Preliminary Results

RNS Number : 7008O

Thorpe(F.W.) PLC

22 September 2011

 



Preliminary Results

for the year ended 30 June 2011 (Unaudited)

FW Thorpe Plc, designer and manufacturer of professional lighting equipment for the specification market, is pleased to announce its preliminary results for the year ended 30 June 2011.

*Total figures presented in the key points and Chairman's statement include discontinued operations as reported to and reviewed by the chief operating decision maker in order to reflect the group's performance in comparison to the previous year.  The continuing operations are the statutory results required to be disclosed under International Financial Reporting Standards.

Key points:

	Continuing operations statutory measures			Total* non statutory measures
	2011	2010		2011	2010
Revenue	£52.8m	£47.0m	12% increase	£62.5m	£55.6m	12% increase
Operating profit	£11.3m	£10.6m	7% increase	£12.6m	£11.2m	13% increase
Profit before tax	£11.6m	£10.7m	8% increase	£12.9m	£11.3m	14% increase
Basic earnings per share	71.8p	66.1p	9% increase	80.3p	70.1p	15% increase

Total interim and final dividend 17.6p (2010: 16.7p) 5.4% increase

Potential sale of Mackwell Electronics - negotiations at an advanced stage

Thorlux Application Centre opened

Portland Lighting acquisition completed subsequent to year end

For further information please contact:                                                                                

F W Thorpe Plc
Andrew Thorpe - Chairman	01527 583200
Craig Muncaster - Group Financial Director	01527 583200
Brewin Dolphin Limited - Nominated Adviser
Matt Davis	0845 213 4730

CHAIRMAN'S STATEMENT

I am pleased to be able to report another successful year for F W Thorpe Plc, despite a continuing uncertain global and national financial environment.

In referring to the group's performance below for comparative purposes, we have compared continuing operations, being those figures required for disclosure under International Financial Reporting Standards, plus discontinued operations.

On the basis of the above, total revenues increased 12% from £55.6m to £62.5m with an accompanying increase in operating profit of 13% from £11.2m to £12.6m.  Income from investments also improved to £376k, giving a resulting group profit before taxation of £12.9m.

These figures, happily, indicate a resumption of an increasing earnings per share path.

Last year, I commented on the likely situation with a new coalition government of a future governed by "things coming home to roost".  I would suggest that this is the situation in which we now find ourselves both nationally and internationally with some western governments in danger of defaulting on their loans.

Nationally, "the cuts" are having a patchy effect and it is with thanks that I can say that, by and large, your company's market is in between the patches.

Infrastructure upgrades have to continue and with the energy saving "driver" becoming progressively more important your company's products are where they should be, although at this time we would like to be offering in a number of market areas where we are currently absent.

On the export front the euro stayed fairly stable throughout the period 30^th June 2010/2011 although the pound strengthened somewhat against the dollar.  Group wise the stable euro allowed further strengthening of export channels for the luminaire manufacturers within the group and the trend of a slightly weakening dollar against the pound allowed lower purchase costs for our electronics company Mackwell Electronics Ltd.  The main constraints on luminaire sales outside Europe were the finishing of some large one off supply contracts in the Middle East and, within Europe, financial constraints in certain areas such as the Republic of Ireland.  Group exports totalled £10.7m for the year to 30^th June 2011 compared to £10.5m for the previous corresponding period.

2010/2011 also saw your company return to a path of further investment in the group, investing some £2.2m during the year.  Some investments to note were a new sheet metal punching machine for Compact Lighting Ltd for £250k, the movement of the incumbent Compact Lighting Ltd metal punching machine to Solite Europe Ltd in Manchester, the decision to purchase, requiring part payment during the year of a new sheet metal laser/punching machine for Thorlux Lighting for £150k, the purchase of Portland Lighting Ltd as announced on 1^st July 2011, and the building of a new 350 square metre 'Applications Centre' at Thorlux Lighting about which more will be explained in the Thorlux Lighting section.

The year also brought a re-crystallising of group future strategy emphasising that your company should return itself to a pure lighting fittings and controls systems entity.  It has become our intention, therefore, to sell Mackwell Electronics Ltd and at this time I would report that talks are well advanced with a potential purchaser, Mr Nicholas Brangwin, Mackwell's current Sales Director. 

Mackwell was originally purchased in 1990 to secure a supply of emergency lighting control gear for Thorlux Lighting, the only trading company in F W Thorpe Plc at that time.  It was seen that emergency lighting would become increasingly required but emergency lighting control gear was hard to source.  The purchase of Mackwell Electronics Ltd solved this problem.  Now, however, developments in emergency lighting are very pointedly towards the use of LED systems and this situation has required Mackwell Electronics to invest in LED technology.  To justify this expense it has had to diversify its product range into the provision of complete LED emergency lighting luminaires and systems which often mirror products offered by other group companies and which are placed on the general market for sale to other OEM's.

Mackwell needs to and will continue to tailor its range more towards emergency LED control gear, luminaires and systems and needs to be free to do so.  Separating Mackwell from the group will, further, allow other group companies to devote their efforts simply to pure lighting matters.

Whilst there can be no guarantee that the sale will complete, discussions are at an advanced stage.  The transaction will as a result of certain terms, in accordance with the Companies Act, be subject to shareholder approval.

Group results stated at the start of this report allow your Board to recommend a final dividend of 13.3p per share (2010 12.6p) which added to the interim paid in May 2011 totals a dividend of 17.6p per share (2010 16.7p).

Thorlux Lighting

Thorlux, our commercial and industrial lighting systems firm achieved another successful year deriving great benefit from the ever increasing thirst for energy saving lighting.  Energy prices and the advance in efficiency of lighting technology now make it possible for an installation installed in only recent years to be replaced with the expectation of a short payback due to energy costs savings.

The impetus of product development continues with many products being increasingly offered in LED variants whilst new LED specific luminaires are being designed and introduced.  In the field of general lighting, LED technology still has a way to go before cost savings can be easily achieved in comparison to more conventional solutions.  The introduction of new and improved lighting control systems will also feature in the coming year.

During this financial year some £150k has been invested in improvements to the powder coating plant allowing quicker colour changes and some £150k has been advanced for the purchase of a new sheet metal laser/punching machine which will have cost some £1m by the time it is installed later in 2011.

The year also saw Thorlux build a new 350 square metre, £350k 'Applications Centre' now fitted out with many and various forms of Thorlux luminaire and control systems allowing 'active' demonstrations in real life surroundings.  Unlike a 'static' show room the emphasis here is to allow dynamic demonstrations.  The centre includes sample classrooms, prison cells, mock road tunnels, a hospital ward and a simulated park area.

The continuing increase in volume and complexity of Thorlux products is taking its toll on capacity availability at the Thorlux Works and serious thought is being given to the provision of future capacity requirements and the possible costs thereof. 

Export efforts continue internationally with the Republic of Ireland market holding up well despite their economic woes, Thorlux Australasia gaining further orders and credibility as it advances and Thorlux Germany starting to mature nicely with further small but continuing market penetration.

Mackwell Electronics Ltd

Mackwell, being a manufacturer of emergency lighting control gear and systems has enjoyed the slight strengthening of the pound against the dollar, assisting in component purchases usually priced in dollars.

Control gear for LED emergency lighting solutions now makes up around 35% in value of Mackwell sales, with an increasing trend.  Control gear for traditional fluorescent based emergency lighting is still a major part of the company's offering and is, especially, important still for some export areas.

Careful management and hard selling have restored revenues to an upward direction and profitability to pre 2009/10 levels.

Compact Lighting Ltd

Compact, our retail lighting specialist manufacturer in Portsmouth, enjoyed a much improved year despite much of their sales force leaving by one means or another or retiring.  A stalwart effort by senior management has kept progress on track and a new sales team is now in place.

The general retail environment has been flat in regards to new stores and refit work but the location and servicing of new customers, as mentioned in last year's report, with forward looking expansion plans has been the foundation of a good year.

It is pleasing to report that the popularity of the increasing variety of highly tooled ranges of Compact Lighting products continues helping to meet our aim of making Compact a high end player in the retail and display lighting market.

Philip Payne Ltd

Philip Payne Ltd, manufacturer of high specification exit signage also resumed a growth path returning both revenue and profit to pre 2009/10 levels.

Mr David Ball who was reported has having assumed the position of Operations Director last year has successfully undertaken the role and now provides the group with the comfort of a solid "deputy" in this small company.

A most notable achievement for Philip Payne Ltd during this period is the success being gained on the export market especially, in Eastern Europe and the Middle East.  A number of specifications have been gained through London specifiers and now specifications are appearing having been generated in those markets themselves. 

A notable such job completed during the 2010/11 year has been the supply of exit signage for the Qatar National Convention Centre in the Middle East.

Sugg Lighting Ltd

Sugg Lighting, the group heritage lighting manufacturer and refurbisher has operated in a similar vein to 2009/2010 wherein, not withstanding all the craftsmanship of the out coming product, respectable profit levels are still required from their efforts.  Input pleasingly improved some 13% but a similar increase in profit was not achieved.

The new northern salesman for this small company made an immediate effect in his territory and provided a good contribution to the sales input.  If sales can increase there must be profit to be made and greater efforts are required in this regard.

A notable achievement for Sugg Lighting during the year has been the refurbishment of the Gas Rochester Lanterns in Henrietta Street near Covent Garden in London.

Solite Europe

Solite Europe being a specialist manufacturer of luminaires for "clean rooms" joined the group during 2008/9 providing a small resultant loss for that year.  Subsequently, as previously reported, a deal of work was completed improving literature, providing a website, and making various improvements in the manufacturing area.

Since that date performance has continued improving to produce for the year 30^th June 2010/11, a revenue of over £1.2m with an associated profit of over 17%.

It is with the above in mind that I must bid thanks to retiring MD, Mr Keith Bennett and thank him not only for his great efforts over his years with Solite but also for enthusiastically joining F W Thorpe Plc a year or two ago.  Keith, in fact, is continuing for a number of months more as part time Sales Director, however, I would like to take this opportunity of wishing him well in his eventual retirement.

It is, therefore, with great pleasure that I would like to welcome Mr "Phil" Myles as the new Managing Director of Solite Europe Ltd.  Phil has spent a number of years in the lighting industry and has a wealth of lighting knowledge especially in regard to educational and clean room lighting.  He joined the group as Thorlux Educational Product Manager in 2009.  The Board wishes Phil every success in his new role.

People

It has been a busy year in most areas of F W Thorpe Plc and sometimes there have been the frustrations that come with a busy schedule.  We should not forget, however, that any such feelings cannot match the frustration of those who want work but cannot find it.  We should be grateful for our positions.

So, to all those lucky ones within F W Thorpe Plc may I take this opportunity to offer my thanks for their diligence, hard work and loyalty throughout the year.

The Future

The times are very difficult to predict as I, and others have said for quite a period now.  A month before the time of writing things were getting better, now they are not again and the talk is of Greece once more.

This past year has been more successful than we could have envisaged at the start but in the light of spending reductions by the UK's biggest customer, the Government, we must continue striving to give our customers what they desire and control our costs as well as is feasible, in an effort to further improve our market share.

This we will do to the best of our ability.

A B Thorpe - Chairman

22 September 2011

CONSOLIDATED RESULTS (UNAUDITED)

 

Consolidated income statement
for the year ended 30 June 2011

				Continuing operations*		Discontinued operations
			Note	2011	2010	2011	2010
				£'000	£'000	£'000	£'000
Revenue			2	52,833	46,950	9,669	8,692
Cost of sales				(29,635)	(25,723)	(5,942)	(5,323)
Gross profit				23,198	21,227	3,727	3,369
Distribution costs				(3,994)	(3,376)	(543)	(433)
Administrative expenses				(7,952)	(7,234)	(1,855)	(2,365)
Operating profit			2	11,252	10,617	1,329	571
Net finance income				372	110	4	6
Share of loss of joint venture				(11)	(27)	-	-
Profit before tax expense				11,613	10,700	1,333	577
Tax expense			6	(3,201)	(2,954)	(334)	(107)
Profit for the year				8,412	7,746	999	470

*Group revenues, expenses and profit after tax comprise only continuing operations in accordance with IFRS.

	2011	2010
	£'000	£'000
Profit for the year - continuing operations	8,412	7,746
Profit for the year - discontinued operations	999	470
Profit for the year	9,411	8,216

Earnings per share for continuing and discontinued operations attributable to the equity holders of the company during the year (expressed in pence per share).

		Continuing		Discontinued		Total
	Note	2011	2010	2011	2010	2011	2010
Basic - pence per share	3	71.8	66.1	8.5	4.0	80.3	70.1
Diluted - pence per share	3	71.8	66.1	8.5	4.0	80.3	70.1

CONSOLIDATED RESULTS (UNAUDITED)

Consolidated statement of comprehensive income
for the year ended 30 June 2011

		2011	2010
		£'000	£'000
Profit for the year		9,411	8,216
Other comprehensive income:
Actuarial gain on pension scheme		1,054	(46)
Movement on associated deferred tax asset relating to the pension scheme		(274)	13
Restriction of pension scheme surplus		(483)	-
Deferred tax not recognised relating to the restriction of the pension scheme surplus		126	-
Revaluation of available for sale assets		37	5
Movement on associated deferred tax		(10)	(1)
Impact of deferred tax rate change		(24)	-
Exchange rate movement on investment in joint venture		(9)	-
Other comprehensive income for the year, net of tax		417	(29)
Total comprehensive income for the year		9,828	8,187

All comprehensive income is attributable to the owners of the company.

CONSOLIDATED RESULTS (UNAUDITED)

Consolidated balance sheet
as at 30 June 2011

		Group
	Notes	2011	2010
		£'000	£'000
Assets
Non-current assets
Intangible assets	8	2,533	2,683
Investment property		1,037	1,006
Property, plant & equipment	9	11,109	10,634
Investment in joint venture		136	156
Available-for-sale financial assets		1,105	78
Deferred tax assets		27	622
		15,947	15,179
Current assets
Inventories		11,297	11,363
Trade and other receivables		11,377	11,040
Other financial assets at fair value through profit or loss		387	386
Short term financial assets - deposits	5	11,616	16,058
Cash and cash equivalents		14,236	8,754
Total current assets (excluding non-current assets & disposal groups held for sale)		48,913	47,601
Non-current assets & disposal groups held for sale	11	5,823	-
Total current assets		54,736	47,601
Total assets		70,683	62,780
Liabilities
Current liabilities
Trade and other payables		(8,199)	(8,309)
Current tax liabilities		(1,564)	(1,668)
Total current liabilities (excluding liabilities directly associated with non-current assets & disposal groups held for sale)		(9,763)	(9,977)
Liabilities directly associated with non-current assets & disposal groups held for sale	11	(1,634)	-
Total current liabilities		(11,397)	(9,977)
Net current assets		43,339	37,624
Non-current liabilities
Retirement benefit deficit		-	(1,379)
Provisions for liabilities and charges		(102)	(102)
Deferred income tax liabilities		(699)	(684)
Total liabilities		(12,198)	(12,142)
Net assets		58,485	50,638
Equity attributable to owners of the company
Called up share capital		1,189	1,189
Share premium account		656	656
Capital redemption reserve		137	137
Retained earnings		56,503	48,656
Total equity		58,485	50,638

CONSOLIDATED RESULTS (UNAUDITED)

GROUP STATEMENT OF CHANGES IN EQUITY

for the year to 30 June 2011

		Share	Share	Capital	Retained	Total
	Note	Capital	Premium	Redemption	Earnings	Equity
				Reserve
		£'000	£'000	£'000	£'000	£'000
Balance at 1 July 2009		1,189	656	137	43,775	45,757
Comprehensive income
Profit for the year to 30 June 2010		-	-	-	8,216	8,216
Actuarial loss on pension scheme		-	-	-	(46)	(46)
Movement on associated deferred tax asset relating to the pension scheme		-	-	-	13	13
Revaluation of available for sale assets		-	-	-	5	5
Movement on associated deferred tax		-	-	-	(1)	(1)
Total comprehensive income		-	-	-	8,187	8,187
Transactions with owners
Dividends paid to shareholders		-	-	-	(3,306)	(3,306)
Total transactions with owners	4	-	-	-	(3,306)	(3,306)
Balance at 30 June 2010		1,189	656	137	48,656	50,638
Comprehensive income
Profit for the year to 30 June 2011		-	-	-	9,411	9,411
Actuarial gain on pension scheme		-	-	-	1,054	1,054
Movement on associated deferred tax asset relating to the pension scheme		-	-	-	(274)	(274)
Restriction of pension scheme surplus					(483)	(483)
Deferred tax not recognised relating to the restriction of pension scheme surplus		-	-	-	126	126
Revaluation of available for sale assets		-	-	-	37	37
Movement on associated deferred tax		-	-	-	(10)	(10)
Impact of deferred tax rate change		-	-	-	(24)	(24)
Exchange rate movement on joint venture		-	-	-	(9)	(9)
Total comprehensive income		-	-	-	9,828	9,828
Transactions with owners
Dividends paid to shareholders		-	-	-	(1,981)	(1,981)
Total transactions with owners	4	-	-	-	(1,981)	(1,981)
Balance at 30 June 2011		1,189	656	137	56,503	58,485

CONSOLIDATED RESULTS (UNAUDITED)

Consolidated statement of cash flows
for the year ended 30 June 2011

		Group
	Note	2011	2010
		£'000	£'000
Cash flows from operating activities
Cash generated from operations	7	9,861	11,474
Tax paid		(2,901)	(3,017)
Net cash generated from operating activities		6,960	8,457
Cash flow from investing activities
Purchases of property, plant and equipment		(2,209)	(1,045)
Proceeds of sale of property, plant and equipment		112	62
Purchase of intangibles - development costs and software		(1,116)	(1,014)
Purchase of investment property		(31)	(9)
Proceeds of sale of investment property		-	31
Purchase of shares in joint venture and costs		-	(183)
Purchase of available for sale financial assets		(990)	(30)
Property rental and similar income		65	69
Net sale/(purchase) of deposits		4,442	(1,569)
Interest received		230	159
Net cash inflow/(outflow) from investing activities		503	(3,529)
Cash flow from financing activities
Dividends paid to company's shareholders	4	(1,981)	(3,306)
Net cash outflow from financing activities		(1,981)	(3,306)
Net increase in cash in the year		5,482	1,622
Cash and cash equivalents at beginning of year		8,754	7,132
Cash and cash equivalents at end of year		14,236	8,754

Discontinued operations	Note	2011	2010
		£'000	£'000
Net cash generated from operating activities		596	896
Net cash outflow from investing activities		(366)	(350)
Net cash outflow from financing activities		(282)	(501)
Cash and cash equivalents at end of year		(101)	(49)

Notes (Unaudited)

1.  Basis of preparation

F W Thorpe Plc's preliminary results for the year ended 30 June 2011 have been approved by the board of Directors on 22 September 2011 and are unaudited. The financial information set out in the announcement does not constitute the Company's statutory accounts for the years ended 30 June 2011 or 30 June 2010.  The consolidated financial statements for the year to 30 June 2011 have been prepared in accordance with the recognition and measurement principles of applicable International Financial Reporting Standards, IFRS's, as adopted by the European Union and issued by the International Accounting Standards Board and the Alternative Investment Market (AIM) Rules for Companies.

The unaudited preliminary information above has been prepared on the basis of the accounting policies set out in the annual financial statements for the year ended 30 June 2010 on a consistent basis.  The accounts for the year ended 30 June 2010 have been delivered to the Registrar of Companies, and the auditors' report was unqualified and did not contain a statement under section 498(2) and (3) of the Companies Act 2006.

The financial statements are presented in Pounds Sterling, rounded to the nearest thousand.

The preliminary results have been prepared on the historic cost basis as modified by the revaluation of available for sale financial assets at fair value through profit or loss.

2.   Segmental analysis

The segmental analysis is presented on the same basis as that used for internal reporting purposes.  For internal reporting, F W Thorpe is organised into six operating segments based on the products and customer base in the lighting market - the largest businesses are Thorlux which manufactures professional lighting systems for industrial, commercial and controls market, and Mackwell which manufactures emergency lighting components.  The four remaining operating segments have been aggregated into the "other companies" reportable segment based upon their size, which represents the entities Compact Lighting, Philip Payne, Sugg Lighting and Solite Europe. 

F W Thorpe's chief operating decision maker (CODM) is the Group Board.  The Group Board reviews the Group's internal reporting in order to monitor and assess performance of the operating segments for the purpose of making decisions about resources to be allocated.  Performance is evaluated based on a combination of revenue and operating profit. 

Mackwell Electronics Ltd has been disclosed as discontinued (see note 11), however, the CODM continue to receive and review their results. 

Notes (continued)

2.   Segmental Analysis (continued)

	Thorlux	Other	Inter-	Total	Mackwell
		Companies	Segment	Continuing	Discontinued
			Adjust-	operations	operation
			ments
	£'000	£'000	£'000	£'000	£'000
Year to 30 June 2011
Revenue to external customers	43,909	8,924	-	52,833	9,669
Revenue to other group companies	145	619	(764)	-	3,183
	______	______	______	______	______
Total revenue	44,054	9,543	(764)	52,833	12,852
	______	______	______	______	______
Operating profit	10,407	649	196	11,252	1,329
	______	______	______	______	______
Year to 30 June 2010
Revenue to external customers	39,386	7,564	-	46,950	8,692
Revenue to other group companies	84	395	(479)	-	2,581
	______	______	______	______	______
Total revenue	39,470	7,959	(479)	46,950	11,273
	______	______	______	______	______
Operating profit	9,882	539	196	10,617	571
	______	______	______	______	______

Inter-segment adjustments to operating profit consist of property rentals on premises owned by FW Thorpe Plc, adjustments to profit related to stocks held within the group that were supplied by another segment and adjustments to investment provisions relating to group companies.

Notes (continued)

3.   Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Company and held as treasury shares.  There were no movements of treasury shares during the year.

Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.  The company does not have any dilutive potential ordinary shares; hence there is no difference between basic earnings per share and dilutive earnings per share. 

Earnings per share are computed as follows:

	Continuing		Discontinued		Total
Weighted average number of ordinary shares	11,723,559		11,723,559		11,723,559
	2011	2010	2011	2010	2011	2010
	Pence	Pence	Pence	Pence	Pence	Pence
Basic - per share	71.8	66.1	8.5	4.0	80.3	70.1
Diluted - per share	71.8	66.1	8.5	4.0	80.3	70.1

4.   Dividends

Dividends paid during the year are outlined in the table below:    

	2011	2010
Dividends paid (per share)
Final dividend	12.60p	12.10p
Special dividend	-	12.00p
Interim dividend	4.30p	4.10p
Total	16.90p	28.20p

A final dividend of 13.30p (2010:12.60p) per share is proposed and, if approved, will be paid on 17 November 2011 to shareholders on the register on 21 October 2011.  The ex-dividend date is 19 October 2011. 

	2011	2010
Dividends proposed (per share)
Final dividend	13.30p	12.60p

Notes (continued)

4.      Dividends (continued)

	2011	2010
	£'000	£'000
Dividends paid
Final dividend	1,477	1,418
Special dividend	-	1,407
Interim dividend	504	481
Total	1,981	3,306

	2011	2010
Dividends proposed	£'000	£'000
Final dividend	1,559	1,477

5.   Short term financial assets

Short term financial assets comprise cash held on deposits maturing between 3 and 12 months.

6.   Taxation

The effective tax rate for continuing operations is 27.5% (2010: 27.6%).

7.   Cash generated from operations

The cash generation from continuing operations is as follows:

	2011	2010
	£'000	£'000
Profit before tax expense	11,613	10,700
Depreciation charge	913	825
Amortisation of intangibles	733	655
Profit on disposal of property, plant and equipment	(42)	(31)
Finance income (net)	(372)	(110)
Retirement benefit contributions in excess of current and past service charge	(776)	(826)
Share of loss from joint venture	11	27
Changes in working capital
- Inventories	(2,843)	(358)
- Trade and other receivables	(2,424)	(1,599)
- Trade and other payables	2,292	949
Cash generated from continuing operations	9,105	10,232

Notes (continued)

7.    Cash generated from operations (continued)

The cash generation from discontinued operations is as follows:

	2011	2010
	£'000	£'000
Profit before tax expense	1,333	577
Depreciation charge	226	224
Amortisation of intangibles	214	251
Profit on disposal of property, plant and equipment	(6)	-
Finance income (net)	(4)	(6)
Changes in working capital
- Inventories	(182)	(547)
- Trade and other receivables	303	(304)
- Trade and other payables	(1,128)	1,047
Cash generated from discontinued operations	756	1,242

Total cash generated from operations	2011	2010
	£'000	£'000
Continuing operations	9,105	10,232
Discontinued operations	756	1,242
Total cash generated from operations	9,861	11,474

8.    Intangible assets

	£'000
Intangible assets at 1 July 2010	2,683
Purchase of intangible assets	1,116
Amortisation of intangible assets	(947)
Less intangible assets transferred to non current assets and disposal groups held for sale at 30 June 2011	(319)
Intangible assets at 30 June 2011	2,533

Notes - continued

9.    Property, plant and equipment

	£'000
Property, plant and equipment at 1 July 2010	10,634
Purchase of property, plant and equipment	2,217
Depreciation charge	(1,139)
Net book value of disposals	(64)
Less property, plant and equipment transferred to non current assets and disposal groups held for sale at 30 June 2011	(539)
Property, plant and equipment at 30 June 2011	11,109

10.   Post balance sheet events

On 1 July 2011 the group acquired 100% of the share capital of Portland Lighting Ltd for an initial amount of £2.5m.  There is also potential deferred consideration payable which is dependent upon the ongoing profitability of the company for the next two years.  The net assets acquired amount to £0.4m, at the time of this announcement the group has not finalised a fair value exercise over the acquired assets and liabilities of the company.

11.   Assets held for sale

During the financial year the group has been in discussion with Nicholas Brangwin with regard to the potential purchase of Mackwell Electronics Ltd.  The board has unanimously agreed to proceed with the transaction and it is expected to be completed within the next few months, although not guaranteed.  The deal will be subject to shareholder approval under the Companies Act.  As the sale of the Mackwell business is deemed highly probable at the balance sheet date it has therefore been treated as held for sale at the end of the year. 

12.   Cautionary statement

Sections of this report contain forward looking statements that are subject to risk factors including the economic and business circumstances occurring from time to time in countries and markets in which the group operates. By their nature, forward looking statements involve a number of risks, uncertainties and future assumptions because they relate to events and/or depend on circumstances that may or may not occur in the future and could cause actual results and outcomes to differ materially from those expressed in or implied by the forward looking statements. No assurance can be given that the forward looking statements in this preliminary announcement will be realised. Statements about the Chairman's expectations, beliefs, hopes, plans, intentions and strategies are inherently subject to change and they are based on expectations and assumptions as to future events, circumstances and other factors which are in some cases outside the Company's control. Actual results could differ materially from the Company's current expectations. It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause actual results or trends to differ materially, including but not limited to, changes in risks associated with the Company's growth strategy, fluctuations in product pricing and changes in exchange and interest rates.

13.   Annual report and accounts

The annual report and accounts will be sent to shareholders on 18 October 2011 and will be available on the group's website (www.fwthorpe.co.uk) from that time. The group will hold its AGM on 10 November 2011.

 

END

 

 

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