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 translationofforeignoperations
-
-
-
(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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