DEWHURST GROUP PLC — Earnings Release 2021

Jun 9, 2021

National Storage Mechanism | Additional information

RNS Number : 2330B

Dewhurst PLC

09 June 2021

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

Dewhurst plc (the "Group")

Interim Results for the 6 months ended 31 March 2021

Directors' Interim Report

FIRST HALF

We are pleased to report a growth in sales and record profits for the first half of the current financial year. Overall, Group revenue increased by 3% to £28.9 million (2020: £28.2 million) and adjusted operating profit (before acquired intangible amortisation) increased 28% to £4.4 million (2020: £3.4 million). Profit before tax increased 36% to £3.4 million (2020: £2.5 million) and earnings per share improved to 26.4p (2020: 20.8p). Although some Covid-19 restrictions remain in place in the countries in which we operate, we have been fully operational at all our sites throughout the first half of the year.

Lift Division sales this year were very similar to last year's first half, which was only minimally affected by the Covid-19 pandemic. The growth in sales was predominantly driven by our Transportation Division, with deliveries of cycleway products continuing to be strong through the period. This growth was partially offset by a further reduction in our Keypad Division. Demand for cash and ATMs is still depressed and is expected to remain low, especially whilst lockdowns remain in place. First half currency movements increased Group revenue by around £0.3 million primarily as a result of the strengthening of the Australian Dollar.

The Group balance sheet remains strong with cash at the period end of £17.6 million (2020: £15.1 million). Since 30 September 2020, the Group has generated £2.4 million from operating activities but spent a further £1.0 million towards developing Dupar's new property which is now complete and in use. The sale of Dupar's previous property was completed at the beginning of June.

OUTLOOK

There was a release of pent-up demand during the first half of the year as some of our markets gradually relaxed restrictions.  However there are now signs of some of that peak petering out. We expect there to be a lull in demand until economies fully open up again and customers start commissioning new projects. In the meantime we expect sales could be a bit choppy and unpredictable, particularly in regard to timing. The pandemic has severely disrupted supply chains and it is taking time to get used to new arrangements. Lead times have extended and purchase prices are rising, which we expect will start to squeeze margins. Fortunately we held reasonable stocks going into this period, but it is proving challenging maintaining stock at the level we would like. The Group still has strength and solidity from its balance sheet to carry it through any short term turbulence.

DIVIDENDS

The Directors have declared an increased interim dividend of 4.25p per ordinary share (2020: 3.75p) which amounts to £343,000 (2020: £315,000). The interim dividend is payable on 17 August 2021 and will be posted on 12 August 2021 to shareholders appearing in the Register on 9 July 2021 (ex-dividend date being 8 July 2021).

A final 2020 dividend of 9.25p (2019: 9.25p) which amounted to £778,000 (2019: £778,000) was approved at the AGM held on 16 February 2021 and was paid on 24 February 2021 to members on the register at 22 January 2021.

By Order of the Board

J C SINCLAIR

Finance Director & Secretary

8 June 2021

The unaudited consolidated statement of comprehensive income, statement of financial position, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2021, as compared with the corresponding half-year ended 31 March 2020 and the year ended 30 September 2020, shows the following results:

Consolidated statement of comprehensive income

	Half year	Half year	Year
	ended	ended	ended
	31 March	31 March	30 Sept
	2021	2020	2020
Continuing operations	£000's	£000's	£000's
Revenue	28,881	28,172	55,617
Operating costs	(25,354)	(25,597)	(48,654)
Adjusted operating profit	4,361	3,409	8,630
Amortisation of acquired intangibles	(834)	(834)	(1,667)
Operating profit	3,527	2,575	6,963
Finance income	6	34	58
Finance costs	(164)	(135)	(281)
Profit before taxation	3,369	2,474	6,740
Taxation	Est. (1,237)	Est. (727)	(2,061)
Profit for the financial period	2,132	1,747	4,679
Other comprehensive income:
Actuarial gains/(losses) on the defined benefit pension scheme	Est. 3,153	Est. (619)	(1,886)
Deferred tax effect	(599)	118	358
Current tax effect	Est. 113	Est. 87	226
Total that will not be subsequently reclassified to income statement	2,667	(414)	(1,302)
Exchange differences on translation of foreign operations	(44)	(1,483)	(215)
Total that may be subsequently reclassified to income statement	(44)	(1,483)	(215)
Other comprehensive income/(expense) for the period, net of tax	2,623	(1,897)	(1,517)
Total comprehensive income for the period	4,755	(150)	3,162
Profit for the period attributable to:
Equity shareholders of the company	1,925	1,565	4,312
Non-controlling interests	207	182	367
	2,132	1,747	4,679
Total comprehensive income for the period attributable to:
Equity shareholders of the company	4,539	(214)	2,783
Non-controlling interests	216	64	379
	4,755	(150)	3,162
Basic and diluted earnings per share	26.38p	20.78p	51.78p
Dividends per share	4.25p	3.75p	13.00p

Consolidated statement of financial position

	Half year	Half year	Year
	ended	ended	ended
	31 March	31 March	30 Sept
	2021	2020	2020
	£000's	£000's	£000's
Non-current assets
Goodwill	9,766	9,332	9,743
Other intangibles	305	1,995	1,139
Property, plant and equipment	18,351	13,396	16,947
Right-of-use assets	3,035	1,942	3,273
Deferred tax asset	1,917	2,700	2,621
	33,374	29,365	33,723
Current assets
Inventories	5,792	5,602	6,208
Trade and other receivables	11,790	12,556	9,553
Cash and cash equivalents	17,627	15,097	18,139
	35,209	33,255	33,900
Total assets	68,583	62,620	67,623
Current liabilities
Trade and other payables	9,666	8,117	9,433
Borrowings	983	-	69
Current tax liabilities	237	15	268
Short-term provisions	343	300	343
Lease liabilities	445	353	443
	11,674	8,785	10,556
Non-current liabilities
Retirement benefit obligation	7,522	10,615	11,268
Lease liabilities	2,755	1,644	2,973
Total liabilities	21,951	21,044	24,797
Net assets	46,632	41,576	42,826
Equity
Share capital	808	841	808
Share premium account	157	157	157
Capital redemption reserve	329	296	329
Translation reserve	1,994	909	2,047
Retained earnings	41,887	38,167	38,042
Total attributable to equity shareholders of the company	45,175	40,370	41,383
Non-controlling interests	1,457	1,206	1,443
Total equity	46,632	41,576	42,826

Consolidated statement of changes in equity

For the period ended 31 March 2021

		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 2020		808		157	329		2,047		38,042	1,443	42,826
Exchange differences on translation of foreign operations		-		-	-		(53)		-	9	(44)
Actuarial gains/(losses) on defined benefit pension scheme		-		-	-		-		3,153	-	3,153
Deferred tax effect		-		-	-		-		(599)	-	(599)
Tax on items taken directly to equity (Est.)		-		-	-		-		113	-	113
Dividends paid		-		-	-		-		(747)	(202)	(949)
Profit for the period		-		-	-		-		1,925	207	2,132
At 31 March 2021		808		157	329		1,994		41,887	1,457	46,632

For the period ended 31 March 2020

		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 2019		841		157	296		2,274		37,847	1,265	42,680
IFRS 16 transition impact		-		-	-		-		(53)	-	(53)
At 1 October 2019		841		157	296		2,274		37,794	1,265	42,627
Exchange differences on translation of foreign operations		-		-	-		(1,365)		-	(118)	(1,483)
Actuarial gains/(losses) on defined benefit pension scheme		-		-	-		-		(619)	-	(619)
Deferred tax effect		-		-	-		-		118	-	118
Tax on items taken directly to equity (Est.)		-		-	-		-		87	-	87
Dividends paid		-		-	-		-		(778)	(123)	(901)
Profit for the period		-		-	-		-		1,565	182	1,747
At 31 March 2020		841		157	296		909		38,167	1,206	41,576

For the year ended 30 September 2020

		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 2019		841		157	296		2,274		37,847	1,265	42,680
Impact from IFRS 16 'leases'		-		-	-		-		(85)	(11)	(96)
At 30 September 2019 (restated)		841		157	296		2,274		37,762	1,254	42,584
Share repurchase		(33)		-	33		-		(1,637)	-	(1,637)
Exchange differences on translation of foreign operations		-		-	-		(227)		-	12	(215)
Actuarial gains/(losses) on defined benefit pension scheme		-		-	-		-		(1,886)	-	(1,886)
Deferred tax effect		-		-	-		-		358	-	358
Tax on items taken directly to equity		-		-	-		-		226	-	226
Dividends paid		-		-	-		-		(1,093)	(190)	(1,283)
Profit for the year		-		-	-		-		4,312	367	4,679
At 30 September 2020		808		157	329		2,047		38,042	1,443	42,826

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 2020 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 2020 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2020 Interim Financial Statements to take into account any presentational changes made in the 2020 Financial Statements or in these Interim Financial Statements.

Consolidated cash flow statement

	Half year	Half year	Year
	ended	ended	ended
	31 March	31 March	30 Sept
	2021	2020	2020
	£000's	£000's	£000's
Cash flows from operating activities
Operating profit	3,527	2,575	6,963
Depreciation and amortisation	1,283	1,321	2,663
Right-of-use asset depreciation	245	229	351
Additional contributions to pension scheme	(683)	(552)	(1,366)
Exchange adjustments	595	(91)	(33)
(Profit)/loss on disposal of property, plant and equipment	(28)	(16)	64
	4,939	3,466	8,642
(Increase)/decrease in inventories	416	408	(198)
(Increase)/decrease in trade and other receivables	(2,237)	(1,563)	1,385
Increase/(decrease) in trade and other payables	233	(63)	1,243
Increase/(decrease) in provisions	-	23	66
Cash generated from operations	3,351	2,271	11,138
Interest paid	(13)	-	(2)
Tax paid	(976)	(946)	(1,871)
Net cash from operating activities	2,362	1,325	9,265
Cash flows from investing activities
Acquisition of business and assets	(649)	(624)	(624)
Proceeds on disposal of a subsidiary (net of cash disposed)	-	-	55
Proceeds from sale of property, plant and equipment	58	16	35
Purchase of property, plant and equipment	(1,888)	(1,158)	(4,257)
Development costs capitalised	-	-	(12)
Interest received	6	34	58
Net cash generated from/(used in) investing activities	(2,473)	(1,732)	(4,745)
Cash flows from financing activities
Dividends paid	(949)	(901)	(1,283)
Purchase of own shares	-	-	(1,637)
Repayment of lease liabilities including interest	(285)	(266)	(381)
Proceeds from bank borrowings	908	-	69
Net cash used in financing activities	(326)	(1,167)	(3,232)
Net increase/(decrease) in cash and cash equivalents	(437)	(1,574)	1,288
Cash and cash equivalents at beginning of period	18,139	16,980	16,980
Exchange adjustments on cash and cash equivalents	(75)	(309)	(129)
Cash and cash equivalents at end of period	17,627	15,097	18,139

Contacts:

Dewhurst Plc	Tel: +44 (0)208 744 8200
Richard Dewhurst, Chairman Jared Sinclair, Finance Director www.dewhurst.plc.uk
N+1 Singer (Nominated Adviser and Sole Broker)	Tel: +44 (0)207 496 3000
Will Goode / Rick Thompson / James Fischer

Person responsible:

The person responsible for arranging the release of this announcement on behalf of Dewhurst plc is Jared Sinclair

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR MZGGVNRKGMZM