REG - Dewhurst PLC - Half-year Report <Origin Href="QuoteRef">DWHT.L</Origin>

DewhurstAnnouncement

13/06/2017 07:05

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 July2017 (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
1This 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.
2This 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
1This 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




1This 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.
2This 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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