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Dewhurst PLC   -  DWHT   

Interim Results

Released 07:00 11-Jun-2019

RNS Number : 7324B
Dewhurst PLC
11 June 2019
 

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. 

 

Dewhurst plc (the "Group")

 

Interim Results for the 6 months ended 31 March 2019

 

Directors' Interim Report

 

FIRST HALF

We are pleased to report significant growth in sales and adjusted operating profits in the first half of the year. The increase included the effect of a full six months' trading of A&A Electrical Distributors Ltd (A&A), but even allowing for this most recent acquisition, the underlying performance of the Group, particularly in Australia, was also up. Overall, Group revenue increased by 31% to £32.3 million (2018: £24.7 million) and adjusted operating profit (before acquired intangible amortisation) increased 36% to £4.0 million (2018: £2.9 million). Profit before tax increased 8% to £3.1 million (2018: £2.8 million) with earnings per share also improving to 25.0p (2018: 23.2p).

 

Whilst the Group's performance was encouraging in almost all areas, continued pressure on UK local authority spending, has dampened transport sales.  Elsewhere, UK lift sales have so far remained resilient despite the uncertainty caused by Brexit and overseas lift sales have performed well. Keypad sales have remained stable at a similar level of sales to the second half of last year, which was a significant improvement on last year's first half. Unusually, first half currency movements have not had a material impact on the Group's revenue or profits.

 

The Group balance sheet remains strong with cash at the period end of £6.2 million (2018: £18.0 million). Since 31 March 2018 the Group has paid out £10.5 million on the acquisition of A&A, £2.7 million on a property for LMA and £1.2 million on land for Dupar. These key investments have utilised a significant amount of the Group's free cash but have not affected its day to day working capital requirements. The Group has been able to operate successfully without a bank overdraft facility.

 

OUTLOOK

Demand in most of our markets, excluding the transportation sector as noted above, is currently steady or improving. In the UK we are still faced with uncertainty regarding Brexit. We cannot tell how this might affect demand later in the second half, but we are retaining our higher inventory levels for the time being until the way forward is clearer.  In Australia, the previous government has just been re-elected. As a result, it is expected that the economic climate should remain positive and the recent hesitancy in committing to some projects may be resolved.  North America remains busy and the trade tensions have, so far not had an impact in our market sector. The uncertainty in the UK clouds our overall view for the future, but elsewhere we are encouraged by the prospects for the Group.

 

DIVIDENDS

The Directors have declared an interim dividend of 3.75p per ordinary share (2018: 3.50p) which amounts to £315,000 (2018: £295,000). The interim dividend is payable on 20 August 2019 and will be posted on 15 August 2019 to shareholders appearing in the Register on 5 July 2019 (ex-dividend date being 4 July 2019).

 

A final 2018 dividend of 9.00p (2017: 8.50p) which amounted to £758,000 (2017: £716,000) was approved at the AGM held on 5 February 2019 and was paid on 13 February 2019 to members on the register at 17 January 2019.

 

By Order of the Board

 

J C SINCLAIR

Finance Director & Secretary

10 June 2019

 

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 2019, as compared with the corresponding half-year ended 31 March 2018 and the year ended 30 September 2018, shows the following results:

 

Consolidated statement of comprehensive income

 

Half year

Half year

Year

 

ended

ended

ended

 

31 March

31 March

30 September

 

2019

2018

2018

Continuing operations

£000's

£000's

£000's

 

 

 

 

Revenue

32,329

24,669

54,510

Operating costs

(29,158)

(21,724)

(48,322)

Adjusted operating profit

4,005

2,945

6,743

Amortisation of acquired intangibles

(834)

-

(555)

Operating profit

3,171

2,945

6,188

Finance income

13

52

86

Finance costs

(109)

(152)

(291)

Profit before taxation

3,075

2,845

5,983

Taxation

Est. (971)

Est. (894)

(1,723)

Profit for the financial period

2,104

1,951

4,260

 

 

 

 

Other comprehensive income:

 

 

 

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

Est. (2,831)

Est. (485)

3,080

Current tax effect

 Est. 106

-

140

Deferred tax effect

481

82

(524)

Total that will not be subsequently reclassified to income statement

(2,244)

(403)

2,696

 

 

 

 

Exchange differences on translation of foreign operations

(446)

(1,393)

(727)

Total that may be subsequently reclassified to income statement

(446)

(1,393)

(727)

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

(2,690)

(1,796)

1,969

Total comprehensive income for the period

(586)

155

6,229

 

 

 

 

Profit for the period attributable to:

 

 

 

Equity shareholders of the company

1,931

1,822

4,039

Non-controlling interests

173

129

221

 

2,104

1,951

4,260

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

Equity shareholders of the company

(732)

99

6,070

Non-controlling interests

146

56

159

 

(586)

155

6,229

 

 

 

 

Basic and diluted earnings per share

24.99p

23.16p

47.93p

Dividends per share

3.75p

3.50p

12.50p

 

 

 

 

Dewhurst plc

 

Consolidated statement of financial position

 

Half year

Half year

Year

 

ended

ended

ended

 

31 March

31 March

30 September

 

2019

2018

2018

 

£000's

£000's

£000's

Non-current assets

 

 

 

Goodwill

8,505

4,252

8,598

Other intangibles

3,675

94

4,510

Property, plant and equipment

13,162

9,181

9,271

Deferred tax asset

2,101

2,273

1,639

 

27,443

15,800

24,018

 

 

 

 

Current assets

 

 

 

Inventories

6,640

4,947

6,279

Trade and other receivables

13,656

9,873

13,920

Cash and cash equivalents

6,249

18,006

9,440

 

26,545

32,826

29,639

Total assets

53,988

48,626

53,657

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

7,890

5,139

8,185

Current tax liabilities

304

239

532

Short-term provisions

310

252

304

 

8,504

5,630

9,021

Non-current liabilities

 

 

 

Retirement benefit obligation

9,902

11,716

7,628

Total liabilities

18,406

17,346

16,649

Net assets

35,582

31,280

37,008

 

 

 

 

Equity

 

 

 

Share capital

840

842

842

Share premium account

157

157

157

Capital redemption reserve

297

295

295

Translation reserve

1,545

1,309

1,964

Retained earnings

31,540

27,672

32,693

Total attributable to equity shareholders of the company

34,379

30,275

35,951

Non-controlling interests

1,203

1,005

1,057

Total equity

35,582

31,280

37,008

 

 

 

 

Dewhurst plc

 

Consolidated statement of changes in equity

 

For the period ended 31 March 2019

 

 

 

 

 

 

 

 

 

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 30 September 2018

842

157

295

1,964

32,693

1,057

37,008

Profit for the period

-

-

-

-

1,931

173

2,104

Other comprehensive income and expense

 

 

 

 

 

 

 

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(419)

 

-

 

(27)

 

(446)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

(2,831)

 

-

 

(2,831)

Tax on items taken directly to equity (Est.)

 

-

 

-

 

-

 

-

 

106

 

-

 

106

Deferred tax effect

-

-

-

-

481

-

481

Total comprehensive income

-

-

-

(419)

(313)

146

(586)

Shares repurchased

(2)

-

2

-

(82)

-

(82)

Dividends paid

-

-

-

-

(758)

-

(758)

 

 

 

 

 

 

 

 

At 31 March 2019

840

157

297

1,545

31,540

1,203

35,582

                           

 

 

 

For the period ended 31 March 2018

 

 

 

 

 

 

 

 

 

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 30 September 2017

842

157

295

2,629

26,969

1,001

31,893

Profit for the period

-

-

-

-

1,822

129

1,951

Other comprehensive income and expense

 

 

 

 

 

 

 

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(1,320)

 

-

 

(73)

 

(1,393)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

(485)

 

-

 

(485)

Deferred tax effect

-

-

-

-

82

-

82

Total comprehensive income

-

-

-

(1,320)

1,419

56

155

Dividends paid

-

-

-

-

(716)

(52)

(768)

 

 

 

 

 

 

 

 

At 31 March 2018

842

157

295

1,309

27,672

1,005

31,280

                           
 

 

Dewhurst plc

 

Consolidated statement of changes in equity (cont'd)

 

For the year ended 30 September 2018

 

 

 

 

 

 

 

 

 

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 30 September 2017

842

157

295

2,629

26,969

1,001

31,893

Profit for the year

-

-

-

-

4,039

221

4,260

Other comprehensive income and expense

 

 

 

 

 

 

 

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(665)

 

-

 

(62)

 

(727)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

3,080

 

-

 

3,080

Tax on items taken directly to equity

 

-

 

-

 

-

 

-

 

140

 

-

 

140

Deferred tax effect

-

-

-

-

(524)

-

(524)

Total comprehensive income

-

-

-

(665)

6,735

159

6,229

Dividends paid

-

-

-

-

(1,011)

(103)

(1,114)

 

 

 

 

 

 

 

 

At 30 September 2018

842

157

295

1,964

32,693

1,057

37,008

                           

 

 

 

 

 

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 2018 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 2018 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2018 Interim Financial Statements to take into account any presentational changes made in the 2018 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

 

2019

2018

2018

 

£000's

£000's

£000's

Cash flows from operating activities

 

 

 

Operating profit

3,171

2,945

6,188

Depreciation and amortisation

1,343

431

1,572

Additional contributions to pension scheme

(666)

(673)

(1,331)

Exchange adjustments

(162)

(706)

(155)

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

(14)

(9)

36

 

3,672

1,988

6,310

(Increase)/decrease in inventories

(361)

619

(487)

(Increase)/decrease in trade and other receivables

264

138

(3,909)

Increase/(decrease) in trade and other payables

(295)

(428)

2,618

Increase/(decrease) in provisions

6

(74)

(22)

Cash generated from operations

3,286

2,243

4,510

Interest paid

-

-

(3)

Tax paid

(1,003)

(681)

(1,270)

Net cash from operating activities

2,283

1,562

3,237

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of business and assets

-

-

(9,525)

Proceeds from sale of property, plant and equipment

14

12

43

Purchase of property, plant and equipment

(4,571)

(554)

(1,161)

Development costs capitalised

-

-

(29)

Interest received

13

52

86

Net cash generated from/(used in) investing activities

(4,544)

(490)

(10,586)

 

 

 

 

Cash flows from financing activities

 

 

 

Purchase of own shares

(82)

-

-

Dividends paid

(758)

(768)

(1,114)

Net cash used in financing activities

(840)

(768)

(1,114)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

(3,101)

304

(8,463)

Cash and cash equivalents at beginning of period

9,440

18,087

18,087

Exchange adjustments on cash and cash equivalents

(90)

(385)

(184)

Cash and cash equivalents at end of period

6,249

18,006

9,440

 

 

 

 

 

 

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)

Caspar Shand Kydd (Sales)

 

 


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Interim Results - RNS