RNS Number : 8774O
Dewhurst Group PLC
15 June 2022
 

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 Group plc (the "Group")

 

Interim Results for the 6 months ended 31 March 2022

 

Directors' Interim Report

 

FIRST HALF

The Group has performed well despite the challenges in the macroeconomic environment, particularly in some of our markets. We are pleased to report that the results for the first half are broadly in line with market expectations with an increased profit before tax figure for the first half of the current financial year on slightly reduced sales. Overall, Group revenue decreased by 6% to £27.1 million (2021: £28.9 million) and adjusted operating profit (before acquired intangible amortisation) decreased 12% to £3.8 million (2021: £4.4 million), while profit before tax increased 11% to £3.7 million (2021: £3.4 million) and earnings per share improved to 28.4p (2021: 26.4p).

 

Encouragingly, our UK Lift Division sales in the period were marginally up on last year's first half, but overseas lift sales were lower. Sales were down in Australia due to Covid-19 disruption, but sales in Canada and Hong Kong grew to partially offset that fall. Transport sales were significantly down compared to the previous year, which had been supported by a number of Government Cycle Projects. There was some recovery in Keypad sales but these remain quite volatile and unpredictable from month to month. First half currency movements had no material impact on Group revenue or profits.

 

The Group balance sheet remains strong with cash at the period end of £19.9 million (2021: £17.6 million).

 

OUTLOOK

Overall order books in Australia are reasonably strong, but it may take a few months for these orders to start to filter through to sales as material and labour constraints are leading to some project delays. In North America the market seems still to be relatively buoyant, at least for the remainder of this year. The UK has remained fairly steady, but with rapidly rising inflation and interest rates increasing there is a risk of demand tailing off. It has also been a considerable challenge to keep on top of cost increases in the first half and we do not anticipate this pressure is going to ease soon. We have been able to pass on some increases to customers, but not fully, so margins have been squeezed in a number of areas. With material challenges and extended lead times globally we are holding more stock around the Group, but consider this is a good investment in our efforts to maintain customer service levels.

 

As has been previously reported, the Group suffered a serious cyber-attack in May. The remediation costs will affect the profit in the second half, so the full year profit is now forecast to be below last year and below market expectations. The disruption to operations is expected to continue through June as we recover our systems and data, but we are continuing to sell, manufacture and despatch goods through the disruption.

 

DIVIDENDS

The Directors have declared an increased interim dividend of 4.50p per ordinary share (2021: 4.25p) which amounts to £364,000 (2021: £343,000). The interim dividend is payable on 16 August 2022 and will be posted on 11 August 2022 to shareholders appearing in the Register on 8 July 2022 (ex-dividend date being 7 July 2022).

 

A final 2021 dividend of 9.75p (2020: 9.25p) which amounted to £788,000 (2020: £748,000) was approved at the AGM held on 15 February 2022 and was paid on 23 February 2022 to members on the register at 21 January 2022.

 

By Order of the Board

 

J C SINCLAIR

Finance Director & Secretary

14 June 2022

Dewhurst Group plc (formerly Dewhurst plc)

 

The unaudited consolidated statement of comprehensive income, statement of financial position, statement of changes in equity and cash flow statement of Dewhurst Group plc and its subsidiaries for the half-year ended 31 March 2022, as compared with the corresponding half-year ended 31 March 2021 and the year ended 30 September 2021, shows the following results:

 

Consolidated statement of comprehensive income


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 Sept


2022

2021

2021

Continuing operations

£000's

£000's

£000's


 



Revenue

27,050

28,881

56,249

Operating costs

(23,232)

(25,354)

(46,395)

Adjusted operating profit

3,818

4,361

9,214

Profit on sale of property, plant and equipment^

-

-

1,751

Amortisation of acquired intangibles

-

(834)

(1,111)

Operating profit

3,818

3,527

9,854

Finance income

12

6

20

Finance costs

(102)

(164)

(311)

Profit before taxation

3,728

3,369

9,563

Taxation

Est. (1,436)

Est. (1,237)

(2,110)

Profit for the financial period

2,292

2,132

7,453


 



Other comprehensive income:

 



Actuarial gains/(losses) on the defined benefit pension scheme

Est. 3,879

Est. 3,153

5,344

Deferred tax effect

(970)

(599)

(1,336)

Current tax effect

 Est. 159

Est. 113

224

Total that will not be subsequently reclassified to income statement

3,068

2,667

4,232


 



Exchange differences on translation of foreign operations

1,414

(44)

(425)

Total that may be subsequently reclassified to income statement

1,414

(44)

(425)

Other comprehensive income/(expense) for the period, net of tax

4,482

2,623

3,807

Total comprehensive income for the period

6,774

4,755

11,260


 



Profit for the period attributable to:

 



Equity shareholders of the company

2,179

1,925

7,030

Non-controlling interests

113

207

423


2,292

2,132

7,453


 



Total comprehensive income for the period attributable to:

 



Equity shareholders of the company

6,578

4,539

10,877

Non-controlling interests

196

216

383


6,774

4,755

11,260


 



Basic and diluted earnings per share

28.36p

26.38p

86.98p

Dividends per share

4.50p

4.25p

14.00p

 

^ Gain arising on the disposal of the old premises at Dupar Controls Inc.

Dewhurst Group plc (formerly Dewhurst plc)

 

Consolidated statement of financial position


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 Sept

 

2022

2021

2021

 

£000's

£000's

£000's

Non-current assets

 



Goodwill

9,890

9,766

9,626

Other intangibles

24

305

24

Property, plant and equipment

18,207

18,351

17,827

Right-of-use assets

2,625

3,035

2,802

Deferred tax asset

-

1,917

1,111


30,746

33,374

31,390


 



Current assets

 



Inventories

7,011

5,792

6,597

Trade and other receivables

12,116

11,790

10,008

Cash and cash equivalents

19,854

17,627

20,463


38,981

35,209

37,068

Total assets

69,727

68,583

68,458


 



Current liabilities

 



Trade and other payables

7,703

9,666

7,571

Borrowings

-

983

-

Current tax liabilities

156

237

89

Short-term provisions

344

343

343

Lease liabilities

470

445

450


8,673

11,674

8,453

Non-current liabilities

 



Retirement benefit obligation

219

7,522

4,737

Deferred tax liabilities

10

-

-

Lease liabilities

2,359

2,755

2,537

Total liabilities

11,261

21,951

15,727

Net assets

58,466

46,632

52,731


 



Equity

 



Share capital

808

808

808

Share premium account

157

157

157

Capital redemption reserve

329

329

329

Translation reserve

2,992

1,994

1,662

Retained earnings

52,672

41,887

48,213

Total attributable to equity shareholders of the company

56,958

45,175

51,169

Non-controlling interests

1,508

1,457

1,562

Total equity

58,466

46,632

52,731

 

 



 

Dewhurst Group plc (formerly Dewhurst plc)

 

Consolidated statement of changes in equity

 

For the period ended 31 March 2022

 

 

 

 

 

 

 

 

 

Share

Share

Capital

Translation

Retained

Non

Total

 

capital

premium

redemption

reserve

earnings

controlling

equity

 

 

account

reserve

 

 

interest

 

 

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

 

 

 

 

 

 

 

 

At 30 September 2021

808

157

329

1,662

48,213

1,562

52,731

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

1,330

 

-

 

84

 

1,414

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

3,879

 

-

 

3,879

Deferred tax effect

-

-

-

-

(970)

-

(970)

Tax on items taken directly to equity (Est.)

 

-

 

-

 

-

 

-

 

159

 

-

 

159

Dividends paid

-

-

-

-

(788)

(251)

(1,039)

Profit for the period

-

-

-

-

2,179

113

2,292

 

 

 

 

 

 

 

 

At 31 March 2022

808

157

329

2,992

52,672

1,508

58,466

 

 

For the period ended 31 March 2021










Share

Share

Capital

Translation

Retained

Non

Total


capital

premium

redemption

reserve

earnings

controlling

equity



account

reserve



interest



£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)









At 30 September 2020

808

157

329

2,047

38,042

1,443

42,826

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(53)

 

-

 

9

 

(44)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

3,153

 

-

 

3,153

Deferred tax effect

-

-

-

-

(599)

-

(599)

Tax on items taken directly to equity (Est.)

 

-

 

-

 

-

 

-

 

113

 

-

 

113

Dividends paid

-

-

-

-

(747)

(202)

(949)

Profit for the period

-

-

-

-

1,925

207

2,132









At 31 March 2021

808

157

329

1,994

41,887

1,457

46,632



 

Dewhurst Group plc (formerly Dewhurst plc)

 

Consolidated statement of changes in equity (cont'd)

 

For the year ended 30 September 2021


 

 







Share

Share

Capital

Translation

Retained

Non

Total


capital

premium

redemption

reserve

earnings

controlling

equity



account

reserve



interest



£(000)

£(000)

£(000)

£(000)

£(000)

£(000)

£(000)


 

 






At 30 September 2020

808

157

329

2,047

38,042

1,443

42,826

Share repurchase

-

-

-

-

-

-

-

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(385)

 

-

 

(40)

 

(425)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

5,344

 

-

 

5,344

Deferred tax effect

-

-

-

-

(1,336)

-

(1,336)

Tax on items taken directly to equity

 

-

 

-

 

-

 

-

 

224

 

-

 

224

Dividends paid

-

-

-

-

(1,091)

(264)

(1,355)

Profit for the year

-

-

-

-

7,030

423

7,453









At 30 September 2021

808

157

329

1,662

48,213

1,562

52,731

 

 

 

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 2020 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 2021 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2021 Interim Financial Statements to take into account any presentational changes made in the 2021 Financial Statements or in these Interim Financial Statements.

 

 



 

Dewhurst Group plc (formerly Dewhurst plc)

 

Consolidated cash flow statement


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 Sept

 

2022

2021

2021

 

£000's

£000's

£000's

Cash flows from operating activities

 



Operating profit

3,818

3,527

9,854

Depreciation and amortisation

510

1,283

2,317

Right-of-use asset depreciation

238

245

489

Additional contributions to pension scheme

(683)

(683)

(1,357)

Exchange adjustments

240

595

(49)

(Profit)/loss on disposal of property, plant and equipment

(1)

(28)

(1,774)


4,122

4,939

9,480

(Increase)/decrease in inventories

(414)

416

(389)

(Increase)/decrease in trade and other receivables

(2,108)

(2,237)

(455)

Increase/(decrease) in trade and other payables

132

233

(1,213)

Increase/(decrease) in provisions

1

-

-

Cash generated from operations

1,733

3,351

7,423

Interest paid

-

(13)

(25)

Tax paid

(1,031)

(976)

(1,896)

Net cash from operating activities

702

2,362

5,502


 



Cash flows from investing activities

 



Acquisition of business and assets

-

(649)

(649)

Proceeds on disposal of a subsidiary (net of cash disposed)

-

-

-

Proceeds from sale of property, plant and equipment

10

58

2,122

Purchase of property, plant and equipment

(309)

(1,888)

(2,500)

Development costs capitalised

-

-

(15)

Interest received

12

6

20

Net cash generated from/(used in) investing activities

(287)

(2,473)

(1,022)


 



Cash flows from financing activities

 



Dividends paid

(1,039)

(949)

(1,355)

Purchase of own shares

-

-

-

Repayment of lease liabilities including interest

(277)

(285)

(562)

Proceeds from bank borrowings

-

908

(69)

Net cash used in financing activities

(1,316)

(326)

(1,986)


 



Net increase/(decrease) in cash and cash equivalents

(901)

(437)

2,494

Cash and cash equivalents at beginning of period

20,463

18,139

18,139

Exchange adjustments on cash and cash equivalents

292

(75)

(170)

Cash and cash equivalents at end of period

19,854

17,627

20,463

 

 

Contacts:

 

Dewhurst Group Plc                                                                                                Tel: +44 (0)208 744 8200

Richard Dewhurst, Chairman

Jared Sinclair, Finance Director

www.dewhurst-group.com

 

Singer Capital Markets (Nominated Adviser and Sole Broker)                              Tel: +44 (0)207 496 3000

Will Goode / James Fischer

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