21st Mar 2019 09:22
LONDON (Alliance News) - Shares in lighting system manufacturer FW Thorpe PLC fell sharply Thursday after interim underlying profit and revenue struggled in challenging conditions, with expectations of the same for the full year.
Shares in FW Thorpe were 6.2% lower at 318.80 pence on Thursday.
For the six months ended December, pretax profit widened 11% to GBP8.8 million from GBP7.9 million the year prior. This was despite revenue falling 0.9% to GBP52.7 million from GBP53.2 million the year before.
Profit performance was helped by a GBP1.9 million profit on the disposal of two properties in November. The firm sold the Thorlux Portsmouth and Sugg Lighting factories for GBP4.8 million.
"The group is finding it difficult to match the results of last year due to challenging trading conditions at the start of the year," Chair & Joint Chief Executive Mike Allcock said.
Revenue and profit performance has been boosted by the inclusion of emergency lighting Famostar BV after it acquired it in December 2017 for up to EUR8.1 million. The acquisition added around GBP3.6 million to revenue which was not seen the year prior.
"I am pleased to report revenue generated from overseas operations now represents 41% of the total, providing risk mitigation in case of further turbulent economic and political times in the UK," Allcock added.
"The management team meet regularly to discuss and plan for the potential impacts arising from Brexit. We wait anxiously for matters to be resolved and business confidence to return to more normal levels."
FW Thorpe hiked its interim dividend to 1.43 pence per share, up 2.1% from 1.40p the year prior.
"Looking forward, within the group we remain concerned about the stability of the UK market; however, present trading conditions are more buoyant than we previously predicted, and stronger than the first half performance," Allcock said.
"Whilst our improved order book gives us confidence we will have a strong finish to the year, underlying operating profit is still expected to be below the record operating figures of the last financial year," Allcock continued.
For the year ended June 2018, FW Thorpe reported operating profit of GBP19.5 million on revenue of GBP109.6 million. Pretax profit stood at GBP19.6 million.
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