Half Yearly Report

RNS Number : 2844N

Dewhurst PLC

09 June 2010

Dewhurst plc

Interim Results for the 6 months ended 31 March 2010

Directors' Interim Report

FIRST HALF

Group turnover was less than 1% down at £17.8 million compared to £17.9 million last year but profit before tax rose 3% to £2.18 million (2009: £2.13 million). Earnings per share increased 3% to 17.94p (2009: 17.48p).

Sales performance varied considerably across the Group. Lift Division sales were higher, but this was principally due to currency gains in overseas markets. The Transport division provided growth in the UK assisted by a first half contribution from Cortest acquired during last year. Keypad sales fell on lower volumes and lower prices. However the Group demonstrated some resilience in the face of difficult market conditions.

The picture is really a mirror image of last year's first half. This year Europe and North America have generally been weaker, whilst Australia and the Far East have bounced back from last year's depressed levels.

OUTLOOK

In the UK we have already seen some nervousness from local authorities and other public sector bodies about their budgets and as a result a hesitation in placing orders. We know a squeeze on UK public sector spending is imminent and now expect that this is likely to have some impact on the Group in the second half of the financial year. It is unlikely that the private sector will pick up the slack immediately. Overseas we are less dependent on the public sector and would expect demand to gradually recover. However this will depend on market economic conditions and confidence.

As happened last year, we made some modest gains in the first half from favourable exchange rate movements. Again, as last year, some of these movements have been partially unwound in the last two months since the half year end.

We have been looking for some time for new premises for our headquarters and Hounslow factory. No contracts have been signed, but we have located premises nearby that we hope will prove suitable. If we go ahead, refurbishment will be necessary, so this is not likely to have a material effect on this year's results.

DIVIDENDS

The Directors have declared an interim dividend of 2.12p which amounts to £180,000, compared with 2.02p last year (£172,000). The interim dividend is payable on 31 August 2010 and will be posted on 26 August 2010 to shareholders appearing in the Register at 3:00 p.m. on 16 July 2010 (ex-dividend on 14 July 2010).

A final 2009 dividend of 4.04p which amounted to £344,000, compared with 3.84p previous year (£327,000) was approved at the AGM held on the 28 January 2010 and was paid on 1 March 2010 to members on the register at 8 January 2010.

By Order of the Board

J C SINCLAIR

Finance Director & Secretary

8 June 2010

The unaudited consolidated income statement, statement of recognised income and expense, balance sheet and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2010, as compared with the corresponding half-year ended 31 March 2009 and the year ended 30 September 2009, shows the following results:

Consolidated income statement

	Half year ended	Half year ended	Year ended
	31 March 2010	31 March 2009	30 September 2009
Continuing operations	£(000)'s	£(000)'s	£(000)'s

Revenue	17,843	17,928	35,835

Operating costs	(15,637)	(15,793)	(31,324)

Operating profit	2,206	2,135	4,511

Finance income	46	60	87

Finance costs	(70)	(66)	(170)

Profit before taxation	2,182	2,129	4,428
Tax on profits	Est. (655)	Est. (641)	(1,157)

Profit for the period	1,527	1,488	3,271

Basic and diluted earnings per share	17.94p	17.48p	38.43p
Dividends per share	2.12p	2.02p	6.06p

Consolidated statement of recognised income and expense

	Half year ended	Half year ended	Year ended
Net income/(expense) recognised	31 March 2010	31 March 2009	30 September 2009
directly in equity:	£(000)'s	£(000)'s	£(000)'s

Actuarial gains/(losses) on the defined benefit pension scheme	Est. (645)	Est. (1,389)	(2,765)

Exchange differences on translation of foreign operations	636	284	1,134

Tax on items taken directly to equity	2	327	457

Net income / (expense) recognised directly in equity in the period	(7)	(778)	(1,174)
Profit for the financial period	1,527	1,488	3,271

Total recognised income and expense for the period	1,520	710	2,097

Consolidated balance sheet

	Half year ended	Half year ended	Year ended
	31 March 2010	31 March 2009	30 September 2009
	£(000)'s	£(000)'s	£(000)'s
Non-current assets
Goodwill	6,109	5,604	5,896
Other intangibles	264	43	264
Property, plant and equipment	4,852	4,258	4,519
Deferred tax asset	1,104	1,372	1,218
	12,329	11,277	11,897
Current assets
Inventories	3,720	3,999	3,983
Trade and other receivables	7,239	5,832	7,077
Current tax assets	-	-	17
Cash and cash equivalents	8,766	6,797	7,476
	19,725	16,628	18,553
Total assets	32,054	27,905	30,450


Current liabilities
Trade and other payables	4,380	3,953	4,540
Current tax liabilities	246	475	-
Short term provisions	275	461	358
	4,901	4,889	4,898
Non-current liabilities
Retirement benefit obligation	6,497	4,750	6,072
Total liabilities	11,398	9,639	10,970

Net assets	20,656	18,266	19,480

Equity
Share capital	851	851	851
Share premium account	157	157	157
Capital redemption reserve	286	286	286
Translation reserve	2,252	948	1,648
Retained earnings	17,110	16,024	16,538

Total equity	20,656	18,266	19,480

These half-year condensed 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 2009 year set out above are abridged. Full accounts for that year reported under IFRS, on which the auditors of the company made an unqualified report have been delivered to the Registrar of Companies.

The presentation of these Interim Financial Statements is consistent with the 2009 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2009 Interim Financial Statements to take into account any presentational changes made in the 2009 Financial Statements or in these Interim Financial Statements.

Consolidated cash flow statement

	Half year ended	Half year ended	Year ended
	31 March 2010	31 March 2009	30 September 2009
	£(000)'s	£(000)'s	£(000)'s

Cash flows from operating activities
Operating profit	2,206	2,135	4,511
Depreciation and amortisation	285	200	575
Additional (income)/costs to pension scheme	(290)	(200)	(562)
Exchange adjustments	20	(338)	70
(Profit)/loss on disposal of property, plant and equipment	-	-	1
	2,221	1,797	4,595
(Increase)/decrease in inventories	263	123	139
(Increase)/decrease in trade and other receivables	(162)	1,322	77
Increase/(decrease) in trade and other payables	(280)	(711)	(124)
Increase/(decrease) in provisions	(83)	111	8
Cash generated from operations	1,959	2,642	4,695
Interest paid	-	-	(1)
Income tax paid	(359)	(730)	(1,555)
Net cash from operating activities	1,600	1,912	3,139

Cash flows from investing activities
Acquisition of business and assets	-	-	(260)
Proceeds from sale of property, plant and equipment	1	-	4
Purchase of property, plant and equipment	(270)	(115)	(396)
Development costs capitalised	-	-	(50)
Interest received	46	60	87
Net cash used in investing activities	(223)	(55)	(615)

Cash flows from financing activities
Dividends paid	(344)	(327)	(499)
Repurchase of shares	-	-	-
Net cash used in financing activities	(344)	(327)	(499)

Net increase/(decrease) in cash and cash equivalents	1,033	1,530	2,025

Cash and cash equivalents at beginning of period	7,476	5,120	5,120
Exchange adjustments on cash and cash equivalents	257	147	331
Cash and cash equivalents at end of period	8,766	6,797	7,476