RNS Number : 7278G
Thorpe(F.W.) PLC
03 October 2024
 

fwthorpelogo

Results

for the year ended 30 June 2024

 

FW Thorpe Plc - a group of companies that design, manufacture and supply professional lighting systems - is pleased to announce its preliminary results for the year ended 30 June 2024.

 

 

Key points:

Continuing operations

2024

2023

 

 

Revenue

£175.8m

£176.7m

0.5% decrease

 

Operating profit (before acquisition adjustments)*

£32.4m

£29.8m

8.7% increase

 

Operating profit

£30.6m

£27.8m

10.1% increase

 

Profit before tax

£29.9m

£26.9m

10.9% increase

 

Basic earnings per share

20.73p

18.72p

10.7% increase

 

* Acquisition adjustments are amortisation of acquisition related intangible assets and revaluation of redemption liability

·      Total interim and final dividend of 6.78p (2023: 6.46p) - an increase of 5.0%

·      Final dividend of 5.08p (2023: 4.84p) - an increase of 5.0%

·      Special dividend of 2.50p (2023:  nil)

·      Steady performance, supported by operational improvements at Thorlux and revenue growth at Lightronics

·      Solid operating profit growth despite inflationary cost pressures

·      Recent acquisitions continue to perform in line with expectations

·      Strong net cash generated from operating activities - £41.4m (2023: £31.9m)

·      Robust start to 2024/25, with operating performance marginally ahead of the prior year

 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR) as supplemented by The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR").

 

For further information please contact: 

FW Thorpe Plc                                                                                                                    

01527 583200 

Mike Allcock - Chairman


Craig Muncaster - Chief Executive, Group Financial Director


Singer Capital Markets - Nominated Adviser

020 7496 3000 

James Moat / Sam Butcher





 

 

Chairman's statement

The financial year 2023/24 was largely uneventful but nevertheless satisfying; although revenue was flat, operating profit increased by 10.1% to £30.6m (2023: £27.8m) as a result of improved internal efficiencies.

Cash reserves, including short-term financial assets, have continued to build and reached £52.9m (2023: £35.0m) at the end of the financial year.  Whilst there are no firm plans, the cash reserves give the Board the opportunity to consider further acquisitions if a suitable situation arises.

Stock has been actively reduced to £29.0m (2023: £33.4m); however, the Board considers that the Group should use its robust cash position to its advantage and maintain good levels of strategically important stocks, to ensure security of supply, whilst being mindful of the associated obsolescence risks of such a policy.

Generally, market selling price increases for luminaires have slowed, but so too have component costs, which have begun to trend lower in many cases. Labour cost increases continue, mainly through pay inflation, but the Board expects this to slow during the coming financial year.

Larger companies within the Group have, unsurprisingly, made the biggest contributions to consolidated profit in the last 12 months, with special mention to the excellent performance of the Dutch contingent. The Board would like to see better contributions from all its smaller UK companies - especially, but not only, TRT Lighting. All these smaller companies have undergone changes to their subsidiary board structures in recent times, and improvements to, or diversification of, their product ranges where required. The Board looks forward to these changes enabling bigger contributions to Group profits from these businesses in the future.

The Board's head count has naturally decreased in recent years in favour of strengthening the subsidiary boards at the operating companies and promoting a focused group of managers from within that can support Group activities when called on. It has always been a specific choice of past Group boards to keep the Board populated with 'lighting' individuals with experience of the way that FW Thorpe Plc operates in its chosen market sector. Whilst the Group does not expect to change this strategy materially, in October 2022 the Board was strengthened with one independent non-executive director, Frans Haafkens, who also has international experience, and this year it will formalise an audit committee. Independent external advice, when required, will be sought on a case-by-case basis.

This is my first statement since becoming non-executive chairman in July 2024 and the separating of the CEO and chair roles. Congratulations and best wishes to Craig Muncaster, who now assumes the role of Group CEO. I would like to thank the shareholders for their ongoing support, which over my 40 years of being employed by FW Thorpe Plc has seen me rise from young school leaver apprentice to chairman. My career must surely give all FW Thorpe employees motivation to stay with the business, work hard and be confident that opportunities, if desired, will be forthcoming - right up to the Group Board.

Group results 

Group revenue was in line with last year, at £175.8m (2023: £176.7m), whilst operating profit before acquisition adjustments, removing the impact of amortisation of intangible assets established at purchase, grew to £32.4m (2023: £29.8m).

The Annual Report and Accounts contains a more detailed appraisal of each company's individual achievements and challenges. Over the year, the Group's stand-out performer was Lightronics, in the Netherlands, which simply had one of those years when its business activities all seemed to line up perfectly, to enable an excellent, but certainly a hard fought and well-managed result.

Thorlux Lighting's managing director retired at the end of the half year in December 2023. Promotions to joint managing director of Ian Mulhall and James Thorpe were well received. Ian, an engineer, has served Thorlux for nearly 35 years, being a past technical director and operations director. James was Thorlux's sales director and is great grandson of the founder, Frederick William Thorpe. The joint managing directors' first 6 months in charge delivered a good result, with second half growth offsetting a slightly slower first half, to finish the financial year broadly level with the prior year. Orders and sales at Thorlux have started the new financial year well, with further growth expected this coming financial year.

Portland Lighting's profit improved this year, despite its heavy investments in its new traffic sign direction. Portland is on the cusp of further growth, with experienced people in place and a super new product range tailored to all the latest requirements for road traffic sign lighting, which has huge potential to accommodate changes from fluorescent lamps to LEDs, amongst other market needs. Solite Europe and Philip Payne both, to a large extent, have new senior management, and their performance was similar to the prior year's. Both have growth targets in place to become larger contributors to the Group in coming years.

TRT Lighting was loss-making in the year, due to a revenue decline of 15%. A new sales director and a whole new sales team are in place with targets to increase new business into local authority regions, which is currently sporadic. TRT Lighting, as a UK designer and manufacturer of street lighting, should encourage all UK local authorities to buy its excellent locally made sustainable products. To assist, investment in products has continued, with further investment in marketing resources. The TRT board looks forward to the company's improvement in performance, but is also cognisant of the time it will take to bed in new salespeople. Performance may get a little worse before it improves for the long term.

Zemper continues to make good contributions and started the new financial year with a good order book, supported by its host of new products. It is also contributing to some Group collaboration projects where several companies have pooled know-how and developed new products with shared, and hence reduced, costs.

SchahlLED's main market, Germany, is in recession, and therefore its operating profit has reduced slightly; nevertheless, the business is making a healthy contribution.

Famostar's year has been steady, as always. Behind the scenes, Famostar is working very hard to assure this consistent profitability whilst also making sure it adapts to market needs, to maintain its position as one of the leading few manufacturers and suppliers to the Dutch emergency lighting market. This year, Famostar is developing an exciting new range of luminaires with intelligent position-orientated sensors. Sales of SmartScan capable emergency luminaires continue to grow, and there are also signs of good growth in Famostar's additional activity of selling Thorlux luminaires into the Netherlands.

The Group's joint venture with Ratio Electric has struggled to make good contributions, but it has achieved significant growth in its Smart charger products, and it has established the Ratio UK company design and production facilities and product range. The io7, Ratio's adaptation of the Thorlux Passway lighting bollard to integrate EV charging and lighting, has started to sell in much larger numbers, and even featured on the BBC's One Show and a high profile electrical installers' YouTube channel. New projects and companies always seem to take longer to start and be harder to establish than one first believes.

Product innovations remain foremost in the minds of Group management. In recent times more collaboration has been encouraged between subsidiary design teams, especially with regards to sharing the costs of tooling, ideas around circular design principles, material selection and sustainability, and sharing SmartScan software for use in an ever-wider range of Group products. As always a topic for the chairman's statement, SmartScan continues to evolve with a host of new customer focused features coming before the end of the financial year. SmartScan Analytics, a new platform launched in autumn 2024, takes the SmartScan cloud operating system to the next level, bringing data from all sorts of IOT connected devices into its central 'brain'. SmartScan Analytics brings a deeper understanding of a building's use to end users. For example, 'standard' SmartScan can easily measure and report whether a lighting installation is using more power this year than it did last year; SmartScan Analytics tells you why. For example, this year it could be further reported that much longer operating hours were recorded for the business, people counters had detected more footfall, less solar power was generated, and electricity prices per kWh had increased. This 'cross analytics' technology has been trialled with a few customers for the last 2 years, and will now be in general release for an additional charge.

On the capex front, the Group decided to continue its investments in carbon offsetting, by purchasing a further 150 acres of suitable tree planting land near the Welsh border in Longtown, Hereford, UK, for £1.7m. Applications have already been made to the appropriate forestry authorities for the first saplings to be planted next spring. There has been some negative press surrounding offsetting in recent times, but the Board is convinced that over the long term the company is doing the right thing, as it recognises that its tree planting activities are supplementary to its intensive carbon reduction measures, which of course save carbon right now. For example, it has always been the Board's intention to investigate all means to reduce its actual emissions to the lowest level possible, right back to when the current sustainability programme started in 2009. At that time, the Group reduced energy use across its factories as far as practicable, before only then choosing offsetting as a supplementary option.

Up to the current day, carbon saving activities continue with the recent installation of another solar PV array at the Ratio EV factory in the UK, installation of the Group's trial electric heating oven for powder coating at Solite (£0.3m), and further significant purchases of company electric vehicles (£1.5m). The Group now owns and operates 5,970 solar panels across eight sites, generating 1.8 million kWh of carbon free electricity per annum. In November 2023, Thorlux installed a new cardboard carton manufacturing machine (£0.2m) and can now produce its own product packaging cartons from recycled and recyclable cardboard on demand. The machine substantially reduces overall storage space, fire risk and material costs.

Sustainability

Sustainability is one of the key pillars for the Group. The Board firmly believes that a business that takes a sustainable approach to the design and manufacturing of its products is highly likely to be more successful as a result. If you use less material in a product and use less power in manufacturing products, costs will be lower.

The Group will continue to find ways to make itself more sustainable, having now completed many of the more obvious initiatives. All Group companies are experiencing increasing sustainability demands from the market. Articles in the Annual Report describe current developments, such as some new lights largely manufactured from wood harvested from sustainable forests in Europe. These components are 3D CNC machined and, as a result, need little or no tooling, can be made in low volume without the need to carry large stocks, and can be altered in their shape and design with little overhead cost, save for a new CNC program.

In summer 2024, the whole Group completed its assessment for the Science Based Targets initiative (SBTi), to become one of only a relatively few companies globally that have completed the very detailed and lengthy third party assessed and verified process. The Group now has a plan to head towards net-zero - a plan that is assessed, verified and realistic, with a first target to achieve significant milestones by 2030. All companies within the Group have targets to reduce their carbon emissions even further, by significant margins from a baseline in financial year 2020/21. Progress is assessed at every board meeting, all employees are trained in sustainability matters, they receive regular newsletters, and there are awards for contributions from employees. The Group is taking its sustainability obligations seriously and, as you can see from the commentary above, is not resting on its laurels and is investing heavily in continuous improvements.

Personnel 

I would like to thank all Group employees for their dedication and commitment throughout the financial year.

In January 2024, Peter Mason retired from his non-executive role on the Board. Peter joined FW Thorpe Plc in 1987 as Finance Director. He became Joint Chief Executive in July 2000 and stepped back to a non-executive role in June 2010. On behalf of the Group and its shareholders, I would like to wish Peter a long and happy retirement and thank him for his many years of service, during which time the Group grew significantly, whilst also underpinning the Group's foundations to make it the strong and stable group it is today.

Dividend 

Performance as a whole for the year to 30 June 2024 allows the Board to recommend an increased final dividend of 5.08p per share (2023:4.84p), which gives a total for the year of 6.78p (2023: 6.46p excluding special dividend). A special dividend of 2.50p will also be paid, reflecting the Group's strong cash position.

Outlook 

All Group companies are charged with growth; as ever, this is their target. With so many companies in the Group, there will be inevitable ups and downs in various locations. All the larger companies are in good shape with stable and experienced leadership teams with good order books at the start of the new financial year. Costs are generally under control, although people cost pressures remain and the companies need to keep working hard to find efficiency improvements.

The smaller companies have all struggled somewhat to get themselves back on a plan for growth in recent years. Changes have been made and each company has a plan to grow.

The change in governments in various Group locations raises a few questions about the future, but the Group setup gives good resilience overall.

Consolidated as a whole, the outlook is positive with modest growth expectations.

 

Mike Allcock

Chairman

3 October 2024

Consolidated Results

Consolidated income statement.

For the year ended 30 June 2024


Notes

2024

£'000

2023

£'000

Continuing operations




Revenue

2

175,798

176,749

Cost of sales


(90,361)

(98,891)

Gross profit


85,437

77,858

Distribution costs


(22,370)

(19,214)

Administrative expenses


(33,001)

(31,292)

Other operating income


565

480

Operating profit

 

30,631

27,832

Finance income

 

1,127

716

Finance expense

 

(1,059)

(1,094)

Share of loss of joint ventures

 

(826)

(520)

Profit before income tax


29,873

26,934

Income tax expense

3

(5,560)

(5,000)

Profit for the year


24,313

21,934

 

Earnings per share from continuing operations attributable to the equity holders of the Company during the year (expressed in pence per share).

Basic and diluted earnings per share

Notes

2024

pence

2023

pence

- Basic

8

20.73

18.72

- Diluted

8

20.73

18.70

 



 

Consolidated Statement of Comprehensive Income
For the year ended 30 June 2024


Notes

2024

£'000

2023

£'000

Profit for the year:


24,313

21,934

Other comprehensive income/(expense)




Items that may be reclassified to profit or loss




Exchange differences on translation of foreign operations


(514)

231



(514)

231

Items that will not be reclassified to profit or loss




Revaluation of financial assets at fair value through other comprehensive income

 

403

(105)

Movement on associated deferred tax

 

(101)

26

Actuarial gain/(loss) on pension scheme

 

937

(123)

Movement on unrecognised pension scheme surplus

 

(1,213)

177



26

(25)

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


(488)

206

Total comprehensive income for the year


23,825

22,140

 



 

Consolidated Statement of Financial Position

As at 30 June 2024


Notes

2024

£'000

2023

£'000

Assets




Non-current assets




Property, plant and equipment

5

38,323

38,763

Intangible assets

6

66,104

70,891

Investment properties

 

4,403

1,986

Financial assets at amortised cost

 

186

1,587

Equity accounted investments and joint arrangements

 

4,671

5,592

Financial assets at fair value through other comprehensive income

 

3,757

3,364

Deferred income tax assets

 

347

382

Total non-current assets


117,791

122,565

Current assets


 


Inventories

 

28,997

33,437

Trade and other receivables

 

35,764

35,733

Financial assets at amortised cost

 

3,437

1,266

Short-term financial assets

7

18,965

4

Cash and cash equivalents

 

33,943

35,013

Total current assets


121,106

105,453

Total assets


238,897

228,018

Liabilities


 


Current liabilities


 


Trade and other payables

 

(35,383)

(37,457)

Financial liabilities

 

(1,252)

(1,435)

Lease liabilities

 

(778)

(812)

Current income tax liabilities


(949)

(1,143)

Total current liabilities


(38,362)

(40,847)

Net current assets


82,744

64,606

Non-current liabilities


 


Other payables

 

(10,418)

(11,987)

Financial liabilities

 

(1,210)

(1,461)

Lease liabilities

 

(3,385)

(3,822)

Provisions for liabilities and charges

 

(3,325)

(3,299)

Deferred income tax liabilities

 

(5,435)

(6,261)

Total non-current liabilities


(23,773)

(26,830)

Total liabilities


(62,135)

(67,677)

Net assets


176,762

160,341

Equity


 


Issued share capital

 

1,189

1,189

Share premium account

 

3,088

2,976

Capital redemption reserve

 

137

137

Foreign currency translation reserve

 

1,525

2,039

Retained earnings:


 


At 1 July


154,000

139,392

Profit for the year attributable to the owners


24,313

21,934

Other changes in retained earnings


(7,490)

(7,326)



170,823

154,000

Total equity


176,762

160,341

 

 



 

Consolidated Statement of Changes in Equity.

For the year ended 30 June 2024


Notes

Issued

share

capital

£'000

Share

premium

account

£'000

Capital

redemption

reserve

£'000

Foreign

currency

translation

reserve

£'000

Retained

earnings

£'000

Total

equity

£'000

Balance at 1 July 2022


1,189

2,827

137

1,808

139,392

145,353

Comprehensive income/(expense)








Profit for the year to 30 June 2023


-

-

-

-

21,934

21,934

Actuarial loss on pension scheme

 

-

-

-

-

(123)

(123)

Movement on unrecognised pension








Scheme surplus

 

-

-

-

-

177

177

Revaluation of financial assets at fair value through other comprehensive income

 

-

-

-

-

(105)

(105)

Movement on deferred tax associated to financial assets at fair value through other comprehensive income

 

-

-

-

-

26

26

Exchange differences on translation of








foreign operations


-

-

-

231

-

231

Total comprehensive income


-

-

-

231

21,909

22,140

Transactions with owners








Shares issued from exercised options


-

149

-

-

-

149

Dividends paid to shareholders

4

-

-

-

-

(7,301)

(7,301)

Total transactions with owners


-

149

-

-

(7,301)

(7,152)

Balance at 30 June 2023


1,189

2,976

137

2,039

154,000

160,341

Comprehensive income/(expense)








Profit for the year to 30 June 2024


-

-

-

-

24,313

24,313

Actuarial gain on pension scheme

 

-

-

-

-

937

937

Movement on unrecognised pension scheme surplus

 

-

-

-

-

(1,213)

(1,213)

Revaluation of financial assets at fair value through other comprehensive income

 

-

-

-

-

403

403

Movement on deferred tax associated to financial assets at fair value through other comprehensive income

 

-

-

-

-

(101)

(101)

Exchange differences on translation of foreign operations


-

-

-

(514)

-

(514)

Total comprehensive income


-

-

-

(514)

24,339

23,825

Transactions with owners








Shares issued from exercised options


-

112

-

-

-

112

Dividends paid to shareholders

4

-

-

-

-

(7,668)

(7,668)

Share based payment charge


-

-

-

-

152

152

Total transactions with owners


-

112

-

-

(7,516)

(7,404)

Balance at 30 June 2024


1,189

3,088

137

1,525

170,823

176,762

 

 



 

Consolidated Statement of Cash Flows
For the year ended 30 June 2024


Notes

2024

£'000

 

2023

£'000

(Restated)*

Cash flows from operating activities

 



Cash generated from operations

9

47,760

36,216

Tax paid


(6,390)

(4,341)

Net cash generated from operating activities


41,370

31,875

Cash flows from investing activities




Purchases of property, plant and equipment


(5,121)

(7,739)

Proceeds from sale of property, plant and equipment


407

535

Purchases of intangible assets


(2,172)

(2,255)

Purchases of subsidiaries (net of cash acquired)


-

(12,602)

Purchase of shares in subsidiaries


-

(2,104)

Payment of exit earnout of a purchased subsidiary


(606)

-

Purchase of investment property


(2,179)

(22)

Proceed from sale of an investment property


502

-

Net sale of financial assets at fair value through other comprehensive income


9

1

Property rental and similar income received


208

93

Dividend income received


182

209

Net (deposit)/withdrawal of short-term financial assets


(18,994)

5,075

Interest received


522

434

Receipts from loans receivable


-

1,813

Issue of loans receivables


(1,082)

(1,748)

Net cash used in investing activities


(28,324)

(18,310)

Cash flows from financing activities




Net proceeds from the issuance of ordinary shares


112

149

Addition of lease liabilities


13

203

Proceeds from borrowings


439

1,039

Repayment of borrowings


(839)

(2,532)

Principal element of lease payments


(855)

(789)

Payment of interest


(296)

(339)

Payment for redemption of shares in a subsidiary


(4,266)

(4,341)

Payments to non-controlling interests


(452)

-

Dividends paid to Company's shareholders

4

(7,668)

(7,301)

Net cash used in financing activities


(13,812)

(13,911)

Net decrease in cash in the year


(766)

(346)

Cash and cash equivalents at beginning of year


35,013

35,505

Effects of exchange rate changes on cash


(304)

(146)

Cash and cash equivalents at end of year


33,943

35,013

*     During the year, there was a re-classification of payments made to acquire further shares within Electrozemper S.A. for the year ended 30 June 2023 which was incorrectly classified as cash flows from investing activities.  The consolidated statements of cash flows has been restated to reclassify £4,341,000 from cash flows from investing activities to cash flows from financing activities. There was no impact on the other financial statements or accompanying notes.

 



 

Notes

 

1 Basis of preparation

The consolidated and company financial statements of FW Thorpe Plc have been prepared in accordance with 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 financial statements have been prepared on a going concern basis, under the historical cost convention except for the financial instruments measured at fair value either through other comprehensive income or profit and loss per the provisions of IFRS 9 and redemption liabilities that are measured at fair value.

There are no other standards that are not yet effective that are expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

The financial statements are presented in Pounds Sterling, which is the Company's functional and presentation currency, rounded to the nearest thousand.

The preparation of financial information in conformity with the basis of preparation described above requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's and Group's accounting policies.

The directors confirm they are satisfied that the Group and Company have adequate resources, with £33.9m cash to continue in business for the foreseeable future, including the effect of increased costs caused by the on-going conflict zones, where the Group has no sales, and other global events. The directors have also produced a severe, but plausible downside scenario that demonstrates that the Group could cover its cash commitments over the following year from approving these accounts. For this reason, the directors continue to adopt the going concern basis in preparing the accounts.

The Board of Directors approved the Consolidated Financial Statements set out in this document on 3 October 2024. They are not statutory accounts within the meaning of section 435 of the Companies Act 2006. The Group's Financial Statements for the year ended 30 June 2024 were approved by the Board on 3 October 2024. They have been reported on by the Group's auditors and will be delivered to the registrar of companies in due course. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The comparative figures for the financial year 30 June 2023 have been extracted from the Group's statutory accounts for that financial year. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006



 

 

2 Segmental Analysis

(a) Business segments

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 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 B.V. and Famostar Emergency Lighting B.V., are material subsidiaries and disclosed separately as Netherlands companies. The businesses in the Zemper Group are also material and disclosed separately as the Zemper Group.

The seven remaining operating segments have been aggregated into the "other companies" reportable segment based upon their size, comprising the entities Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited, Thorlux Lighting 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 performance of the operating segments for the purpose of making decisions about resources to be allocated. Performance is evaluated based on a combination of revenue and operating profit. Assets and liabilities have not been segmented, which is consistent with the Group's internal reporting.


Thorlux

£'000

Netherlands

companies

 £'000

Zemper Group

£'000

Other

companies

£'000

Inter-

segment

adjustments

£'000

Total

continuing

operations

£'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, amortisation and impairment

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 loss of joint ventures






(826)

Profit before income tax






29,873

*Acquisition adjustments include amortisation charge of intangible assets of £3.1m and gain on revaluation of redemption liability of £1.4m.

 

 

Year to 30 June 2023







Revenue to external customers

101,859

36,226

19,328

19,336

-

176,749

Revenue to other Group companies

3,601

417

-

4,667

(8,685)

-

Total revenue

105,460

36,643

19,328

24,003

(8,685)

176,749

EBITDA

21,458

7,952

4,205

2,392

588

36,595

Depreciation and amortisation

4,212

983

2,307

1,261

-

8,763

Operating profit before acquisition adjustments*

18,062

7,187

2,801

1,131

588

29,769

Operating profit

17,246

6,969

1,898

1,131

588

27,832

Net finance expense






(378)

Share of loss of joint ventures






(520)

Profit before income tax






26,934

* Acquisition adjustments include amortisation of intangible assets of £1.9m.

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, elimination of inter-segment impairments, changes in fair value of redemption liability, and elimination of profit on transfer of assets between Group companies.

 

 

 

 

(b) Geographical analysis

The Group's business segments operate in five main areas: the UK, the Netherlands, Germany, the rest of Europe and the rest of the world. The home country of the Company, which is also the main operating company, is the UK.


2024

£'000

2023

£'000

UK

90,330

89,917

Netherlands

36,164

31,845

Germany

17,554

21,548

Rest of Europe

27,693

30,039

Rest of the world

4,057

3,400


175,798

176,749

 

3 Income Tax Expense

Analysis of income tax expense in the year:


2024

£'000

2023

£'000

Current tax



Current tax on profits for the year

6,622

5,515

Adjustments in respect of prior years

(217)

(313)

Total current tax

6,405

5,202

Deferred tax



Origination and reversal of temporary differences

(845)

(202)

Total deferred tax

(845)

(202)

Income tax expense

5,560

5,000

The tax assessed for the year is lower (2023: lower) than the standard rate of corporation tax in the UK of 25% (2023: 20.5%). The differences are explained below:


2024

£'000

2023

£'000

Profit before income tax

29,873

26,934

Profit on ordinary activities multiplied by the standard rate in the UK of 25% (2023: 20.5%)

7,468

5,521

Effects of:



Expenses not deductible for tax purposes

1,529

1,150

Accelerated tax allowances and other timing differences

(810)

(145)

Adjustments in respect of prior years

(217)

(313)

Patent box relief

(2,400)

(1,718)

Foreign profit taxed at higher rate

(10)

505

Tax charge

5,560

5,000

The effective tax rate was 18.61% (2023: 18.56%). Adjustments in respect of prior years relate to refunds received for prudent assumptions on additional investment allowances and patent box relief in the tax calculations.

The UK corporation tax rate increased from 19% to 25% from 1 April 2023, which was substantively enacted in May 2021 and an standard rate of 25% (2023: average standard rate of 20.5%) is applicable to the Company during the current year. Deferred tax assets and liabilities have been calculated based on a rate at which they are expected to crystallise.



 

 

4 Dividends

Dividends paid during the year are outlined in the tables below:

Dividends paid (pence per share)

2024

2023

Final dividend

4.84

4.61

Interim dividend

1.70

1.62

Total

6.54

6.23

 

A final dividend in respect of the year ended 30 June 2024 of 5.08p per share, amounting to £5,961,000 (2023: £5,674,000) and a special dividend of 2.50p per share, amounting to £2,934,000 (2023: £nil) are to be proposed at the Annual General Meeting on 21 November 2024 and, if approved, will be paid on 29 November 2024 to shareholders on the register on 25 October 2024. The ex-dividend date is 24 October 2024. These financial statements do not reflect this dividend payable.

Dividends proposed (pence per share)

2024

2023

Final dividend

5.08

4.84

Special dividend

2.50

-

Total

7.58

4.84

 

Dividends paid

2024

£'000

2023

£'000

Final dividend

5,674

5,403

Interim dividend

1,994

1,898

Total

7,668

7,301

 

Dividends proposed

2024

£'000

2023

£'000

Final dividend

5,961

5,674

Special dividend

2,934

-

Total

8,895

5,674

 

 

 

 

 

 



 

 

5 Property, Plant and Equipment

 


Freehold land

and buildings

£'000

Plant and

equipment

£'000

Right-

of-use

assets

£'000

Total

£'000

Cost





At 1 July 2023

28,219

37,689

5,942

71,850

Additions

614

4,507

431

5,552

Transfer to investment properties

(891)

-

-

(891)

Disposals

(12)

(1,236)

(232)

(1,480)

Currency translation

(170)

(144)

(86)

(400)

At 30 June 2024

27,760

40,816

6,055

74,631

Accumulated depreciation





At 1 July 2023

6,211

24,758

2,118

33,087

Charge for the year

834

3,217

763

4,814

Transfer to investment properties

(240)

-

-

(240)

Disposals

(11)

(955)

(232)

(1,198)

Currency translation

(28)

(91)

(36)

(155)

At 30 June 2024

6,766

26,929

2,613

36,308

Net book amount





At 30 June 2024

20,994

13,887

3,442

38,323

 


Freehold land and buildings

£'000

Plant and

equipment

£'000

Right-

of-use

assets

£'000

Total

£'000

Cost





At 1 July 2022

 25,354

33,795

4,356

63,505

Acquisition of subsidiaries*

-

50

134

184

Additions

2,892

4,847

1,751

9,490

Disposals

-

(970)

(278)

(1,248)

Currency translation

(27)

(33)

(21)

(81)

At 30 June 2023

28,219

37,689

5,942

71,850

Accumulated depreciation





At 1 July 2022

5,477

22,518

1,692

29,687

Acquisition of subsidiaries*

-

-

38

38

Charge for the year

738

2,937

614

4,289

Disposals

-

(685)

(220)

(905)

Currency translation

(4)

(12)

(6)

(22)

At 30 June 2023

6,211

24,758

2,118

33,087

Net book amount





At 30 June 2023

22,008

12,931

3,824

38,763

* Acquisition of subsidiaries are the assets acquired from the purchase of the Lumen companies with a fair value of £146,000.

Freehold land which was not depreciated at 30 June 2024 amounted to £755,000 (2023: £758,000) (Group) and £500,000 (2023: £500,000) (Company).

 

 

 

 

 

 

 

 

6 Intangible Assets

Group 2024

Goodwill

£'000

Development

costs

£'000

Technology

£'000

Brand

name

£'000

Customer

relationship

£'000

Software

£'000

Patents

£'000

Fishing

rights

£'000

Total

£'000

Cost










At 1 July 2023

47,003

13,956

2,893

5,164

15,078

3,747

159

182

88,182

Additions

-

2,019

-

-

-

133

20

-

2,172

Disposals

-

(1,902)

-

-

-

(20)

-

-

(1,922)

Write-offs

(481)

-

-

-

-

-

-

-

(481)

Currency translation

(620)

(119)

(36)

(70)

(214)

(7)

(1)

-

(1,067)

At 30 June 2024

45,902

13,954

2,857

5,094

14,864

3,853

178

182

86,884

Accumulated amortisation and impairment










At 1 July 2023

233

7,925

2,643

1,702

1,806

2,826

156

-

17,291

Charge for the year

-

2,351

149

1,419

1,566

361

-

-

5,846

Impairment

249

-

-

-

-

-

-

-

249

Disposals

-

 (1,902)

-

-

-

(20)

-

-

(1,922)

Write-offs

(481)

-

-

-

-

-

-

-

(481)

Currency translation

(1)

(78)

(35)

(40)

(46)

(3)

-

-

(203)

At 30 June 2024

-

8,296

2,757

3,081

3,326

3,164

156

-

20,780

Net book amount










At 30 June 2024

45,902

5,658

100

2,013

11,538

689

22

182

66,104

 

Group 2023

Goodwill

£'000

Development

costs

£'000

Technology

£'000

Brand

name

£'000

Customer

relationship

£'000

Software

£'000

Patents

£'000

Fishing

rights

£'000

Total

£'000

Cost










At 1 July 2022

32,778

16,320

2,895

3,845

9,460

3,344

159

182

68,983

Acquisition of subsidiaries*

14,624

-

-

1,354

5,759

38

-

-

21,775

Additions

-

1,874

-

-

-

381

-

-

2,255

Disposals

-

-

-

-

-

(12)

-

-

(12)

Write-offs

-

(4,228)

-

-

-

-

-

-

(4,228)

Currency translation

(399)

(10)

(2)

(35)

(141)

(4)

-

-

(591)

At 30 June 2023

47,003

13,956

2,893

5,164

15,078

3,747

159

182

88,182

Accumulated amortisation










At 1 July 2022

252

10,009

2,495

1,273

473

2,460

156

-

17,118

Charge for the year

-

2,152

151

434

1,350

367

-

-

4,454

Disposals

-

-

-

-

-

(1)

-

-

(1)

Write-offs

-

(4,228)

-

-

-

-

-

-

(4,228)

Currency translation

(19)

(8)

(3)

(5)

(17)

-

-

-

(52)

At 30 June 2023

233

7,925

2,643

1,702

1,806

2,826

156

-

17,291

Net book amount










At 30 June 2023

46,770

6,031

250

3,462

13,272

921

3

182

70,891

* Acquisition of subsidiaries are the assets acquired from the purchase of the Lumen companies with a fair value of £7,151,000, excluding goodwill.

7 Short-Term Financial Assets

 


2024

£'000

2023

£'000

At 1 July

4

5,079

Net deposits/(withdrawals)

18,994

(5,075)

Currency translation

(33)

-

At 30 June

18,965

4

The short-term financial assets consist of term cash deposits with an original term in excess of three months.

 

 

8 Earnings Per Share

Basic and diluted earnings per share for profit attributable to equity holders of the Company

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares.

Basic

      2024

2023

Weighted average number of ordinary shares in issue

117,256,012

117,199,805

Profit attributable to equity holders of the Company (£'000)

24,313

21,934

Basic earnings per share (pence per share) total

               20.73

              18.72

 

Diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares, plus the number of shares earnt for share options where performance conditions have been achieved.

Diluted

2024

2023

Weighted average number of ordinary shares in issue (diluted)

117,294,290

117,294,937

Profit attributable to equity holders of the Company (£'000)

24,313

21,934

Diluted earnings per share (pence per share) total

               20.73

              18.70

 

9 Cash Generated from Operations


2024

£'000

2023

£'000

Profit before income tax

29,873

26,934

Depreciation of property, plant and equipment

4,814

4,289

Depreciation of investment property

45

20

Amortisation of intangible assets

5,846

4,454

Impairment of goodwill

249

-

Fair value adjustment on redemption liability

(1,402)

-

Profit on disposal of property, plant and equipment

(125)

(192)

Profit on disposal of an investment property

(134)

-

Net finance expense/(income)

(68)

378

Retirement benefit contributions less the current  and past service charge

(276)

54

Share of joint venture loss

826

520

Share-based payment charge

152

-

Research and development expenditure credit

(356)

(382)

Effects of exchange rate movements

907

952

Changes in working capital

 


- Decrease/(increase) in inventories

4,258

3,117

- Decrease/(increase) in trade and other receivables

135

(98)

- Increase/(decrease) in payables and provisions

3,016

(3,830)

Cash generated from operations

47,760

36,216

 

10 Events after the Statement of Financial Position date

There are no events after the statement of financial position date that have significant impact to the Group's financial position.

 

 

 

 

 

 

 

 

 

 

11 Cautionary statement

Sections of this report contain forward looking statements that are subject to risk factors including the economic and business circumstances occurring from time to time in countries and markets in which the Group operates. By their nature, forward looking statements involve a number of risks, uncertainties and future assumptions because they relate to events and/or depend on circumstances that may or may not occur in the future and could cause actual results and outcomes to differ materially from those expressed in or implied by the forward looking statements. No assurance can be given that the forward-looking statements in this preliminary announcement will be realised. Statements about the Chairman's expectations, beliefs, hopes, plans, intentions and strategies are inherently subject to change, and they are based on expectations and assumptions as to future events, circumstances and other factors which are in some cases outside the Company's control. Actual results could differ materially from the Company's current expectations. It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause actual results or trends to differ materially, including but not limited to, changes in risks associated with the Company's growth strategy, fluctuations in product pricing and changes in exchange and interest rates.

 

12 Annual report and accounts

The annual report and accounts will be sent to shareholders on 18 October 2024 and will be available, along with this announcement, on the Group's website (www.fwthorpe.co.uk) from 18 October 2024. The Group will hold its AGM on 21 November 2024.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
FR MTBRTMTBMBBI