REG - Dewhurst PLC - Half Yearly Report <Origin Href="QuoteRef">DWHT.L</Origin>
06/09/2014 02:05
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RNS Number : 1824J
Dewhurst PLC
10 June 2014
Dewhurst plc
("Dewhurst" or the "Group")
Interim Results for the 6 months ended 31 March 2014
Directors' Interim Report
FIRST HALF
I am pleased to report it has been a much better first half for the Group than
last year. Group turnover was up 7% at £23.0 million (2013: £21.6 million)
and profit before tax rose 38% to £2.1 million (2013: £1.5 million). Adjusted
operating profit* of £2.5 million (2013: £1.8 million) is close to the Group's
previous record high of £2.6 million achieved in 2012 and is up 36% on last
year. Earnings per share grew by 45% to 17.8p (2013: 12.3p). The Group
balance sheet remains strong with cash of £10.4 million (2013: £8.1 million).
The growth in turnover was principally generated by the Lift division. We
gained from a full half year of sales from Dual Engraving and strong UK lift
controller and monitoring sales, but faced difficult trading conditions in
some East coast areas of Australia. Overall we still achieved a 10% increase
on Lift division sales compared to last year. Transport and Keypad divisions
sales have stabilised, following the falls experienced last year. The weaker
Australian and Canadian Dollars reduced reported Group sales by a little over
£1 million in the six months.
OUTLOOK
After a busy Spring, some of the steam seems to have gone out of the UK lift
market, with some renewed reluctance to commit to significant projects. So
although the second half has started reasonably positively, we are expecting a
quieter period over the summer, albeit not as quiet as last year. The market
for highways products is continuing to recover slowly and demand has also been
bolstered by our new products.
Overseas, North America continues to be buoyant, although competition is
fierce. In Australia, although the mining boom is over, there is still a
backlog of planned infrastructure spending and development in Western
Australia. In the east there is some uncertainty following the recent
introduction of austerity measures by the Government. However we have
continued to invest in expanding our range of escalator products and services
to help offset any overall market stagnation.
DIVIDENDS
In line with the previously stated dividend strategy, the Directors have
declared an increased interim dividend of 2.80p (2013: 2.34p) which amounts to
£238,000 (2013: £199,000). The interim dividend is payable on 26 August 2014
and will be posted on 21 August 2014 to shareholders appearing in the Register
on 11 July 2014 (ex-dividend date being 9 July 2014).
A final 2013 dividend of 5.66p which amounted to £482,000, compared with 4.68p
(plus 5.00p special) the previous year (2013: £824,000) was approved at the
AGM held on 4 February 2014 and was paid on 20 February 2014 to members on the
register at 17 January 2014.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
9 June 2014
* Operating profit before goodwill write down, amortisation of acquired
intangibles and gain on property disposal
Dewhurst plc
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 2014, as compared with the
corresponding half-year ended 31 March 2013 and the year ended 30 September
2013, shows the following results:
Consolidated income statement Half year ended Half year ended Year ended
31 March 2014 31 March 2013 30 September 2013
Continuing operations £000's £000's £000's
Revenue 23,021 21,592 43,698
Operating costs (20,698) (19,841) (41,104)
Adjusted operating profit* 2,471 1,811 4,084
Goodwill write down - - (1,266)
Amortisation of acquired intangibles (148) (60) (224)
Operating profit 2,323 1,751 2,594
Finance income 39 62 100
Finance costs (226) (266) (392)
Profit before taxation 2,136 1,547 2,302
Tax on profits Est. (619) Est. (499) (1,307)
Profit for the period 1,517 1,048 995
Attributable to:
Equity shareholders of the Company 1,506 1,059 1,043
Non-controlling interests 11 (11) (48)
1,517 1,048 995
Basic and diluted earnings per share 17.82p 12.31p 11.69p
Dividends per share 2.80p 2.34p 8.00p
Consolidated statement of recognised income and expense Half year ended Half year ended Year ended
Net income/(expense) recognised 31 March 2014 31 March 2013 30 September 2013
directly in equity: £000's £000's £000's
Actuarial gains/(losses) on the defined benefit pension scheme Est. 127 Est. 1,789 361
Exchange differences on translationof foreign operations (482) 458 (947)
Tax on items taken directly to equity 15 (673) 184
Net income / (expense) recogniseddirectly in equity in the period (340) 1,574 (402)
Profit for the financial period 1,517 1,048 995
Total recognised income and expense
for the period 1,177 2,622 593
Attributable to:
Equity shareholders of the Company 1,181 2,571 717
Non-controlling interests (4) 51 (124)
1,177 2,622 593
* Operating profit before goodwill write down, amortisation of acquired
intangibles and gain on property disposal
Dewhurst plc
Consolidated balance sheet Half year ended Half year ended Year ended
31 March 2014 31 March 2013 30 September 2013
£000's £000's £000's
Non-current assets
Goodwill 3,251 4,991 3,173
Other intangibles 664 1,166 836
Property, plant and equipment 8,882 9,924 9,240
Deferred tax asset 1,689 1,303 1,709
14,486 17,384 14,958
Current assets
Inventories 4,191 4,676 4,557
Trade and other receivablesCurrent tax assets 9,722- 9,412- 8,55620
Cash and cash equivalents 10,407 8,112 10,506
24,320 22,200 23,639
Total assets 38,806 39,584 38,597
Current liabilities
Trade and other payables 5,305 4,910 5,445
Current tax liabilities 228 146 -
Short term provisions 757 759 752
6,290 5,815 6,197
Non-current liabilities
Retirement benefit obligation 9,951 9,631 10,530
Total liabilities 16,241 15,446 16,727
Net assets 22,565 24,138 21,870
Equity
Share capital 851 851 851
Share premium account 157 157 157
Capital redemption reserve 286 286 286
Translation reserve 1,043 2,453 1,425
Retained earnings 19,572 19,615 18,540
Total attributable to equity shareholders of the Company 21,909 23,362 21,259
Non-controlling interests 656 776 611
Total equity 22,565 24,138 21,870
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 2013 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
2013 Financial Statements and its accounting policies, but where necessary
comparative information has been reclassified or expanded from the 2013
Interim Financial Statements to take into account any presentational changes
made in the 2013 Financial Statements or in these Interim Financial
Statements. Reported figures for the current half year and all comparatives
have been amended as a result of IAS19 (revised), which requires the
recalculation of net interest costs on the defined benefit pension scheme
reported through finance costs in the income statement.
Dewhurst plc
Consolidated cash flow statement Half year ended Half year ended Year ended
31 March 2014 31 March 2013 30 September 2013
£000's £000's £000's
Cash flows from operating activities
Operating profit 2,323 1,751 2,594
Goodwill write down - - 1,266
Depreciation and amortisation 514 446 1,198
Additional income to pension scheme (663) (662) (1,356)
Exchange adjustments (171) (73) 35
(Profit)/loss on disposal of property, plant and equipment (7) (3) 75
1,996 1,459 3,812
(Increase)/decrease in inventories 366 176 415
(Increase)/decrease in trade and other receivables (1,166) (991) (135)
Increase/(decrease) in trade and other payables (140) (672) (308)
Increase/(decrease) in provisions 5 37 30
Cash generated from operations 1,061 9 3,814
Interest paid - - (1)
Income tax paid (325) (376) (869)
Net cash (used in) / from operating activities 736 (367) 2,944
Cash flows from investing activities
Acquisition of subsidiary undertakingsAcquisition of business and assets (112)- (1,803)- -(1,716)
Proceeds from sale of property, plant and equipment 11 8 22
Purchase of property, plant and equipment (123) (321) (587)
Development costs capitalised - - (112)
Interest received 39 62 100
Net cash (used in) / from investing activities (185) (2,054) (2,293)
Cash flows from financing activities
Dividends paid (482) (824) (1,023)
Net cash used in financing activities (482) (824) (1,023)
Net increase/(decrease) in cash and cash equivalents 69 (3,245) (372)
Cash and cash equivalents at beginning of period 10,506 11,101 11,101
Exchange adjustments on cash and cash equivalents (168) 256 (223)
Cash and cash equivalents at end of period 10,407 8,112 10,506
For further details please contact:
Dewhurst Plc
Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
Cantor Fitzgerald Europe (Nominated Adviser)
Tel: +44 (0) 207 894 7000
David Foreman / Rick Thompson (Corporate Finance)
Paul Jewell (Corporate Broking)
This information is provided by RNS
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