6th Dec 2018 12:01
LONDON (Alliance News) - Dewhurst PLC on Thursday said its profit was largely unchanged in its most recent financial year as adverse currency movements largely offset acquisition gains.
Dewhurst produces components for the keypad, lift, and rail industries. It posted a pretax profit of GBP5.98 million for its financial year ended September 30, flat on last year's GBP5.97 million.
Revenue grew to GBP54.5 million from GBP52.9 million, with Dewhurst's acquisition of A&A Electrical Distributors Ltd contributing GBP3.9 million to sales in the four months to September end.
The company also recorded its first full financial year of sales from its P&R Lift Cars Pty Ltd acquisition.
However, these gains were largely offset by weaker demand in Hungry for its keyboard division, as well as the disposal of its ERM Winter & Bain division, which contributed GBP1.8 million to sales the year before.
Adverse currency movements were a key factor which detracted from revenue.
"Two thirds of sales are earned and held in foreign currencies which are retranslated for group reporting. This year resulted in a decrease in like-for-like sales of GBP1.5 million or 2.8% and a reduction in profit before tax of [GBP200,000] or 3.9%," the company said.
The company proposes to pay a final 9.0 pence dividend, bringing the total for the year to 12.5p from 12.0p last year.
Chairman Richard Dewhurst said that the company is unable to forecast what impact Brexit will have on its business.
"Although future demand in the UK is uncertain, we will have a full year's contribution from A&A next year. Elsewhere lift product demand continues to be strong in North America and much of Australia, which is encouraging as these are key markets for us. On keypads, demand has bounced back from the low points of last year and trading currently seems a little steadier," the Chairman said.
Shares in Dewhurst were down 5.0% at 903.00 pence on Thursday.
Related Shares:
Dewhurst