REG - Dewhurst PLC - Interim Results

DewhurstAnnouncement

09/06/2021 07:05

RNS Number : 2330B
  
Dewhurst PLC
  
09 June 2021
  
 

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 2021
 
Directors' Interim Report
 
FIRST HALF
 
We are pleased to report a growth in sales and record profits for the first half of the current financial year. Overall, Group revenue increased by 3% to £28.9 million (2020: £28.2 million) and adjusted operating profit (before acquired intangible amortisation) increased 28% to £4.4 million (2020: £3.4 million). Profit before tax increased 36% to £3.4 million (2020: £2.5 million) and earnings per share improved to 26.4p (2020: 20.8p). Although some Covid-19 restrictions remain in place in the countries in which we operate, we have been fully operational at all our sites throughout the first half of the year.
 
Lift Division sales this year were very similar to last year's first half, which was only minimally affected by the Covid-19 pandemic. The growth in sales was predominantly driven by our Transportation Division, with deliveries of cycleway products continuing to be strong through the period. This growth was partially offset by a further reduction in our Keypad Division. Demand for cash and ATMs is still depressed and is expected to remain low, especially whilst lockdowns remain in place. First half currency movements increased Group revenue by around £0.3 million primarily as a result of the strengthening of the Australian Dollar.
 
The Group balance sheet remains strong with cash at the period end of £17.6 million (2020: £15.1 million). Since 30 September 2020, the Group has generated £2.4 million from operating activities but spent a further £1.0 million towards developing Dupar's new property which is now complete and in use. The sale of Dupar's previous property was completed at the beginning of June.
 
OUTLOOK
 
There was a release of pent-up demand during the first half of the year as some of our markets gradually relaxed restrictions.  However there are now signs of some of that peak petering out. We expect there to be a lull in demand until economies fully open up again and customers start commissioning new projects. In the meantime we expect sales could be a bit choppy and unpredictable, particularly in regard to timing. The pandemic has severely disrupted supply chains and it is taking time to get used to new arrangements. Lead times have extended and purchase prices are rising, which we expect will start to squeeze margins. Fortunately we held reasonable stocks going into this period, but it is proving challenging maintaining stock at the level we would like. The Group still has strength and solidity from its balance sheet to carry it through any short term turbulence.
 
DIVIDENDS
 
The Directors have declared an increased interim dividend of 4.25p per ordinary share (2020: 3.75p) which amounts to £343,000 (2020: £315,000). The interim dividend is payable on 17 August 2021 and will be posted on 12 August 2021 to shareholders appearing in the Register on 9 July 2021 (ex-dividend date being 8 July 2021). 
 
A final 2020 dividend of 9.25p (2019: 9.25p) which amounted to £778,000 (2019: £778,000) was approved at the AGM held on 16 February 2021 and was paid on 24 February 2021 to members on the register at 22 January 2021.
 
By Order of the Board
 
J C SINCLAIR
Finance Director & Secretary
8 June 2021
 
 
The unaudited consolidated statement of comprehensive income, statement of financial position, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2021, as compared with the corresponding half-year ended 31 March 2020 and the year ended 30 September 2020, shows the following results:
 
Consolidated statement of comprehensive income
 




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 Sept




 


2021


2020


2020




Continuing operations


£000's


£000's


£000's




 


 


 


 




Revenue


28,881


28,172


55,617




Operating costs


(25,354)


(25,597)


(48,654)




Adjusted operating profit


4,361


3,409


8,630




Amortisation of acquired intangibles


(834)


(834)


(1,667)




Operating profit


3,527


2,575


6,963




Finance income


6


34


58




Finance costs


(164)


(135)


(281)




Profit before taxation


3,369


2,474


6,740




Taxation


Est. (1,237)


Est. (727)


(2,061)




Profit for the financial period


2,132


1,747


4,679




 


 


 


 




Other comprehensive income:


 


 


 




Actuarial gains/(losses) on the defined benefit pension scheme


Est. 3,153


Est. (619)


(1,886)




Deferred tax effect


(599)


118


358




Current tax effect


 Est. 113


 Est. 87


226




Total that will not be subsequently reclassified to income statement


2,667


(414)


(1,302)




 


 


 


 




Exchange differences on translation of foreign operations


(44)


(1,483)


(215)




Total that may be subsequently reclassified to income statement


(44)


(1,483)


(215)




Other comprehensive income/(expense) for the period, net of tax


2,623


(1,897)


(1,517)




Total comprehensive income for the period


4,755


(150)


3,162




 


 


 


 




Profit for the period attributable to:


 


 


 




Equity shareholders of the company


1,925


1,565


4,312




Non-controlling interests


207


182


367




 


2,132


1,747


4,679




 


 


 


 




Total comprehensive income for the period attributable to:


 


 


 




Equity shareholders of the company


4,539


(214)


2,783




Non-controlling interests


216


64


379




 


4,755


(150)


3,162




 


 


 


 




Basic and diluted earnings per share


26.38p


20.78p


51.78p




Dividends per share


4.25p


3.75p


13.00p




 
 
Consolidated statement of financial position
 




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 Sept




 


2021


2020


2020




 


£000's


£000's


£000's




Non-current assets


 


 


 




Goodwill


9,766


9,332


9,743




Other intangibles


305


1,995


1,139




Property, plant and equipment


18,351


13,396


16,947




Right-of-use assets


3,035


1,942


3,273




Deferred tax asset


1,917


2,700


2,621




 


33,374


29,365


33,723




 


 


 


 




Current assets


 


 


 




Inventories


5,792


5,602


6,208




Trade and other receivables


11,790


12,556


9,553




Cash and cash equivalents


17,627


15,097


18,139




 


35,209


33,255


33,900




Total assets


68,583


62,620


67,623




 


 


 


 




Current liabilities


 


 


 




Trade and other payables


9,666


8,117


9,433




Borrowings


983


-


69




Current tax liabilities


237


15


268




Short-term provisions


343


300


343




Lease liabilities


445


353


443




 


11,674


8,785


10,556




Non-current liabilities


 


 


 




Retirement benefit obligation


7,522


10,615


11,268




Lease liabilities


2,755


1,644


2,973




Total liabilities


21,951


21,044


24,797




Net assets


46,632


41,576


42,826




 


 


 


 




Equity


 


 


 




Share capital


808


841


808




Share premium account


157


157


157




Capital redemption reserve


329


296


329




Translation reserve


1,994


909


2,047




Retained earnings


41,887


38,167


38,042




Total attributable to equity shareholders of the company


45,175


40,370


41,383




Non-controlling interests


1,457


1,206


1,443




Total equity


46,632


41,576


42,826




 
 
Consolidated statement of changes in equity
 
For the period ended 31 March 2021




 


 


 


 


 


 


 


 




 


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 30 September 2020


808


157


329


2,047


38,042


1,443


42,826




Exchange differences on 
translation of foreign operations


 
-


 
-


 
-


 
(53)


 
-


 
9


 
(44)




Actuarial gains/(losses) on

defined benefit pension scheme


 
-


 
-


 
-


 
-


 
3,153


 
-


 
3,153




Deferred tax effect


-


-


-


-


(599)


-


(599)




Tax on items taken directly to

equity (Est.)


 
-


 
-


 
-


 
-


 
113


 
-


 
113




Dividends paid


-


-


-


-


(747)


(202)


(949)




Profit for the period


-


-


-


-


1,925


207


2,132




 


 


 


 


 


 


 


 




At 31 March 2021


808


157


329


1,994


41,887


1,457


46,632



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
For the period ended 31 March 2020 




 


 


 


 


 


 


 


 




 


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 30 September 2019


841


157


296


2,274


37,847


1,265


42,680




IFRS 16 transition impact


-


-


-


-


(53)


-


(53)




At 1 October 2019


841


157


296


2,274


37,794


1,265


42,627




Exchange differences on 
translation of foreign operations                    


 
-


 
-


 
-


 
(1,365)


 
-


 
(118)


 
(1,483)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
(619)


 
-


 
(619)




Deferred tax effect


-


-


-


-


118


-


118




Tax on items taken directly to equity (Est.)


 
-


 
-


 
-


 
-


 
87


 
-


 
87




Dividends paid


-


-


-


-


(778)


(123)


(901)




Profit for the period


-


-


-


-


1,565


182


1,747




 


 


 


 


 


 


 


 




At 31 March 2020


841


157


296


909


38,167


1,206


41,576



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
For the year ended 30 September 2020




 


 


 


 


 


 


 


 




 


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 30 September 2019


841


157


296


2,274


37,847


1,265


42,680




Impact from IFRS 16 'leases'


-


-


-


-


(85)


(11)


(96)




At 30 September 2019 (restated)


841


157


296


2,274


37,762


1,254


42,584




Share repurchase


(33)


-


33


-


(1,637)


-


(1,637)




Exchange differences on 
translation of foreign operations                    


 
-


 
-


 
-


 
(227)


 
-


 
12


 
(215)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
(1,886)


 
-


 
(1,886)




Deferred tax effect


-


-


-


-


358


-


358




Tax on items taken directly to equity


 
-


 
-


 
-


 
-


 
226


 
-


 
226




Dividends paid


-


-


-


-


(1,093)


(190)


(1,283)




Profit for the year


-


-


-


-


4,312


367


4,679




 


 


 


 


 


 


 


 




At 30 September 2020


808


157


329


2,047


38,042


1,443


42,826



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
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 2020 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 2020 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2020 Interim Financial Statements to take into account any presentational changes made in the 2020 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 Sept




 


2021


2020


2020




 


£000's


£000's


£000's




Cash flows from operating activities


 


 


 




Operating profit


3,527


2,575


6,963




Depreciation and amortisation


1,283


1,321


2,663




Right-of-use asset depreciation


245


229


351




Additional contributions to pension scheme


(683)


 (552)


(1,366)




Exchange adjustments


595


 (91)


(33)




(Profit)/loss on disposal of property, plant and equipment


(28)


 (16)


64




 


4,939


3,466


8,642




(Increase)/decrease in inventories


416


 408


(198)




(Increase)/decrease in trade and other receivables


(2,237)


 (1,563)


1,385




Increase/(decrease) in trade and other payables


233


 (63)


1,243




Increase/(decrease) in provisions


-


23


66




Cash generated from operations


3,351


2,271


11,138




Interest paid


(13)


 -


(2)




Tax paid


(976)


 (946)


(1,871)




Net cash from operating activities


2,362


1,325


9,265




 


 


 


 




Cash flows from investing activities


 


 


 




Acquisition of business and assets


(649)


(624)


(624)




Proceeds on disposal of a subsidiary (net of cash disposed)


-


-


55




Proceeds from sale of property, plant and equipment


58


16


35




Purchase of property, plant and equipment


(1,888)


 (1,158)


(4,257)




Development costs capitalised


-


-


(12)




Interest received


6


34


58




Net cash generated from/(used in) investing activities


(2,473)


 (1,732)


(4,745)




 


 


 


 




Cash flows from financing activities


 


 


 




Dividends paid


(949)


 (901)


(1,283)




Purchase of own shares


-


 -


(1,637)




Repayment of lease liabilities including interest


(285)


 (266)


(381)




Proceeds from bank borrowings


908


-


69




Net cash used in financing activities


(326)


 (1,167)


(3,232)




 


 


 


 




Net increase/(decrease) in cash and cash equivalents


(437)


(1,574)


1,288




Cash and cash equivalents at beginning of period


18,139


16,980


16,980




Exchange adjustments on cash and cash equivalents


(75)


 (309)


(129)




Cash and cash equivalents at end of period


17,627


15,097


18,139




 
Contacts:








Dewhurst Plc


Tel: +44 (0)208 744 8200




Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst.plc.uk
 


 




N+1 Singer (Nominated Adviser and Sole Broker)


Tel: +44 (0)207 496 3000




Will Goode / Rick Thompson / James Fischer


 




 




 
 
Person responsible:
 
The person responsible for arranging the release of this announcement on behalf of Dewhurst plc is Jared Sinclair

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