TIDMDWHT
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 GBP32.3 million (2018: GBP24.7 million)
and adjusted operating profit (before acquired intangible
amortisation) increased 36% to GBP4.0 million (2018: GBP2.9
million). Profit before tax increased 8% to GBP3.1 million (2018:
GBP2.8 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 GBP6.2 million (2018: GBP18.0 million). Since 31 March 2018
the Group has paid out GBP10.5 million on the acquisition of
A&A, GBP2.7 million on a property for LMA and GBP1.2 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.
DIVIDS
The Directors have declared an interim dividend of 3.75p per
ordinary share (2018: 3.50p) which amounts to GBP315,000 (2018:
GBP295,000). 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
GBP758,000 (2017: GBP716,000) 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 GBP000's GBP000's GBP000'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
GBP000's GBP000's GBP000'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
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(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
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(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
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(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
GBP000's GBP000's GBP000'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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END
IR DMGMVKGVGLZM
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