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)
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