REG - Dewhurst Group PLC - Interim Results
15/06/2022 07:00
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RNS Number : 8774O Dewhurst Group PLC 15 June 2022
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 Group plc (the "Group")
Interim Results for the 6 months ended 31 March 2022
Directors' Interim Report
FIRST HALF
The Group has performed well despite the challenges in the macroeconomic
environment, particularly in some of our markets. We are pleased to report
that the results for the first half are broadly in line with market
expectations with an increased profit before tax figure for the first half of
the current financial year on slightly reduced sales. Overall, Group revenue
decreased by 6% to £27.1 million (2021: £28.9 million) and adjusted
operating profit (before acquired intangible amortisation) decreased 12% to
£3.8 million (2021: £4.4 million), while profit before tax increased 11% to
£3.7 million (2021: £3.4 million) and earnings per share improved to 28.4p
(2021: 26.4p).
Encouragingly, our UK Lift Division sales in the period were marginally up on
last year's first half, but overseas lift sales were lower. Sales were down in
Australia due to Covid-19 disruption, but sales in Canada and Hong Kong grew
to partially offset that fall. Transport sales were significantly down
compared to the previous year, which had been supported by a number of
Government Cycle Projects. There was some recovery in Keypad sales but these
remain quite volatile and unpredictable from month to month. First half
currency movements had no material impact on Group revenue or profits.
The Group balance sheet remains strong with cash at the period end of £19.9
million (2021: £17.6 million).
OUTLOOK
Overall order books in Australia are reasonably strong, but it may take a few
months for these orders to start to filter through to sales as material and
labour constraints are leading to some project delays. In North America the
market seems still to be relatively buoyant, at least for the remainder of
this year. The UK has remained fairly steady, but with rapidly rising
inflation and interest rates increasing there is a risk of demand tailing off.
It has also been a considerable challenge to keep on top of cost increases in
the first half and we do not anticipate this pressure is going to ease soon.
We have been able to pass on some increases to customers, but not fully, so
margins have been squeezed in a number of areas. With material challenges and
extended lead times globally we are holding more stock around the Group, but
consider this is a good investment in our efforts to maintain customer service
levels.
As has been previously reported, the Group suffered a serious cyber-attack in
May. The remediation costs will affect the profit in the second half, so the
full year profit is now forecast to be below last year and below market
expectations. The disruption to operations is expected to continue through
June as we recover our systems and data, but we are continuing to sell,
manufacture and despatch goods through the disruption.
DIVIDENDS
The Directors have declared an increased interim dividend of 4.50p per
ordinary share (2021: 4.25p) which amounts to £364,000 (2021: £343,000). The
interim dividend is payable on 16 August 2022 and will be posted on 11 August
2022 to shareholders appearing in the Register on 8 July 2022 (ex-dividend
date being 7 July 2022).
A final 2021 dividend of 9.75p (2020: 9.25p) which amounted to £788,000
(2020: £748,000) was approved at the AGM held on 15 February 2022 and was
paid on 23 February 2022 to members on the register at 21 January 2022.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
14 June 2022
Dewhurst Group plc (formerly Dewhurst plc)
The unaudited consolidated statement of comprehensive income, statement of
financial position, statement of changes in equity and cash flow statement of
Dewhurst Group plc and its subsidiaries for the half-year ended 31 March 2022,
as compared with the corresponding half-year ended 31 March 2021 and the year
ended 30 September 2021, shows the following results:
Consolidated statement of comprehensive income
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2022 2021 2021
Continuing operations £000's £000's £000's
Revenue 27,050 28,881 56,249
Operating costs (23,232) (25,354) (46,395)
Adjusted operating profit 3,818 4,361 9,214
Profit on sale of property, plant and equipment^ - - 1,751
Amortisation of acquired intangibles - (834) (1,111)
Operating profit 3,818 3,527 9,854
Finance income 12 6 20
Finance costs (102) (164) (311)
Profit before taxation 3,728 3,369 9,563
Taxation Est. (1,436) Est. (1,237) (2,110)
Profit for the financial period 2,292 2,132 7,453
Other comprehensive income:
Actuarial gains/(losses) on the defined benefit pension scheme Est. 3,879 Est. 3,153 5,344
Deferred tax effect (970) (599) (1,336)
Current tax effect Est. 159 Est. 113 224
Total that will not be subsequently reclassified to income statement 3,068 2,667 4,232
Exchange differences on translation of foreign operations 1,414 (44) (425)
Total that may be subsequently reclassified to income statement 1,414 (44) (425)
Other comprehensive income/(expense) for the period, net of tax 4,482 2,623 3,807
Total comprehensive income for the period 6,774 4,755 11,260
Profit for the period attributable to:
Equity shareholders of the company 2,179 1,925 7,030
Non-controlling interests 113 207 423
2,292 2,132 7,453
Total comprehensive income for the period attributable to:
Equity shareholders of the company 6,578 4,539 10,877
Non-controlling interests 196 216 383
6,774 4,755 11,260
Basic and diluted earnings per share 28.36p 26.38p 86.98p
Dividends per share 4.50p 4.25p 14.00p
^ Gain arising on the disposal of the old premises at Dupar Controls Inc.
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of financial position
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2022 2021 2021
£000's £000's £000's
Non-current assets
Goodwill 9,890 9,766 9,626
Other intangibles 24 305 24
Property, plant and equipment 18,207 18,351 17,827
Right-of-use assets 2,625 3,035 2,802
Deferred tax asset - 1,917 1,111
30,746 33,374 31,390
Current assets
Inventories 7,011 5,792 6,597
Trade and other receivables 12,116 11,790 10,008
Cash and cash equivalents 19,854 17,627 20,463
38,981 35,209 37,068
Total assets 69,727 68,583 68,458
Current liabilities
Trade and other payables 7,703 9,666 7,571
Borrowings - 983 -
Current tax liabilities 156 237 89
Short-term provisions 344 343 343
Lease liabilities 470 445 450
8,673 11,674 8,453
Non-current liabilities
Retirement benefit obligation 219 7,522 4,737
Deferred tax liabilities 10 - -
Lease liabilities 2,359 2,755 2,537
Total liabilities 11,261 21,951 15,727
Net assets 58,466 46,632 52,731
Equity
Share capital 808 808 808
Share premium account 157 157 157
Capital redemption reserve 329 329 329
Translation reserve 2,992 1,994 1,662
Retained earnings 52,672 41,887 48,213
Total attributable to equity shareholders of the company 56,958 45,175 51,169
Non-controlling interests 1,508 1,457 1,562
Total equity 58,466 46,632 52,731
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of changes in equity
For the period ended 31 March 2022
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 2021 808 157 329 1,662 48,213 1,562 52,731
Exchange differences on
translation of foreign operations - - - 1,330 - 84 1,414
Actuarial gains/(losses) on defined benefit pension scheme
- - - - 3,879 - 3,879
Deferred tax effect - - - - (970) - (970)
Tax on items taken directly to equity (Est.)
- - - - 159 - 159
Dividends paid - - - - (788) (251) (1,039)
Profit for the period - - - - 2,179 113 2,292
At 31 March 2022 808 157 329 2,992 52,672 1,508 58,466
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
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 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
Share repurchase - - - - - - -
Exchange differences on
translation of foreign operations - - - (385) - (40) (425)
Actuarial gains/(losses) on defined benefit pension scheme
- - - - 5,344 - 5,344
Deferred tax effect - - - - (1,336) - (1,336)
Tax on items taken directly to equity
- - - - 224 - 224
Dividends paid - - - - (1,091) (264) (1,355)
Profit for the year - - - - 7,030 423 7,453
At 30 September 2021 808 157 329 1,662 48,213 1,562 52,731
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
2021 Financial Statements and its accounting policies, but where necessary
comparative information has been reclassified or expanded from the 2021
Interim Financial Statements to take into account any presentational changes
made in the 2021 Financial Statements or in these Interim Financial
Statements.
Dewhurst Group plc (formerly Dewhurst plc)
Consolidated cash flow statement
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2022 2021 2021
£000's £000's £000's
Cash flows from operating activities
Operating profit 3,818 3,527 9,854
Depreciation and amortisation 510 1,283 2,317
Right-of-use asset depreciation 238 245 489
Additional contributions to pension scheme (683) (683) (1,357)
Exchange adjustments 240 595 (49)
(Profit)/loss on disposal of property, plant and equipment (1) (28) (1,774)
4,122 4,939 9,480
(Increase)/decrease in inventories (414) 416 (389)
(Increase)/decrease in trade and other receivables (2,108) (2,237) (455)
Increase/(decrease) in trade and other payables 132 233 (1,213)
Increase/(decrease) in provisions 1 - -
Cash generated from operations 1,733 3,351 7,423
Interest paid - (13) (25)
Tax paid (1,031) (976) (1,896)
Net cash from operating activities 702 2,362 5,502
Cash flows from investing activities
Acquisition of business and assets - (649) (649)
Proceeds on disposal of a subsidiary (net of cash disposed) - - -
Proceeds from sale of property, plant and equipment 10 58 2,122
Purchase of property, plant and equipment (309) (1,888) (2,500)
Development costs capitalised - - (15)
Interest received 12 6 20
Net cash generated from/(used in) investing activities (287) (2,473) (1,022)
Cash flows from financing activities
Dividends paid (1,039) (949) (1,355)
Purchase of own shares - - -
Repayment of lease liabilities including interest (277) (285) (562)
Proceeds from bank borrowings - 908 (69)
Net cash used in financing activities (1,316) (326) (1,986)
Net increase/(decrease) in cash and cash equivalents (901) (437) 2,494
Cash and cash equivalents at beginning of period 20,463 18,139 18,139
Exchange adjustments on cash and cash equivalents 292 (75) (170)
Cash and cash equivalents at end of period 19,854 17,627 20,463
Contacts:
Dewhurst Group Plc
Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst-group.com (http://www.dewhurst-group.com)
Singer Capital Markets (Nominated Adviser and Sole Broker)
Tel: +44 (0)207 496
3000
Will Goode / James Fischer
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