REG - Dewhurst PLC - Interim Results

DewhurstAnnouncement

11/06/2019 07:00

RNS Number : 7324B
Dewhurst PLC
11 June 2019
 


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 2019
 
Directors' Interim Report
 
FIRST HALF
We are pleased to report significant growth in sales and adjusted operating profits in the first half of the year. The increase included the effect of a full six months' trading of A&A Electrical Distributors Ltd (A&A), but even allowing for this most recent acquisition, the underlying performance of the Group, particularly in Australia, was also up. Overall, Group revenue increased by 31% to £32.3 million (2018: £24.7 million) and adjusted operating profit (before acquired intangible amortisation) increased 36% to £4.0 million (2018: £2.9 million). Profit before tax increased 8% to £3.1 million (2018: £2.8 million) with earnings per share also improving to 25.0p (2018: 23.2p).
 
Whilst the Group's performance was encouraging in almost all areas, continued pressure on UK local authority spending, has dampened transport sales.  Elsewhere, UK lift sales have so far remained resilient despite the uncertainty caused by Brexit and overseas lift sales have performed well. Keypad sales have remained stable at a similar level of sales to the second half of last year, which was a significant improvement on last year's first half. Unusually, first half currency movements have not had a material impact on the Group's revenue or profits.
 
The Group balance sheet remains strong with cash at the period end of £6.2 million (2018: £18.0 million). Since 31 March 2018 the Group has paid out £10.5 million on the acquisition of A&A, £2.7 million on a property for LMA and £1.2 million on land for Dupar. These key investments have utilised a significant amount of the Group's free cash but have not affected its day to day working capital requirements. The Group has been able to operate successfully without a bank overdraft facility.
 
OUTLOOK
Demand in most of our markets, excluding the transportation sector as noted above, is currently steady or improving. In the UK we are still faced with uncertainty regarding Brexit. We cannot tell how this might affect demand later in the second half, but we are retaining our higher inventory levels for the time being until the way forward is clearer.  In Australia, the previous government has just been re-elected. As a result, it is expected that the economic climate should remain positive and the recent hesitancy in committing to some projects may be resolved.  North America remains busy and the trade tensions have, so far not had an impact in our market sector. The uncertainty in the UK clouds our overall view for the future, but elsewhere we are encouraged by the prospects for the Group.
 
DIVIDENDS
The Directors have declared an interim dividend of 3.75p per ordinary share (2018: 3.50p) which amounts to £315,000 (2018: £295,000). The interim dividend is payable on 20 August 2019 and will be posted on 15 August 2019 to shareholders appearing in the Register on 5 July 2019 (ex-dividend date being 4 July 2019).
 
A final 2018 dividend of 9.00p (2017: 8.50p) which amounted to £758,000 (2017: £716,000) was approved at the AGM held on 5 February 2019 and was paid on 13 February 2019 to members on the register at 17 January 2019.
 
By Order of the Board
 
J C SINCLAIR
Finance Director & Secretary
10 June 2019
 
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 2019, as compared with the corresponding half-year ended 31 March 2018 and the year ended 30 September 2018, shows the following results:
 
Consolidated statement of comprehensive income




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 September




 


2019


2018


2018




Continuing operations


£000's


£000's


£000's




 


 


 


 




Revenue


32,329


24,669


54,510




Operating costs


(29,158)


(21,724)


(48,322)




Adjusted operating profit


4,005


2,945


6,743




Amortisation of acquired intangibles


(834)


-


(555)




Operating profit


3,171


2,945


6,188




Finance income


13


52


86




Finance costs


(109)


(152)


(291)




Profit before taxation


3,075


2,845


5,983




Taxation


Est. (971)


Est. (894)


(1,723)




Profit for the financial period


2,104


1,951


4,260




 


 


 


 




Other comprehensive income:


 


 


 




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


Est. (2,831)


Est. (485)


3,080




Current tax effect


 Est. 106


-


140




Deferred tax effect


481


82


(524)




Total that will not be subsequently reclassified to income statement


(2,244)


(403)


2,696




 


 


 


 




Exchange differences on translation of foreign operations


(446)


(1,393)


(727)




Total that may be subsequently reclassified to income statement


(446)


(1,393)


(727)




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


(2,690)


(1,796)


1,969




Total comprehensive income for the period


(586)


155


6,229




 


 


 


 




Profit for the period attributable to:


 


 


 




Equity shareholders of the company


1,931


1,822


4,039




Non-controlling interests


173


129


221




 


2,104


1,951


4,260




 


 


 


 




Total comprehensive income for the period attributable to:


 


 


 




Equity shareholders of the company


(732)


99


6,070




Non-controlling interests


146


56


159




 


(586)


155


6,229




 


 


 


 




Basic and diluted earnings per share


24.99p


23.16p


47.93p




Dividends per share


3.75p


3.50p


12.50p




 
 
 
 
Dewhurst plc
 
Consolidated statement of financial position




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 September




 


2019


2018


2018




 


£000's


£000's


£000's




Non-current assets


 


 


 




Goodwill


8,505


4,252


8,598




Other intangibles


3,675


94


4,510




Property, plant and equipment


13,162


9,181


9,271




Deferred tax asset


2,101


2,273


1,639




 


27,443


15,800


24,018




 


 


 


 




Current assets


 


 


 




Inventories


6,640


4,947


6,279




Trade and other receivables


13,656


9,873


13,920




Cash and cash equivalents


6,249


18,006


9,440




 


26,545


32,826


29,639




Total assets


53,988


48,626


53,657




 


 


 


 




Current liabilities


 


 


 




Trade and other payables


7,890


5,139


8,185




Current tax liabilities


304


239


532




Short-term provisions


310


252


304




 


8,504


5,630


9,021




Non-current liabilities


 


 


 




Retirement benefit obligation


9,902


11,716


7,628




Total liabilities


18,406


17,346


16,649




Net assets


35,582


31,280


37,008




 


 


 


 




Equity


 


 


 




Share capital


840


842


842




Share premium account


157


157


157




Capital redemption reserve


297


295


295




Translation reserve


1,545


1,309


1,964




Retained earnings


31,540


27,672


32,693




Total attributable to equity shareholders of the company


34,379


30,275


35,951




Non-controlling interests


1,203


1,005


1,057




Total equity


35,582


31,280


37,008




 
 
 
 
Dewhurst plc
 
Consolidated statement of changes in equity
 
For the period ended 31 March 2019




 


 


 


 


 


 


 


 




 


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 2018


842


157


295


1,964


32,693


1,057


37,008




Profit for the period


-


-


-


-


1,931


173


2,104




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
(419)


 
-


 
(27)


 
(446)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
(2,831)


 
-


 
(2,831)




Tax on items taken directly to equity (Est.)


 
-


 
-


 
-


 
-


 
106


 
-


 
106




Deferred tax effect


-


-


-


-


481


-


481




Total comprehensive income


-


-


-


(419)


(313)


146


(586)




Shares repurchased


(2)


-


2


-


(82)


-


(82)




Dividends paid


-


-


-


-


(758)


-


(758)




 


 


 


 


 


 


 


 




At 31 March 2019


840


157


297


1,545


31,540


1,203


35,582



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
 
For the period ended 31 March 2018




 


 


 


 


 


 


 


 




 


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 2017


842


157


295


2,629


26,969


1,001


31,893




Profit for the period


-


-


-


-


1,822


129


1,951




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
(1,320)


 
-


 
(73)


 
(1,393)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
(485)


 
-


 
(485)




Deferred tax effect


-


-


-


-


82


-


82




Total comprehensive income


-


-


-


(1,320)


1,419


56


155




Dividends paid


-


-


-


-


(716)


(52)


(768)




 


 


 


 


 


 


 


 




At 31 March 2018


842


157


295


1,309


27,672


1,005


31,280



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
Dewhurst plc
 
Consolidated statement of changes in equity (cont'd)
 
For the year ended 30 September 2018




 


 


 


 


 


 


 


 




 


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 2017


842


157


295


2,629


26,969


1,001


31,893




Profit for the year


-


-


-


-


4,039


221


4,260




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
(665)


 
-


 
(62)


 
(727)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
3,080


 
-


 
3,080




Tax on items taken directly to equity


 
-


 
-


 
-


 
-


 
140


 
-


 
140




Deferred tax effect


-


-


-


-


(524)


-


(524)




Total comprehensive income


-


-


-


(665)


6,735


159


6,229




Dividends paid


-


-


-


-


(1,011)


(103)


(1,114)




 


 


 


 


 


 


 


 




At 30 September 2018


842


157


295


1,964


32,693


1,057


37,008



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
 
 
 
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 2018 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 2018 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2018 Interim Financial Statements to take into account any presentational changes made in the 2018 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




 


2019


2018


2018




 


£000's


£000's


£000's




Cash flows from operating activities


 


 


 




Operating profit


3,171


2,945


6,188




Depreciation and amortisation


1,343


431


1,572




Additional contributions to pension scheme


(666)


(673)


(1,331)




Exchange adjustments


(162)


(706)


(155)




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


(14)


(9)


36




 


3,672


1,988


6,310




(Increase)/decrease in inventories


(361)


619


(487)




(Increase)/decrease in trade and other receivables


264


138


(3,909)




Increase/(decrease) in trade and other payables


(295)


(428)


2,618




Increase/(decrease) in provisions


6


(74)


(22)




Cash generated from operations


3,286


2,243


4,510




Interest paid


-


-


(3)




Tax paid


(1,003)


(681)


(1,270)




Net cash from operating activities


2,283


1,562


3,237




 


 


 


 




Cash flows from investing activities


 


 


 




Acquisition of business and assets


-


-


(9,525)




Proceeds from sale of property, plant and equipment


14


12


43




Purchase of property, plant and equipment


(4,571)


(554)


(1,161)




Development costs capitalised


-


-


(29)




Interest received


13


52


86




Net cash generated from/(used in) investing activities


(4,544)


(490)


(10,586)




 


 


 


 




Cash flows from financing activities


 


 


 




Purchase of own shares


(82)


-


-




Dividends paid


(758)


(768)


(1,114)




Net cash used in financing activities


(840)


(768)


(1,114)




 


 


 


 




Net increase/(decrease) in cash and cash equivalents


(3,101)


304


(8,463)




Cash and cash equivalents at beginning of period


9,440


18,087


18,087




Exchange adjustments on cash and cash equivalents


(90)


(385)


(184)




Cash and cash equivalents at end of period


6,249


18,006


9,440




 


 


 


 




 
 
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)
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
 
 
IR DMGMVKGVGLZM