6th Mar 2025 07:00
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 |
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Mike Allcock - Non-Executive Chairman | 01527 583200 |
Craig Muncaster - Chief Executive and Group Financial Director |
|
Singer Capital Markets - Nominated Adviser |
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James Moat / Sam Butcher | 020 7496 3000
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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 |
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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 | 4 | 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 | 4 | - | - |
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 | - | 9 |
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 |
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|
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|
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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 |
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|
|
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| 11,217 | ||||
Acquisition adjustments includes amortisation for intangible assets. |
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| Thorlux | Netherlands Companies | Zemper Group | Other Companies | Inter- Segment
| Total Continuing Operations |
| |||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| |||
Six months to 31 December 2023 |
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Revenue to external customers | 46,465 | 18,118 | 8,959 | 9,051 | - | 82,593 |
| |||
Revenue to other Group companies | 1,717 | 99 | 9 | 1,850 | (3,675) | - |
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Total revenue | 48,182 | 18,217 | 8,968 | 10,901 | (3,675) | 82,593 |
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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. |
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| 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.
Related Shares:
Thorpe