REG - Thorpe(F.W.) PLC - Interim Results
06/03/2025 07:00
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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 Interim
2025 (unaudited) 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 31.12.23 30.06.24
(six months to) (six months to) (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 (93) 290 403
income *
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 - - - - 113 113
income
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 31.12.23 30.06.24
(six months to) (six months to) (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 Zemper Other Inter- Total
Companies Group Companies Segment 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 Zemper Other Inter- Total
Companies Group Companies Segment 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 Zemper Other Inter- Total
Companies Group Companies Segment 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 (http://www.fwthorpe.co.uk) ) from 20
March 2025.
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