Interim Results

Dewhurst Group PLC
24 June 2024
 

Dewhurst Group plc

 

Interim Results for the 6 months ended 31 March 2024

 

Directors' Interim Report

 

FIRST HALF

We are pleased to report a busy, but solid performance for the first half of the current financial year, in line with management expectations. Overall, Group revenue increased by 2% to £31.0 million (2023: £30.4 million). Our operating profits have been impacted by the initial investment and set-up costs required to get Dewhurst displays operational quickly in Singapore and decreased slightly by 7% to £3.7 million (2023: £4.0 million).  However, it is pleasing to report that we are seeing steady growth in lift display sales and increased profitability, as customers deplete their Avire display inventory and start purchasing Dewhurst displays. Profit before tax decreased 3% to £3.9 million (2023: £4.0 million). Earnings per share improved 2% to 32.9p (2023: 32.1p). First half currency movements decreased Group revenue and profit by 4%.

 

Lift Division sales grew in most regions, led by a stronger performance in the UK, as well as growth resulting from new lift display sales mentioned above. There was a further modest recovery in Transport sales, although these continue to be volatile.  Keypad Division sales continued to experience the low demand seen last year in the first quarter, but picked up in the second quarter.    

 

The Group balance sheet remains strong with cash at the period end of £19.9 million (2023: £22.6 million).  This is after paying £1.5 million to acquire the remaining 25% stake in P&R on 14 March 2024 as well as spending £1.8 million on a share buyback programme that ran throughout February and March 2024. These shares will be cancelled in early July when we are no longer in a close period.

 

OUTLOOK

In North America the market has softened this year, due to the effect of increases in interest rates on property investment. The impact of this will feed gradually into sales during the rest of the year. Orders in Australia have been healthy this year, which should generate sales growth in the second half. The UK should continue its encouraging performance, although the impact of the election is an uncertainty. On balance, we expect overall growth in the second half, although this will be dampened if the pound continues to strengthen in the rest of the year. As such, the Board is confident the Company is well positioned to achieve market expectations for FY24[1].

 

 

DIVIDENDS

The Directors have declared an increased interim dividend of 5.00p per ordinary share (2023: 4.75p) which amounts to £387,000 (2023: £384,000). The interim dividend is payable on 13 August 2024 and will be posted on 8 August 2024 to shareholders appearing in the Register on 19 July 2024 (ex-dividend date being 18 July 2024).

 

A final 2023 dividend of 11.00p (2022: 10.25p) which amounted to £882,000 (2022: £828,000) was approved at the AGM held on 20 February 2024 and was paid on 26 February 2024 to members on the register at 19 January 2024.

 

By Order of the Board

 

J C SINCLAIR

Chief Financial Officer & Secretary

21 June 2024

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 2024, as compared with the corresponding half-year ended 31 March 2023 and the year ended 30 September 2023, shows the following results:

 

Consolidated statement of comprehensive income


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 Sept


2024

2023

2023

Continuing operations

£000's

£000's

£000's


 



Revenue

30,962

30,379

57,962

Operating costs

(27,301)

(26,423)

(50,212)

Adjusted operating profit

3,661

3,956

7,750


-

-

-

Operating profit

3,661

3,956

7,750

Finance income

343

181

494

Finance costs

(88)

(95)

(156)

Profit before taxation

3,916

4,042

8,088

Taxation

Est. (1,293)

Est. (1,448)

(2,966)

Profit for the financial period

2,623

2,594

5,122


 



Other comprehensive income:

 



Actuarial gains/(losses) on the defined benefit pension scheme

Est. 649

Est. (1,453)

(1,896)

Deferred tax effect

(162)

363

474

Current tax effect

 Est. 157

 Est. 218

348

Total that will not be subsequently reclassified to income statement

644

(872)

(1,074)


 



Exchange differences on translation of foreign operations

(702)

(3,236)

(3,544)

Total that may be subsequently reclassified to income statement

(702)

(3,236)

(3,544)

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

(58)

(4,108)

(4,618)

Total comprehensive income for the period

2,565

(1,514)

504


 



Profit for the period attributable to:

 



Equity shareholders of the company

2,495

2,532

5,037

Non-controlling interests

128

62

85


2,623

2,594

5,122


 



Total comprehensive income for the period attributable to:

 



Equity shareholders of the company

2,443

(1,425)

623

Non-controlling interests

122

(89)

(119)


2,565

(1,514)

504


 



Basic and diluted earnings per share

32.92p

32.10p

62.45p

Dividends per share

5.00p

4.75p

15.75p

 


Dewhurst Group plc

 

Consolidated statement of financial position


Half year

Half year

Year


ended

ended

ended


31 March

31 March

30 Sept

 

2024

2023

2023

 

£000's

£000's

£000's

Non-current assets

 



Goodwill

9,474

9,672

9,516

Other intangibles

676

17

389

Property, plant and equipment

17,016

17,573

17,443

Right-of-use assets

2,228

2,159

2,426

Deferred tax asset

-

262

54


29,394

29,683

29,828


 



Current assets

 



Inventories

8,127

7,377

8,337

Trade and other receivables

11,766

12,475

10,182

Current tax asset

21

-

-

Cash and cash equivalents

19,914

22,590

24,374


39,828

42,442

42,893

Total assets

69,222

72,125

72,721


 



Current liabilities

 



Trade and other payables

6,755

7,618

6,899

Current tax liabilities

-

319

578

Short-term provisions

157

343

158

Lease liabilities

716

501

719


7,628

8,781

8,354

Non-current liabilities

 



Retirement benefit obligation

837

2,377

2,112

Deferred tax liabilities

364

-

-

Lease liabilities

1,741

1,894

1,938

Total liabilities

10,570

13,052

12,404

Net assets

58,652

59,073

60,317


 



Equity

 



Share capital

773

808

802

Share premium account

157

157

157

Capital redemption reserve

363

329

334

Translation reserve

1,031

1,980

1,726

Retained earnings

55,676

54,357

55,916

Total attributable to equity shareholders of the company

58,000

57,631

58,935

Non-controlling interests

652

1,442

1,382

Total equity

58,652

59,073

60,317

 

 

Dewhurst Group plc

 

Consolidated statement of changes in equity

 

For the period ended 31 March 2024

 

 

 

 

 

 

 

 

 

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 2023

802

157

334

1,726

55,916

1,382

60,317

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(695)

 

-

 

(7)

 

(702)

Share Repurchase                                                

(29)

-

29

-

(1,776)

-

(1,776)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

649

 

-

 

649

Deferred tax effect

-

-

-

-

(162)

-

(162)

Tax on items taken directly to equity (Est.)

 

-

 

-

 

-

 

-

 

157

 

-

 

157

Dividends paid

-

-

-

-

(882)

(84)

(966)

Purchase of subsidiary and business undertakings

 

-

 

-

 

-

 

-

 

(721)

 

(767)

 

(1,488)

Profit for the period

-

-

-

-

2,495

128

2,623

 

 

 

 

 

 

 

 

At 31 March 2024

773

157

363

1,031

55,676

652

58,652

 

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

 


Dewhurst Group plc

 

Consolidated statement of changes in equity (cont'd)

 

For the year ended 30 September 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

Share Repurchase                                                

808

(6)

157

--

329

6

5,065

--

53,525

(375)

1,649

--

61,533

(375)

Exchange differences on

translation of foreign operations                   

 

-

 

-

 

-

 

(3,340)

 

-

 

(204)

 

(3,544)

Actuarial gains/(losses) on defined benefit pension scheme

 

-

 

-

 

-

 

-

 

(1,896)

 

-

 

(1,896)

Deferred tax effect

-

-

-

-

474

-

474

Tax on items taken directly to equity

 

-

 

-

 

-

 

-

 

348

 

-

 

348

Dividends paid

-

-

-

-

(1,197)

(148)

(1,345)

Profit for the year

-

-

-

-

5,037

85

5,122









At 30 September 2023

802

157

335

1,725

55,916

1,382

60,317

 

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 2023 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 2023 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2023 Interim Financial Statements to take into account any presentational changes made in the 2023 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

 

2024

2023

2023

 

£000's

£000's

£000's

Cash flows from operating activities

 



Operating profit

3,661

3,956

7,750

Depreciation and amortisation

621

533

1,090

Right-of-use asset depreciation

186

251

605

Additional contributions to pension scheme

(685)

(919)

(1,634)

Exchange adjustments

(503)

(759)

(878)

(Profit)/loss on disposal of property, plant and equipment

(33)

(17)

(4)


3,247

3,045

6,929

(Increase)/decrease in inventories

210

554

(406)

(Increase)/decrease in trade and other receivables

(1,584)

(157)

2,136

Increase/(decrease) in trade and other payables

(144)

(165)

(884)

Increase/(decrease) in provisions

(1)

(1)

(186)

Cash generated from operations

1,728

3,276

7,589

Interest paid

-

-

(1)

Tax paid

(1,471)

(398)

(1,218)

Net cash from operating activities

257

2,878

6,370


 



Cash flows from investing activities

 



Purchase of subsidiary and business undertakings

(1,488)

-

-

Proceeds from sale of property, plant and equipment

38

28

67

Purchase of property, plant and equipment

(485)

(298)

(830)

Development costs capitalised

-

-

(384)

Interest received

343

181

494

Net cash generated from/(used in) investing activities

(1,592)

(89)

(653)


 



Cash flows from financing activities

 



Dividends paid

(966)

(946)

(1,345)

Repayment of lease liabilities including interest

(217)

(291)

(688)

Purchase of own shares

(1,776)

-

(375)

Net cash used in financing activities

(2,959)

(1,237)

(2,408)


 



Net increase/(decrease) in cash and cash equivalents

(4,294)

1,552

3,309

Cash and cash equivalents at beginning of period

24,374

21,764

21,764

Exchange adjustments on cash and cash equivalents

(166)

(726)

(699)

Cash and cash equivalents at end of period

19,914

22,590

24,374

 

 

 

Contacts:

 

Dewhurst Group Plc                                                                                                Tel: +44 (0)208 744 8200

Richard Dewhurst, Chairman

Jared Sinclair, Chief Financial Officer

www.dewhurst-group.com

 

Singer Capital Markets (Nominated Adviser and Sole Broker)                              Tel: +44 (0)207 496 3000

Rick Thompson / Alex Bond

 



[1] As at the date of this announcement, the Company understands that market expectations for FY24 are Revenues of £60.2m, Adj. PBT of £8.4m



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