TIDMDWHT
RNS Number : 5955J
Dewhurst PLC
06 December 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
("Dewhurst" or the "Group")
Preliminary Results for the year ended 30 September 2018
Chairman's Statement
Results
It gives me great pleasure to be reporting record results for
the Group again this year. Group sales for the year to 30 September
2018 increased 3.1% to GBP54.5 million (2017: GBP52.9 million),
despite adverse currency movements during the period as the pound
strengthened against our main operating currencies. Adjusted
operating profit (i.e. before amortisation of acquired intangibles)
was GBP6.7 million (2017: GBP6.2 million) and profit before tax was
GBP6.0 million (2017: GBP6.0 million).
The lift business in the UK was up significantly, with 9% of
organic growth and 35% coming from 4 months' contribution from
A&A; in local currencies, North America was down slightly as
the growth in Canada was more than offset by the disposal of the
Winter and Bain business in California; there was good growth in
Australia assisted by a full year contribution from P&R for the
first time. Transportation business fell slightly during the year
and Keypads dropped back significantly after their strong year in
2017. Overall, currency movements have resulted in a loss on
translation on reported sales of GBP1.5 million and on profit
before tax of GBP0.2 million compared to the rates prevailing last
year.
Every year brings a new set of challenges as our markets,
competitors and customer expectations change over time. The
management and staff in our operating businesses around the world
have the responsibility of achieving their own results within an
agreed set of values, strategies and budgetary boundaries. These
results are a testament to those staff and we thank them for their
contribution to this year's success.
With the continuing strength of the Group's performance we are
proposing a 0.5 pence increase in the final dividend to 9.0 pence
representing a 0.5 pence increase in the total dividend for the
year as a whole to 12.5 pence (2017: 12.0 pence).
Operations and People
The Group made its most significant acquisition to date in June
this year when it purchased A&A Electrical Distributors Ltd
("A&A"). A&A provide a wide range of components and cable
to the UK lift industry and also have a general electrical
wholesaling division. The acquisition consumed a considerable
amount of management resource during the year, both in the due
diligence period leading up to acquisition and in the integration
work that has followed acquisition. I would like particularly to
thank our Finance Director, Jared Sinclair, for his unstinting work
on this project, in addition to the new management team at A&A.
Much of that work has now been completed but there will be a
further stage in early 2019 when we fully align their systems. The
business is performing in line with our expectations under the
leadership of John Bailey, who has returned to an executive role
with the Group and we welcome him back. I am also delighted to
welcome Jeremy Dewhurst to the Group in the role of Finance
Director at A&A.
I am pleased to report that the restructured ERM business in
California was profitable during the year and is showing much
greater stability. There is still plenty to do to achieve the
company's potential but congratulations are due to Lorilee Allen,
who has been promoted to General Manager, and to her team for the
progress achieved.
We also opened a new Australian Lift Components sales office in
Melbourne in April this year to improve our customer service in
that market. The Melbourne market is currently very busy and this
office has proved to be popular with our customers, leading to us
winning a number of significant projects.
Company
We have just commenced our hundredth year of operation, which is
quite a milestone for the Group. Relevant branding is now displayed
on our website. The business was incorporated on November 5(th)
1919 and we look forward to celebrating our centenary next
autumn.
Outlook
It is currently impossible to predict the ultimate relationship
between the UK and the EU, so we cannot forecast what the impact on
our business is likely to be. Because of this uncertainty, those
businesses that import into the UK are increasing their inventory
levels and our overseas companies that import from the UK are doing
the same. However this can only cover any disruption for a limited
period and we will have to do our best to react to events as they
unfold. The only clear impact at this point is that we would expect
to have higher inventory at the end of the Half Year with an
equivalent impact on cash flow.
Although future demand in the UK is uncertain, we will have a
full year's contribution from A&A next year. Elsewhere lift
product demand continues to be strong in North America and much of
Australia, which is encouraging as these are key markets for us. On
keypads, demand has bounced back from the low points of last year
and trading currently seems a little steadier.
Richard Dewhurst
Chairman
Strategic Report
Business Review
The Group's principal activity in the year continued to be the
manufacture and distribution of electrical components and control
equipment for industrial and commercial capital goods. The Group
maintained its position as a speciality supplier of equipment to
lift, transport and keypad sectors. A business review of the
Group's operations is dealt with below in operating highlights and
in the Chairman's Statement.
Key performance indicators
The directors believe that the key financial performance
indicators relevant to the Group are earnings per share, adjusted
operating profit, reported profit before tax and return on equity.
The key non-financial performance indicators relevant to the Group
are quality measures and on-time deliveries to our customers.
Operating Highlights
In general our overseas companies performed well. Inevitably
there was the odd exception, notably Dewhurst Hungary, who had a
particularly difficult year. In the UK there was no obvious
pattern: some parts of the lift market were reasonably strong,
others were weaker. Meanwhile the transport market was essentially
stagnant. However, it was another solid year and certainly our
broad geographic spread of businesses has sheltered us from the
current vagaries of the UK market.
I would like to join the Chairman in thanking all our employees
across the Group for their hard work and contribution to this
year's results.
UNITED KINGDOM
Sales in the UK were up overall, as a result of strong growth
from Thames Valley Controls and the first time contribution from
A&A Electrical Distributors.
Dewhurst UK Limited
Sales declined at Dewhurst UK for the second consecutive year
mainly due to overseas markets being less buoyant than had been
expected. The UK market was also quite stagnant, with a recurring
theme of projects being delayed.
We have been extremely active on the product design side. We
launched our first wholly new rail product for many years. The
Train Despatch Equipment Unit has been developed in conjunction
with Network Rail and brings together all the components required
by a train despatcher, into one module. The unit is currently being
trialled at Birmingham New Street Station and in due course is
expected to be rolled out onto the platforms of many large
stations.
For the lift industry we have extended our Profile Plus Landing
Station range to include three new widths. We have also launched
two new sizes of our US1 touch car operating panel.
Our Operations Team have received three new Arburg moulding
machines into the factory, continuing our investment in the latest
plant and machinery. We have also initiated a new program to
explore opportunities with Single Minute Exchange of Dies to look
to significantly improve our tooling set up times.
Thames Valley Controls (TVC)
After two quite difficult years at TVC, the company has bounced
back with strong sales growth and a significant improvement in
profits. Demand for both our controller products and our monitoring
systems increased.
The new requirements of EN81-20 had created challenges for our
manufacturing team but early in the year these issues were resolved
and the flow through the factory improved. We now have four
automated test simulation units which have contributed
significantly in reducing test times.
The Application Engineering Team have continued their work with
a new computer aided engineering system to increase end to end
efficiency in the production controllers. In the summer we launched
our first controller onto the shop floor that had been engineered
using this system.
Traffic Management Products (TMP)
We were unable to continue the momentum that we had built up in
2017 and this year sales fell mainly as a result of reduced demand
for our solar powered products. TMP have launched a large number of
new products over the last two years. Whilst some of these products
have become well established and achieved good growth, others have
not gained the traction we had originally hoped for. Management are
aware of this challenge and are working with the sales team to grow
the sales of all these new products.
As we indicated last year, we have taken the decision to move
key manufacturing processes in house. Good progress has been made
on this project, which has led to some major changes for TMP. We
have relocated the business to Birmingham and in our new facility,
have all the plant required for vacuum forming, rotational
moulding, lamination and assembly of our highway and street
bollards. This should allow us to generate a significant
improvement in both the gross and net profit of the business in the
future.
A&A Electrical Distributors (A&A)
We acquired A&A in June 2018 from the founders of the
business Alan and Ann Warren. A&A has over 35 years of
experience in the lift industry and they are the foremost lift
component supplier in the UK. They act as a one stop shop for key
components that are required in new lift installations and
modernisations.
Leading products that A&A supply include, electrical
trailing cable, safety items such as car top controllers, shaft
lighting as well as many other products. At their 55,000 square
feet warehouse in North East London, they stock over 30,000 product
lines. The focus is very much on the customer and they look to ship
orders next day on their own vehicle fleet.
We have the opportunity at A&A to further improve our
customer service by making products available online. We also have
the opportunity to replicate, in part, the A&A model to other
overseas businesses in the Group.
We are very pleased to welcome back John Bailey into an
executive role, as Managing Director of A&A and we are excited
that as we enter our 100(th) year, Jeremy Dewhurst has joined the
Group from Deloitte, to take up the role of A&A Finance
Director.
EUROPE & THE MIDDLE EAST
Dewhurst Hungary
The slowdown in sales that we saw in the second half of last
year continued through the first half of this year. Sales were low,
mirroring a significant slowdown in demand for ATM's. Activity in
the second half did pick up but we still finished the year with
sales down significantly on previous years.
At the end of the year, we launched the next generation of
keypad for ATM's. The plastic version has seen little change but
the stainless version has a new key design, which is much cleaner,
as well as providing cost benefits to our customers.
Dewhurst Middle East
In our first full year of trading at Dewhurst Middle East, sales
reached an acceptable level, giving us a good base for the
future.
The nature of the Middle East work is very much skewed towards
large projects, the timing of which is difficult to predict. Our
objective for the coming year is to secure baseload sales, so we
can reduce our dependence on the project work.
NORTH AMERICA
Dupar Controls
We reported in last year's accounts that sales had fallen back
at Dupar after many years of growth. This year we once again had
strong growth, with sales up 18% to a new record level. An
excellent achievement by the team at Dupar. The operations team
have been quite stretched to achieve this increase in volumes but
we have made good progress in this area, re-organising the factory
to improve capacity.
However, we are finding that space is a limitation to our growth
ambitions and we are in the process of securing a site a few miles
north of our current location. Here we intend to build a new,
significantly larger plant to replace our existing factory. This
will be an on-going project over the next two years.
Elevator Research & Manufacturing (ERM)
As reported last year, we have significantly restructured the
ERM business. Originally it was our intention to mothball the door
and cab businesses but we were able to sell these product lines,
which was a far more beneficial outcome.
We now have, in ERM, a far simpler business, solely focussed on
fixtures. The team have made excellent progress this year. Despite
the various distractions, they have grown fixtures sales during the
year and turned this business around financially. We now have a
strong base from which we can continue to build the company over
the coming years.
AUSTRALIA & ASIA
Australian Lift Components (ALC)
Sales at ALC were at similar levels to last year. They have
continued their focus on quality and on time delivery and have a
good reputation in the market.
We have benefitted over the last twelve months from having an
office in Brisbane. Our customers have confirmed their preference
for local representation. Accordingly, we opened an office in
Melbourne during the year which has been very well received by
customers.
P&R Lift Cars (P&R)
P&R have had an excellent year. Demand for their bespoke
lift cars has been high and their performance in their first full
year has greatly exceeded expectations.
Inevitably this high demand has had an impact on senior
management, who have been extremely stretched. Our challenge over
the coming year will be to provide further support for the
management team.
Earlier in the year we invested in a CNC router which has helped
improve our cab manufacturing productivity.
Lift Material
We had another strong year at Lift Material, with sales growing
by more than 10%. The Escalator Division performed particularly
well with a good increase in new escalator handrail installations.
Increasingly around the world, but certainly in Australia, we are
suffering from a lack of availability of skilled labour and
resolving this is our biggest challenge for the coming year.
Dual Engraving (Dual)
The Perth market continues to be quite soft and sales fell in
the year. We were always aware that Dual was a business that was
almost wholly dependent on the Perth market. When that market is
weak, then things will be more difficult for Dual.
We expect the market to improve in the next twelve months, the
project pipeline is certainly much brighter and sales should be
stronger.
Dewhurst Hong Kong
Sales in the previous year in Hong Kong, were quite exceptional,
boosted by a significant demand for TMP products. We took the
decision at the end of last year that it would be preferable for
TMP to service those customers direct, so Dewhurst Hong Kong are no
longer involved in that market. Sales of lift products however grew
and Dewhurst Hong Kong had a successful year.
Approved and signed on behalf of the board
David Dewhurst
Group Managing Director
Financial Review
Trading results
The Group continued its upward trend with record sales and
profits for a second consecutive year. The Canadian and New South
Wales Australian markets saw the biggest organic growth in local
terms with all these subsidiaries reporting record sales.
Additional growth in sales this year also came from the acquisition
of A&A Electrical Distributors Ltd (A&A) which contributed
GBP3.9 million sales in the 4 months to September 2018 as well as a
first full year of sales from P&R Lift Cars Pty Ltd. These
strong sales were offset by weaker demand from our keypad division
in Hungary and the reduction in sales (GBP1.8 million in 2017)
following the disposal of ERM's Winter & Bain division as part
of a restructure of the North American business.
Again currencies had an impact on the performance of the Group
as two thirds of sales are earned and held in foreign currencies
which are retranslated for Group reporting. This year resulted in a
decrease in like-for-like sales of GBP1.5 million or 2.8% and a
reduction in profit before tax of GBP0.2 million or 3.9%.
Overall, reported revenue increased by 3.1% from GBP52.9 million
to GBP54.5 million and adjusted operating profit (before acquired
intangible amortisation) increased by 8.0% from GBP6.2 million to
GBP6.7 million.
Solid cash position
Having built the cash position to a very healthy balance over
the last few years and with cash flows for 2018 again looking
strong, the Group was able to finance the sizeable acquisition of
A&A from existing resources. Despite spending GBP10.5 million
on this acquisition the Group still ended the year with cash at a
respectable GBP9.4 million, down GBP8.7 million from GBP18.1
million in 2017.
On 7 September 2018, the Group had also paid a 10% deposit and
exchanged contracts to purchase the freehold of a property in
Sydney for GBP2.5 million (A$4.6 million). This transaction has now
been completed and will be occupied by Lift Material.
The Group started and finished the year with no borrowing or
bank overdraft facility.
Pension scheme deficit
For the second year running it is also pleasing to be able to
report a significant improvement in the pension scheme deficit. The
liability discount rate continued to edge back up in 2018 to 2.85%
(2017: 2.6%) reducing the liabilities by GBP2.1 million. This
coupled with the Company continuing to contribute GBP1.4 million
and the assets of the scheme performing marginally better than
expected at GBP1.1 million resulted in the scheme deficit reducing
by GBP4.2 million from GBP11.8 million in 2017 to GBP7.6
million.
All recommendations made by the scheme's actuary to eliminate
the scheme deficit within an agreed timeframe have been fully
implemented.
Capital management and treasury policy
The Group defines capital as total equity plus net debt. The
objective is to maintain a strong and efficient capital base to
support the Group's strategic objectives, provide optimal returns
for shareholders and safeguard the Group's assets and status as a
going concern. The Group is not subject to externally imposed
capital requirements and the Group's philosophy is to have minimal
or no borrowing where possible.
The Group seeks to reduce or eliminate financial risk to ensure
sufficient liquidity is available to meet foreseeable needs and to
invest cash assets safely and profitably. In preparation for the
acquisition of A&A, the Group drew surplus cash back from its
subsidiaries in the form of dividends and transferred any short
term deposited money at the Company from its 95-day interest
account into an instant access bank account. This money was used to
fund the A&A acquisition as well as support the new business
with its post-acquisition working capital requirements. This has
enabled A&A to function without the need for a bank
overdraft.
The policies and procedures operated are regularly reviewed and
approved by the board. By varying the duration of its fixed and
floating cash deposits, the Group maximises the return on interest
earned.
The Group continues to hedge foreign currencies internally where
possible but stopped using derivatives at the start of the year in
the form of foreign exchange contracts to manage its currency
risk.
Dividends
Dividends are accounted for when paid or approved by
shareholders, and not when proposed, therefore the proposed final
dividend for 2018 has not been accrued at the end of the reporting
period. The total dividend for 2018 of 12.50p per share is 4.2% up
on 2017 and is covered 4.0 times by earnings. Total equity improved
from GBP31.9 million to GBP37.0 million primarily as a result of
the strong trading performance in the year as well as the GBP4.2m
drop in the pension deficit referred to above.
There was no change in the number of the total issued share
capital of the Company during the year.
Jared Sinclair
Finance Director
Consolidated statement of comprehensive income
For the year ended 30 September 2018
----------------------------------------------------------------------------------------------
2018 2017
(as restated)
Continuing operations GBP(000) GBP(000)
-------- ---------- ---------------
Revenue 54,510 52,890
Operating costs (48,322) (46,646)
------------------------------------------------- -------- ---------- ---------------
Adjusted operating profit* 6,743 6,244
Amortisation of acquired intangibles (555) -
Operating profit 6,188 6,244
Finance income 86 117
Finance costs (291) (395)
----------------------------------------------------------- ---------- ---------------
Profit before taxation 5,983 5,966
Taxation (1,723) (1,345)
------------------------------------------------- -------- ---------- ---------------
Profit for the financial year 4,260 4,621
Other comprehensive income:
Actuarial gains/(losses) on the defined benefit
pension scheme 3,080 3,672
Deferred tax effect (524) (624)
Tax on items taken directly to equity 140 -
------------------------------------------------------ ------ ------
Total that will not be subsequently reclassified
to income statement 2,696 3,048
Exchange differences on translation of foreign
operations (727) (104)
Total that may be subsequently reclassified
to income statement (727) (104)
------------------------------------------------------ ------ ------
Other comprehensive income/(expense) for the
year, net of tax 1,969 2,944
------------------------------------------------------ ------ ------
Total comprehensive income for the year 6,229 7,565
------------------------------------------------------ ------ ------
Profit for the year attributable to:
Equity shareholders of the company 4,039 4,445
Non-controlling interests 221 176
------------------------------------------------------ ------ ------
4,260 4,621
------------------------------------------------------ ------ ------
Total comprehensive income for the year attributable
to:
Equity shareholders of the company 6,070 7,410
Non-controlling interests 159 155
------------------------------------------------------ ------ ------
6,229 7,565
------------------------------------------------------ ------ ------
Basic and diluted earnings per share 47.93p 52.65p
--------------------------------------- ------- -------
* Operating profit before amortisation of acquired
intangibles
Consolidated statement of financial position
At 30 September 2018
--------------------------------------------------------------------------
2018 2017
(as restated)
GBP(000) GBP(000)
------------------------------- --- --- --- --------- ---------------
Non-current assets
Goodwill 8,598 4,575
Other intangibles 4,510 98
Property, plant and equipment 9,271 9,267
Deferred tax asset 1,639 2,301
24,018 16,241
Current assets
Inventories 6,279 5,566
Trade and other receivables 13,920 10,011
Cash and cash equivalents 9,440 18,087
---------------------------------------------- --------- ---------------
29,639 33,664
------------------------------------------- --------- ---------------
Total assets 53,657 49,905
---------------------------------------------- --------- ---------------
Current liabilities
Trade and other payables 8,185 5,567
Current tax liabilities 532 368
Short-term provisions 304 326
---------------------------------------------- --------- ---------------
9,021 6,261
Non-current liabilities
Retirement benefit obligation 7,628 11,751
Total liabilities 16,649 18,012
Net assets 37,008 31,893
---------------------------------------------- --------- ---------------
Equity
Share capital 842 842
Share premium account 157 157
Capital redemption reserve 295 295
Translation reserve 1,964 2,629
Retained earnings 32,693 26,969
---------------------------------------------- --------- ---------------
Total attributable to
equity shareholders of
the company 35,951 30,892
---------------------------------------------- --------- ---------------
Non-controlling interests 1,057 1,001
---------------------------------------------- --------- ---------------
Total equity 37,008 31,893
---------------------------------------------- --------- ---------------
The financial statements were approved by the board of directors
and authorised for issue on 5 December 2018 and were signed on its
behalf by:
Richard Dewhurst Chairman
Jared Sinclair Finance Director
Company Registration Number: 160314
Consolidated statement of changes in equity
For the year ended 30 September 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 30 September 2016
(as previously stated) 847 157 290 2,034 20,663 589 24,580
Prior year adjustment - - - 678 - - 678
---------------------------- ----------- --------- ------------- -------------- --------- ------------ -------------
At 30 September 2016
(as restated) 847 157 290 2,712 20,663 589 25,258
Shares issued - - - - - 311 311
Share repurchase (5) - 5 - (217) - (217)
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 - - - - (624) - (624)
Dividends paid - - - - (970) (54) (1,024)
Profit for the year - - - - 4,445 176 4,621
At 30 September 2017 842 157 295 2,629 26,969 1,001 31,893
Exchange differences
on
translation of foreign
operations - - - (665) - (62) (727)
Actuarial gains/(losses)
on defined benefit pension
scheme - - - - 3,080 - 3,080
Deferred tax effect - - - - (524) - (524)
Tax on items taken directly
to equity - - - - 140 - 140
Dividends paid - - - - (1,011) (103) (1,114)
Profit for the year - - - - 4,039 221 4,260
---------------------------- ----------- --------- ------------- -------------- --------- ------------ -------------
At 30 September 2018 842 157 295 1,964 32,693 1,057 37,008
---------------------------- ----------- --------- ------------- -------------- --------- ------------ -------------
Consolidated cash flow statement
For the year ended 30 September 2018
----------------------------------------------------------------------
2018 2017
GBP(000) GBP(000)
------------------------------------------- ---------- ----------
Cash flows from operating activities
Operating profit 6,188 6,244
Depreciation and amortisation 1,572 975
Contributions to pension scheme, net
of administration fee (1,331) (1,343)
Exchange adjustments (155) (49)
(Profit)/loss on disposal of property,
plant and equipment 36 21
---------------------------------------------- ---------- ----------
6,310 5,848
(Increase)/decrease in inventories (487) (703)
(Increase)/decrease in trade and other
receivables (3,909) 290
Increase/(decrease) in trade and other
payables 2,618 202
Increase/(decrease) in provisions (22) (228)
---------------------------------------------- ---------- ----------
Cash generated from operations 4,510 5,409
Interest paid (3) (2)
Tax paid (1,270) (968)
---------------------------------------------- ---------- ----------
Net cash from operating activities 3,237 4,439
---------------------------------------------- ---------- ----------
Cash flows from investing activities
Acquisition of business and assets (9,525) (933)
Proceeds from sale of property, plant
and equipment 43 52
Purchase of property, plant and equipment (1,161) (978)
Development costs capitalised (29) (82)
Interest received 86 117
---------------------------------------------- ---------- ----------
Net cash generated from/(used in)
investing activities (10,586) (1,824)
---------------------------------------------- ---------- ----------
Cash flows from financing activities
Dividends paid (1,114) (1,024)
Purchase of own shares - (217)
Net cash used in financing activities (1,114) (1,241)
---------------------------------------------- ---------- ----------
Net increase/(decrease) in cash and
cash equivalents (8,463) 1,374
---------------------------------------------- ---------- ----------
Cash and cash equivalents at beginning
of year 18,087 16,674
Exchange adjustments on cash and cash
equivalents (184) 39
---------------------------------------------- ---------- ----------
Cash and cash equivalents at end of
year 9,440 18,087
---------------------------------------------- ---------- ----------
Notes
1. AGM, results and dividends
The trading profit for the year, after taxation, amounted to
GBP4.3 million (2017: GBP4.6 million).
A final dividend on the Ordinary and 'A' non-voting ordinary
shares of 9.00p per share (2017: 8.50p) for the financial year
ended 30 September 2018 will be proposed at the Annual General
Meeting (AGM) to be held on 5 February 2019. If approved, this
dividend will be paid on 13 February 2019 to members on the
register at 18 January 2019. The ex-dividend date will be 17
January 2019.
An interim dividend of 3.50p per share (2017: 3.50p) was paid on
21 August 2018.
2. Earnings per share and dividend per share
2018 2017
Weighted average number of shares No. No.
------------------------------------------ ---------- ----------
For basic and diluted earnings per share 8,424,898 8,442,843
------------------------------------------ ---------- ----------
The calculation of basic and diluted earnings per share is based
on the profit for the financial year of GBP4,038,159 and on
8,424,898 Ordinary 10p and 'A' non-voting ordinary 10p shares,
being the weighted average number of shares in issue throughout the
financial year. There are no share options issued.
2018 2017
Paid dividends per 10p ordinary share GBP(000) GBP(000)
--------------------------------------------- --------- ---------
2017 final paid of 8.50p (2016: 8.00p) (716) (678)
2018 interim paid of 3.50p (2017: 3.50p) (295) (295)
Unclaimed dividends returned - more than 12
years old - 3
--------------------------------------------- --------- ---------
Dividends paid - The Company (1,011) (970)
Dividend to non-controlling interest - Dual
Engraving Pty Ltd (103) (54)
--------------------------------------------- --------- ---------
Dividends paid - The Group (1,114) (1,024)
The final proposed dividend is based on 3,309,200 Ordinary 10p
shares and 5,115,698 'A' non-voting ordinary 10p shares, being the
latest number of shares in issue. The directors are proposing a
final dividend of 9.00p (2017: 8.50p) per share, totalling GBP758k
(2017: GBP716k). This dividend has not been accrued at the end of
the reporting period.
3. Accounting policies
The accounting policies applied to the 2018 accounts have been
consistent with 2017 in all manners except in relation to the
following prior year adjustment.
Prior year adjustment
With regard to the treatment of deferred tax charges or credits
resulting from the exchange differences taken to other
comprehensive income, previously the Group applied a tax rate of
17% as a deferred tax charge on these amounts. A review of the
requirements of International Accounting Standards 12 - Income
Taxes has resulted in the removal of this blanket tax provision
which the directors, following advice, now recognise is a more
suitable interpretation of the requirements of the standard. This
adjustment has no cash effect and does not affect the income
statement in the current year or in prior periods and only affects
other comprehensive income and the movement in the translation
reserve.
Translation reserve:
----------------------------------------------------------------------------------------
30 September 30 September
2017 2016
GBP(000) GBP(000)
------------------------------------ --------- --------- ------------- ----------------
Translation reserve (as previously
stated) 1,969 2,034
Adjustments to prior year:
Deferred tax effect (2016 and
prior) 678 678
Deferred tax effect (2017) (18) -
Translation reserve (as adjusted) 2,629 2,712
---------------------------------------------------------- ------------- ----------------
4. Basis of preparation
The financial information set out above does not constitute the
company's statutory accounts for the years ended 30 September 2018
or 2017. Statutory accounts for 2017 have been delivered to the
Registrar of Companies. The statutory accounts for 2018 which are
prepared under IFRS as adopted by the EU will be delivered to the
Registrar of Companies following the company's annual general
meeting.
The preliminary statement of results has been reviewed by and
agreed with the Company's new auditor, Jeffreys Henry LLP, who have
indicated that they will be giving an unqualified opinion in their
report on the statutory financial statements for 2018. Moore
Stephens LLP reported on the 2017 accounts and their report was
unqualified, did not include references to any matters to which the
auditor drew attention to by way of emphasis without qualifying the
opinion and did not contain a statement under section 498 of the
Companies Act 2006.
Dewhurst plc has prepared its consolidated and company financial
statements in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU) from 1
October 2005. The group and company financial statements have been
prepared in accordance with those parts of the Companies Act 2006
that are applicable to companies adopting IFRS. The company is
registered and incorporated in the United Kingdom; and quoted on
AIM.
It is expected that the audited Report and Accounts for the year
ended 30 September 2018 will be sent to shareholders and will also
be available on the Company's website www.dewhurst.plc.uk on 21
December 2018.
- Ends -
For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
Caspar Shand Kydd (Sales)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FKPDKFBDDPBK
(END) Dow Jones Newswires
December 06, 2018 02:00 ET (07:00 GMT)
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