Dewhurst Group plc
Interim Results for the 6 months ended 31 March 2023
Directors' Interim Report
FIRST HALF
The Group is rising to challenges presented by the new inflationary environment in all our major markets. We are pleased to report improved results with increased profit before tax and revenue figures for the first half of the current financial year, but lower margins on sales. Overall, Group revenue increased by 12% to £30.4 million (2022: £27.1 million) and operating profit increased 4% to £4.0 million (2022: £3.8 million), while profit before tax increased 8% to £4.0 million (2022: £3.7 million) and earnings per share improved to 32.1p (2022: 28.4p). First half currency movements increased Group revenue and profit by 4%.
Lift Division sales grew in most regions, led by a strong performance in Canada and the USA, but the lull in major projects in Sydney continued through the first half. There was a modest recovery in Keypad sales, but these continue to be quite volatile and unpredictable from month to month. Overall Transport sales were fairly similar to the previous year, but rail infrastructure spending was down offset by a strong performance on highways products.
The Group balance sheet remains strong with cash at the period end of £22.6 million (2022: £19.9 million).
OUTLOOK
In North America the underlying market remains strong, although there are signs that the second half of this financial year may be impacted by a slowing of orders and customer approvals to proceed. Orders in Australia are reasonable, but we are still expecting it will take time for these orders to filter through to sales as continuing customer labour constraints are leading to some project delays. The UK has remained surprisingly steady given the economic backdrop, but may tail off later in the year as the impact of interest rate rises start to bite on the economy. We have better control this year on dealing with cost increases and all companies are focussed on trying to mitigate their impact. However, we are not able to pass all increases on to customers, so we are continuing to see margins squeezed. Recruitment challenges have eased a little in most of our markets and material availability has improved. As a result we have been able to reduce our abnormally high stock holdings, without a detrimental effect on service levels.
DIVIDENDS
The Directors have declared an increased interim dividend of 4.75p per ordinary share (2022: 4.50p) which amounts to £384,000 (2022: £364,000). The interim dividend is payable on 15 August 2023 and will be posted on 10 August 2023 to shareholders appearing in the Register on 7 July 2023 (ex-dividend date being 6 July 2023).
A final 2022 dividend of 10.25p (2021: 9.75p) which amounted to £828,000 (2021: £788,000) was approved at the AGM held on 14 February 2023 and was paid on 22 February 2023 to members on the register at 20 January 2023.
By Order of the Board
J C SINCLAIR
Chief Financial Officer & Secretary
23 June 2023
Dewhurst Group 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 2023, as compared with the corresponding half-year ended 31 March 2022 and the year ended 30 September 2022, shows the following results:
Consolidated statement of comprehensive income
| | Half year | Half year | Year |
| | ended | ended | ended |
| | 31 March | 31 March | 30 Sept |
| | 2023 | 2022 | 2022 |
| Continuing operations | £000's | £000's | £000's |
| |
| | |
| Revenue | 30,379 | 27,050 | 57,565 |
| Operating costs | (26,423) | (23,232) | (50,269) |
| Adjusted operating profit | 3,956 | 3,818 | 8,818 |
| Cyber attack remediation costs | - | - | (1,522) |
| Operating profit | 3,956 | 3,818 | 7,296 |
| Finance income | 181 | 12 | 64 |
| Finance costs | (95) | (102) | (191) |
| Profit before taxation | 4,042 | 3,728 | 7,169 |
| Taxation | Est. (1,448) | Est. (1,436) | (2,051) |
| Profit for the financial period | 2,594 | 2,292 | 5,118 |
| |
| | |
| Other comprehensive income: |
| | |
| Actuarial gains/(losses) on the defined benefit pension scheme | Est. (1,453) | Est. 3,879 | 1,887 |
| Deferred tax effect | 363 | (970) | (472) |
| Current tax effect | Est. 218 | Est. 159 | 200 |
| Total that will not be subsequently reclassified to income statement | (872) | 3,068 | 1,615 |
| |
| | |
| Exchange differences on translation of foreign operations | (3,236) | 1,414 | 3,563 |
| Total that may be subsequently reclassified to income statement | (3,236) | 1,414 | 3,563 |
| Other comprehensive income/(expense) for the period, net of tax | (4,108) | 4,482 | 5,178 |
| Total comprehensive income for the period | (1,514) | 6,774 | 10,296 |
| |
| | |
| Profit for the period attributable to: |
| | |
| Equity shareholders of the company | 2,532 | 2,179 | 4,849 |
| Non-controlling interests | 62 | 113 | 269 |
| | 2,594 | 2,292 | 5,118 |
| |
| | |
| Total comprehensive income for the period attributable to: |
| | |
| Equity shareholders of the company | (1,425) | 6,578 | 9,867 |
| Non-controlling interests | (89) | 196 | 429 |
| | (1,514) | 6,774 | 10,296 |
| |
| | |
| Basic and diluted earnings per share | 32.10p | 28.36p | 60.00p |
| Dividends per share | 4.75p | 4.50p | 14.75p |
Dewhurst Group plc
Consolidated statement of financial position
| | Half year | Half year | Year |
| | ended | ended | ended |
| | 31 March | 31 March | 30 Sept |
|
| 2023 | 2022 | 2022 |
|
| £000's | £000's | £000's |
| Non-current assets |
| | |
| Goodwill | 9,672 | 9,890 | 10,105 |
| Other intangibles | 17 | 24 | 19 |
| Property, plant and equipment | 17,573 | 18,207 | 19,147 |
| Right-of-use assets | 2,159 | 2,625 | 2,473 |
| Deferred tax asset | 262 | - | 118 |
| | 29,683 | 30,746 | 31,862 |
| |
| | |
| Current assets |
| | |
| Inventories | 7,377 | 7,011 | 7,931 |
| Trade and other receivables | 12,475 | 12,116 | 12,318 |
| Current tax asset | - | - | 281 |
| Cash and cash equivalents | 22,590 | 19,854 | 21,764 |
| | 42,442 | 38,981 | 42,294 |
| Total assets | 72,125 | 69,727 | 74,156 |
| |
| | |
| Current liabilities |
| | |
| Trade and other payables | 7,618 | 7,703 | 7,783 |
| Current tax liabilities | 319 | 156 | - |
| Short-term provisions | 343 | 344 | 344 |
| Lease liabilities | 501 | 470 | 505 |
| | 8,781 | 8,673 | 8,632 |
| Non-current liabilities |
| | |
| Retirement benefit obligation | 2,377 | 219 | 1,798 |
| Deferred tax liabilities | - | 10 | - |
| Lease liabilities | 1,894 | 2,359 | 2,193 |
| Total liabilities | 13,052 | 11,261 | 12,623 |
| Net assets | 59,073 | 58,466 | 61,533 |
| |
| | |
| Equity |
| | |
| Share capital | 808 | 808 | 808 |
| Share premium account | 157 | 157 | 157 |
| Capital redemption reserve | 329 | 329 | 329 |
| Translation reserve | 1,980 | 2,992 | 5,065 |
| Retained earnings | 54,357 | 52,672 | 53,525 |
| Total attributable to equity shareholders of the company | 57,631 | 56,958 | 59,884 |
| Non-controlling interests | 1,442 | 1,508 | 1,649 |
| Total equity | 59,073 | 58,466 | 61,533 |
Dewhurst Group plc
Consolidated statement of changes in equity
For the period ended 31 March 2023
|
|
|
|
|
|
|
|
| ||||||
|
| 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 2022 | 808 | 157 | 329 | 5,065 | 53,525 | 1,649 | 61,533 | ||||||
| Exchange differences on translation of foreign operations |
- |
- |
- |
(3,085) |
- |
(151) |
(3,236) | ||||||
| Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
(1,453) |
- |
(1,453) | ||||||
| Deferred tax effect | - | - | - | - | 363 | - | 363 | ||||||
| Tax on items taken directly to equity (Est.) |
- |
- |
- |
- |
218 |
- |
218 | ||||||
| Dividends paid | - | - | - | - | (828) | (118) | (946) | ||||||
| Profit for the period | - | - | - | - | 2,532 | 62 | 2,594 | ||||||
|
|
|
|
|
|
|
|
| ||||||
| At 31 March 2023 | 808 | 157 | 329 | 1,980 | 54,357 | 1,442 | 59,073 | ||||||
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 | ||||||
Dewhurst Group plc
Consolidated statement of changes in equity (cont'd)
For the year ended 30 September 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 |
- |
- |
- |
3,403 |
- |
160 |
3,563 | ||||||
| Actuarial gains/(losses) on defined benefit pension scheme |
- |
- |
- |
- |
1,887 |
- |
1,887 | ||||||
| Deferred tax effect | - | - | - | - | (472) | - | (472) | ||||||
| Tax on items taken directly to equity |
- |
- |
- |
- |
200 |
- |
200 | ||||||
| Dividends paid | - | - | - | - | (1,152) | (342) | (1,494) | ||||||
| Profit for the year | - | - | - | - | 4,849 | 269 | 5,118 | ||||||
| | | | | | | | | ||||||
| At 30 September 2022 | 808 | 157 | 329 | 5,065 | 53,525 | 1,649 | 61,533 | ||||||
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 2022 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 2022 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2022 Interim Financial Statements to take into account any presentational changes made in the 2022 Financial Statements or in these Interim Financial Statements.
Dewhurst Group plc
Consolidated cash flow statement
| | Half year | Half year | Year |
| | ended | ended | ended |
| | 31 March | 31 March | 30 Sept |
|
| 2023 | 2022 | 2022 |
|
| £000's | £000's | £000's |
| Cash flows from operating activities |
| | |
| Operating profit | 3,956 | 3,818 | 7,296 |
| Depreciation and amortisation | 533 | 510 | 1,050 |
| Right-of-use asset depreciation | 251 | 238 | 509 |
| Additional contributions to pension scheme | (919) | (683) | (1,137) |
| Exchange adjustments | (759) | 240 | 738 |
| (Profit)/loss on disposal of property, plant and equipment | (17) | (1) | (13) |
| | 3,045 | 4,122 | 8,443 |
| (Increase)/decrease in inventories | 554 | (414) | (1,334) |
| (Increase)/decrease in trade and other receivables | (157) | (2,108) | (2,310) |
| Increase/(decrease) in trade and other payables | (165) | 132 | 212 |
| Increase/(decrease) in provisions | (1) | 1 | 1 |
| Cash generated from operations | 3,276 | 1,733 | 5,012 |
| Interest paid | - | - | (1) |
| Tax paid | (398) | (1,031) | (1,712) |
| Net cash from operating activities | 2,878 | 702 | 3,299 |
| |
| | |
| Cash flows from investing activities |
| | |
| Proceeds from sale of property, plant and equipment | 28 | 10 | 23 |
| Purchase of property, plant and equipment | (298) | (309) | (789) |
| Development costs capitalised | - | - | (5) |
| Interest received | 181 | 12 | 64 |
| Net cash generated from/(used in) investing activities | (89) | (287) | (707) |
| |
| | |
| Cash flows from financing activities |
| | |
| Dividends paid | (946) | (1,039) | (1,494) |
| Repayment of lease liabilities including interest | (291) | (277) | (584) |
| Net cash used in financing activities | (1,237) | (1,316) | (2,078) |
| |
| | |
| Net increase/(decrease) in cash and cash equivalents | 1,552 | (901) | 514 |
| Cash and cash equivalents at beginning of period | 21,764 | 20,463 | 20,463 |
| Exchange adjustments on cash and cash equivalents | (726) | 292 | 787 |
| Cash and cash equivalents at end of period | 22,590 | 19,854 | 21,764 |
Contacts:
Dewhurst Group Plc Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Sole Broker) Tel: +44 (0)207 496 3000
Rick Thompson / Alex Bond / James Fischer
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