Final Results

Thorpe(F.W.) PLC
19 September 2002


FW Thorpe plc - 19 September 2002

The following consolidated results for the year ended 30 June 2002 were
announced today:

Abridged financial information

                                                                                   2002                2001
                                                                                   £'000               £'000

Turnover - continuing operations                                                  29,452              33,054

Operating profit - continuing operations                                           1,046               3,077

Interest receivable and similar income                                               196                 153

Profit on ordinary activities before taxation                                      1,242               3,230

Taxation on profit on ordinary activities                                            513                 899

Profit on ordinary activities after taxation                                         729               2,331

Dividends: interim paid                                                              210                 210

Dividends: final                                                                     491                 490

Dividends: total                                                                     701                 700

Retained profit for the year                                                          28               1,631

Earnings per ordinary share

- ordinary                                                                          6.3p               19.8p

- diluted                                                                           6.2p               19.7p


Dividends per share: interim                                                       1.80p               1.80p

Dividends per share: final                                                         4.20p               4.20p

Dividends per share: total distribution                                            6.00p               6.00p


Group Balance Sheet                                              As at               As at
                                                              30.06.02            30.06.01
                                                                 £'000               £'000

Fixed assets

Intangible assets                                                    -                 533

Tangible assets                                                  9,022               9,347

Investments                                                        244                 244

                                                                 9,266              10,124

Current assets

Stocks                                                           5,423               5,452

Debtors                                                          6,007               7,830

Investments                                                         70                  70

Cash at bank and in hand                                         4,352               2,334

                                                                15,852              15,686

Creditors: amounts falling due                                 (4,793)             (5,447)
Within one year

Net current assets                                              11,059              10,239

Total assets less current liabilities                           20,325              20,363

Creditors : amounts falling due after one year                     (7)                (38)

Provisions for liabilities and charges

Deferred taxation                                                (414)               (449)

Net assets                                                      19,904              19,876

Capital and reserves

Called up share capital                                          1,166               1,166

Capital Redemption Reserve                                         135                 135

Share premium account                                              360                 360

Profit and loss account                                         18,243              18,215

Equity shareholders' funds                                      19,904              19,876


Group Cash Flow Statement                                            2002                  2001
                                                                    £'000                 £'000

Net cash inflow from operating activities:

Operating profit                                                    1,046                 3,077

Depreciation and amortisation of goodwill                           1,305                 1,233

Impairment of goodwill                                                503                     -

Profit on sale of fixed assets                                       (33)                  (31)

Movements in working capital                                        1,507               (1,155)


Net cash inflow from operating activities                           4,328                 3,124

Returns on investments and servicing of finance

Interest and dividends received                                       196                   153

Taxation

UK corporation tax paid                                             (844)                 (974)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                 (1,084)               (2,842)

Sale of tangible fixed assets                                         167                    73

Net cash outflow for capital expenditure and                        (917)               (2,769)
financial investments

Equity dividends paid                                               (700)                 (713)

Cash inflow / (outflow) before use of liquid                        2,063               (1,179)
resources and financing

Management of liquid resources

Cash returned on short term deposits                                    -                 2,796

Net cash inflow from management of liquid resources                 2,063                 1,617

Financing

Purchase of own shares                                                  -                 (366)

New hire purchase contracts                                             -                    51

Repayment of hire purchase and finance leases                        (45)                  (26)

Cash inflow/(outflow) from financing                                 (45)                 (341)

Increase in cash in the period                                      2,018                 1,276



Dates:

AGM: 07-Nov-2002

Dividend payment date 14-Nov-2002

Ex-dividend date 25-Sep-2002

Record date 27-Sep-2002

The above financial information does not constitute statutory accounts within
the meaning of Section 240(5) of the Companies Act 1985. The statutory accounts
have not been delivered to the Registrar of Companies but will be delivered in
due course.

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 2001 except for the application of FRS19, although this has
not resulted in any changes. The Auditors have given an unqualifed report on
those statutory accounts.



Chairman's statement

The performance of the group over the past year has been disappointing with
reduced sales and difficulties with one of our subsidiaries.

The turnover for the year amounted to £29.5m as compared to £33.1m last year.
The operating profit was £1.05m whereas last year it was £3.08m. In line with
what I said in my recent trading statement, the group trading profit has been
substantially affected by the poor performance of our most recently acquired
subsidiary, Sugg Lighting which has impacted the group results with a £1.2m loss
on trading and a goodwill impairment loss of £0.5 million. The total group
profit before taxation of the group for the year amounted to £1.2 million (2001:
£3.2 million) with a slightly increased investment income of £196,000 (2001:
£153,000). Our balance sheet remains strong and our net cash position improved
by £2 million during the year.

Operating, as we do, in a world market for capital-intensive products it is
perhaps not surprising that we have suffered a downturn in our orders bearing in
mind the current market conditions. However, we are continuing to invest in new
products and new markets and therefore are well placed to take advantage of an
improving situation when it occurs.

The board is recommending a final dividend of 4.2p which, when included with the
paid interim dividend makes a total for the year of 6p, which is unchanged from
last year.

Review of Divisions

Thorlux Lighting

Thorlux is the largest of our divisions and when it suffers a downturn in orders
the results affect the group. The fall in home market orders was relatively
small as much effort was put into introducing new products in the catalogue
during the year. These innovative designs have been well received and we expect
to see a continuing growth in sales from them. Thorlux was unable to repeat the
good export sales performance of the previous financial year when it won two
significantly large orders. More investment in new automated equipment has been
made in the factory to further improve its productive efficiency.

Mackwell Electronics

Mackwell has done well to increase its sales over the year, both home and
export. It was not immune from the difficult trading conditions and suffered
slightly from pressure on margins. It has begun the new financial year well and
the board's confidence in it was confirmed by sanctioning in September capital
expenditure of £200,000 for a factory extension to deal with the increasing
order input.



Compact Lighting

Compact had a very successful year improving its sales and profits. It enjoyed
the benefits of a buoyant retail market as it supplies many well known names in
the high street. New product development is a key feature of its strategy as it
serves a fashion conscious marketplace. Its contribution to the group continues
to grow.

Philip Payne

The company maintained its financial performance despite the disruption of
moving into larger premises at the beginning of the year. It serves a
specialised niche market and since we bought it, it has improved its results
significantly - a trend which I am confident will continue.

Sugg Lighting

We have suffered significant problems with this division due, in the main, to a
lack of orders. After a review of the immediate prospects of this business it
has been decided to make full provision against the balance of goodwill in the
group accounts.

We instigated a redundancy programme to cut costs and we are in the process of
making management changes, which will improve the current situation. It will,
however take some time to rectify the position, so I do not expect the company
to make a net financial contribution to the group for the coming year.

People

I would like to thank all our employees for their contribution to the continuing
progress of all companies in the Group.

Mr Michael Lippold, non-executive director and former Chairman of the group,
retired from office on 30th June 2002. The board would like to thank him for his
many years of valuable service to the group and we wish him a long and enjoyable
retirement.

The Future

It is difficult to be clear about future trends in the current circumstances. I
can report that the new financial year has started well for most companies in
the Group but how long that will last is very hard to forecast. We hold strong
financial reserves and we will continue to develop new and innovative products
bringing them to the market place in ever shorter development times. We will
invest in new plant and equipment for the factory to maintain a high level of
productivity. We will pursue new markets as and when they arise both at home and
abroad.

ENQUIRIES to the Chairman: Colin Brangwin, F W Thorpe Plc, Redditch.

Tel: [phone]

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