RNS Number : 3321T
Dewhurst PLC
04 June 2009
Dewhurst plc
Directors' Interim Report
FIRST HALF
Turnover at the Group was up 8% to £17.9 million compared to £16.6 million last year and profit before tax rose 17% to £2.13 million (2008: £1.81 million). Earnings per share increased 30% to 17.48p (2008: 13.44p). The earnings per share performance is enhanced by the effect of the share buy backs that took place in the first half of 2008.
We again achieved sales growth in all three product divisions: lift, transport and keypad. As was the case last year, transport showed the strongest growth, with our bollard product range continuing to generate increases in sales. The sales and profit figures for the period were helped by the fact that about one third of sales are made in foreign currencies and these have increased in value when reported in pounds.
Sales revenue held up reasonably well in the UK and North America in the first half though Australia was weaker than normal. However orders received in the UK have been declining and orders on hand at the end of the first half were at a significantly lower level than at the start of the year.
OUTLOOK
We have benefited up to now from the fact that demand for our lift products tends to come towards the end of construction projects. We have made sales this period to projects that were committed before the current climate of uncertainty prevailed. The corollary of this is that we may not see a recovery in demand until some time after the general economic recovery is well under way. Having said that, there are still opportunities for sales to the public sector and to lift refurbishment markets.
We also made profits in the first half from favourable exchange rate movements. The pound has already moved back to some extent against the US Dollar, so it is likely the first half gains may be at least partially reversed. Together with cost pressures this is likely to impact on margins in the second half.
It remains very difficult to predict the pattern of demand in our markets, but overall we do not expect to reach last year's record levels. The strength of the company's balance sheet remains an important stabiliser in the current environment.
DIVIDENDS
The Directors have declared an interim dividend of 2.02p which amounts to £172k, compared with 1.92p last year (£163k). The interim dividend is payable on 25 August 2009 and will be posted on 20 August 2009 to shareholders appearing in the Register at 3:00 p.m. on 10 July 2009 (ex-dividend on 8 July 2009).
A final 2008 dividend of 3.84p which amounted to £327k, compared with 3.60p previous year (£331k) was approved at the AGM held on the 29 January 2009 and was paid on 2 March 2009 to members on the register at 9 January 2009.
By Order of the Board
J C SINCLAIR
Finance Director & Secretary
3 June 2009
Dewhurst plc
The unaudited consolidated income statement, statement of recognised income and expense, balance sheet and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2009, as compared with the corresponding half-year ended 31 March 2008 and the year ended 30 September 2008, shows the following results:
Consolidated income statement
Half year ended Half year ended Year
ended
31 March 2009 31 March 2008 30 September 2008
Continuing operations £(000)'s £(000)'s £(000)'s
Revenue 17,928 16,619 36,326
Operating costs (15,793) (14,907) (31,974)
Operating profit 2,135 1,712 4,352
Finance income 60 132 329
Finance costs (66) (31) (2)
Profit before taxation 2,129 1,813 4,679
Tax on profits Est. (641) Est. (580) (1,238)
Profit for the period 1,488 1,233 3,441
Basic and diluted earnings per 17.48p 13.44p 38.92p
share
Dividends per share 2.02p 1.92p 5.76p
Consolidated statement of recognised income and expense
Half year ended Half year ended Year
ended
31 March 2009 31 March 2008 30 September 2008
Net income/(expense)
recognised
directly in equity: £(000)'s £(000)'s £(000)'s
Actuarial gains/(losses) on
the defined Est. (1,389) Est. (1,437) (440)
benefit pension scheme
Exchange differences on
translation 284 (276) 433
of foreign operations
Tax on items taken directly to 327 514 (68)
equity
Net income / (expense) (778) (1,199) (75)
recognised
directly in equity in the
period
Profit for the financial 1,488 1,233 3,441
period
Total recognised income and
expense 710 34 3,366
for the period
Dewhurst plc
Consolidated balance sheet
Half year Half year Year
ended ended ended
31 March 31 March 30 September 2008
2009 2008
£(000)'s £(000)'s £(000)'s
Non-current assets
Goodwill 5,604 5,534 5,554
Other intangibles 43 112 43
Property, plant and equipment 4,258 3,184 4,219
Deferred tax asset 1,372 1,586 877
11,277 10,416 10,693
Current assets
Inventories 3,999 3,579 4,122
Trade and other receivables 5,832 6,258 7,154
Cash and cash equivalents 6,797 4,073 5,120
16,628 13,910 16,396
Total assets 27,905 24,326 27,089
Current liabilities
Trade and other payables 3,953 3,957 4,664
Current tax liabilities 475 399 492
Short term provisions 461 160 350
4,889 4,516 5,506
Non-current liabilities
Retirement benefit obligation 4,750 5,095 3,700
Total liabilities 9,639 9,611 9,206
Net assets 18,266 14,715 17,883
Equity
Share capital 851 851 851
Share premium account 157 157 157
Capital redemption reserve 286 286 286
Translation reserve 948 319 832
Retained earnings 16,024 13,102 15,757
Total equity 18,266 14,715 17,883
These half-year condensed financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results for the 2008 year 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 2008 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2008 Interim Financial Statements to take into account any presentational changes made in the 2008 Financial Statements or in these Interim Financial Statements.
Dewhurst plc
Consolidated cash flow statement
Half year ended Half year ended Year
ended
31 March 2009 31 March 2008 30 September 2008
£(000)'s £(000)'s £(000)'s
Cash flows from operating
activities
Operating profit 2,135 1,712 4,352
Depreciation and amortisation 200 167 534
Additional (income)/costs to (200) (130) (423)
pension scheme
Exchange adjustments (338) (474) 199
(Profit)/loss on disposal of
property, plant and equipment - (14) (15)
1,797 1,261 4,647
(Increase)/decrease in 123 (801) (1,294)
inventories
(Increase)/decrease in trade 1,322 719 (177)
and other receivables
Increase/(decrease) in trade (711) 79 786
and other payables
Increase/(decrease) in 111 60 250
provisions
Cash generated from operations 2,642 1,318 4,212
Interest paid - - (2)
Income tax paid (730) (700) (1,147)
Net cash from operating 1,912 618 3,063
activities
Cash flows from investing
activities
Acquisition of business and - (160) (250)
assets
Proceeds from sale of - 14 21
property, plant and equipment
Purchase of property, plant (115) (576) (1,890)
and equipment
Development costs capitalised - - (7)
Interest received 60 132 235
Net cash used in investing (55) (590) (1,891)
activities
Cash flows from financing
activities
Dividends paid (327) (331) (495)
Repurchase of shares - (2,334) (2,334)
Net cash used in financing (327) (2,665) (2,829)
activities
Net increase/(decrease) in
cash and cash equivalents 1,530 (2,637) (1,657)
Cash and cash equivalents at
beginning of period 5,120 6,659 6,659
Exchange adjustments on cash
and cash equivalents 147 51 118
Cash and cash equivalents at
end of period 6,797 4,073 5,120
ENDS
Contacts:
Dewhurst plc
Jared Sinclair Tel: 020 8607 7364
Seymour Pierce Limited
20 Old Bailey
London EC4M 7EN
John Depasquale Tel: 020 7107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
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