REG - Dewhurst Group PLC - Interim Results
26/06/2023 07:00
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RNS Number : 7864D Dewhurst Group PLC 26 June 2023
Dewhurst Group plc
Interim Results for the 6 months ended 31 March 2023
Directors' Interim Report
FIRST HALF
The Group is rising to challenges presented by the new inflationary
environment in all our major markets. We are pleased to report improved
results with increased profit before tax and revenue figures for the first
half of the current financial year, but lower margins on sales. Overall, Group
revenue increased by 12% to £30.4 million (2022: £27.1 million) and
operating profit increased 4% to £4.0 million (2022: £3.8 million), while
profit before tax increased 8% to £4.0 million (2022: £3.7 million) and
earnings per share improved to 32.1p (2022: 28.4p). First half currency
movements increased Group revenue and profit by 4%.
Lift Division sales grew in most regions, led by a strong performance in
Canada and the USA, but the lull in major projects in Sydney continued through
the first half. There was a modest recovery in Keypad sales, but these
continue to be quite volatile and unpredictable from month to month. Overall
Transport sales were fairly similar to the previous year, but rail
infrastructure spending was down offset by a strong performance on highways
products.
The Group balance sheet remains strong with cash at the period end of £22.6
million (2022: £19.9 million).
OUTLOOK
In North America the underlying market remains strong, although there are
signs that the second half of this financial year may be impacted by a slowing
of orders and customer approvals to proceed. Orders in Australia are
reasonable, but we are still expecting it will take time for these orders to
filter through to sales as continuing customer labour constraints are leading
to some project delays. The UK has remained surprisingly steady given the
economic backdrop, but may tail off later in the year as the impact of
interest rate rises start to bite on the economy. We have better control this
year on dealing with cost increases and all companies are focussed on trying
to mitigate their impact. However, we are not able to pass all increases on to
customers, so we are continuing to see margins squeezed. Recruitment
challenges have eased a little in most of our markets and material
availability has improved. As a result we have been able to reduce our
abnormally high stock holdings, without a detrimental effect on service
levels.
DIVIDENDS
The Directors have declared an increased interim dividend of 4.75p per
ordinary share (2022: 4.50p) which amounts to £384,000 (2022: £364,000). The
interim dividend is payable on 15 August 2023 and will be posted on 10 August
2023 to shareholders appearing in the Register on 7 July 2023 (ex-dividend
date being 6 July 2023).
A final 2022 dividend of 10.25p (2021: 9.75p) which amounted to £828,000
(2021: £788,000) was approved at the AGM held on 14 February 2023 and was
paid on 22 February 2023 to members on the register at 20 January 2023.
By Order of the Board
J C SINCLAIR
Chief Financial Officer & Secretary
23 June 2023
Dewhurst Group 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 2023,
as compared with the corresponding half-year ended 31 March 2022 and the year
ended 30 September 2022, shows the following results:
Consolidated statement of comprehensive income
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2023 2022 2022
Continuing operations £000's £000's £000's
Revenue 30,379 27,050 57,565
Operating costs (26,423) (23,232) (50,269)
Adjusted operating profit 3,956 3,818 8,818
Cyber attack remediation costs - - (1,522)
Operating profit 3,956 3,818 7,296
Finance income 181 12 64
Finance costs (95) (102) (191)
Profit before taxation 4,042 3,728 7,169
Taxation Est. (1,448) Est. (1,436) (2,051)
Profit for the financial period 2,594 2,292 5,118
Other comprehensive income:
Actuarial gains/(losses) on the defined benefit pension scheme Est. (1,453) Est. 3,879 1,887
Deferred tax effect 363 (970) (472)
Current tax effect Est. 218 Est. 159 200
Total that will not be subsequently reclassified to income statement (872) 3,068 1,615
Exchange differences on translation of foreign operations (3,236) 1,414 3,563
Total that may be subsequently reclassified to income statement (3,236) 1,414 3,563
Other comprehensive income/(expense) for the period, net of tax (4,108) 4,482 5,178
Total comprehensive income for the period (1,514) 6,774 10,296
Profit for the period attributable to:
Equity shareholders of the company 2,532 2,179 4,849
Non-controlling interests 62 113 269
2,594 2,292 5,118
Total comprehensive income for the period attributable to:
Equity shareholders of the company (1,425) 6,578 9,867
Non-controlling interests (89) 196 429
(1,514) 6,774 10,296
Basic and diluted earnings per share 32.10p 28.36p 60.00p
Dividends per share 4.75p 4.50p 14.75p
Dewhurst Group plc
Consolidated statement of financial position
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2023 2022 2022
£000's £000's £000's
Non-current assets
Goodwill 9,672 9,890 10,105
Other intangibles 17 24 19
Property, plant and equipment 17,573 18,207 19,147
Right-of-use assets 2,159 2,625 2,473
Deferred tax asset 262 - 118
29,683 30,746 31,862
Current assets
Inventories 7,377 7,011 7,931
Trade and other receivables 12,475 12,116 12,318
Current tax asset - - 281
Cash and cash equivalents 22,590 19,854 21,764
42,442 38,981 42,294
Total assets 72,125 69,727 74,156
Current liabilities
Trade and other payables 7,618 7,703 7,783
Current tax liabilities 319 156 -
Short-term provisions 343 344 344
Lease liabilities 501 470 505
8,781 8,673 8,632
Non-current liabilities
Retirement benefit obligation 2,377 219 1,798
Deferred tax liabilities - 10 -
Lease liabilities 1,894 2,359 2,193
Total liabilities 13,052 11,261 12,623
Net assets 59,073 58,466 61,533
Equity
Share capital 808 808 808
Share premium account 157 157 157
Capital redemption reserve 329 329 329
Translation reserve 1,980 2,992 5,065
Retained earnings 54,357 52,672 53,525
Total attributable to equity shareholders of the company 57,631 56,958 59,884
Non-controlling interests 1,442 1,508 1,649
Total equity 59,073 58,466 61,533
Dewhurst Group plc
Consolidated statement of changes in equity
For the period ended 31 March 2023
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 2022 808 157 329 5,065 53,525 1,649 61,533
Exchange differences on
translation of foreign operations - - - (3,085) - (151) (3,236)
Actuarial gains/(losses) on defined benefit pension scheme
- - - - (1,453) - (1,453)
Deferred tax effect - - - - 363 - 363
Tax on items taken directly to equity (Est.)
- - - - 218 - 218
Dividends paid - - - - (828) (118) (946)
Profit for the period - - - - 2,532 62 2,594
At 31 March 2023 808 157 329 1,980 54,357 1,442 59,073
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
Dewhurst Group plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 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 - - - 3,403 - 160 3,563
Actuarial gains/(losses) on defined benefit pension scheme
- - - - 1,887 - 1,887
Deferred tax effect - - - - (472) - (472)
Tax on items taken directly to equity
- - - - 200 - 200
Dividends paid - - - - (1,152) (342) (1,494)
Profit for the year - - - - 4,849 269 5,118
At 30 September 2022 808 157 329 5,065 53,525 1,649 61,533
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 2022 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
2022 Financial Statements and its accounting policies, but where necessary
comparative information has been reclassified or expanded from the 2022
Interim Financial Statements to take into account any presentational changes
made in the 2022 Financial Statements or in these Interim Financial
Statements.
Dewhurst Group plc
Consolidated cash flow statement
Half year Half year Year
ended ended ended
31 March 31 March 30 Sept
2023 2022 2022
£000's £000's £000's
Cash flows from operating activities
Operating profit 3,956 3,818 7,296
Depreciation and amortisation 533 510 1,050
Right-of-use asset depreciation 251 238 509
Additional contributions to pension scheme (919) (683) (1,137)
Exchange adjustments (759) 240 738
(Profit)/loss on disposal of property, plant and equipment (17) (1) (13)
3,045 4,122 8,443
(Increase)/decrease in inventories 554 (414) (1,334)
(Increase)/decrease in trade and other receivables (157) (2,108) (2,310)
Increase/(decrease) in trade and other payables (165) 132 212
Increase/(decrease) in provisions (1) 1 1
Cash generated from operations 3,276 1,733 5,012
Interest paid - - (1)
Tax paid (398) (1,031) (1,712)
Net cash from operating activities 2,878 702 3,299
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 28 10 23
Purchase of property, plant and equipment (298) (309) (789)
Development costs capitalised - - (5)
Interest received 181 12 64
Net cash generated from/(used in) investing activities (89) (287) (707)
Cash flows from financing activities
Dividends paid (946) (1,039) (1,494)
Repayment of lease liabilities including interest (291) (277) (584)
Net cash used in financing activities (1,237) (1,316) (2,078)
Net increase/(decrease) in cash and cash equivalents 1,552 (901) 514
Cash and cash equivalents at beginning of period 21,764 20,463 20,463
Exchange adjustments on cash and cash equivalents (726) 292 787
Cash and cash equivalents at end of period 22,590 19,854 21,764
Contacts:
Dewhurst Group Plc
Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Chief Financial Officer
www.dewhurst-group.com (http://www.dewhurst-group.com)
Singer Capital Markets (Nominated Adviser and Sole Broker)
Tel: +44 (0)207 496
3000
Rick Thompson / Alex Bond / James Fischer
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