Final Results

Dewhurst PLC
07 December 2004


CHAIRMAN'S STATEMENT


Results

I am pleased to report record results for the group again this year. Sales were
up 8% to £29.3 million and profits rose 35% to £3.3 million.

It is particularly encouraging that these record results were achieved on top of
last year's already strong figures. Equally importantly the strength was widely
spread, with all subsidiaries reporting record sales and profits. It has been a
stimulating year, particularly at Hounslow, with major projects on Lean
Manufacturing and the implementation of our new computer system. One of our key
objectives at the start of the year was to get 'faster and fitter' and I
certainly believe we end the year having made significant progress in both those
areas. This is down to the hard work and dedication of our staff and I thank
them for their contribution to the results and achievement of the year.

Products

New products launched at the Interlift exhibition last October have proved
popular with strong sales of low profile pushbutton stations and the EN range of
products designed to meet the latest European disabled access (DDA) codes. The
new Ethos lift controller has been well received and initial installations have
been successful. We have also launched a new version of our central monitoring
system, which provides a more intuitive user interface. The new system is easier
to navigate and provides key information more clearly.

Manufacturing and Systems

As mentioned above a considerable amount of focus this year has been on Lean
Manufacturing. We aimed to improve our processes and focus on those which add
value for our customers. We have made considerable strides at the main plant in
Hounslow and now need to spread these principles to our other facilities around
the world. Implementation of the new computer system at Hounslow was carried out
during the year and the changeover was completed without any major disruption, a
tribute to the team involved. The initial phase was also completed in Australia
although there is further work to be done to develop the system to its full
potential. Canada and USA remain to be brought on line during the coming year.
Our objective is to complete the group installation and interlink all the
systems during next year.

Keypads

It was disappointing to learn earlier this year that we had not won the contract
for the function display keyboard for the next generation of automatic teller
machines (ATM's) for our largest customer. We have had a twenty year association
with this customer and have supported them extremely well over these years. In
fact we were recently informed that we were the best supplier in our commodity
group. Unfortunately cost is the key driver in this market. Clearly we must
continue our efforts to drive down cost. However, we believe our products and
service offer excellent value and our other challenge is to educate customers to
understand the benefits of that value rather than looking at cost alone.

Outlook

This year's strong performance has been supported by demand for encrypting pin
pads (EPP) and DDA lift equipment. Implementation dates for the codes that are
driving this demand suggest that we have probably already seen the peak demand
for these items. As a result maintaining our record of sales increases will be a
significant challenge. We are working hard on product development to help us
maintain our momentum for growth. During the year we have seen pressures on
material and labour cost which we have been unable to pass on to our customers.
This trend is likely to continue. We continue to look for opportunities both for
organic growth and acquisitions to offset these factors.





R M Dewhurst
Chairman

REVIEW OF OPERATIONS


Operating Highlights

We have enjoyed a very solid year of progress in all companies with good sales
growth all round. However what has been most encouraging is that the growth has
been built on new and recently introduced products. Although the demand for
these products exceeded our expectations we were able to meet this demand, as a
result of our increasingly flexible operations. The challenge for the future is
to continue to develop more of these types of new product.

UNITED KINGDOM

Following the reorganisation of the Hounslow factory last year, we have now
benefited from a full year of really focussing on the operations side of the
business and implementing our strategy for lean manufacture. With the help of
our chosen consultants, earlier in the year we trained all staff both on the
shop floor and in the offices in the basic techniques of Lean Manufacturing. We
also selected two people to become 'Champions' and they underwent a six-week
training course. Our 'Champions' led our first in-house project looking at the
manufacture of our pressels. This is the front operating face of the pushbutton,
for which we have literally thousands of different variants. Lead times to
manufacture these products were unacceptably long and our stocks far too high.
After completion of the project, stocks and lead time have reduced
significantly.

We have now begun a new project to introduce Lean Manufacturing into our sheet
metal cell where we will face a new set of challenges. Sheet metal is another
critical area for us. It is one where we have invested heavily this year, with
the addition of two new presses and a new punching machine. We have also begun
to roll out line side stocks in our assembly areas, reducing unnecessary
movement into and out of stores and shortening assembly lead times. The next
twelve months will be one of many challenges and new opportunities in Operations
and we are pleased to have recruited a very experienced new Head of Operations
to lead us on this journey.

New product development continues to take a front seat and we now have more new
products in development than at any time for the last five years. We have been
fortunate enough to win a place on a Design Council mentoring programme, which
will give us the opportunity to benchmark and refine our current design
processes. Our link with our partner in China is reaping rewards in terms of
significantly reduced tooling costs, allowing us to develop a greater variety of
new and existing product types.

In all areas cost continues to be a very considerable factor and both Operations
and Design are constantly reviewing existing products and looking at ways of
reducing cost of manufacture. We have made progress in this area over the last
twelve months but it is very much a continuing activity.


Keypad Division

Demand for our keypad products has remained strong over the year, although
weekly demand has fluctuated widely and we have had some significant challenges
to ensure our capacity has been at the correct level. We have this year
developed a new keypad to meet the requirement of ADA (Americans with
Disabilities Act) codes as well as the forthcoming Chip and Pin regulations. We
see an opportunity not only in the banking sector but also in any exterior or
unmanned application where PIN number verification is required. This product
will be important for us over the coming years.

Rail Division

This has been a much more difficult year for the Rail Division, with no
significant projects in prospect, we have had to focus on smaller repair and
modernization orders. The outlook for the future does not hold a great deal of
optimism.

Lift Division

This year began with the biennial Interlift exhibition in Germany, where we were
able to exhibit some of our new products, the most important being the Jumbo
pushbutton and EN81-28 compliant EmFone autodialler. Both were well received and
have built sales through the year.

Hounslow has prospered through the strong demand from the subsidiary companies.
LiftStore's demand is the most significant and they have certainly benefited
from increased sales of pushbutton products in the UK as a result of work being
carried out to meet DDA (Disability Discrimination Act) requirements. Jumbo is
one of a range of products designed to meet these new codes and particularly
facilitates the operation of a lift by all users.

We had some excellent news in the middle of the year when we were chosen by
Schindler Lifts to supply car and landing operating panels for approximately 200
new lifts going into Heathrow Airport's new Terminal 5. Delivery of the panels
is likely to be spread over the next eighteen months and will provide a solid
base load of work. Just as important it builds on the growing list of
prestigious sites around the world where our products are installed.

Overseas sales for our products (excluding sales to our subsidiary companies)
grew in volume terms, but not in value terms as we continued to be hit by
significant price pressure. The current weakness of the dollar certainly makes
life a little more difficult in Far East markets and the challenge for the
coming year will be to ensure positive growth in value terms for these overseas
sales.


LiftStore

This year marked the 10th anniversary of our acquisition of Thames Valley Lift
Company, which is now trading as LiftStore. The association has been a positive
and profitable benefit to both the company and the group. The company has gained
access to greater resources and resilience. The group has gained a much stronger
presence in the UK market, a wider range of products and technological
expertise. The company marked the anniversary with another set of record
figures.

We were sorry to say goodbye to our Technical Director Gary Malbon on his
leaving LiftStore in July. Gary was a key member of the research and development
team at the company over 23 years. I am pleased that Gary has agreed to continue
to work with us for a period on a consultancy basis when required. We wish him
well.

The Ethos lift controller, the key new product for the controller division was
launched earlier in the year. This product was a large investment for the
company. Particular emphasis was placed on testing the quality of the software
through a systematic test environment. This investment has proved itself
extremely worthwhile in that initial installations have been implemented very
smoothly and have proved excellent reference sites for the product. The software
for the product has been re-written from the ground up so it has been important
that installations were successful to give customers the confidence to order the
new product.

Monitoring Division has had another successful year with further major contracts
for local authorities and local metro systems. During the year, we introduced a
major upgrade to our central monitoring application, which provides enhanced
display of information to management and users. The division is also now
investigating opportunities outside the lift industry where the same monitoring
technology can be used to report on the condition of a wide range of machinery
and equipment.

NORTH AMERICA

Dupar Controls

We have had a mixed year at Dupar. Sales rose strongly, nearly 30% up on the
previous year, but all of the increase was on keypad sales. This was supported
by the strong demand for EPP keypads to be retrofitted to ATM's (automatic
teller machines) in the North American market. Profits rose to another record,
but not as much as sales. This was partly because costs of recent investments in
buildings and equipment have fed through into the company's overheads. These
investments will provide the foundation for the future growth at Dupar. The most
significant single item of investment this year was in the new laser cutting
machine. This has provided a major boost to Dupar's flexibility both in terms of
the design of our products and in the ease of manufacture.

The other factor affecting Dupar has been the weakness of the US dollar, which
impacts on the margins achieved on sales to the US directly and through The
Fixture Company.

We have worked hard during the year in trying to improve our production
processes but more remains to be done in this area. We need to transfer the
lessons we have learned at Hounslow to Dupar.

The Fixture Company

After a setback in the previous year, this year The Fixture Company (TFC) grew
strongly again. We still have a relatively small share of the US market and so
the opportunity for growth continues.

The new structure is operating satisfactorily. Bringing TFC under the control of
David Dunlop at Dupar has helped to align the interests of the two companies, as
Dupar is TFC's largest supplier. We have tried to improve communication through
the year. This will be significantly further enhanced when both companies have
implemented the new computer system.

AUSTRALASIA

Australian Lift Components

ALC had an excellent year with significant growth in both sales and profits. The
Australian market has remained buoyant through the year although there are now
signs of this flattening off.

The move to new premises was satisfactorily completed in December. These have
provided a much improved environment and considerably greater capacity to allow
us to cope with future growth.

Quality of finish is extremely important for some of the high specification
installations particularly in Sydney and Melbourne. We have therefore recently
invested in new equipment, which enables us to provide this higher class finish.



FINANCIAL REVIEW

Results

Turnover increased by 8% from £27.2 million to £29.3 million. Operating profits
before amortisation of goodwill rose by £794,000, from £2,589,000 to £3,383,000.
Goodwill amortisation was £157,000, up from £147,000. Net interest earned rose
£83,000 from £24,000 to £107,000. Profit before tax rose from £2,465,000 to
£3,333,000.

Capital Investments

Additions to fixed assets were £769,000 for the year. The major additions for
the group were a laser cutting machine, a new turret punch press, a linishing
machine and two new hydraulic presses. There was also investment in fitting out
the new premises in Australia. During the year Dewhurst and LiftStore approved
the sale and leaseback of its vehicles. This accounts for £456,000 of the group
disposals and generated cash on sale of tangible fixed assets of £139,000.
Capital commitments at the year-end include the implementation of the new group
computer system at Dupar and The Fixture Company, the two remaining group
companies to be converted.

Cash Flow

The group ended the year with cash and short-term deposits, up £1.9 million to
£5.4 million. This position was achieved after spending a net £592,000 on
capital investments. The cash generated is a direct result of improved
performance and maintained tight stock controls as instigated last year but has
also been assisted by the fact that the bank loan was repaid in full last year.
Trade debtors and trade creditors have increased primarily as a result of a very
positive last quarter's trading. Operating cash flow for the year was £3.9
million, down from £4.1 million. Dividends paid increased from £418,000 to
£440,000.

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. There
is no formal policy for matching foreign currency cash flows or matching
exposure to foreign currency net assets. However these issues are regularly
monitored. 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 32% being earned in foreign
currencies during the year ended 30 September 2004.

Tax and Dividends

The current tax charge for the year rose to £1,141,000 (34.2%) from £873,000
(35.4%). The movements in the effective tax rate this year are as a result of
the amortisation of goodwill and other timing differences as shown in note 6.
Although not changing significantly in value, these items are now a smaller
percentage of the profits before tax amount, since this has increased by
£868,000 in the year. The proposed total dividend of 4.65p per share, up 6.2%
against last year's 4.38p, is covered 4.8 times by earnings. Shareholders' funds
improved from £11.7 million to £13.2 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 2004
------------------------------------------------------
                                            2004                     2003
                                 £             £          £             £
 --------- -------------- ---------     ---------  ---------     ---------
Turnover                               29,265,462               27,205,720
Operating costs
----------------------                (26,039,522)             (24,764,084)
                          ---------     ---------  ---------     ---------
----------------------
Operating profit before
amortisation of                         3,383,033                2,588,575
goodwill
Amortisation of goodwill                 (157,093)                (146,939)
----------------------    ---------     ---------  ---------     ---------
Operating profit                        3,225,940                2,441,636
Net                                       107,093                   23,682
interest   -------------- ---------     ---------  ---------     ---------
---------
Profit on ordinary
activities before                       3,333,033                2,465,318
taxation
Tax on profit on ordinary              (1,142,345)                (813,853)
activities                ---------     ---------  ---------     ---------
----------------------
Profit for the financial                2,190,688                1,651,465
year
Dividends per 10p
ordinary share
Interim paid of 1.55p     (152,704)                (143,837)
(2003: 1.46p)
Proposed final of 3.10p   (305,408)                (287,675)
(2003: 2.92p)             ---------     ---------  ---------     ---------
----------------------
                                         (458,112)                (431,512)
 --------- -------------- ---------     ---------  ---------     ---------
Retained profit for the                 1,732,576                1,219,953
financial year            ---------     ---------  ---------     ---------
----------------------
Basic and diluted                          22.24p                   16.76p
earnings per share        ---------     ---------  ---------     ---------
----------------------

All amounts relate only to continuing operations.






Consolidated balance sheet


At 30 September 2004
------------------------------------------------------

                      ------   ----------   ----------   ----------   ----------
                                                2004                      2003
                                      £            £            £            £
 -------------------- ------   ----------   ----------   ----------   ----------
Fixed assets
Intangible                                   811,964                   999,526
Tangible
- Land and buildings          1,534,814                 1,571,908
- Plant and machinery         1,509,245                 1,533,691
--------------------  ------   ----------   ----------   ----------   ----------
                                           3,044,059                 3,105,599
 -------------------- ------   ----------   ----------   ----------   ----------
                                           3,856,023                 4,105,125
Current assets

Stocks                        4,152,556                 4,106,660
Debtors                       5,067,207                 4,589,193
Short-term deposits           2,982,472                 1,224,145
Cash at bank and in           2,465,272                 2,300,564
hand                  ------   ----------   ----------   ----------   ----------
--------------------
                             14,667,507                12,220,562
Creditors:
amounts falling due           5,066,109                 4,354,663
within one year       ------   ----------   ----------   ----------   ----------
--------------------
Net current assets                         9,601,398                 7,865,899
--------------------  ------   ----------   ----------   ----------   ----------
Total assets less                         13,457,421                11,971,024
current liabilities
Creditors: due after                             974                     6,602
one year
Provisions for                               210,000                   250,000
liabilities and       ------   ----------   ----------   ----------   ----------
charges
--------------------
Net assets                                13,246,447                11,714,422
--------------------  ------   ----------   ----------   ----------   ----------

Capital and
reserves

Called up share                              985,190                   985,190
capital
Share premium account                        157,083                   157,083
Revaluation reserve                          423,001                   423,001
Capital redemption                           151,570                   151,570
reserve
Profit and loss                           11,529,603                 9,997,578
account               ------   ----------   ----------   ----------   ----------
--------------------
Equity shareholders'                      13,246,447                11,714,422
funds                 ------   ----------   ----------   ----------   ----------
--------------------

The financial statements were approved by the board of directors on 6 December
2004 and were signed on its behalf by:

R M Dewhurst Chairman

J Sinclair Finance Director

Consolidated cash flow statement

For the year ended 30 September 2004
------------------------------------------------------

                         --------     --------     --------    --------
                                         2004                     2003
------------------------ --------     --------     --------    --------
                              £            £            £           £
Net cash inflow from                 3,865,186                4,133,516
operating activities

Returns on investments

and servicing of
finance:
Interest and dividends    107,761                    60,634
received
Interest paid                (107)                  (35,998)
Interest element from
finance lease rental         (561)                     (954)
payments                 --------     --------     --------    --------
------------------------
Net cash inflow/
(outflow) from returns
on
investments and                        107,093                   23,682
servicing of finance
Taxation:
UK taxation              (724,294)                 (441,947)
Overseas taxation        (281,368)                 (358,148)
------------------------ --------     --------     --------    --------
Net cash outflow from               (1,005,662)                (800,095)
taxation
Capital expenditure and
financial investment:

Purchase of tangible     (768,742)                 (724,096)
fixed assets
Sale of tangible fixed    176,303                    62,750
assets                   --------     --------     --------    --------
------------------------
Net cash outflow from
capital expenditure

& financial investment                (592,439)                (661,346)

Equity dividends paid                 (440,379)                (417,720)
------------------------ --------     --------     --------    --------
Net cash inflow before
use
of liquid resources and              1,933,799                2,278,037
financing

Management of liquid
resources

Placed on short-term   (1,758,327)               (1,000,615)
deposit
Withdrawn from                  -                   179,668
short-term deposit       --------     --------     --------    --------
------------------------
                                    (1,758,327)                (820,947)
Financing

Bank loan repayments            -                  (546,066)
Capital element of
finance lease rental      (10,764)                  (12,909)
payments                 --------     --------     --------    --------
------------------------
                                       (10,764)                (558,975)
------------------------ --------     --------     --------    --------
Increase/(decrease) in                 164,708                  898,115
cash in year             --------     --------     --------    --------
------------------------



AGM, results and dividends

The trading profit for the year, after taxation, amounted to £2,190,688 (2003:
£1,651,465).

A final dividend on the Ordinary and 'A' ordinary shares of 3.10p per 10p share
(2003: 2.92p) will be proposed at the Annual General Meeting to be held on
7 February 2005. If approved, this dividend will be paid on 7 March 2005 to
members on the register at 14 January 2005.
An interim dividend of 1.55p per share (2003: 1.46p) was paid on 31 August 2004.
These dividends absorb £458,112 (2003: £431,512) of the profit for the year
leaving a balance retained of £1,732,576 (2003: £1,219,953) 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 2003 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 2004 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
-------------------------------------                -----------     -----------
                                                          2004            2003
                                                            No              No
           -------------------------------------     -----------     -----------
For basic and diluted earnings per share             9,851,898       9,851,898
-------------------------------------                -----------     -----------

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.




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