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Interim Results

6th Mar 2025 07:00

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

2025 (unaudited)

Interim

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

(six months to)

31.12.23

(six months to)

30.06.24 

(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 income *

(93) 

290 

403

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 

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 income

113

113

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 

(six months to)

31.12.23 

(six months to)

30.06.24

(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

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 

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

Companies

Zemper

Group

Other

Companies

Inter-

Segment

 

Total

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

Companies

Zemper

Group

Other

Companies

Inter-

Segment

 

Total

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 

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

Companies

Zemper

Group

Other

Companies

Inter-

Segment

 

Total

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) from 20 March 2025.

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END
 
 
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