Final Results

Dewhurst PLC
04 December 2003


CHAIRMAN'S STATEMENT

Results

I am delighted to be able to report record sales and profits for the Group this
year. Sales grew 12% to £27.2 million and profits were up 34% to £2.5 million.

The Group was strongly cash generative during the year, nearly doubling our cash
and deposits and repaying the remaining balance on our Australian acquisition
loan. As a result the Group ends the year with a strong balance sheet, well
placed to continue investing in the business and able to take advantage of
opportunities as they arise.

As was mentioned at the half year and is expanded on in the operating review,
staffing was reduced at the Hounslow site in February. This has placed new
burdens on those that remain, but staff have risen to the challenge positively.
This year particularly has shown the dedication of our employees around the
Group and I would like to thank them all for the contribution they have made
towards an excellent overall performance.

Manufacturing

It is a demanding time to be involved in manufacturing. Sourcing is now global.
Customers are searching the world for suitable suppliers and are often looking
mainly to the East.

Across all our product ranges customers are demanding ever lower prices. We need
to continue to focus on driving down costs and we need to do this on all fronts.
We must lower the cost of our materials, we must improve our productivity and we
must reduce the burden of our administration. We are addressing all these
issues.

We still remain committed to our local manufacturing. At Hounslow we plan to
invest in re-equipping our core processes in the factory to improve productivity
and flexibility. The lower cost economies may be a threat but we also see them
as an opportunity to source lower cost components and tooling. We have spent a
considerable amount of time working on overseas sourcing this year.

I believe there are great opportunities for us to improve our efficiency over
the next few years utilising the principles and tools of lean manufacturing.

We also see opportunities to improve our administration. We have implemented new
computer systems at LiftStore and are in the process of implementation in
Australia. We have now purchased the same system for the remainder of the Group
and will be implementing this in phases over the next year.

Product Development

We continue to invest major resources into product development. This year a
significant number of new lift products have been launched, including new
pushbuttons, controllers and monitoring equipment. We recognise the importance
of a steady stream of innovation to help us drive sales forward in the coming
years.

Outlook

This has been an exceptional year, boosted by several rail contracts and strong
sales of the new keypad range.

The general economic conditions look as though they will be improving but the
recovery remains fragile and competitive pressures continue to intensify.

We are aiming to take actions on sourcing and internal productivity to improve
competitiveness. At the year-end we had authorised two major new machines one of
which is now already operational.

There will be costs this year associated with implementing the new computer
systems, but this investment will improve our effectiveness in the longer term.



R M Dewhurst
Chairman

REVIEW OF OPERATIONS

Operating Highlights

In all areas of our business, we have benefited from the hard work, product
development and investment of previous years. This has allowed us to generate a
significant increase in sales across all the divisions despite strong downward
price pressure.

Throughout the year we have continued to build for future years, developing an
increasing number of new products, investing in infrastructure projects as well
as new plant and computer systems.

UNITED KINGDOM

Towards the end of 2002 we undertook a strategic review of our product ranges.
We decided to eliminate some of our older, complex and declining lift auxiliary
products. We had also designed the new keypad range so that it required
considerably less internal resource to manufacture. We further decided that we
needed to reduce our overhead costs in order to remain competitive.

As a result, we reduced our staffing at the Hounslow site by 15% in February
through a combination of voluntary and compulsory redundancies. This has
undoubtedly resulted in some strains during the year, but is now, I believe,
settling down.

Keypad Division

Following the significant amount of new product development last year and the
introduction of the new EPP pin pad, the challenge this year was to meet the
fluctuating demands for this product. This has been achieved throughout the
year. Our customer is looking for local assembly of their products, so in the
second half we began assembly of EPP and the Functional Display Screens at Dupar
in Canada. We have also identified a suitable partner to support local assembly
in China and we are ready to start shipping when required.

There continues to be an enormous amount of focus on cost with these products
and it is likely that this will lead to the need for further design work over
the next twelve months to ensure that we can deliver the cost reductions that
are needed.

Rail Division

We have had a very strong year on sales for the Rail Division. Major rail
projects take a long time to come to fruition and in the last twelve months we
have had a number of projects which have all come through at the same time.
Generally however the opportunities for UK based component supply within the
rail industry remain slim and so we would not expect this high level of sales to
continue through into this year.

Lift Division

New Product Development has continued at a steady rate throughout the year. A
record number of new products were launched at Interlift, the leading
international exhibition for lift components.

We have developed a new range of low profile landing stations to go with the
Compact 2 Micro pushbuttons and we have now extended our range of low profile
products to include hall lanterns, digital displays, gongs and audible feedback
units. As well as these low profile products we have also redesigned our large
button, developing a new 'Jumbo' range of products in the style of our Braille
and EN buttons. The new EN buttons are a range that we developed last year
specifically to meet the requirements of the new EN81-70 code. This will ensure
that these new Jumbo buttons have a much wider appeal and should generate strong
additional sales in this product sector. Also launched at Interlift was the new
EmFone LX-5, which will be a replacement for the LADs autodialler product. The
autodialler allows people trapped in a lift to communicate an alarm to a remote
monitoring station. EmFone fully meets the requirements of the new EN81-28 code
that is shortly to come into force.

Overseas sales of our products improved steadily over last year. However our Far
East markets are still very slow and this has had an impact on us. We are,
though, managing to hold our market share, helped by the new products that are
being developed. There is an ever-increasing focus on disabled access issues and
ensuring that passage through multi-storey buildings is made easier for disabled
people. Many countries around the world have enacted disability discrimination
legislation. This is increasing the pressure on building owners to modernise
their lifts, primarily with Braille or Tactile buttons, providing good
opportunities for us. However, we are under constant price pressure and
competition from the Far East and particularly China is becoming ever more
intense. This is a feature of business that is likely to continue.

LiftStore

In October 2002, as we indicated in the last Annual Report, LiftStore and Thames
Valley were amalgamated into one business under the LiftStore name. At the same
time the two businesses integrated their computer systems. Inevitably this has
taken a little time to settle down, but twelve months down the track we are
starting to see some benefits of a united 'Dewhurst Group' face in the UK.
Throughout the year there has been an on-going training programme to ensure that
staff from the two LiftStore sites become familiar with the entire product
offering of the new combined LiftStore. We are now able to group together
Controller, Component and Fixture orders and treat these as a single project,
from the start point of the quotation right through to the end point of delivery
and invoicing. Customers are also able to talk to our sales people about all the
group products rather than see one person about Fixtures and then talk to
another about the Controllers.

LiftStore have also been very active with new product development. The
controller division launched the new Ethos controller at Interlift. The Ethos
controller is significantly more flexible than our current controller products
and allows the lift contractor to change many of the control parameters on site.
It is also web-enabled, so the controller can be accessed through its own
individual web page, allowing the contractors to verify the set up of the
controller and view the behaviour of the lift. As well as the new Ethos
controller, LiftStore have also developed a new car top control unit, which has
the great benefit of having a permanently illuminated light switch. When the
mechanic gets onto the top of the lift in the dark he can immediately identify
and turn on the light switch, enabling safe working.

The Monitoring Division have continued to build on their product range with the
launch of a new Monitoring unit that can be linked to the central system through
a building Ethernet network. This helps to reduce the installation and running
cost of the monitoring system.

Inevitably, with the introduction of the new computer system there has been a
great deal of work done improving systems used within the business. One of the
major improvements has come through the use of the latest version of the Fixture
Tool software. This Tool allows us to draw up and price a fixture job
automatically, based on the key parameters of the building lift system, saving a
great deal of time and providing lift contractors with CAD quality approval
drawings. Once the order has been received, the bill of materials can be
automatically downloaded into our computer system and the drawing can be used
for manufacture.

NORTH AMERICA

Dupar Controls

We had a very encouraging year at Dupar, with a strong increase in both sales
and profits. Sales rose by 40% over the previous year as a result of winning a
major contract for fixtures for home lifts together with additional keypad
demand.

It was impressive that this sales output was achieved in a year of substantial
building work at Dupar. In the year, we doubled the size of the plant and the
offices. Although this was more cost-effective than moving, it was extremely
disruptive and the way that all employees at Dupar took this in their stride is
a great credit to them. All the building work is complete and we now have an
infrastructure at Dupar that can cope with the significant increase in lift
sales that we are planning for. In addition to investing in the building, we
have also committed to equipment to enhance our capacity, flexibility and
productivity. A new laser cutting machine was ordered during the year and has
recently been delivered.

The Fixture Company

This was not an easy year for The Fixture Company. Early in the year the market
price for elevator safety edges took a significant drop, which had a serious
impact on margins. On a more positive note, lift fixture sales increased
strongly to partly offset the decline in safety edge revenue.

After a disappointing year, we have made a decision to change the management
structure in North America to bring The Fixture Company under the control of
Dupar. This will allow us to have a less fragmented approach to the North
American market that should bring benefit to both Dupar and The Fixture Company.
The US market remains a significant opportunity for us.

AUSTRALASIA

Australian Lift Components

It was another year of good sales growth at Australian Lift Components, although
pressure on margins had an impact on the profit figure. Demand for our products
continues to grow helped by an increase in modernisation work to meet the local
disability requirements. Although Australian Lift Components (ALC) is only a
relatively small company, their knowledge and expertise of Fixtures
modernisation is world class. Sydney and Melbourne have some of the highest
quality office buildings in the world and the standard of the modernisation
products that we are putting into those buildings is most impressive and a
credit to the team at ALC. Other Group companies will be able to benefit from
this expertise, thus growing the breadth of modernisation product that we can
offer around the world.

As indicated in the last annual report we were looking for new premises and
after a relatively long search we have found a new property on the western
outskirts of Sydney. We will be moving into these premises in December and the
additional space that they offer will be most welcome.

ALC are currently installing the same manufacturing software system that is
being used at LiftStore. This will ensure that we have the correct controls in
place to build on our current growth.


D Dewhurst
Group Managing Director

FINANCIAL REVIEW

Results

Turnover increased by 12% from £24.2 million to £27.2 million. Operating profits
before amortisation of goodwill rose by £578,000, from £2,011,000 to £2,589,000.
Goodwill amortisation was £147,000, up from £142,000. Net interest paid of
£32,000 became net interest earned of £24,000. Profit before tax rose from
£1,837,000 to £2,465,000.

Capital Investments

Additions to fixed assets were £724,000 for the year. The major addition at
Dupar Controls Inc. was an extension to the existing property which has
effectively doubled the building. The improved office and factory layout is
complete and will enable Dupar to expand operations in the coming years.
Dewhurst continued the major acquisition of a group IT solution, Syspro, which
is a manufacturing and distribution software solution incorporating ERP, APS and
e.net functionality. As a group we know it is critical to achieve lean
manufacturing and have been closely exploring ways to simplify and improve our
processes. The advantage Syspro offers us over our existing system is that it
will be a group wide Windows-based system that provides us with timely
information. This will enable us to stay customer focused and respond more
quickly to their requirements. Capital commitments at the year end included a
laser cutting machine for Dupar and a turret punch press for Dewhurst, which
will considerably improve our production capabilities.

Cash Flow

The group ended the year with cash and short-term deposits, up £1.7 million to
£3.5 million. This position was achieved after spending a net £661,000 on
capital investments and repaying £546,000, being the outstanding balance of the
ALC acquisition loan. The loan was denominated in Australian Dollars to match
our exposure. The underlying focus this year by the group has been cash
generation, which has been achieved primarily through improved stock control. In
addition trade debtors and trade creditors have also decreased. Operating cash
flow for the year was £4.1 million, up from £2.1 million. Dividends paid
increased from £406,000 to £418,000.

Treasury Policy

The group seeks to reduce or eliminate financial risk, to ensure sufficient
liquidity is available to meet foreseeable needs, and to invest cash assets
safely and profitably. The policies and procedures operated are regularly
reviewed and approved by the Board. By varying the duration of its fixed and
floating cash deposits, the group maximises the return on interest earned. Other
than the hedging of the investment in ALC with an Australian denominated loan,
there is no formal policy for matching foreign currency cash flows, or matching
exposure to foreign currency net assets although a careful watch is kept on the
positions. As shown in note 24, there is no material currency exposure to the
group at the year end. The group's reported trading profit was not significantly
affected by currency movement with approximately 27% being earned in foreign
currencies during the year ended 30 September 2003.

Tax and Dividends

The current tax charge for the year rose to £873,000 (35.4%) from £660,000
(35.9%). There is no significant movement in the effective tax rate this year.
The proposed total dividend of 4.38p per share, up 5.0% against last year 4.17p,
is covered 3.8 times by earnings. Shareholders' funds improved from £10.1
million to £11.7 million. There was no reduction of shares during the year.



J C Sinclair
Finance Director




Consolidated profit and loss account
For the year ended 30 September 2003
                                                 2003                     2002
                                      £             £          £             £
                                 -------     ---------    -------     ---------
Turnover                                   27,205,720               24,184,449
Operating costs                           (24,764,084)             (22,315,830)
                                 -------     ---------    -------     ---------
Operating profit before
amortisation of goodwill                    2,588,575                2,010,715

Amortisation of goodwill                     (146,939)                (142,096)
                                 -------     ---------    -------     ---------
Operating profit                            2,441,636                1,868,619
Net interest                                   23,682                  (31,592)
                                 -------     ---------    -------     ---------
Profit on ordinary activities
before taxation                             2,465,318                1,837,027

Tax on profit on ordinary activities         (813,853)                (659,843)
                                 -------     ---------    -------     ---------
Profit for the financial year               1,651,465                1,177,184
Dividends per 10p ordinary share

Interim paid of 1.46p (2002:    (143,837)                (136,940)
1.39p)
Proposed final of 2.92p (2002:  (287,675)                (273,883)
2.78p)                           -------     ---------    -------     ---------
                                             (431,512)                (410,823)
                                 -------     ---------    -------     ---------
Retained profit for the                     1,219,953                  766,361
financial year                   -------     ---------    -------     ---------

Basic and diluted earnings per                  16.76p                   11.82p
share                            -------     ---------    -------     ---------

All amounts relate only to continuing operations.



Consolidated balance sheet
At 30 September 2003
                                 
                                                2003                      2002
                                      £            £            £            £
                                --------     --------     --------     --------
Fixed assets
Intangible                                   999,526                   981,068
Tangible
- Land and buildings          1,571,908                 1,340,440
- Plant and machinery         1,533,691                 1,577,288
                                --------     --------     --------     --------
                                           3,105,599                 2,917,728
                                --------     --------     --------     --------
                                           4,105,125                 3,898,796
Current assets

Stocks                        4,106,660                 4,662,486
Debtors                       4,589,193                 4,703,835
Short-term deposits           1,224,145                   403,198
Cash at bank and in hand      2,300,564                 1,402,449
                                --------     --------     --------     --------
                             12,220,562                11,171,968
Creditors:
amounts falling due within    4,354,663                 4,599,649
one year                        --------     --------     --------     --------

Net current assets                         7,865,899                 6,572,319
                                --------     --------     --------     --------
Total assets less current                 11,971,024                10,471,115
liabilities
Creditors: due after one                       6,602                   298,686
year
Provisions for liabilities                   250,000                   109,000
and charges                     --------     --------     --------     --------

Net assets                                11,714,422                10,063,429
                                --------     --------     --------     --------
Capital and reserves

Called up share capital                      985,190                   985,190
Share premium account                        157,083                   157,083
Revaluation reserve                          423,001                   423,001
Capital redemption reserve                   151,570                   151,570
Profit and loss account                    9,997,578                 8,346,585
                                --------     --------     --------     --------
Equity shareholders' funds                11,714,422                10,063,429
                                --------     --------     --------     --------

The financial statements were approved by the board of directors on 3 December
2003 and were signed on its behalf by:

R M Dewhurst Chairman
D Dewhurst Group Managing Director



Consolidated cash flow statement

For the year ended 30 September 2003

                                                    2003                   2002
                                    --------    --------    -------    --------
                                           £           £          £           £
Net cash inflow from operating                 4,133,516              2,076,370
activities

Returns on investments

and servicing of finance:
Interest and dividends received      60,634                 23,768
Interest paid                       (35,998)               (51,915)
Interest element from finance lease
rental                                 (954)                (3,445)
payments                            --------    --------    -------    --------

Net cash inflow/(outflow) from
returns on
investments and servicing of finance             23,682                (31,592)
Taxation:
UK taxation                        (441,947)              (372,522)
Overseas taxation                  (358,148)              (262,230)
                                    --------    --------    -------    --------
Net cash outflow from taxation                 (800,095)              (634,752)
Capital expenditure and financial
investment:

Purchase of fixed assets           (724,096)              (614,379)
Sale of tangible fixed assets        62,750                 53,100
                                    --------    --------    -------    --------
Net cash outflow from capital
expenditure
& financial investment                         (661,346)              (561,279)

Equity dividends paid                          (417,720)              (405,684)
                                    --------    --------    -------    --------
Net cash inflow before use
of liquid resources and financing             2,278,037                443,063

Management of liquid resources

Placed on short-term deposit     (1,000,615)              (227,840)
Withdrawn from short-term deposit   179,668                      -
                                    --------    --------    -------    --------
                                               (820,947)              (227,840)
Financing

Bank loan repayments               (546,066)              (184,189)
Capital element of finance lease    (12,909)               (39,855)
rental payments
Repurchase of shares                      -               (213,070)
                                    --------    --------    -------    --------
                                               (558,975)              (437,114)
                                    --------    --------    -------    --------
Increase/(decrease) in cash in year             898,115               (221,891)
                                    --------    --------    -------    --------



AGM, results and dividends

The trading profit for the year, after taxation, amounted to £1,651,465 (2002:
£1,177,184).

A final dividend on the Ordinary and 'A' ordinary shares of 2.92p per 10p share
(2002: 2.78p) will be proposed at the Annual General Meeting to be held on
2 February 2004. If approved, this dividend will be paid on 1 March 2004 to
members on the register at 16 January 2004.

An interim dividend of 1.46p per share (2002: 1.39p) was paid on 1 September
2003.

These dividends absorb £431,512 (2002: £410,823) of the profit for the year
leaving a balance retained of £1,219,953 (2002: £766,361) which has been
transferred to group reserves.

Basis of preparation

The above financial information does not constitute full accounts within the
meaning of Section 240 of the Companies Act 1985.

The financial information for the year ended 30 September 2002 is extracted from
the Group's financial statements to that date which received an unqualified
auditors' report and have been filed with the Registrar of Companies. The
financial information for the year ended 30 September 2003 is extracted from the
Group's financial statements to that date which received an unqualified
auditors' report and will be filed with the Registrar of Companies.

The financial information presented in the preliminary announcement has been
prepared on the basis of the accounting policies set out in the most recently
published set of annual financial statements. 

Earnings per share and dividend per share

Weighted average number of shares
                                                          2003            2002
                                                            No              No
-------------------------------------                -----------     -----------
For basic and diluted earnings per share             9,851,898       9,955,177
-------------------------------------                -----------     -----------

The calculation of basic and diluted earnings per share is based on the profit
attributable to shareholders and on 9,851,898 Ordinary 10p and 'A' ordinary 10p
shares, being the weighted average number of shares in issue throughout the
financial year.

The final proposed dividend is based on 3,570,700 Ordinary 10p shares and
6,281,198 'A' ordinary 10p shares, being the number of shares in issue at the
balance sheet date.




                      This information is provided by RNS
            The company news service from the London Stock Exchange