Final Results

Thorpe(F.W.) PLC
18 September 2003


FW Thorpe plc - 18 September 2003
The following consolidated results for the year ended 30 June 2003 were
announced today:

Chairman's statement


Group turnover for the year was £32.7 million compared to £29.5 million last
year. An operating profit of £3.5 million resulted giving a 233% increase on our
difficult trading year in 2002 and a 13% increase on the financial year 2001.
This performance shows that the Group is firmly still on track and the
improvements in both turnover and profit should be considered against a
background that Sugg Lighting, the main contributor to our poor performance in
2002, continued making losses in 2003 albeit at a significantly lower level.


The Group performance, I think, is creditable in an industrial and commercial
lighting market that continually becomes more competitive not only from a price
point of view but also from the point of view of competent competitors. Many of
these competitors are now solid sophisticated manufacturers from Europe who have
replaced, in the market, less competent UK firms who have subsequently
disappeared from the arena. This situation demonstrates that your Group is
obtaining improved turnover and profitability whilst running with the best in
the market.


To meet these challenges the Group continues to put substantial resource into
the design and development of new products both in new product areas and in
updating successful but aging products.


Increasing product sophistication and the need to increase capacity requires
corresponding continuous improvement in production methods and, here again, your
Group follows an active policy of development, using its resources to procure
manufacturing space and performance production equipment when and where
required.


To reflect the above results and to restore growth in the dividend, which was
only maintained in 2002, your Board is recommending a final dividend of 4.7p
which, when included with the interim dividend, already paid, makes a total for
the year of 6.6p, which is a 10% increase above last year.


Review of Divisions


Thorlux Lighting


Thorlux, the largest individual business within the Group, enjoyed an increase
in orders of 17% during the year to 30th June 2003 and an increase in operating
profit of 55%. Customers, in the general market, have seen regular introduction
of new products from Thorlux and this has underpinned its standing and assisted
in customer perception of Thorlux as a first choice supplier. New product
developments in road tunnel lighting have also been well received and allowed
the Company, this year, to gain its first UK tunnel lighting projects. The
export market for Thorlux has been and remains difficult with many older
traditional overseas markets in decline as well as the Company having to sell
with a relatively high valued pound. Particular effort is now being made to
establish the Company, under its own brand, in some of the more sophisticated
markets in Europe.


On 30th June Mike Allcock, previously Technical Director, became the Managing
Director of Thorlux Lighting and I would like to wish him every success in his
new post.



Mackwell Electronics


Mackwell has, again, produced a record sales output for the year to 30th June
2003 and this has in turn produced a record profit. Business was good on both
the home and export market, the latter of which has been a point of
concentration for Mackwell in recent years. A good level of success has been
attained, despite the Company being a relatively new player in these export
markets. This has been accomplished with a relatively high value pound and,
therefore, any fall in the value of the pound will assist further with these
export sales. On the home market there has recently been more competition from
abroad but Mackwell is meeting these challenges. During the year a new link
building has been constructed to consolidate the site giving an extra 900 square
metres of floor space. This building has just been completed and is now
available for production. Further sophisticated electronic PCB manufacturing
equipment has been purchased and is being commissioned.



Compact Lighting


Compact Lighting has also had a successful year improving sales turnover albeit
with a roughly similar profit to last year. Some new High Street names have been
added to the Compact customer list, although some existing contracts have come
to their conclusion. The static profit was mainly due to internal factory and
sales force reorganisation causing some loss of efficiency but retail sales are
still buoyant nationally.



Philip Payne


Philip Payne is now well ensconced into its new larger premises, mentioned last
year, and this move has allowed continuing substantial growth in its turnover
and profits. Philip Payne is the smallest player in the Group serving a niche
market in emergency lighting, but its growth has continued at a pace. The
growing requirement for internal sophistication in the design of buildings
should continue to give good future potential to Philip Payne's services.



Sugg Lighting


The problems the Group had suffered due to the performance of Sugg Lighting were
set out in our Annual Report last year. Measures taken at that time, including a
redundancy program and other cost cutting measures, reduced the losses. In
November 2002 the Sales Director, Geoff White, was given overall management
responsibility and became Director & General Manager. Since that date
reorganisation of the Sales Force has been manifest together with initiatives to
improve product design, manufacturability and production techniques. The Board
has confidence that Sugg will show further improvement during the coming year
due to the product improvements and efficiencies that have been made.



People


The Group, of course, could not move successfully forward without the valued
continuing contribution from all its employees and I would like to thank all our
Group employees for their effort and diligence over the past year.


Colin Brangwin, has recently stepped down from the position of Group Chairman
and I, and the Board, would like to thank Colin for the valuable service he has
given to the Group over a period of some 40 years. Colin will be continuing as a
Non-Executive Director of F W Thorpe Plc and we look forward to receiving the
benefit of his experience for many years to come.



The Future


The Group has started the new financial year encouragingly, but it is always
difficult to forecast what the rest of the year may bring. Retail sales are
buoyant but Government finances appear to be coming under some strain. Which way
imminent balances fall is difficult to predict, and so we can only make every
effort to have the best products we can produce available to our customers, when
and where they wish to use them. The level of business available is down to
global events and those who govern our economy.


Andrew Thorpe

Chairman
18 September 2003



Abridged financial information

                                                             2003        2002
                                                            £'000       £'000
Turnover - continuing operations                           32,677      29,452

Operating profit - continuing operations                    3,487       1,046

Interest receivable and similar income                        245         196

Profit on ordinary activities before taxation               3,732       1,242
Taxation on profit on ordinary activities                  (1,110)       (513)

Profit on ordinary activities after taxation                2,622         729

Dividends: interim paid                                      (223)       (210)
Dividends: final                                             (550)       (491)
Dividends: total                                             (773)       (701)

Retained profit for the year                                1,849          28
Earnings per ordinary share
- ordinary                                                   22.4p        6.3p
- diluted                                                    21.8p        6.2p

Dividends per share: interim                                 1.90p       1.80p
Dividends per share: final                                   4.70p       4.20p
Dividends per share: total distribution                      6.60p       6.00p

Group Balance Sheet                                        As at         As at
                                                        30.06.03      30.06.02
                                                           £'000         £'000
Fixed assets
Tangible assets                                            8,601         9,022
Investments                                                  244           244
                                                           8,845         9,266
Current assets
Stocks                                                     6,196         5,423
Debtors                                                    6,303         6,007
Investments                                                   70            70
Cash at bank and in hand                                   6,742         4,352
                                                          19,311        15,852
Creditors: amounts falling due within one year            (5,919)       (4,793)
Net current assets                                        13,392        11,059
Total assets less current liabilities                     22,237        20,325
Creditors : amounts falling due after one year                 -            (7)
Provisions for liabilities and charges
Deferred taxation                                           (428)         (414)
Net assets                                                21,809        19,904

Capital and reserves
Called up share capital                                    1,171         1,166
Capital Redemption Reserve                                   135           135
Share premium account                                        411           360
Profit and loss account                                   20,092        18,243
Equity shareholders' funds                                21,809        19,904

Group Cash Flow Statement                                       2003      2002
                                                               £'000     £'000
Net cash inflow from operating activities:
Operating profit                                               3,487     1,046
Depreciation and amortisation of goodwill                      1,193     1,305
Impairment of goodwill                                             -       503
Profit on sale of fixed assets                                   (62)      (33)
Movements in working capital                                    (415)    1,508

Net cash inflow from operating activities                      4,203     4,329

Returns on investments and servicing of finance
Interest and dividends received                                  245       196

Taxation
UK corporation tax paid                                         (677)     (844)

Capital expenditure and financial investment
Purchase of tangible fixed assets                               (879)   (1,084)
Sale of tangible fixed assets                                    169       167
Net cash outflow for capital expenditure and financial          (710)     (917)
investments

Equity dividends paid                                           (714)     (700)
Cash inflow before financing                                   2,347     2,064
Financing
Issue of shares                                                   56         -
Repayment of hire purchase and finance leases                    (13)      (46)
Cash inflow/(outflow) from financing                              43       (46)
Increase in cash in the period                                 2,390     2,018


Dates:

AGM: 06-Nov-2003

Dividend payment date 13-Nov-2003

Ex-dividend date 24-Sep-2003

Record date 26-Sep-2003

The above financial information does not constitute statutory accounts within
the meaning of Section 240(5) of the Companies Act 1985. The preliminary
information included herein has been prepared on the basis of the accounting
policies as set out in the annual financial statements for the year ended 30
June 2002. The statutory accounts for the year ended 30 June 2003 will be
finalised on the basis of the financial information presented in this
preliminary announcement and will be delivered to the Registrar of Companies in
due course. The preliminary results for the year ended 30 June 2003 are
unaudited. The financial information for the year ended 30 June 2002 is derived
from the statutory accounts for that year and on which the Auditors reported and
their report is unqualified.

ENQUIRIES to the Chairman: Andrew Thorpe, F W Thorpe Plc, Redditch.
Tel: [phone]






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