Final Results

Dewhurst PLC
06 December 2005


CHAIRMAN'S STATEMENT

Results

I am delighted to report another record set of results for the Group. Sales 
were up 2.5% at £30.0 million and profits were up 4.6% to £3.5 million.

The improved figures were primarily achieved through the effect of the
acquisition of Lift Material in Australia together with increased interest
earned on our higher cash balances. The strong cash flow has been one of the
encouraging aspects of the year's performance. It has been accomplished, in
part, by improving the reliability of our deliveries and working with suppliers
to enable us to reduce our stock levels.

The results are a credit to the determination and resourcefulness of our
employees and I thank all members of staff for the part they have played in the
year's achievements.

Operations & Products

As outlined at the Half Year, we reduced staffing at the main Hounslow factory
by around 10% in March. We have simplified our administrative processes and, as
a result, have removed some management functions. These actions are all part of
our strategy of making the company 'leaner'. We started 'lean' initiatives in
Canada during the year and the programme is currently being extended to other
companies in the Group. Our focus is on simplification and reducing lead times.

Our new pushbutton range was launched at the major European and North American
lift industry exhibitions recently and was well received. It has already been
specified for a major refurbishment project in Chicago. The new keypad products
are generating considerable interest for a range of different applications,
including cash dispensers, petrol pumps and ticket machines.

Lift Material

We completed the acquisition of Lift Material at the end of June. We welcome
Tony Pegg, the General Manager, and his team to the Group. Lift Material
distributes pushbuttons, displays, safety edges, cable and a wide range of
other products to the lift industry in Australia. The company has a well-
respected product range and there are further opportunities to expand and 
enhance that range.

Management

After 16 years as managing director and more than 9 as a non-executive, Colin
Johnson is retiring from the Board on 31st December 2005. He joined us at a
difficult time for the company and made a major contribution to the resurgence
since that time. He has provided calm and wise counsel to me over many years
and this and his breadth of experience will be greatly missed. We wish Colin a
full and happy retirement.

AIM

It is now our intention to recommend to shareholders a move to AIM.The proposal
will be outlined in a separate circular.

Outlook

Spurred by falling prices we have achieved significant efficiency improvements
in recent years and have established cheaper sources of component supplies. We
continue to look for further gains in these areas, but are reaching the point
where the savings are harder to find and less valuable. At the same time, costs
are rising in a number of areas, particularly those related to oil such as
energy and plastics.

To maintain our position in existing markets we have to work hard to improve
value for the customer. This means better products, higher service levels and
shorter lead times, not just lower prices. We have invested heavily in all
these areas during the year. The above factors lead me to believe that in the
current environment our most significant prospect for growth is with 
acquisitions. We continue our active programme of searching for such investment
opportunities.


Richard Dewhurst
Chairman



REVIEW OF OPERATIONS

Operating Highlights

In the current business environment, the critical driver, other than cost is
service. Across all companies the key objective is to seek continual
improvement in service levels. This is being achieved in a number of areas. We
are putting more focus on our website, to ensure customers have easy access to
product information. We are ensuring close contact between customers and our
in-house sales administration teams. Leadtimes are being driven down and we
constantly strive for 100% on time delivery. At the end of the day service
needs to be our differentiator. We have made significant progress at all
companies in this area and this has been the key factor in delivering this
year's figures.


UNITED KINGDOM

At the start of the year price erosion was significantly out stripping cost
erosion and we spent the first half of the year addressing this situation. This
lead to a further reduction in headcount at our Hounslow factory and an on-
going movement of sourced items from UK suppliers to suppliers in low cost
regions. The size of the team at Hounslow is now in line with current
requirements. We need to be able to cope with both peaks and troughs in demand
and with the further cross training that has been carried out in the last
twenty-four months, we are well set up for the shifts in demand.

Our Lean Manufacturing programme continues in most areas and continuous
improvement through Lean Manufacturing is critical to our business. Stock and
work in progress have both reduced sharply and we expect further improvement
over the next twelve months. Despite this our on time delivery in all three
areas of the business has remained at over 90%. Alan Orr and his Operations
Team have transformed these figures over the last two years: a great
achievement and one they are keen to continue to build on.

Activity in new product design has continued through the year at a high level,
with a large number of new products coming to market in both the keypad and
lift businesses. It is very rewarding and great fun to see so many new products
take the step from a picture on a screen into something you can hold in your
hand. The pipeline of new ideas is still very full and will keep our team of
designers busy throughout the coming year. Although we have reduced our time to
market for new products, there are still opportunities to reduce this lead-time
further and we will continue to work on this in the future.

Keypad Division

It has been an interesting year for the Keypad Division and one full of
challenges. Sales of encrypting pinpads (EPP) have declined, as expected
following the completion of a large retrofit programme by one of our customers.
However, new sales into non-banking applications, particularly petrol pumps,
helped to minimise this effect.

The launch of our new generation of Unipad encrypting pinpads was met with a
great deal of interest and several customers are building Unipad into their new
product designs. The product has been launched in three variants, the standard
stainless steel product, a plastic version and also an eye-catching 
illuminating version.

Rail Division

We have had a similar year in the Rail Division to last year, with no
significant projects and the focus has been on smaller repair and modernization
orders. We still feel there are opportunities in the industry and we are
looking at a number of options to raise our profile.

Lift Division

As with the Keypad Division, the Lift Division has had an interesting and
challenging year. All our subsidiary companies have worked hard to reduce their
stock levels and this has had an impact on our business at Hounslow in terms of
reduced demand. This factor coupled with weak demand from the Far East markets
has made the business more difficult and has led to flat sales within the Lift
Division. Neither of these issues though is long term, so we would expect to 
see a strengthening of sales over the coming year.

The new products that were launched last year have performed well, with our
Jumbo pushbutton achieving annual sales in its first full year significantly
higher than those we achieved with its predecessor.

The design team have been busy on new products for the Lift Division and 
through the course of the year we have introduced three major new products to
the market and a host of additions to our various ranges.

The most important launch was our new M-20 entry-level button, which will allow
us to compete with products from the Far East and Southern Europe. Initial
response to this product has been exciting and it will become an important part
of our product range.

A new dot matrix vandal resistant display has also been launched and has
achieved a high level of early sales in local authority housing upgrades.

LiftStore

Ethos, our new generation lift controller, has been well received since launch
and sales of the product are growing each month. We have seen a significant
reduction in the number of installation-related site call outs, proving that
Ethos is considerably easier to install than our traditional controllers. As we
aim to improve service levels, ease of installation of our products is a key
driver and our customers require fit and forget products.

It has been a busy year for the Monitoring Division and once again they have
won contracts to install monitoring systems into a wide range of facilities.
This year, for the first time we are providing systems for retail applications,
where it is not only lifts that are being monitored, but also plant and 
machinery.

In the Fixture Division, demand for pushbuttons and complete lift fixtures has
increased and we are continuing to put resource into ensuring that our fixtures
meet the changing requirements of our customers. It is important that we
continue to add value through the supply of complete fixtures with displays,
autodiallers and other ancillary items. Achieving the value added sales will be
key to ensuring that the business grows, following the expected reduction in
Disability Discrimination Act work.

NORTH AMERICA

Dupar Controls

Sales at Dupar rose once again, with a strong increase in lift sales more than
offsetting a reduction in keypad sales. Profits were slightly down on the
previous year as a result of a currency write down on the intercompany loan
between Dupar and The Fixture Company. This is the most tangible effect of the
sharp change in value between the Canadian and US Dollars, but it has also had
an impact on Dupar's margins on sales to US customers.

In 2004 we invested heavily in plant and machinery at Dupar. This year the
focus has very much been on lean manufacturing and improving the flow of work
through the factory. We have recruited a new operations manager who has been
working with our UK based lean manufacturing team and together they have
revised the layout of the shop floor to create a smoother flow of work around
the factory.

The new layout has worked well, giving the team at Dupar greater visibility of
work around them. It has helped to improve on time deliveries, but there is
still work to be done on further improvement.

In June, Dupar moved on to the same computer system that is in use here at
Hounslow. The changeover was completed without any major disruption, which is a
tribute to the team involved. We now have the four largest companies in the
Group on the same system and this is bringing benefits to all in numerous
areas.

Keypad sales fell back with the expected reduction in EPP keypads but remain an
important part of the business.

The Fixture Company

The Fixture Company (TFC) had relatively solid growth once again this year and
the sales team continue to work hard to increase their market share. TFC have
been successful in winning new contracts for fixtures to go into Home Lifts,
which is a fast growing sector of the US elevator industry.

AUSTRALASIA

Australian Lift Components

As had been anticipated the Australian market has flattened off over the last
twelve months and ALC saw a slight reduction in sales. However like Hounslow,
ALC have done a great deal of work in improving processes and ensuring that
they drive hard on efficiencies. They were therefore able to show an 
improvement once again in profits.

ALC continue to win many projects to install their fixtures in prestigious
buildings throughout Australia. The demands of customers and the product we
offer in markets like Australia can be more sophisticated than in other areas.
Rolling some of these ideas out across other markets will help to boost
revenues across all companies.

Lift Material

We were very pleased in July to announce the acquisition of Lift Material. The
company has been our distributor in Australia for approximately eighteen years.
They began by solely distributing our products but have added world class lift
component brands to their portfolio over the years. They now have an excellent
range of products that they sell widely throughout the Australasian market. We
believe that there are good opportunities to add to this range and to take the
business forward.

The team at Lift Material have built a good reputation for customer service,
which is critical in the distribution business, and we are certain that we can
transfer some of their ideas to other more manufacturing based companies within
the Group.



David Dewhurst
Group Managing Director




FINANCIAL REVIEW

Results

Turnover increased by 2.5% from £29.3 million to £30.0 million. Operating
profits before amortisation of goodwill rose by £72,000, from £3,383,000 to
£3,455,000. Goodwill amortisation was £160,000, up from £157,000. Net interest
earned rose £83,000 from £107,000 to £190,000. Profit before tax rose from
£3,333,000 to £3,485,000.

Capital Investments

Additions to fixed assets were £166,000 for the year. The major additions for
the group were the implementation of the new group computer system at Dupar, an
engraving machine and a new linishing machine. This lower level of capital
investment is a direct result of the lean focus on improving through people,
processes and manufacturing practices. Capital commitments at the year end
include a new bending machine and improved networking hardware and software.

Cash Flow

The group ended the year with cash and short-term deposits, up £1.0 million to
£6.4 million. This position was achieved after acquiring the business and
assets of the partnership trading as Lift Material in Australia for a total
consideration of £871,000. The cash generated is a direct result of improved
performance, reduced capital expenditure and continuing tight stock controls as
instigated in 2003. Operating cash flow for the year was £3.6 million, down
from £3.9 million due to adverse movements to trade debtors and creditors. 
Dividends aid increased from £440,000 to £466,000.

Treasury Policy

The group seeks to reduce or eliminate financial risk, to ensure sufficient
liquidity is available to meet foreseeable needs, and to invest cash assets
safely and profitably. The policies and procedures operated are regularly
reviewed and approved by the board. By varying the duration of its fixed and
floating cash deposits, the group maximises the return on interest earned. 
There is no formal policy for matching foreign currency cash flows or matching
exposure to foreign currency net assets. However these issues are regularly
monitored. There is no material currency exposure to the group at the year end.
The group's reported trading profit was not significantly affected by currency
movement with approximately 36% being earned in foreign currencies during the
year ended 30 September 2005.

Tax and Dividends

The current tax charge for the year rose to £1,193,000 (34.2%) from £1,141,000
(34.2%) an increase of £52,000. Although there is no movement in the effective
tax rate, £29,000 of the increase in tax charge relates to a prior years
adjustment. The proposed total dividend of 4.89p per share, up 5.2% against 
last year's 4.65p, is covered 4.6 times by earnings. Shareholders' funds 
improved from £13.2 million to £15.7 million. There was no reduction of shares
during the year.

International Financial Reporting Standards ('IFRS')

From 1 October 2005 onwards, the group will prepare its consolidated financial
statements in accordance with IFRS. The interim and annual report and accounts
for 2005/6 will therefore contain restated comparatives for 2004/5 prepared
under IFRS. There will be some presentational differences, but in summary the
impact on trading results is not expected to be material. Despite the inclusion
in the Balance Sheet of a pension deficit and the change from goodwill
amortisation to impairment, the move to IFRS will not change how the group is
managed and will have no impact on cash flow.


Jared Sinclair
Finance Director



Consolidated profit and loss account


For the year ended 30 September 2005
-------------------------------------------------------------------------------
                                              2005                        2004
                                   £             £             £             £
--------------------------  ---------     ---------     ---------     ---------
Turnover                   
- Continuing Operations    29,648,927                  29,265,462    
- Acquisitions                345,517                           -
                                         29,994,444                  29,265,462

Operating costs
- Continuing Operations   (26,456,165)                (26,039,522)
- Acquisitions               (243,263)                          -
                                        (26,699,428)                (26,039,522)
-----------------------     ---------     ---------     ---------     ---------
Operating profit before
amortisation of goodwill                  3,455,368                   3,383,033
Amortisation of goodwill                   (160,352)                   (157,093)
-----------------------     ---------     ---------     ---------     ---------
Operating profit                                              
- Continuing Operations     3,192,762                   3,225,940                   
- Acquisitions                102,254                           -
                                          3,295,016                   3,225,940
Net interest                                190,200                     107,093
-------------------         ---------     ---------     ---------     ---------
Profit on ordinary 
activities before taxation                3,485,216                   3,333,033
Tax on profit
on ordinary activities                   (1,250,612)                 (1,142,345)
-----------------------     ---------     ---------     ---------     ---------
Profit for the financial year             2,234,604                   2,190,688

Dividends per 10p ordinary share
Interim paid of 1.63p 
(2004: 1.55p)                (160,586)                   (152,704)
Proposed final of 3.26p 
(2004: 3.10p)                (321,172)                   (305,408)
-----------------------     ---------     ---------     ---------     ---------
                                           (481,758)                   (458,112)
-----------------------     ---------     ---------     ---------     ---------
Retained profit for the
financial year                            1,752,846                   1,732,576
-----------------------     ---------     ---------     ---------     ---------
Basic and diluted
earnings per share                            22.68p                      22.24p
-----------------------     ---------     ---------     ---------     ---------



Consolidated balance sheet
At 30 September 2005
                                               2005                      2004
                                     £            £            £            £
--------------------        ----------   ----------   ----------   ----------
Fixed assets
Intangible                                1,371,134                   811,964
Tangible
- Land and buildings         1,569,367                 1,534,814
- Plant and machinery        1,341,306                 1,509,245
--------------------        ----------   ----------   ----------   ----------
                                          2,910,673                 3,044,059
--------------------        ----------   ----------   ----------   ----------
                                          4,281,807                 3,856,023
Current assets
Stocks                       3,777,966                 4,152,556
Debtors                      5,726,107                 5,067,207
Short-term deposits          3,034,362                 2,982,472
Cash at bank and in hand     3,403,649                 2,465,272
--------------------        ----------   ----------   ----------   ----------
                            15,942,084                14,667,507
Creditors: amounts falling
due within one year          4,372,981                 5,066,109
--------------------        ----------   ----------   ----------   ----------
Net current assets                       11,569,103                 9,601,398
--------------------        ----------   ----------   ----------   ----------
Total assets less                         
current liabilities                      15,850,910                13,457,421

Creditors: due after one year                     -                       974
Provisions for liabilities                 
and charges                                 200,000                   210,000
--------------------        ----------   ----------   ----------   ----------
Net assets                               15,650,910                13,246,447
--------------------        ----------   ----------   ----------   ----------

Capital and reserves
Called up share capital                     985,190                   985,190
Share premium account                       157,083                   157,083
Revaluation reserve                         423,001                   423,001
Capital redemption reserve                  151,570                   151,570
Profit and loss account                  13,934,066                11,529,603
--------------------        ----------   ----------   ----------   ----------
Equity shareholders' funds               15,650,910                13,246,447
--------------------        ----------   ----------   ----------   ----------

The financial statements were approved by the board of directors on 5 December
2005 and were signed on its behalf by:

Richard Dewhurst, Chairman

Jared Sinclair, Finance Director



Consolidated cash flow statement

For the year ended 30 September 2005
                                               2005                      2004
--------------------        ----------    ---------   ----------     --------
                                     £            £            £            £
Net cash inflow from                         
operating activities                      3,625,514                 3,865,186

Returns on investments
and servicing of finance:
Interest and dividends            
received                       191,517                   107,761
Interest paid                   (1,317)                     (107)
Interest element from finance
lease rental payments                -                      (561)
---------------------       ----------    ---------   ----------     --------
Net cash inflow/(outflow) 
from returns on investments and                        
servicing of finance                        190,200                   107,093
Taxation:
UK taxation                   (873,550)                 (724,294)
Overseas taxation             (424,729)                 (281,368)
------------------------    ----------    ---------   ----------     --------
Net cash outflow from taxation           (1,298,279)               (1,005,662)

Capital expenditure and
financial investment:
Purchase of tangible             
fixed assets                  (165,673)                 (768,742)
Sale of tangible fixed            
assets                          17,773                   176,303
------------------------    ----------    ---------   ----------    ---------
Net cash outflow from                         
capital expenditure 
& financial investment                     (147,900)                 (592,439)

Acquisitions and disposals:
Purchase of subsidiary           
undertakings                  (913,274)                        -
------------------------    ----------    ---------   ----------    ---------
Net cash inflow/(outflow) from
acquisitions and disposals                 (913,274)                        -

Equity dividends paid                      (465,994)                 (440,379)
------------------------    ----------    ---------   ----------    ---------
Net cash inflow before use of
liquid resources and financing              990,267                 1,933,799

Management of liquid resources
Placed on short-term              
deposit                        (51,890)               (1,758,327)
------------------------    ----------    ---------   ----------    ---------
                                            (51,890)               (1,758,327)
Financing
Capital element of finance
lease rental payments                -                   (10,764)
------------------------    ----------    ---------   ----------    ---------
                                                  -                   (10,764)
------------------------    ----------    ---------   ----------    ---------
Increase/(decrease) in                       
cash in year                                938,377                   164,708
------------------------    ----------    ---------   ----------    ---------



AGM, results and dividends

The trading profit for the year, after taxation, amounted to £2,234,604 (2004:
£2,190,688).

A final dividend on the Ordinary and 'A' ordinary shares of 3.26p per 10p share
(2004: 3.10p) will be proposed at the Annual General Meeting to be held on 2
February 2006. If approved, this dividend will be paid on 6 March 2006 to
members on the register at 13 January 2006.

An interim dividend of 1.63p per share (2004: 1.55p) was paid on 30 August 2005.
These dividends absorb £481,758 (2004: £458,112) of the profit for the year
leaving a balance retained of £1,752,846 (2004: £1,732,576) which has been
transferred to group reserves.


Basis of preparation

The above financial information does not constitute full accounts within the
meaning of Section 240 of the Companies Act 1985.

The financial information for the year ended 30 September 2004 is extracted
from the group's financial statements to that date which received an 
unqualified auditors' report and have been filed with the Registrar of 
Companies. The financial information for the year ended 30 September 2005 is 
extracted from the group's financial statements to that date which received an
unqualified auditors' report and will be filed with the Registrar of Companies.

The financial information presented in the preliminary announcement has been
prepared on the basis of the accounting policies set out in the most recently
published set of annual financial statements.

Earnings per share and dividend per share
Weighted average number of shares
-------------------------------------               -----------     -----------
                                                         2005            2004
                                                           No              No
-------------------------------------               -----------     -----------
For basic and diluted earnings per share            9,851,898       9,851,898
-------------------------------------               -----------     -----------

The calculation of basic and diluted earnings per share is based on the profit
attributable to shareholders and on 9,851,898 Ordinary 10p and 'A' ordinary 10p
shares, being the weighted average number of shares in issue throughout the
financial year.

The final proposed dividend is based on 3,570,700 Ordinary 10p shares and
6,281,198 'A' ordinary 10p shares, being the number of shares in issue at the
balance sheet date.




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