TIDMDWHT
RNS Number : 1824R
Dewhurst PLC
13 June 2018
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 2018
Directors' Interim Report
FIRST HALF
Although sales and profit fell in the first half of the year, on
a constant currency basis and adjusting for a divested business,
underlying sales were actually slightly up. Overall, Group revenue
decreased by 5% to GBP24.7 million (2017: GBP26.1 million) and
profit before tax decreased 4% to GBP2.8 million (2017: GBP3.0
million). Operating profit of GBP2.5 million (2017: GBP3.1 million)
is down 19% on last year with earnings per share declining to 23.2p
(2017: 25.8p).
As mentioned in the 2017 Full Year Statement, demand for keypads
was weaker and this continued through the first half of 2018 and
was the most significant contributor to the lower sales. Another
significant negative impact on the results was the strengthening of
Sterling. The currency movements had a 5% negative impact on both
sales and profits to the value of GBP1.0 million and GBP0.2 million
respectively. In addition we sold the door and cab division of ERM
which reduced sales by GBP1.1m in the period. Elsewhere, Canada
continued its strong growth, the UK businesses varied but overall
were up, and Australia also varied, but with a full half year
contribution from P&R was also up in total.
The Group balance sheet remains strong with cash at the period
end of GBP18.0 million (2017: GBP16.0 million).
In the second half, after the date of the balance sheet reported
here and as announced on 4 June 2018, Dewhurst acquired A. & A.
Electrical Distributors Limited (A&A). The terms of the
acquisition are set out in the announcement, but it will utilise a
significant amount of the Group's free cash. However the
acquisition is expected to be earnings enhancing in the second
half.
OUTLOOK
In most of our markets the business climate seems to be
reasonably positive at present. The exception remains the UK where
there is still some uncertainty about the short term and the
economic situation is highly dependent on political decisions.
Although keypad sales have picked up a little in the last couple of
months we do expect a declining trend on these products over the
long term. However we expect to see a positive impact from the
contribution of A&A. Current exchange rate levels will continue
to be a drag on the Group, more so if Sterling were to further
strengthen. The second half may see a period of consolidation, but
on balance we are encouraged by the future growth prospects for the
Group.
DIVIDS
The Directors have declared an interim dividend of 3.50p per
ordinary share (2017: 3.50p) which amounts to GBP295,000 (2017:
GBP295,000). The interim dividend is payable on 21 August 2018 and
will be posted on 16 August 2018 to shareholders appearing in the
Register on 6 July 2018 (ex-dividend date being 5 July 2018).
A final 2017 dividend of 8.50p (2016: 8.00p) which amounted to
GBP716,000 (2016: GBP678,000) was approved at the AGM held on 8
February 2018 and was paid on 14 February 2018 to members on the
register at 19 January 2018.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
12 June 2018
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 2018, as compared with the corresponding half-year
ended 31 March 2017 and the year ended 30 September 2017, shows the
following results:
Consolidated statement of comprehensive income
Half year Half year Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
Continuing operations GBP000's GBP000's GBP000's
-------------------------------------------------- ----------- ----------- -------------
Revenue 24,669 26,070 52,890
Operating costs (22,163) (22,960) (46,646)
-------------------------------------------------- ----------- ----------- -------------
Operating profit 2,506 3,110 6,244
Profit on business divestment (1) 439 - -
Finance income 52 52 117
Finance costs (152) (204) (395)
-------------------------------------------------- ----------- ----------- -------------
Profit before taxation 2,845 2,958 5,966
Taxation Est. (894) Est. (773) (1,345)
-------------------------------------------------- ----------- ----------- -------------
Profit for the financial period 1,951 2,185 4,621
-------------------------------------------------- ----------- ----------- -------------
Other comprehensive income:
Actuarial gains/(losses) on the defined
benefit pension scheme Est. (485) Est. 1,009 3,672
Current tax effect - - -
Deferred tax effect 82 (172) (624)
-------------------------------------------------- ----------- ----------- -------------
Total that will not be subsequently reclassified
to income statement (403) 837 3,048
Exchange differences on translation of
foreign operations (1,393) 577 (104)
Deferred tax effect 237 (98) 18
-------------------------------------------------- ----------- ----------- -------------
Total that may be subsequently reclassified
to income statement (1,156) 479 (86)
-------------------------------------------------- ----------- ----------- -------------
Other comprehensive income/(expense) for
the period, net of tax (1,559) 1,316 2,962
-------------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the period 392 3,501 7,583
-------------------------------------------------- ----------- ----------- -------------
Profit for the period attributable to:
Equity shareholders of the company 1,822 2,112 4,445
Non-controlling interests 129 73 176
-------------------------------------------------- ----------- ----------- -------------
1,951 2,185 4,621
-------------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the period
attributable to:
Equity shareholders of the company 336 3,396 7,428
Non-controlling interests 56 105 155
392 3,501 7,583
-------------------------------------------------- ----------- ----------- -------------
Basic and diluted earnings per share 23.16p 25.82p 52.65p
-------------------------------------------------- ----------- ----------- -------------
Dividends per share 3.50p 3.50p 12.00p
-------------------------------------------------- ----------- ----------- -------------
(1) This relates to ERM selling its Winter & Bain division
to Elevator Equipment Corporation
Dewhurst plc
Consolidated balance sheet
Half year Half year Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
GBP000's GBP000's GBP000's
------------------------------------------- ---------- ---------- -------------
Non-current assets
Goodwill 4,252 4,829 4,575
Other intangibles 94 89 98
Property, plant and equipment 9,181 9,554 9,267
Deferred tax asset 1,850 2,086 1,641
------------------------------------------- ---------- ---------- -------------
15,377 16,558 15,581
Current assets
Inventories 4,947 5,108 5,566
Trade and other receivables 9,873 11,275 10,011
Cash and cash equivalents 18,006 16,010 18,087
------------------------------------------- ---------- ---------- -------------
32,826 32,393 33,664
------------------------------------------- ---------- ---------- -------------
Total assets 48,203 48,951 49,245
------------------------------------------- ---------- ---------- -------------
Current liabilities
Trade and other payables 5,139 5,824 5,567
Current tax liabilities 239 223 368
Short-term provisions 252 544 326
------------------------------------------- ---------- ---------- -------------
5,630 6,591 6,261
Non-current liabilities
Retirement benefit obligation 11,716 14,890 11,751
------------------------------------------- ---------- ---------- -------------
Total liabilities 17,346 21,481 18,012
------------------------------------------- ---------- ---------- -------------
Net assets 30,857 27,470 31,233
------------------------------------------- ---------- ---------- -------------
Equity
Share capital 842 842 842
Share premium account 157 157 157
Capital redemption reserve 295 295 295
Translation reserve 886 2,481 1,969
Retained earnings 27,672 22,717 26,969
------------------------------------------- ---------- ---------- -------------
Total attributable to equity shareholders
of the company 29,852 26,492 30,232
------------------------------------------- ---------- ---------- -------------
Non-controlling interests 1,005 978 1,001
------------------------------------------- ---------- ---------- -------------
Total equity 30,857 27,470 31,233
------------------------------------------- ---------- ---------- -------------
Dewhurst plc
Consolidated statement of changes in equity
For the period ended 31 March 2018
Share Share Capital Translation Retained Non Total
capital premium redemption reserve earnings controlling equity
account reserve interest
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000)
-------------------- --------- --------- ----------- ------------ --------- ------------ ----------
At 1 October 2017 842 157 295 1,969 26,969 1,001 31,233
-------------------- --------- --------- ----------- ------------ --------- ------------ ----------
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 - - - 237 82 - 319
Total comprehensive
income - - - (1,083) 1,419 56 392
Dividends paid - - - - (716) (52) (768)
At 31 March 2018 842 157 295 886 27,672 1,005 30,857
-------------------- --------- --------- ----------- ------------ --------- ------------ ----------
For the period ended 31 March 2017
Share Share Capital Translation Retained Non Total
capital premium redemption reserve earnings controlling equity
account reserve interest
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(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
--------------------- --------- --------- ----------- ------------ --------- ------------ ---------
(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 2017
Share Share Capital Translation Retained Non Total
capital premium redemption reserve earnings controlling equity
account reserve interest
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000)
--------------------- --------- --------- ----------- ------------ --------- ------------ ---------
At 1 October 2016 847 157 290 2,034 20,663 589 24,580
--------------------- --------- --------- ----------- ------------ --------- ------------ ---------
Profit for the year - - - - 4,445 176 4,621
Other comprehensive
income
and expense
Exchange differences
on
translation of
foreign
operations - - - (83) - (21) (104)
Actuarial
gains/(losses)
on defined benefit
pension
scheme - - - - 3,672 - 3,672
Deferred tax effect - - - 18 (624) - (606)
--------------------- --------- --------- ----------- ------------ --------- ------------ ---------
Total comprehensive
income - - - (65) 7,493 155 7,583
Shares repurchased (5) - 5 - (217) - (217)
Shares issued (2) - - - - - 311 311
Dividends paid - - - - (970) (54) (1,024)
At 30 September 2017 842 157 295 1,969 26,969 1,001 31,233
--------------------- --------- --------- ----------- ------------ --------- ------------ ---------
(2) This relates to P&R Liftcars Pty Ltd selling shares to
Roy Peat in proportion to his 25% 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 2017 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 2017 Financial Statements and its accounting
policies, but where necessary comparative information has been
reclassified or expanded from the 2017 Interim Financial Statements
to take into account any presentational changes made in the 2017
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
2018 2017 2017
GBP000's GBP000's GBP000's
--------------------------------------------- ---------- ---------- -------------
Cash flows from operating activities
Operating profit 2,506 3,110 6,244
Depreciation and amortisation 431 406 975
Additional contributions to pension scheme (673) (673) (1,343)
Exchange adjustments (706) 178 (49)
(Profit)/loss on disposal of property,
plant and equipment (9) (9) 21
--------------------------------------------- ---------- ---------- -------------
1,549 3,012 5,848
(Increase)/decrease in inventories 619 (8) (703)
(Increase)/decrease in trade and other
receivables 138 (974) 290
Increase/(decrease) in trade and other
payables (428) 337 202
Increase/(decrease) in provisions (74) (10) (228)
--------------------------------------------- ---------- ---------- -------------
Cash generated from operations 1,804 2,357 5,409
Interest paid - - (2)
Tax paid (681) (725) (968)
--------------------------------------------- ---------- ---------- -------------
Net cash from operating activities 1,123 1,632 4,439
--------------------------------------------- ---------- ---------- -------------
Cash flows from investing activities
Acquisition of business and assets - (1,356) (933)
Proceeds from business divestment (1) 439 - -
Proceeds from sale of property, plant
and equipment 12 25 52
Purchase of property, plant and equipment (554) (601) (978)
Development costs capitalised - - (82)
Interest received 52 52 117
--------------------------------------------- ---------- ---------- -------------
Net cash generated from/(used in) investing
activities (51) (1,880) (1,824)
--------------------------------------------- ---------- ---------- -------------
Cash flows from financing activities
Issue of share capital - non-controlling - 311 -
interest element (2)
Purchase of own shares - (217) (217)
Dividends paid (768) (705) (1,024)
Net cash used in financing activities (768) (611) (1,241)
--------------------------------------------- ---------- ---------- -------------
Net increase/(decrease) in cash and cash
equivalents 304 (859) 1,374
--------------------------------------------- ---------- ---------- -------------
Cash and cash equivalents at beginning
of period 18,087 16,674 16,674
Exchange adjustments on cash and cash
equivalents (385) 195 39
--------------------------------------------- ---------- ---------- -------------
Cash and cash equivalents at end of period 18,006 16,010 18,087
--------------------------------------------- ---------- ---------- -------------
(1) This relates to ERM selling its Winter & Bain division
to Elevator Equipment Corporation
(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 (Sales)
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END
IR GGURCQUPRGQP
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