Interim Results

FW Thorpe

06/03/2025 07:00

RNS Number : 5452Z

Thorpe(F.W.) PLC

06 March 2025

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2024

 

FW Thorpe Plc - a group of companies that design, manufacture and supply professional lighting systems - is pleased to announce its interim results for the six months ended 31 December 2024.

 

Financial highlights:

Interim
2025 (unaudited)
Interim
2024 (unaudited)
Revenue
£83.8m
£82.6m
+1.4%
Operating profit (before acquisition adjustments)*
£12.6m
£12.3m
+2.4%
Operating profit
£11.5m
£11.2m
+3.0%
Profit before tax
£11.2m
£10.7m
+4.6%
Basic earnings per share
7.65p
7.31p
+4.7%
*Acquisition adjustments include amortisation of intangible assets.


·      Interim dividend 1.76p (Interim 2024: 1.70p) - 3.5% increase

·      Steady results for the period with growth at Thorlux and Zemper, supporting overall increase in revenues and operating profit

·      Improved performance at the majority of the UK companies

·      Dutch companies struggling to match the strong performance of last year

·      Strong cash flow generation with net cash from operating activities of £15.0m (Interim 2024: £14.0m)

 

Note: This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 (MAR).

For further information, please contact:                                                                         

FW Thorpe Plc
Mike Allcock - Non-Executive Chairman
01527 583200
Craig Muncaster - Chief Executive and Group Financial Director
Singer Capital Markets - Nominated Adviser
James Moat / Sam Butcher
020 7496 3000

CHAIRMAN'S INTERIM STATEMENT

The results for the interim period, ending 31 December 2024, are in line with the Board's expectations, with varying but generally positive performances groupwide.

 

Thorlux Lighting and Zemper started the year very positively, while all other UK companies showed a pleasing upturn. Lightronics has so far been unable to match the record figures of the previous financial year, whilst SchahlLED's performance has been impacted by the ongoing recession in Germany, which has particularly affected the industrial sector. TRT Lighting's efforts to boost order income are yielding positive results, although the company remains loss-making at the half year point.

 

The Board continues to invest into new product development across the Group, with emphasis on technical innovations that provide environmentally friendly solutions to our customers. Additionally, the Group also continues to strengthen its local sales and project management capabilities, enhancing the customer's journey from selection of products through to installation, commissioning, and after-sales support.

 

While major production investments were limited during the period, the Board has recently approved an investment into new machinery for the Thorlux factory. These upgrades will speed up operations whilst saving significant amounts of energy, reducing costs and environmental impact. Thorlux has also placed orders to refresh its transport fleet with newer, more efficient vehicles, including its first fully electric delivery vans.

 

Given the increasing technological sophistication of our internal and lighting-based systems, I am pleased that Thorlux achieved independent certification of these systems to ISO 27001, the internationally recognised standard for information security management. Where appropriate, some of these system foundations are also being transferred to the smaller Group companies to enhance their security too.

 

As a result of the Group's ongoing performance and its strong balance sheet, the Board has approved an interim dividend of 1.76p per share (interim 2024: 1.70p), representing a 3.5% increase.

 

At the time of writing, the Group's order book remains strong, and revenue is marginally ahead of last year. Forecast rising costs, mainly due to wage and National Insurance increases, will be offset by certain material cost reductions and efficiency improvements. As a result, the Board anticipates a marginal improvement in profit for the financial year ending June 2025.

 

The Board continues to assess the opportunities to maximise returns from the Company's strong balance sheet, which may include share buybacks where it considers that the share price significantly undervalues the Company's current position and future prospects.

 

 

 

 

Mike Allcock

Chairman

6 March 2025

FW Thorpe Plc

 

 

 

 

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2024

 

31.12.24
(six months to)
31.12.23
(six months to)
30.06.24
(twelve months to)
(unaudited)
(unaudited)
(audited)
£'000
£'000
£'000
Revenue
83,761
82,593
175,798
Operating profit
11,537
11,203
30,631
Finance income
804
424
1,127
Finance expense
(404)
(312)
(1,059)
Share of loss of joint ventures
(720)
(597)
(826)
Profit before tax
11,217
10,718
29,873
Income tax expense
(2,240)
(2,148)
(5,560)
Profit for the period
8,977
8,570
24,313


 

 

 

Dividend rate per share:
Interim
1.76p
1.70p
1.70p
Final
-
-
5.08p
Special
-
-
2.50p

 

Earnings per share
- basic
7.65p
7.31p
20.73p
- diluted
7.65p
7.31p
20.73p

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2024

 

31.12.24 (six months to)
31.12.23 (six months to)
30.06.24
(twelve months to)
(unaudited)
(unaudited)
(audited)
£'000
£'000
£'000
Profit for the period
8,977
8,570
24,313
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
(673)
223
(514)
(673)
223
(514)
Items that will not be reclassified to profit or loss
Revaluation of financial assets at fair value through other comprehensive income *
(93)
290
403
Movement on associated deferred tax
23
(73)
(101)
Actuarial loss on pension scheme **
-
-
937
Movement on unrecognised pension surplus **
-
-
(1,213)
(70)
217
26
Other comprehensive (expense)/income for the period, net of tax
(743)
440
(488)
Total comprehensive income for the period
8,234
9,010
23,825


 

 

All comprehensive income is attributable to the owners of the company.

 

* The loss on the revaluation of financial assets at fair value through other comprehensive income of £93,000 is due to the decrease in market value of these investments.

** No interim actuarial valuation undertaken

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2024

 

As at
As at
As at
31.12.24
31.12.23
30.06.24
(unaudited)
(unaudited)
(audited)
Assets
£'000
£'000
£'000
Non-current assets
Property, plant and equipment
37,610
38,752
38,323
Intangible assets
64,044
70,308
66,104
Investment properties
4,380
4,757
4,403
Financial assets at amortised cost
182
242
186
Equity accounted joint ventures
6,217
5,042
4,671
Financial assets at fair value through other comprehensive income
3,125
3,654
3,757
Deferred income tax assets
425
391
347
115,983
123,146
117,791
Current assets
Inventories
28,962
30,159
28,997
Trade and other receivables
33,497
35,333
35,764
Financial assets at amortised cost
1,372
3,202
3,437
Short-term financial assets
16,106
4
18,965
Cash and cash equivalents
37,147
31,295
33,943
Total current assets
117,084
99,993
121,106
Total assets
233,067
223,139
238,897
Liabilities
Current liabilities
Trade and other payables
(36,309)
(36,438)
(35,383)
Financial liabilities
(561)
(1,179)
(1,252)
Lease liabilities
(857)
(761)
(778)
Current income tax liabilities
(1,201)
(1,288)
(949)
Total current liabilities
(38,928)
(39,666)
(38,362)
Net current assets
78,156
60,327
82,744
Non-current liabilities
Other payables
(5,204)
(5,476)
(10,418)
Financial liabilities
(1,032)
(1,220)
(1,210)
Lease liabilities
(3,168)
(3,543)
(3,385)
Provisions for liabilities and charges
(3,365)
(3,449)
(3,325)
Deferred income tax liabilities
(4,924)
(6,058)
(5,435)
Total non-current liabilities
(17,693)
(19,746)
(23,773)
Total liabilities
(56,621)
(59,412)
(62,135)
Net assets
176,446
163,727
176,762
Equity attributable to owners of the company
Issued share capital
1,189
1,189
1,189
Share premium account
3,113
3,026
3,088
Capital redemption reserve
137
137
137
Foreign currency translation reserve
852
2,262
1,525
Retained earnings
At 1 July
170,823
154,000
154,000
Profit for the year attributable to owners
8,977
8,570
24,313
Other changes in retained earnings
(8,645)
(5,457)
(7,490)
171,155
157,113
170,823
Total equity
176,446
163,727
176,762

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2024

 

Share Capital
Share Premium
Capital Redemption Reserve
Foreign Currency Translation Reserve
Retained Earnings
Total Equity
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 30 June 2023
1,189
2,976
137
2,039
154,000
160,341
Comprehensive income
Profit for six months to 31 December 2023
-
-
-
-
8,570
8,570
Other comprehensive income
-
-
-
223
217
440
Total comprehensive income
-
-
-
223
8,787
9,010
Transactions with owners
Share options exercised
-
50
-
-
-
50
Dividends paid to shareholders
-
-
-
-
(5,674)
(5,674)
Total transactions with owners
-
50
-
-
(5,674)
(5,624)
Balance at 31 December 2023
1,189
3,026
137
2,262
157,113
163,727
Comprehensive income
Profit for six months to 30 June 2024
-
-
-
-
15,743
15,743
Actuarial gain on pension scheme
-
-
-
-
937
937
Movement on unrecognised pension surplus
-
-
-
-
(1,213)
(1,213)
Revaluation of financial assets at fair value through other comprehensive income
-
-
-
-
113
113
Movement on associated deferred tax
-
-
-
-
(28)
(28)
Exchange rate differences on translation of foreign operations
-
-
-
(737)
-
(737)
Total comprehensive income
-
-
-
(737)
15,552
14,815
Transactions with owners
Share options exercised
-
62
-
-
-
62
Share based payment charges
-
-
-
-
152
152
Dividends paid to shareholders
-
-
-
-
(1,994)
(1,994)
Total transactions with owners
-
62
-
-
(1,842)
(1,780)
Balance at 30 June 2024
1,189
3,088
137
1,525
170,823
176,762
Comprehensive income
Profit for six months to 31 December 2024
-
-
-
-
8,977
8,977
Other comprehensive income
-
-
-
(673)
(70)
(743)
Total comprehensive income
-
-
-
(673)
8,907
8,234
Transactions with owners
Share options exercised
-
25
-
-
-
25
Share based payment charges
-
-
-
-
320
320
Dividends paid to shareholders
-
-
-
-
(8,895)
(8,895)
Total transactions with owners
-
25
-
-
(8,575)
(8,550)
Balance at 31 December 2024
1,189
3,113
137
852
171,155
176,446

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months to 31 December 2024

31.12.24
(six months to)
31.12.23
(six months to)
30.06.24
(twelve months to)
(unaudited)
(unaudited)
(audited)
£'000
£'000 (restated)*
£'000
Cash generated from operations
Profit before tax
11,217
10,718
29,873
Depreciation of property, plant and equipment
2,548
2,349
4,814
Depreciation of investment property
23
23
45
Amortisation of intangible assets
2,291
2,445
5,846
Impairment of goodwill
-
-
249
Fair value adjustment on redemption liability
-
-
(1,402)
Profit on disposal of property, plant and equipment
(38)
(104)
(125)
Loss on disposal of intangible assets
4
-
-
Profit on disposal of investment property
-
-
(134)
Net finance income
(400)
(112)
(68)
Retirement benefit contributions less service charge
(133)
(107)
(276)
Share of joint venture loss
720
597
826
Share based payment charge
320
-
152
Research and development expenditure credit
(181)
(277)
(356)
Effects of exchange rate movements
1,817
(641)
907
Changes in working capital
- Inventories
(276)
3,409
4,258
- Trade and other receivables
2,658
506
135
- Payables and provisions
(2,546)
(2,935)
3,016
Cash generated from operations
18,024
15,871
47,760
Tax paid
(3,018)
(1,827)
(6,390)
Net cash generated from operating activities
15,006
14,044
41,370
Cash flow from investing activities
Purchase of property, plant and equipment
(1,941)
(2,893)
(5,121)
Proceeds from sale of property, plant and equipment
107
216
407
Purchase of intangible assets
(1,557)
(1,295)
(2,172)
Payment of exit earn out of a purchased subsidiary*
-
-
(606)
Payment of deferred consideration on a joint venture
(811)
-
-
Purchase of investment property
-
(2,143)
(2,179)
Proceeds from sale of investment property
-
-
502
Net sale of financial assets at fair value through Other Comprehensive Income
539
-
9
Property rental and similar income
38
25
208
Dividend income received
100
85
182
Net withdrawal/(deposit) of short-term financial assets
2,793
-
(18,994)
Interest received
674
204
522
Issue of loans receivable
(395)
(650)
(1,082)
Net cash used in investing activities
(453)
(6,451)
(28,324)
Cash flow from financing activities
Net proceeds from the issuance of ordinary shares
25
50
112
Addition of lease liabilities
47
-
13
Proceeds from borrowings
18
-
439
Repayment of borrowings
(842)
(522)
(839)
Principal element of lease payments
(437)
(423)
(855)
Payment of interest
(131)
(153)
(296)
Payment for redemption of shares in a subsidiary*
-
(4,290)
(4,266)
Payments to non-controlling interests
(469)
(447)
(452)
Dividends paid to company shareholders
(8,895)
(5,674)
(7,668)
Net cash used in financing activities
(10,684)
(11,459)
(13,812)
Net increase/(decrease) in cash and cash equivalents
3,869
(3,866)
(766)
Cash and cash equivalents at the beginning of the period
33,943
35,013
35,013
Effects of exchange rate changes on cash
(665)
148
(304)
Cash and cash equivalents at the end of the period
37,147
31,295
33,943

*Payment of exit earn out of a purchased subsidiary restated as payment for redemption of shares in a subsidiary

 

Notes to the Interim Financial Statements

 

1.   Basis of preparation

The consolidated interim financial statements for the six months to 31 December 2024 have been prepared in accordance with the AIM Rules for Companies, UK adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards, with future changes being subject to endorsement by the UK Endorsement Board.

The figures for the period to 31 December 2024 and the comparative period to 31 December 2023 have not been audited or reviewed and are therefore disclosed as unaudited. The figures for 30 June 2024 have been extracted from the financial statements for the year to 30 June 2024, which have been delivered to the Registrar of Companies. The interim financial statements do not constitute statutory accounts within the meaning of the Companies Act 2006.

       The financial statements are presented in Pounds Sterling, rounded to the nearest thousand.

       The interim financial statements are prepared under the historical cost convention, modified by the revaluation of certain current and non-current investments at fair value through profit or loss and through other comprehensive income.

       The accounting policies set out in the financial statements for the year ended 30 June 2024 have been applied consistently throughout the Group during the period.

      

2.   Segmental analysis

The segmental analysis is presented on the same basis as that used for internal reporting purposes.  For internal reporting FW Thorpe is organised into twelve operating segments, based on the products and customer base in the lighting market - the largest business is Thorlux, which manufactures professional lighting systems for the industrial, commercial and controls markets.  The businesses of Lumen Intelligence Holding GmbH, SchahlLED Lighting GmbH and Thorlux Lighting Limited are included in this segment in accordance with the Group's internal reporting. The businesses in the Netherlands, Lightronics and Famostar, are material subsidiaries and disclosed separately as Netherlands companies. The businesses in the Zemper Group are also material and disclosed separately as Zemper Group. 

The seven remaining continuing operating segments have been aggregated into the "other companies" segment based on their size, comprising the entities Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited, Thorlux L.L.C, Thorlux Australasia PTY Limited and Thorlux Lighting GmbH.

FW Thorpe's chief operating decision-maker (CODM) is the Group Board.  The Group Board reviews the Group's internal reporting in order to monitor and assess the performance of the operating segments for the purpose of making decisions about resources to be allocated.  The CODM reviews the performance of the business by considering the key profit measure of operating profit, including the impact of associated contingent consideration arrangements, and considers that none of the other operating segments are of sufficient size and distinction to be reviewed separately when making Group wide strategic decisions.  Assets and liabilities have not been segmented which is consistent with the Group's internal reporting.

Inter-segment adjustments to operating profit consist of property rentals on premises owned by FW Thorpe Plc, adjustments to profit related to stocks held within the Group that were supplied by another segment.

 

2.     Segmental analysis (continued)

Thorlux
Netherlands
Companies
Zemper
Group
Other
Companies
Inter-
Segment
Total
Continuing
Operations
£'000
£'000
£'000
£'000
£'000
£'000
Six months to 31 December 2024
Revenue to external customers
48,777
16,564
10,120
8,300
-
83,761
Revenue to other Group companies
1,693
117
36
2,815
(4,661)
-
Total revenue
50,470
16,681
10,156
11,115
(4,661)
83,761
EBITDA
9,618
3,211
2,388
899
283
16,399
Depreciation and amortisation
2,377
556
1,277
652
-
4,862
Operating profit before acquisition adjustments
7,762
2,760
1,547
247
283
12,599
Operating profit
7,241
2,655
1,111
247
283
11,537
Net finance income
400
Share of loss of joint venture
(720)
Profit before tax expense
11,217
Acquisition adjustments includes amortisation for intangible assets.
Thorlux
Netherlands
Companies
Zemper
Group
Other
Companies
Inter-
Segment
Total
Continuing
Operations
£'000
£'000
£'000
£'000
£'000
£'000
Six months to 31 December 2023
Revenue to external customers
46,465
18,118
8,959
9,051
-
82,593
Revenue to other Group companies
1,717
99
9
1,850
(3,675)
-
Total revenue
48,182
18,217
8,968
10,901
(3,675)
82,593
EBITDA
9,151
4,101
1,774
925
69
16,020
Depreciation and amortisation
2,274
633
1,288
622
-
4,817
Operating profit before acquisition adjustments
7,414
3,576
935
303
69
12,297
Operating profit
6,877
3,468
486
303
69
11,203
Net finance income
112
Share of loss of joint venture
(597)
Profit before tax expense
10,718
Acquisition adjustments includes amortisation for intangible assets.


 

Thorlux
Netherlands
Companies
Zemper
Group
Other
Companies
Inter-
Segment
Total
Continuing
Operations
£'000
£'000
£'000
£'000
£'000
£'000
Year to 30 June 2024
Revenue to external customers
99,492
37,942
19,350
19,014
-
175,798
Revenue to other Group companies
3,555
220
93
3,821
(7,689)
-
Total revenue
103,047
38,162
19,443
22,835
(7,689)
175,798
EBITDA
23,402
9,810
4,595
2,347
1,431
41,585
Depreciation and amortisation
5,495
1,223
2,607
1,629
-
10,954
Operating profit before acquisition adjustments
19,933
8,802
2,880
718
30
32,363
Operating profit
17,907
8,587
1,988
718
1,431
30,631
Net finance income
68
Share of profit of joint ventures
(826)
Profit before tax expense
29,873

Acquisition adjustments includes amortisation for intangible assets of £3.1m and gains on changes in fair value of redemption liability of £1.4m.

 

3.   Earnings per share

       The basic earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 117,340,447 (Interim 2024: 117,237,021) during the period. 

The diluted earnings per share is calculated on profit after taxation and the weighted average number of potentially dilutive ordinary shares in issue of 117,362,566 (Interim 2024: 117,306,123) during the period.

 

4.   Dividend

       The interim dividend is at the rate of 1.76p per share (Interim 2024: 1.70p) and based on 117,271,586 shares in issue at the announcement date the dividend will amount to £2,065,000 (Interim 2024: £1,994,000).  The interim dividend will be paid on 17 April 2025 to shareholders on the register at the close of business on 21 March 2025, and the shares become ex-dividend on 20 March 2025.

For the year ended 30 June 2024 , a final dividend of 5.08p (2023: 4.84p) per share amounting to £5,961,000 (2023: £5,674,000) and a special dividend of 2.50p (2023: nil) per share amounting to £2,934,000 (2023: £nil) were paid on 29 November 2024.

 

5.   Availability of interim statement

       Copies of the interim report are being sent to shareholders and will also be available from the company's registered office or on the company's website (www.fwthorpe.co.uk) from 20 March 2025.

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