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

DewhurstAnnouncement

16/07/2015 10:02

RNS Number : 5547P
Dewhurst PLC
09 June 2015
Dewhurst plc
("Dewhurst" or the "Group")
Interim Results for the 6 months ended 31 March 2015
Directors' Interim Report
FIRST HALF
I am pleased to report a better first half profit performance for the Group compared to last year. Weakness in the UK market resulted in lower revenue domestically, but the overseas companies of the Group performed strongly. Overall Group revenue decreased marginally to 22.8 million (2014: 23.0 million), but profit before tax increased by 4% to 2.2 million (2014: 2.1 million). Adjusted operating profit* of 2.6 million (2014: 2.5 million) is up 3% on last year and earnings per share grew by 5% to 18.6p (2014: 17.8p). The Group balance sheet remains strong with cash of 13.0 million (2014: 10.4 million).
After a positive start to the year, UK sales fell back in the second quarter, possibly affected by the General Election. In the six months ended 31 March 2015, UK sales were weaker across both Lift and Transport divisions, but the impact was greatest in the Lift division after a very strong first half for those products last year. The fall in UK sales was almost completely offset by stronger North American, Asian and Australian performance; however the weaker Australian and Canadian Dollars reduced reported Group revenue by approximately 0.2 million in the first six months.
OUTLOOK
The UK Government has indicated that constraints on public spending will increase further and this is likely to impact our public sector sales. In our overseas markets the short term outlook is reasonably positive, suggesting that current trends are likely to continue. Consequently we expect our markets in the UK to remain weaker, whilst our overseas markets should remain buoyant, at least for the second half of the year. However a further fall in the Australian and Canadian currencies will have some negative impact on the profitability of our operations in those countries and their contribution to Group performance.
DIVIDENDS
The Directors have declared an increased interim dividend of 3.00p (2014: 2.80p) which amounts to 254,000 (2014: 238,000). The interim dividend is payable on 25 August 2015 and will be posted on 20 August 2015 to shareholders appearing in the Register on 10 July2015 (ex-dividend date being 9 July 2015).
A final 2014 dividend of 6.20p (2014: 5.66p) which amounted to 525,000 (2014: 482,000) was approved at the AGM held on 3 February 2015 and was paid on 19 February 2015 to members on the register at 16 January 2015.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
8 June 2015
* 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 2015, as compared with the corresponding half-year ended 31 March 2014 and the year ended 30 September 2014, shows the following results:
Consolidated income statement
Half year ended
Half year ended
Year
ended

31 March 2015
31 March 2014
30 September 2014
Continuing operations
000's
000's
000's




Revenue
22,772
23,021
46,616




Operating costs
(20,364)
(20,698)
(41,437)
Adjusted operating profit* 
2,549
2,471
5,475
Amortisation of acquired intangibles
(141)
(148)
(296)
Operating profit
2,408
2,323
5,179




Finance income
48
39
85
Finance costs
(232) 
(226) 
(452)




Profit before taxation
2,224
2,136
4,812
Tax on profits
Est. (645)
Est. (619)
(866)




Profit for the period
1,579
1,517
3,946
Attributable to:



Equity shareholders of the Company
1,565
1,506
3,930
Non-controlling interests
14
11
16

1,579
1,517
3,946




Basic and diluted earnings per share
18.63p
17.82p
46.22p
Dividends per share
3.00p
2.80p
9.00p
Consolidated statement of recognised income and expense
Half year ended
Half year ended
Year
ended
Net income/(expense) recognised
31 March 2015
31 March 2014
30 September 2014
directly in equity:
000's
000's
000's
Actuarial gains/(losses) on the defined 
benefit pension scheme
Est. (122)
Est. 127
(2,570)
Exchange differences on translation
of foreign operations
(256)
(482)
(669)
Tax on items taken directly to equity
(15)
15
648
Net income / (expense) recognised
directly in equity in the period
(393)
(340)
(2,591)
Profit for the financial period
1,579
1,517
3,946
Total recognised income and expense



for the period
1,186
1,177
1,355
Attributable to:



Equity shareholders of the Company
1,195
1,181
1,379
Non-controlling interests
(9)
(4)
(24)

1,186
1,177
1,355
* 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 
2015
31 March 
2014
30 September 2014

000's
000's
000's
Non-current assets



Goodwill
3,016
3,251
3,129
Other intangibles
307
664
463
Property, plant and equipment
8,458
8,882
8,665
Deferred tax asset
2,073
1,689
2,086

13,854
14,486
14,343
Current assets



Inventories
4,496
4,191
4,501
Trade and other receivables
Current tax assets
10,087
-
9,722
-
9,199
26
Cash and cash equivalents
13,045
10,407
12,928

27,628
24,320
26,654
Total assets
41,482
38,806
40,997








Current liabilities



Trade and other payables
5,381
5,305
5,398
Current tax liabilities
172
228
-
Short term provisions
1,031
757
959

6,584
6,290
6,357
Non-current liabilities



Retirement benefit obligation
11,868
9,951
12,192
Total liabilities
18,452
16,241
18,549




Net assets
23,030
22,565
22,448




Equity



Share capital
847
851
847
Share premium account
157
157
157
Capital redemption reserve
290
286
290
Translation reserve
724
1,043
929
Retained earnings
20,464
19,572
19,590
Total attributable to equity shareholders of the Company
22,482
21,909
21,813
Non-controlling interests
548
656
635




Total equity
23,030
22,565
22,448
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 year ended 30 September 2014 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 2014 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2014 Interim Financial Statements to take into account any presentational changes made in the 2014 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 2015
31 March 2014
30 September 2014

000's
000's
000's




Cash flows from operating activities



Operating profit
2,408
2,323
5,179
Depreciation and amortisation
450
514
1,194
Additional income to pension scheme
(663)
(663)
(1,360)
Exchange adjustments
(368)
(171)
(57)
(Profit)/loss on disposal of property, plant and equipment
-
(7)
(21)

1,827
1,996
4,935
(Increase)/decrease in inventories
5
366
56
(Increase)/decrease in trade and other receivables
(888)
(1,166)
(643)
Increase/(decrease) in trade and other payables
(17)
(140)
(47)
Increase/(decrease) in provisions
72
5
207
Cash generated from operations
999
1,061
4,508
Income tax paid
(136)
(325)
(605)
Net cash (used in) / from operating activities
863
736
3,903




Cash flows from investing activities



Acquisition of business and assets
-
(112)
(112)
Proceeds from sale of property, plant and equipment
-
11
47
Purchase of property, plant and equipment
(161)
(123)
(408)
Development costs capitalised
-
-
(70)
Interest received
48
39
85
Net cash (used in) / from investing activities
(113)
(185)
(458)




Cash flows from financing activities



Dividends paid
(525)
(482)
(720)
Purchase of own shares
(78)1
-
(104)
Net cash used in financing activities
(603)
(482)
(824)




Net increase/(decrease) in cash and cash equivalents
147
69
2,621




Cash and cash equivalents at beginning of period
12,928
10,506
10,506
Exchange adjustments on cash and cash equivalents
(30)
(168)
(199)
Cash and cash equivalents at end of period
13,045
10,407
12,928
1 This 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. 
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 and Broker)  Tel: +44 (0) 207 894 7000 
David Foreman / Will Goode (Corporate Finance) 
David Banks / Tessa Sillars (Corporate Broking)

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