Half Yearly Report

RNS Number : 7621I

Thorpe(F.W.) PLC

18 March 2010

 



F W Thorpe Plc

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2009

KEY POINTS:

·      Turnover increased by 2.5% to £28.25M (2008: £27.56M)  

·      Operating profits up by 9.6% to £4.6M (2008:£4.2M) 

·      Profit before tax down by 1.7% to £4.68M (2008: £4.75M) 

·      Interim dividend held at 4.1p (2008: 4.1p)  

·      Basic earnings per share 28.5p (2008: 29.1p) down 2.1%  

For further information please contact:                                                                            

F W Thorpe Plc
Andrew Thorpe -  Chairman and Joint Chief Executive	01527 583200
Peter Mason - Joint Chief Executive and Finance Director	01527 583200
Brewin Dolphin Limited -  Nominated Adviser
Andrew Kitchingman Sean Wyndham-Quin	0845 213 4730

CHAIRMAN'S INTERIM STATEMENT

Your Group's revenue in the half year to 31^st December 2009 increased by 2.5% to £28.25M from £27.56M resulting in an operating profit up 9.6% compared to the corresponding period last year.  Group profit before taxation reduced, however, by 1.7% to £4.68M from £4.75M.  The reduction was due solely to a significant fall in investment income reflecting the low interest rates currently prevailing.

The interim dividend to be paid on 1^st April 2010 will be 4.1 pence per share, the same as paid in May 2009.

The first six months of the year can only be described as being similar in many respects to the final six months of last financial year in which, throughout the Group, orders became more difficult to land requiring us to work harder to earn our supper.  Similar problems remain in parts of the Group as reported in the last statement with Mackwell Electronics Ltd still affected by the pound to dollar rate and its necessary purchase of electronic components priced in dollars.  Compact Lighting Ltd's customers are still being careful with their money and remaining moderated in their store refurbishment programs.  These challenges are being met however, and such work will pay dividends when markets improve.  Our 'new boy' Solite Europe Ltd is showing 'promise'!

On a more global note, our efforts in expanding market coverage have continued and it is pleasing to be able to report that Thorlux Lighting has just employed its first company employed sales engineer in Sweden, a new high level commercial operative in Germany and after a six month commercially required delay, Thorlux Lighting Australasia Pty Ltd was able to officially enter the Australian market as of January 4^th 2010.

To commentate on the remainder of the financial year, it is more likely than not that revenues will remain on a similar pattern to last year.

Andrew Thorpe

Chairman

18 March 2010

F W Thorpe Plc

Merse Road

North Moons Moat

Redditch

Worcs.

B98 9HH

CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2009

	Half year to	Half year to	Full year to
	31.12.09	31.12.08	30.6.09
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Revenue	28,253	27,564	53,356
	______	______	______
Operating Profit	4,564	4,163	10,670
Finance income	111	591	877
	______	______	______
Profit before income taxation	4,675	4,754	11,547
Income taxation	(1,332)	(1,284)	(3,072)
	______	______	______
Profit for the period	3,343	3,470	8,475
	______	______	______
Dividend rate per share:
Interim	4.1p	4.1p	4.1p
Final			12.1p
Special			12.0p

 

Earnings per share for profit attributable to the equity holders of the company during the period

Earnings per share - basic	28.5p	29.1p	71.4p
- diluted	28.5p	29.1p	71.4p

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2009

	Half year to	Half year to	Full year to
	31.12.09	31.12.08	30.6.09
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Profit for the period	3,343	3,470	8,475
Actuarial loss on pension scheme	-	-	(2,117)
Movement on associated deferred tax liability relating to the pension scheme	-	-	592
Revaluation of available for sale assets	-	(68)	(81)
Movement on associated deferred tax			15
	______	______	______
Net expense recognised directly in equity	-	(68)	(1,591)
	______	______	______
Total recognised gains and losses relating to the period	3,343	3,402	6,884
	______	______	______

CONSOLIDATED BALANCE SHEET

as at 31 December 2009

	As at	As at	As at
	31.12.09	31.12.08	30.6.09
	(unaudited)	(unaudited)	(audited)
Assets	£'000	£'000	£'000
Non-Current Assets
Intangible assets	2,548	2,373	2,575
Investment property	1,028	1,017	1,028
Property, plant and equipment	10,508	9,517	10,590
Available for sale financial assets	73	47	43
Deferred tax assets	801	273	833
	______	______	______
	14,958	13,227	15,069
Current assets
Inventories	9,011	8,556	10,458
Trade and other receivables	9,163	8,853	9,118
Other financial assets at fair value through profit or loss	385	384	385
Short term financial assets - deposits	15,022	14,737	14,489
Cash and cash equivalents	7,370	5,999	7,132
	______	______	______
	40,951	38,529	41,582
	______	______	______
Total Assets	55,909	51,756	56,651
	______	______	______
Liabilities
Current liabilities
Trade and other payables	(5,478)	(5,518)	(6,228)
Current tax liabilities	(1,482)	(1,657)	(1,875)
	______	______	______
	(6,960)	(7,175)	(8,103)
	______	______	______
Net current assets	33,991	31,354	33,479
	______	______	______
Non-current liabilities
Retirement benefit deficit	(1,919)	(141)	(2,033)
Provisions for liabilities and charges	(102)	(242)	(102)
Deferred tax liabilities	(653)	(670)	(656)
	______	______	______
Total liabilities	(9,634)	(8,228)	(10,894)
	______	______	______
Net assets	46,275	43,528	45,757
	______	______	______
Capital and Reserves attributable to equity holders of the company
Issued share capital	1,189	1,189	1,189
Share Premium account	656	624	656
Capital Redemption Reserve	137	137	137
Retained earnings	44,293	41,578	43,775
	______	______	______
Total equity	46,275	43,528	45,757
	______	______	______

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2009

	Half year to	Half year to	Full year to
	31.12.09	31.12.08	30.6.09
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Cash generated from operations
Profit before income tax	4,675	4,754	11,547
Adjustments for
- Depreciation charge	509	505	1,019
- Amortisation of intangibles	442	416	859
- Profit on disposal of property, plant and  equipment	(12)	(2)	3
- Finance income - net	(111)	(591)	(877)
- Retirement benefit contributions in excess of current and past service charge	(114)	(140)	(336)
Changes in working capital
- Inventories	1,447	86	(1,773)
-Trade and other receivables	(48)	1,670	1,368
-Trade and other payables	(749)	(1,769)	(1,246)
	______	______	______
Cash generated from operations	6,039	4,929	10,564
Tax paid	(1,695)	(1,511)	(3,048)
Cash flow from investing activities
Purchase of property, plant and equipment	(456)	(470)	(2,087)
Proceeds of sale of property, plant and equipment	38	26	74
Purchase of intangibles - development costs and software	(415)	(504)	(861)
Purchase of subsidiary (net)	-	-	(389)
Purchase of available for sale financial assets	(30)	-	(9)
Purchase of investment property	-	(833)	(844)
Property rental and similar income	17	33	95
Dividend income	-	4	4
Net purchase of deposits	(533)	(1,405)	(1,157)
Interest received	98	617	959
	______	______	______
Net cash outflow from investing activities	(1,281)	(2,532)	(4,215)
Cash flow from financing activities
Proceeds from the issuance of ordinary shares	-	-	35
Purchase of own shares	-	(100)	(900)
Dividends paid to company shareholders	(2,825)	(1,439)	(1,927)
Lease payments	-	(58)	(87)
	______	______	______
Net cash outflow from financing activities	(2,825)	(1,597)	(2,879)
Net (decrease)/ increase in cash and cash equivalents	238	(711)	422
	______	______	______
Cash and cash equivalents at the beginning of the period	7,132	6,710	6,710
(Decrease)/increase in cash and cash equivalents	238	(711)	422
	______	______	______
Cash and cash equivalents at the end of the period	7,370	5,999	7,132
	______	______	______

Notes to the Interim Financial Statements

1.    Basis of Preparation

       The consolidated interim financial statements for the six months to 31 December 2009 have been prepared in accordance with the recognition and measurement principles of applicable International Financial Reporting Standards (IFRS) in issue as adopted by the European Union (EU) and International Financial Reporting Standards as issued by the International Accounting Standards Board and the Alternative Investment Market (AIM) Rules for Companies. 

The figures for the period to 31 December 2009 and the comparative period to 31 December 2008 have not been audited or reviewed and are therefore disclosed as unaudited.  The figures for 30 June 2009 have been extracted from the financial statements for the year to 30 June 2009, which have been delivered to the Registrar of Companies.  The interim financial statements do not constitute statutory accounts within the meaning of the Companies Act 2006. 

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

The interim financial statements are prepared under the historical cost convention, modified by the revaluation of certain current and non-current investments at fair value through profit or loss.

The accounting policies set out in the financial statements for the year ended 30 June 2009 have been applied consistently throughout the Group during the period.

2.   Segmental analysis

With effect from 1 January 2009, the group adopted IFRS 8 'Operating Segments'.  This accounting standard requires a 'through the eyes of management' approach under which segment information is presented on the same basis as that used for internal reporting purposes.  For internal reporting, F W Thorpe is organized into three operating segments based on the products and customer base in the lighting market - Thorlux which manufactures professional lighting systems for industrial, commercial and controls market; Mackwell which manufactures emergency lighting components; and other lighting products which are manufactured by Compact Lighting, Philip Payne, Sugg Lighting and Solite Europe. 

F W Thorpe's chief operating decision maker 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 underlying operating profit.  The segmental information for the six months ended 31 December 2008 and the year ended 30 June 2009 has been restated to show Mackwell and other operating segments separately as a result of adopting IFRS 8.

	Thorlux	Mackwell	Other	Inter-	Total
			Companies	Segment
				Adjust-
				ments
	£'000	£'000	£'000	£'000	£'000
6 months to 31 December 09
Revenue to external customers	20,562	4,064	3,627		28,253
Revenue to other group companies	41	1,149	193	(1,383)	-
	______	______	______	______	______
Total revenue	20,603	5,213	3,820	(1,383)	28,253
	______	______	______	______	______
Operating Profit	4,173	72	172	147	4,564
	______	______	______	______	______
6 months to 31 December 2008
Revenue to external customers	19,338	4,273	3,953		27,564
Revenue to other group companies	57	1,468	191	(1,716)	-
	______	______	______	______	______
Total revenue	19,395	5,741	4,144	(1,716)	27,564
	______	______	______	______	______
Operating Profit	3,870	155	24	114	4,163
	______	______	______	______	______
Year to 30 June 2009
Revenue to external customers	37,492	8,776	7,088		53,356
Revenue to other group companies	104	2,915	354	(3,373)	-
	______	______	______	______	______
Total revenue	37,596	11,691	7,442	(3,373)	53,356
	______	______	______	______	______
Operating Profit	9,119	1,168	(27)	410	10,670
	______	______	______	______	______

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.

3.   Statement of changes in equity

	Share	Share	Capital	Retained	Total
	Capital	Premium	Redempt-ion	Earnings
		Account	Reserve
	£'000	£'000	£'000	£'000	£'000
As at 1 July 2008	1,191	624	135	39,715	41,665
Profit for six months to 31 Dec 08	-	-	-	3,402	3,402
Purchase of own shares	(2)	-	2	(100)	(100)
Dividends paid to shareholders	-	-	-	(1,439)	(1,439)
	______	______	______	______	______
As at 31 December 2008	1,189	624	137	41,578	43,528
	______	______	______	______	______
Profit for six months to 30 June 09	-	-	-	5,073	5,073
Purchase of own shares and held in treasury	-	-	-	(800)	(800)
Shares issued from treasury	-	32	-	3	35
Dividends paid to shareholders	-	-	-	(488)	(488)
Actuarial losses net of tax	-	-	-	(1,525)	(1,525)
Revaluation of available for sale assets net of tax	-	-	-	(66)	(66)
	______	______	______	______	______
As at 30 June 2009	1,189	656	137	43,775	45,757
	______	______	______	______	______
Profit for six month to 31 Dec 09	-	-	-	3,343	3,343
Dividends paid to shareholders	-	-	-	(2,825)	(2,825)
	______	______	______	______	______
As at 31 December 2009	1,189	656	137	44,293	46,275
	______	______	______	______	______

4.   Movements in treasury shares included in share capital

	Total
	£'000
As at 1 July 2008 and 31 December 2008	-
Shares purchased and held in treasury	20
Shares issued from treasury	(3)
	______
At 30 June 2009 and 31 December 2009	17
	______
Number of shares held in treasury at 30 June 2009 and 31 December 2009	170,000

5.         Earnings per share

The earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 11,723,559 (2008: 11,904,863) during the period.  For diluted earnings per share, the weighted average of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.  The adjusted weighted average number of ordinary shares is calculated at 11,723,559 (2008: 11,927,799).

6.         Dividend

The interim dividend is at the rate of 4.1p per share (2008: 4.1p), and, based on 11,723,559 shares in issue at the announcement date the dividend will amount to £474,000 (2008: £488,000).  The interim dividend will be paid on Thursday 1 April to shareholders on the register at the close of business on 26 March 2010 and the shares become ex-dividend on 24 March 2010.

7.         Availability of interim statement

Copies of this report are being sent to shareholders and will also be available from the company's registered office or on the company's website from 26 March 2010.

 

END

 

 

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