4th Jun 2020 11:37
(Alliance News) - Industrial lift and keypad components maker Dewhurst PLC kept its interim dividend in line, as profit faltered in spite of slight revenue growth.
For the six months to the end of March, pretax profit slipped by 3% to GBP2.5 million from GBP2.6 million the year before, as operating costs rose to GBP25.6 million from GBP25.1 million.
Revenue meanwhile grew by 1% to GBP28.2 million from GBP27.8 million the prior year, driven by good sales in the Lift and Transportation divisions, which more than offset a significant reduction in keypad demand, which had been predicted due to the model changeover at a key customer.
Dewhurst kept its dividend per share at 3.75 pence. However, the company warned that the main impact of the Covid-19 pandemic will be felt in the second half, meaning it may not be possible to sustain its dividend policy for its full financial year to the end of September.
Looking ahead, Dewhurst said the outbreak has only had a minor impact on the first half of its financial year, but expects it to have a more severe effect in the second half, with the UK being the hardest hit, especially since it is the only region where the group has closed a factory.
Although the factory has been reopened, Dewhurst has furloughed or laid-off staff in several locations, which will continue will demand remained lower than usual.
Shares in Dewhurst were untraded on Thursday, last quoted at 900.0 pence in London.
By Dayo Laniyan; [email protected]
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