Half Yearly Report

RNS Number : 3321T

Dewhurst PLC

04 June 2009

Dewhurst plc

Directors' Interim Report

FIRST HALF

Turnover at the Group was up 8% to £17.9 million compared to £16.6 million last year and profit before tax rose 17% to £2.13 million (2008: £1.81 million). Earnings per share increased 30% to 17.48p (2008: 13.44p). The earnings per share performance is enhanced by the effect of the share buy backs that took place in the first half of 2008.

We again achieved sales growth in all three product divisions: lift, transport and keypad. As was the case last year, transport showed the strongest growth, with our bollard product range continuing to generate increases in sales. The sales and profit figures for the period were helped by the fact that about one third of sales are made in foreign currencies and these have increased in value when reported in pounds.

Sales revenue held up reasonably well in the UK and North America in the first half though Australia was weaker than normal. However orders received in the UK have been declining and orders on hand at the end of the first half were at a significantly lower level than at the start of the year.

OUTLOOK

We have benefited up to now from the fact that demand for our lift products tends to come towards the end of construction projects. We have made sales this period to projects that were committed before the current climate of uncertainty prevailed. The corollary of this is that we may not see a recovery in demand until some time after the general economic recovery is well under way. Having said that, there are still opportunities for sales to the public sector and to lift refurbishment markets.

We also made profits in the first half from favourable exchange rate movements. The pound has already moved back to some extent against the US Dollar, so it is likely the first half gains may be at least partially reversed. Together with cost pressures this is likely to impact on margins in the second half.

It remains very difficult to predict the pattern of demand in our markets, but overall we do not expect to reach last year's record levels. The strength of the company's balance sheet remains an important stabiliser in the current environment.

DIVIDENDS

The Directors have declared an interim dividend of 2.02p which amounts to £172k, compared with 1.92p last year (£163k). The interim dividend is payable on 25 August 2009 and will be posted on 20 August 2009 to shareholders appearing in the Register at 3:00 p.m. on 10 July 2009 (ex-dividend on 8 July 2009).

A final 2008 dividend of 3.84p which amounted to £327k, compared with 3.60p previous year (£331k) was approved at the AGM held on the 29 January 2009 and was paid on 2 March 2009 to members on the register at 9 January 2009.

By Order of the Board

J C SINCLAIR

Finance Director & Secretary

3 June 2009

Dewhurst plc

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 2009, as compared with the corresponding half-year ended 31 March 2008 and the year ended 30 September 2008, shows the following results:

Consolidated income statement

	Half year ended	Half year ended	Year ended
	31 March 2009	31 March 2008	30 September 2008
Continuing operations	£(000)'s	£(000)'s	£(000)'s

Revenue	17,928	16,619	36,326

Operating costs	(15,793)	(14,907)	(31,974)

Operating profit	2,135	1,712	4,352

Finance income	60	132	329

Finance costs	(66)	(31)	(2)

Profit before taxation	2,129	1,813	4,679
Tax on profits	Est. (641)	Est. (580)	(1,238)

Profit for the period	1,488	1,233	3,441

Basic and diluted earnings per share	17.48p	13.44p	38.92p
Dividends per share	2.02p	1.92p	5.76p

Consolidated statement of recognised income and expense

	Half year ended	Half year ended	Year ended
Net income/(expense) recognised	31 March 2009	31 March 2008	30 September 2008
directly in equity:	£(000)'s	£(000)'s	£(000)'s

Actuarial gains/(losses) on the defined benefit pension scheme	Est. (1,389)	Est. (1,437)	(440)

Exchange differences on translation of foreign operations	284	(276)	433

Tax on items taken directly to equity	327	514	(68)

Net income / (expense) recognised directly in equity in the period	(778)	(1,199)	(75)
Profit for the financial period	1,488	1,233	3,441

Total recognised income and expense for the period	710	34	3,366

Dewhurst plc

Consolidated balance sheet

	Half year ended	Half year ended	Year ended
	31 March 2009	31 March 2008	30 September 2008
	£(000)'s	£(000)'s	£(000)'s
Non-current assets
Goodwill	5,604	5,534	5,554
Other intangibles	43	112	43
Property, plant and equipment	4,258	3,184	4,219
Deferred tax asset	1,372	1,586	877
	11,277	10,416	10,693
Current assets
Inventories	3,999	3,579	4,122
Trade and other receivables	5,832	6,258	7,154
Cash and cash equivalents	6,797	4,073	5,120
	16,628	13,910	16,396
Total assets	27,905	24,326	27,089


Current liabilities
Trade and other payables	3,953	3,957	4,664
Current tax liabilities	475	399	492
Short term provisions	461	160	350
	4,889	4,516	5,506
Non-current liabilities
Retirement benefit obligation	4,750	5,095	3,700
Total liabilities	9,639	9,611	9,206

Net assets	18,266	14,715	17,883

Equity
Share capital	851	851	851
Share premium account	157	157	157
Capital redemption reserve	286	286	286
Translation reserve	948	319	832
Retained earnings	16,024	13,102	15,757

Total equity	18,266	14,715	17,883

These half-year condensed financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results for the 2008 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 2008 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2008 Interim Financial Statements to take into account any presentational changes made in the 2008 Financial Statements or in these Interim Financial Statements.

Dewhurst plc

Consolidated cash flow statement

	Half year ended	Half year ended	Year ended
	31 March 2009	31 March 2008	30 September 2008
	£(000)'s	£(000)'s	£(000)'s

Cash flows from operating activities
Operating profit	2,135	1,712	4,352
Depreciation and amortisation	200	167	534
Additional (income)/costs to pension scheme	(200)	(130)	(423)
Exchange adjustments	(338)	(474)	199
(Profit)/loss on disposal of property, plant and equipment	-	(14)	(15)
	1,797	1,261	4,647
(Increase)/decrease in inventories	123	(801)	(1,294)
(Increase)/decrease in trade and other receivables	1,322	719	(177)
Increase/(decrease) in trade and other payables	(711)	79	786
Increase/(decrease) in provisions	111	60	250
Cash generated from operations	2,642	1,318	4,212
Interest paid	-	-	(2)
Income tax paid	(730)	(700)	(1,147)
Net cash from operating activities	1,912	618	3,063

Cash flows from investing activities
Acquisition of business and assets	-	(160)	(250)
Proceeds from sale of property, plant and equipment	-	14	21
Purchase of property, plant and equipment	(115)	(576)	(1,890)
Development costs capitalised	-	-	(7)
Interest received	60	132	235
Net cash used in investing activities	(55)	(590)	(1,891)

Cash flows from financing activities
Dividends paid	(327)	(331)	(495)
Repurchase of shares	-	(2,334)	(2,334)
Net cash used in financing activities	(327)	(2,665)	(2,829)

Net increase/(decrease) in cash and cash equivalents	1,530	(2,637)	(1,657)

Cash and cash equivalents at beginning of period	5,120	6,659	6,659
Exchange adjustments on cash and cash equivalents	147	51	118
Cash and cash equivalents at end of period	6,797	4,073	5,120