TIDMDWHT
RNS Number : 0367I
Dewhurst PLC
08 June 2011
Dewhurst plc
Interim Results for the 6 months ended 31 March 2011
Directors' Interim Report
FIRST HALF
Group turnover was up 9% at GBP19.4 million compared to GBP17.8
million last year but profit before tax fell 8% to GBP2.0 million
(2010: GBP2.2 million). Earnings per share also decreased 8% to
16.4p (2010: 17.9p).
Sales performance benefited from the first time contributions of
our recent acquisitions of ERM and Winter & Bain in the US and
JAS Engineering in Australia, referred to below. Excluding these
new businesses, sales performance was essentially flat. UK sales
fell in a difficult market in all three product divisions. Overseas
sales were steady in local currency, but gained a little from
foreign exchange movements.
The weak market has dented profitability in the UK and
disappointingly the US acquisitions are not yet contributing to
Group profits. We are facing ever increasing cost pressures which
we have not been able to pass on to our customers. Although
reported sales have benefited from currency translation, exchange
rates have had an adverse impact this year on profits particularly
in Hungary, where the currency has been quite volatile.
ACQUISITIONS
On 1 December 2010, JAS Engineering (Australia) Pty Limited, a
newly formed and wholly owned Australian subsidiary of Dewhurst
plc, acquired the business and assets of J.A.S. Engineering (NSW)
Pty Limited for a maximum cash consideration of A$1.5 million
(GBP0.9 million).
On 20 December 2010, Dewhurst plc acquired further shares in
Elevator Research & Manufacturing Corp. ("ERM") and Winter
& Bain Manufacturing, Inc. ("W&B"), both US corporations
under common control which specialise in the lift market. The Group
acquired an additional stake in ERM (50%) and W&B (41.67%) for
a total cash consideration of US$1.8 million (GBP1.2 million). The
Group now has a 75% stake in ERM and an 83.34% stake in
W&B.
OUTLOOK
Public sector spending in the UK has been significantly reduced
and the Board anticipate that this is likely to persist over the
next few years. There is currently no sign of growth in private
sector demand taking up the slack from the public sector. These
factors are negatively affecting our UK Lift and Transport
Divisions. Overseas the market is not buoyant, but it is generally
stable, apart from the US, which is appropriately described by
economic commentators as "soft". We still expect our US business to
contribute positively to the Group as market conditions return to
more normal levels.
Work on our new UK factory and headquarters continues according
to plan. We currently expect to be moving in to the new premises in
the first half of the next financial year. This investment has
absorbed a significant portion of the Group's cash in the short
term, leaving us with cash of GBP3.1 million (2010: GBP8.8 million)
at the half year end. It is still currently the directors'
intention to place the existing premises up for sale following our
move and we anticipate this will significantly improve the cash
position of the Group.
DIVIDENDS
The Directors have declared an interim dividend of 2.23p which
amounts to GBP190,000, compared with 2.12p last year (GBP180,000).
The interim dividend is payable on 30 August 2011 and will be
posted on 25 August 2011 to shareholders appearing in the Register
at 3:00 p.m. on 15 July 2011 (ex-dividend date being 13 July
2011).
A final 2010 dividend of 4.24p which amounted to GBP361,000,
compared with 4.04p previous year (GBP344,000) was approved at the
AGM held on 27 January 2011 and was paid on 15 February 2011 to
members on the register at 14 January 2011.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
7 June 2011
The unaudited consolidated income statement, statement of
recognised income and expense, balance sheet and cash flow
statement of Dewhurst plc and its subsidiaries for the half-year
ended 31 March 2011, as compared with the corresponding half-year
ended 31 March 2010 and the year ended 30 September 2010, shows the
following results:
Consolidated income statement
Half year Half year Year
ended ended ended
31 March 31 March 30 September
2011 2010 2010
Continuing operations GBP(000)'s GBP(000)'s GBP(000)'s
Revenue 19,409 17,843 36,975
Operating costs (17,359) (15,637) (32,104)
Operating profit 2,050 2,206 4,871
Share of (loss)/profit from
associates (21) - 6
Finance income 37 46 103
Finance costs (63) (70) (153)
----------------------------- ----------- ----------- -------------
Profit before taxation 2,003 2,182 4,827
Tax on profits Est. (605) Est. (655) (1,339)
----------------------------- ----------- ----------- -------------
Profit for the period 1,398 1,527 3,488
----------------------------- ----------- ----------- -------------
Attributable to:
Equity shareholders of the
Company 1,411 1,527 3,488
Non-controlling interests (13) - -
----------------------------- ----------- ----------- -------------
1,398 1,527 3,488
----------------------------- ----------- ----------- -------------
Basic and diluted earnings 16.43p 17.94p 40.97p
per share
Dividends per share 2.23p 2.12p 6.36p
Consolidated statement of recognised income and expense
Half year Half year Year
ended ended ended
31 March 31 March 30 September
Net income/(expense) recognised 2011 2010 2010
directly in equity: GBP(000)'s GBP(000)'s GBP(000)'s
------------------------------------- ----------- ----------- -------------
Actuarial gains/(losses) on
the defined
benefit pension scheme Est. 583 Est. (645) (2,497)
Exchange differences on translation
of foreign operations 558 636 613
Tax on items taken directly
to equity (319) 2 528
------------------------------------- ----------- ----------- -------------
Net income / (expense) recognised
directly in equity in the
period 822 (7) (1,356)
Profit for the financial period 1,398 1,527 3,488
------------------------------------- ----------- ----------- -------------
Total recognised income and
expense
for the period 2,220 1,520 2,132
------------------------------------- ----------- ----------- -------------
Attributable to:
Equity shareholders of the
Company 2,242 1,520 2,132
Non-controlling interests (22) - -
------------------------------------- ----------- ----------- -------------
2,220 1,520 2,132
------------------------------------- ----------- ----------- -------------
Consolidated balance sheet
Half year Half year Year
ended ended ended
31 March 31 March 30 September
2011 2010 2010
GBP(000)'s GBP(000)'s GBP(000)'s
Non-current assets
Goodwill 7,814 6,109 6,122
Other intangibles 184 264 184
Property, plant and equipment 8,812 4,852 4,609
Deferred tax asset 1,097 1,104 1,563
Investment in associates - - 639
17,907 12,329 13,117
Current assets
Inventories 4,046 3,720 4,009
Trade and other receivables 8,704 7,239 6,908
Current tax assets - - 111
Cash and cash equivalents 3,098 8,766 9,593
------------------------------- ----------- ----------- -------------
15,848 19,725 20,621
------------------------------- ----------- ----------- -------------
Total assets 33,755 32,054 33,738
------------------------------- ----------- ----------- -------------
Current liabilities
Trade and other payables 3,420 4,380 4,234
Current tax liabilities 41 246 -
Short term provisions 421 275 349
------------------------------- ----------- ----------- -------------
3,882 4,901 4,583
------------------------------- ----------- ----------- -------------
Non-current liabilities
Retirement benefit obligation 6,927 6,497 8,068
Total liabilities 10,809 11,398 12,651
Net assets 22,946 20,656 21,087
------------------------------- ----------- ----------- -------------
Equity
Share capital 851 851 851
Share premium account 157 157 157
Capital redemption reserve 286 286 286
Translation reserve 2,468 2,252 2,089
Retained earnings 18,994 17,110 17,704
------------------------------- ----------- ----------- -------------
Total attributable to equity
shareholders of the Company 22,756 20,656 21,087
------------------------------- ----------- ----------- -------------
Non-controlling interests 190 - -
------------------------------- ----------- ----------- -------------
Total equity 22,946 20,656 21,087
------------------------------- ----------- ----------- -------------
These half-year condensed 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 2010 year 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 2010 Financial Statements and its accounting
policies, but where necessary comparative information has been
reclassified or expanded from the 2010 Interim Financial Statements
to take into account any presentational changes made in the 2010
Financial Statements or in these Interim Financial Statements.
Consolidated cash flow statement
Half year Half year Year
ended ended ended
31 March 31 March 30 September
2011 2010 2010
GBP(000)'s GBP(000)'s GBP(000)'s
Cash flows from operating
activities
Operating profit 2,029 2,206 4,871
Depreciation and amortisation 303 285 680
Additional income to pension
scheme (579) (290) (654)
Exchange adjustments 187 20 23
(Profit)/loss on disposal
of
property, plant and equipment - - (2)
------------------------------------- ----------- ----------- -------------
1,940 2,221 4,918
(Increase)/decrease in inventories 424 263 (26)
(Increase)/decrease in trade
and other receivables (1,005) (162) 169
Increase/(decrease) in trade
and other payables (1,190) (280) (306)
Increase/(decrease) in provisions 72 (83) (9)
Cash generated from operations 241 1,959 4,746
Interest paid - - -
Income tax paid (470) (359) (1,262)
------------------------------------- ----------- ----------- -------------
Net cash from operating activities (229) 1,600 3,484
Cash flows from investing
activities
Acquisition of associate undertaking - - (667)
Proceeds from sale of associate
undertaking 667 - -
Acquisition of subsidiary
undertakings (1,955) - -
Acquisition of business and
assets (919) - -
Proceeds from sale of property,
plant and equipment 8 1 75
Purchase of property, plant
and equipment (3,870) (270) (484)
Development costs capitalised - - (38)
Interest received 37 46 103
------------------------------------- ----------- ----------- -------------
Net cash used in investing
activities (6,032) (223) (1,011)
Cash flows from financing
activities
Dividends paid (361) (344) (524)
Net cash used in financing
activities (361) (344) (524)
Net increase/(decrease) in
cash and cash equivalents (6,622) 1,033 1,949
Cash and cash equivalents
at beginning of period 9,593 7,476 7,476
------------------------------------- ----------- ----------- -------------
Exchange adjustments on cash
and cash equivalents 127 257 168
------------------------------------- ----------- ----------- -------------
Cash and cash equivalents
at end of period 3,098 8,766 9,593
------------------------------------- ----------- ----------- -------------
For further information, please contact:
Dewhurst Plc Tel: +44 (0) 208 607 7351
-------------------------------- --------------------------
Jared Sinclair
-------------------------------- --------------------------
Seymour Pierce Limited Tel: +44 (0) 207 107 8000
-------------------------------- --------------------------
Freddy Crossley / David Foreman
(Corporate Finance)
-------------------------------- --------------------------
Paul Jewell (Corporate Broking)
-------------------------------- --------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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