

(601)

(622)

(901)

Development costs capitalised

-

-

(62)

Interest received

52

62

126

Net cash generated from/(used in) investing activities

(1,880)

(636)

(905)





Cash flows from financing activities




Issue of share capital - non-controlling interest element 2

311

-

-

Purchase of own shares

(217)

-

-

Dividends paid

(705)

(847)

(1,145)

Net cash used in financing activities

(611)

(847)

(1,145)





Net increase/(decrease) in cash and cash equivalents

(859)

(1,375)

734

Cash and cash equivalents at beginning of period

16,674

14,958

14,958

Exchange adjustments on cash and cash equivalents

195

455

982

Cash and cash equivalents at end of period

16,010

14,038

16,674





1 This relates to Dual Engraving Pty Ltd repurchasing shares from Michael Cook (held by D.E. Corporate Pty Ltd) in proportion to his 30% non-controlling interest.

2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.

 

For further details please contact:

 

Dewhurst Plc                                                                                                              Tel: +44 (0) 208 744 8200

Richard Dewhurst, Chairman

Jared Sinclair, Finance Director

www.dewhurst.plc.uk

 

Cantor Fitzgerald Europe                                                                                           Tel: +44 (0) 207 894 7000

David Foreman / Will Goode (Corporate Finance)

Alex Pollen (Equity Sales)

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS