11th Jun 2019 07:00
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Dewhurst plc (the "Group")
Interim Results for the 6 months ended 31 March 2019
Directors' Interim Report
FIRST HALF
We are pleased to report significant growth in sales and adjusted operating profits in the first half of the year. The increase included the effect of a full six months' trading of A&A Electrical Distributors Ltd (A&A), but even allowing for this most recent acquisition, the underlying performance of the Group, particularly in Australia, was also up. Overall, Group revenue increased by 31% to £32.3 million (2018: £24.7 million) and adjusted operating profit (before acquired intangible amortisation) increased 36% to £4.0 million (2018: £2.9 million). Profit before tax increased 8% to £3.1 million (2018: £2.8 million) with earnings per share also improving to 25.0p (2018: 23.2p).
Whilst the Group's performance was encouraging in almost all areas, continued pressure on UK local authority spending, has dampened transport sales. Elsewhere, UK lift sales have so far remained resilient despite the uncertainty caused by Brexit and overseas lift sales have performed well. Keypad sales have remained stable at a similar level of sales to the second half of last year, which was a significant improvement on last year's first half. Unusually, first half currency movements have not had a material impact on the Group's revenue or profits.
The Group balance sheet remains strong with cash at the period end of £6.2 million (2018: £18.0 million). Since 31 March 2018 the Group has paid out £10.5 million on the acquisition of A&A, £2.7 million on a property for LMA and £1.2 million on land for Dupar. These key investments have utilised a significant amount of the Group's free cash but have not affected its day to day working capital requirements. The Group has been able to operate successfully without a bank overdraft facility.
OUTLOOK
Demand in most of our markets, excluding the transportation sector as noted above, is currently steady or improving. In the UK we are still faced with uncertainty regarding Brexit. We cannot tell how this might affect demand later in the second half, but we are retaining our higher inventory levels for the time being until the way forward is clearer. In Australia, the previous government has just been re-elected. As a result, it is expected that the economic climate should remain positive and the recent hesitancy in committing to some projects may be resolved. North America remains busy and the trade tensions have, so far not had an impact in our market sector. The uncertainty in the UK clouds our overall view for the future, but elsewhere we are encouraged by the prospects for the Group.
DIVIDENDS
The Directors have declared an interim dividend of 3.75p per ordinary share (2018: 3.50p) which amounts to £315,000 (2018: £295,000). The interim dividend is payable on 20 August 2019 and will be posted on 15 August 2019 to shareholders appearing in the Register on 5 July 2019 (ex-dividend date being 4 July 2019).
A final 2018 dividend of 9.00p (2017: 8.50p) which amounted to £758,000 (2017: £716,000) was approved at the AGM held on 5 February 2019 and was paid on 13 February 2019 to members on the register at 17 January 2019.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
10 June 2019
Dewhurst plc
The unaudited consolidated statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2019, as compared with the corresponding half-year ended 31 March 2018 and the year ended 30 September 2018, shows the following results:
Consolidated statement of comprehensive income
| Half year | Half year | Year |
| ended | ended | ended |
| 31 March | 31 March | 30 September |
| 2019 | 2018 | 2018 |
Continuing operations | £000's | £000's | £000's |
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|
|
Revenue | 32,329 | 24,669 | 54,510 |
Operating costs | (29,158) | (21,724) | (48,322) |
Adjusted operating profit | 4,005 | 2,945 | 6,743 |
Amortisation of acquired intangibles | (834) | - | (555) |
Operating profit | 3,171 | 2,945 | 6,188 |
Finance income | 13 | 52 | 86 |
Finance costs | (109) | (152) | (291) |
Profit before taxation | 3,075 | 2,845 | 5,983 |
Taxation | Est. (971) | Est. (894) | (1,723) |
Profit for the financial period | 2,104 | 1,951 | 4,260 |
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|
|
Other comprehensive income: |
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|
|
Actuarial gains/(losses) on the defined benefit pension scheme | Est. (2,831) | Est. (485) | 3,080 |
Current tax effect | Est. 106 | - | 140 |
Deferred tax effect | 481 | 82 | (524) |
Total that will not be subsequently reclassified to income statement | (2,244) | (403) | 2,696 |
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|
|
|
Exchange differences on translation of foreign operations | (446) | (1,393) | (727) |
Total that may be subsequently reclassified to income statement | (446) | (1,393) | (727) |
Other comprehensive income/(expense) for the period, net of tax | (2,690) | (1,796) | 1,969 |
Total comprehensive income for the period | (586) | 155 | 6,229 |
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Profit for the period attributable to: |
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|
|
Equity shareholders of the company | 1,931 | 1,822 | 4,039 |
Non-controlling interests | 173 | 129 | 221 |
| 2,104 | 1,951 | 4,260 |
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|
|
Total comprehensive income for the period attributable to: |
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|
|
Equity shareholders of the company | (732) | 99 | 6,070 |
Non-controlling interests | 146 | 56 | 159 |
| (586) | 155 | 6,229 |
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|
|
Basic and diluted earnings per share | 24.99p | 23.16p | 47.93p |
Dividends per share | 3.75p | 3.50p | 12.50p |
Dewhurst plc
Consolidated statement of financial position
| Half year | Half year | Year |
| ended | ended | ended |
| 31 March | 31 March | 30 September |
| 2019 | 2018 | 2018 |
| £000's | £000's | £000's |
Non-current assets |
|
|
|
Goodwill | 8,505 | 4,252 | 8,598 |
Other intangibles | 3,675 | 94 | 4,510 |
Property, plant and equipment | 13,162 | 9,181 | 9,271 |
Deferred tax asset | 2,101 | 2,273 | 1,639 |
| 27,443 | 15,800 | 24,018 |
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Current assets |
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Inventories | 6,640 | 4,947 | 6,279 |
Trade and other receivables | 13,656 | 9,873 | 13,920 |
Cash and cash equivalents | 6,249 | 18,006 | 9,440 |
| 26,545 | 32,826 | 29,639 |
Total assets | 53,988 | 48,626 | 53,657 |
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Current liabilities |
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Trade and other payables | 7,890 | 5,139 | 8,185 |
Current tax liabilities | 304 | 239 | 532 |
Short-term provisions | 310 | 252 | 304 |
| 8,504 | 5,630 | 9,021 |
Non-current liabilities |
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|
|
Retirement benefit obligation | 9,902 | 11,716 | 7,628 |
Total liabilities | 18,406 | 17,346 | 16,649 |
Net assets | 35,582 | 31,280 | 37,008 |
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Equity |
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|
Share capital | 840 | 842 | 842 |
Share premium account | 157 | 157 | 157 |
Capital redemption reserve | 297 | 295 | 295 |
Translation reserve | 1,545 | 1,309 | 1,964 |
Retained earnings | 31,540 | 27,672 | 32,693 |
Total attributable to equity shareholders of the company | 34,379 | 30,275 | 35,951 |
Non-controlling interests | 1,203 | 1,005 | 1,057 |
Total equity | 35,582 | 31,280 | 37,008 |
Dewhurst plc
Consolidated statement of changes in equity
For the period ended 31 March 2019
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| ||||||
| Share | Share | Capital | Translation | Retained | Non | Total | ||||||
| capital | premium | redemption | reserve | earnings | controlling | equity | ||||||
|
| account | reserve |
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| interest |
| ||||||
| £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | ||||||
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At 30 September 2018 | 842 | 157 | 295 | 1,964 | 32,693 | 1,057 | 37,008 | ||||||
Profit for the period | - | - | - | - | 1,931 | 173 | 2,104 | ||||||
Other comprehensive income and expense |
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| ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(419) |
- |
(27) |
(446) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(2,831) |
- |
(2,831) | ||||||
Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
106 |
- |
106 | ||||||
Deferred tax effect | - | - | - | - | 481 | - | 481 | ||||||
Total comprehensive income | - | - | - | (419) | (313) | 146 | (586) | ||||||
Shares repurchased | (2) | - | 2 | - | (82) | - | (82) | ||||||
Dividends paid | - | - | - | - | (758) | - | (758) | ||||||
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At 31 March 2019 | 840 | 157 | 297 | 1,545 | 31,540 | 1,203 | 35,582 | ||||||
For the period ended 31 March 2018
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| Share | Share | Capital | Translation | Retained | Non | Total | ||||||
| capital | premium | redemption | reserve | earnings | controlling | equity | ||||||
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| account | reserve |
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| interest |
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| £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | ||||||
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At 30 September 2017 | 842 | 157 | 295 | 2,629 | 26,969 | 1,001 | 31,893 | ||||||
Profit for the period | - | - | - | - | 1,822 | 129 | 1,951 | ||||||
Other comprehensive income and expense |
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|
|
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| ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(1,320) |
- |
(73) |
(1,393) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(485) |
- |
(485) | ||||||
Deferred tax effect | - | - | - | - | 82 | - | 82 | ||||||
Total comprehensive income | - | - | - | (1,320) | 1,419 | 56 | 155 | ||||||
Dividends paid | - | - | - | - | (716) | (52) | (768) | ||||||
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At 31 March 2018 | 842 | 157 | 295 | 1,309 | 27,672 | 1,005 | 31,280 | ||||||
Dewhurst plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 2018
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| Share | Share | Capital | Translation | Retained | Non | Total | ||||||
| capital | premium | redemption | reserve | earnings | controlling | equity | ||||||
|
| account | reserve |
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| interest |
| ||||||
| £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | £(000) | ||||||
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At 30 September 2017 | 842 | 157 | 295 | 2,629 | 26,969 | 1,001 | 31,893 | ||||||
Profit for the year | - | - | - | - | 4,039 | 221 | 4,260 | ||||||
Other comprehensive income and expense |
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|
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| ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(665) |
- |
(62) |
(727) | ||||||
Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
3,080 |
- |
3,080 | ||||||
Tax on items taken directly to equity |
- |
- |
- |
- |
140 |
- |
140 | ||||||
Deferred tax effect | - | - | - | - | (524) | - | (524) | ||||||
Total comprehensive income | - | - | - | (665) | 6,735 | 159 | 6,229 | ||||||
Dividends paid | - | - | - | - | (1,011) | (103) | (1,114) | ||||||
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At 30 September 2018 | 842 | 157 | 295 | 1,964 | 32,693 | 1,057 | 37,008 | ||||||
These half-year abbreviated financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 30 September 2018 set out above are abridged. Full accounts for that year reported under IFRS, on which the auditors of the Company made an unqualified report have been delivered to the Registrar of Companies.
The presentation of these Interim Financial Statements is consistent with the 2018 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2018 Interim Financial Statements to take into account any presentational changes made in the 2018 Financial Statements or in these Interim Financial Statements.
Dewhurst plc
Consolidated cash flow statement
| Half year | Half year | Year |
| ended | ended | ended |
| 31 March | 31 March | 30 September |
| 2019 | 2018 | 2018 |
| £000's | £000's | £000's |
Cash flows from operating activities |
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|
|
Operating profit | 3,171 | 2,945 | 6,188 |
Depreciation and amortisation | 1,343 | 431 | 1,572 |
Additional contributions to pension scheme | (666) | (673) | (1,331) |
Exchange adjustments | (162) | (706) | (155) |
(Profit)/loss on disposal of property, plant and equipment | (14) | (9) | 36 |
| 3,672 | 1,988 | 6,310 |
(Increase)/decrease in inventories | (361) | 619 | (487) |
(Increase)/decrease in trade and other receivables | 264 | 138 | (3,909) |
Increase/(decrease) in trade and other payables | (295) | (428) | 2,618 |
Increase/(decrease) in provisions | 6 | (74) | (22) |
Cash generated from operations | 3,286 | 2,243 | 4,510 |
Interest paid | - | - | (3) |
Tax paid | (1,003) | (681) | (1,270) |
Net cash from operating activities | 2,283 | 1,562 | 3,237 |
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Cash flows from investing activities |
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Acquisition of business and assets | - | - | (9,525) |
Proceeds from sale of property, plant and equipment | 14 | 12 | 43 |
Purchase of property, plant and equipment | (4,571) | (554) | (1,161) |
Development costs capitalised | - | - | (29) |
Interest received | 13 | 52 | 86 |
Net cash generated from/(used in) investing activities | (4,544) | (490) | (10,586) |
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Cash flows from financing activities |
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Purchase of own shares | (82) | - | - |
Dividends paid | (758) | (768) | (1,114) |
Net cash used in financing activities | (840) | (768) | (1,114) |
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Net increase/(decrease) in cash and cash equivalents | (3,101) | 304 | (8,463) |
Cash and cash equivalents at beginning of period | 9,440 | 18,087 | 18,087 |
Exchange adjustments on cash and cash equivalents | (90) | (385) | (184) |
Cash and cash equivalents at end of period | 6,249 | 18,006 | 9,440 |
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For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst.plc.uk
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
Caspar Shand Kydd (Sales)
Related Shares:
Dewhurst