Final Results

Dewhurst PLC
07 December 2006


CHAIRMAN'S STATEMENT

Results

This report is prepared under International Financial Reporting Standards for
the first time. Information of the effect of the new standards is set out in the
Financial Review.

It is disappointing to report a fall in sales and profits this year after four
years of steady progress, during which profits increased by 150%. This year
sales fell marginally to £29.7 million (£30.0 million) and profits were £3.4
million compared to last year's restated £3.9 million. Of the drop in profits,
£0.2 million was as a result of trading performance and the remaining £0.3
million was caused by changes in the presentation of pensions costs.


A positive aspect of the results is our continued strong cash flow. Despite
spending £4.7 million on investment in acquisitions, plant and equipment, we
still ended the year with £5.1 million cash, only £1.4 million lower than last
year.


Although the figures are not as good as we would have wished, they have been
achieved in a very challenging environment for manufacturing companies. As
previously reported, prices are falling on many of our product ranges. We have
continued to drive costs down, but this year we have not been able fully to
absorb the cost increases, which have been rising at a faster rate than
previously. I know employees have worked hard in these circumstances to try to
maintain our performance and I would like to thank them for their hard work and
dedication this year.

Operations

Our focus in the year has been on continuing to try to improve customer service.
In line with this objective we have extended our Lean initiatives to LiftStore
in Flint and Australian Lift Components. Every member of staff in these
locations is being trained in Lean principles and practices and this is expected
to generate continued improvements in our processes in the future.

Products

We have made substantial investments in developing new products during the year.
We have continued the work on our new lift controller, Ethos, to broaden the
range of applications it can support. This has helped to rationalise our product
range while providing customers with significantly improved technology. These
benefits have brought us opportunities with a number of new customers.


We have designed a number of versions of our Unipad keypad concept both to
broaden our standard range and to provide solutions for specific customer
projects. We have also developed a new weatherproof pushbutton, which is
suitable for a wide array of exterior applications including transportation.

Traffic Management Products (TMP)

TMP joined the Group in January. TMP provides traffic products, particularly
those focused on passive safety. Passively safe products are designed to
minimise injury in road traffic accidents and thereby contribute to the
Government's objective of making our roads ever safer. TMP was the initiator of
the non-illuminated keep left bollard that is now becoming a common sight on UK
roads. The bollard reduces CO2 emissions, provides a more consistent performance
and needs minimal maintenance. TMP also sells a range of passively safe poles
for use as lighting columns, traffic signal posts and signposts.

Outlook

The outlook for manufacturing companies is expected to remain extremely
challenging. Continual downward pressure on prices is likely to result in eroded
margins in the coming year. We do have a strong pipeline of new products, which
will help offset this somewhat. We are also looking to achieve growth from
traffic products in the medium term.

Richard Dewhurst
Chairman



REVIEW OF OPERATIONS

Operating Highlights

The current climate in the UK is not at all favourable for companies involved in
manufacturing. We are going through difficult times but despite this good
progress has been made. We have continued to focus on improving levels of
service, which we believe is fundamental to growing revenues. We have also put
enormous emphasis into new product development and moving our key product ranges
forward. Investing more heavily in this area than we have in the past has
highlighted opportunities throughout the marketing and design process where we
can improve and this will be important to our future success.

This year has seen the completion of our programme to move all subsidiary
companies onto one computer system, with Traffic Management Products, Lift
Material and The Fixture Company all coming on line. Although it is a relatively
recent event, we are already seeing the benefits in day-to-day operations of
having all companies on the same system. We now have much better visibility of
any trends at individual companies and can act much earlier on any potential
issues or opportunities.


UNITED KINGDOM

The strong price erosion that has been with us for the past three years
continues to be the most pressing problem that we face. Sourcing of volume
products from low cost regions is becoming more and more prevalent and we have
worked hard to purchase many of our components from these regions. At the same
time it is critical for us to ensure our UK based assembly is as efficient as
possible, so that we remain competitive. We do believe that there is demand for
last minute product configuration in the UK and combining this with efficiently
sourced components, we can remain successful.

Central to this is the work that we are doing in our Lean Manufacturing
programme. This has been an important initiative for the past two years and will
remain essential to the success of the business. Streamlining the assembly
process, eliminating waste, minimising space requirement and reducing stocks are
all important factors that the management team focus on continuously. We have
achieved very good initial success but we constantly revisit our processes to
look for improvements and it is very satisfying, three years into the programme
how much we are achieving in this area on a daily basis. This is an area where
all employees can make significant contributions and our staff have done a great
job in this area.

Keypad Division

There has been a great deal of price pressure in this area of the business, but
demand for encrypted pin pads and other ATM assemblies has remained reasonably
strong.

The launch of Unipad last year was met with a great deal of interest. However
much of the demand is project based and that takes a long time to convert into
actual orders. We have been working on several projects during the year, based
on variants of the Unipad concept. One of these variants has been selected for
use on petrol pump payment terminals for a major UK supermarket chain. These
products will start to be installed in a rolling programme over the coming year.
We also launched a new family of more compact 'small key' Unipads that are aimed
at the ticket machine market rather than ATM's and these have already been sold
into a number of new projects.

We have through the year built a strong relationship with a number of encryption
providers and we need to continue to strengthen those ties in the future.

Rail Division

The division has been buoyed this year by the winning of a couple of reasonable
sized orders for new rolling stock projects.

We will also be launching our new rail pushbutton at Railtex 07 in February.
This pushbutton has a range of innovative features, which we believe should make
it very competitive in the market. For the first time in a number of years we
will focus strongly on the rail market in the coming months.

Lift Division

New construction in some of our key export markets have remained at low levels
and this has hampered our sales recovery. We have recruited a new Hong Kong
based Business Development Manager who will be instrumental in building stronger
links with our customers in that region and ensure that, when conditions
improve, we benefit from the upturn.

Over the last two years we have put a great deal of emphasis on the European
market and that has paid dividends with our European sales seeing strong growth.

Although a lot of design emphasis has been in other product areas this year, we
have significantly grown the M-20 pushbutton family over the last twelve months.
The M-20 has been selected in a number of prestigious sites on both sides of the
Atlantic in the past year.

Although primarily designed for the rail market, our weatherproof pushbutton has
achieved a promising start by being chosen for a new range of platform lifts for
wheelchair users.

During the year we have worked closely with our Elevator display partner and
this has led to a promising increase in sales both in the UK and overseas.

LiftStore

It was reported last year that Ethos our new generation of lift controller had
had a successful launch. The team at LiftStore have built on that success and
customer response to the product has exceeded expectations. The ease of
installation of Ethos, combined with its reliability has given the product an
excellent reputation. It has also allowed us to gain market share against some
established competitors. During the year we have added to the Ethos family with
a suite of software tools and new speed profiling hardware to improve ride
comfort. The complete Ethos range is a major investment and further exciting
developments are in the pipeline for future years.

Our Monitoring division started the year very strongly but certainly the second
half proved much more difficult for the division. The gradual move in the
control of housing stock away from Local Authorities towards Housing
Associations has changed our market and we are in the process of reconfiguring
our offering to make it more relevant to potential customers. It is encouraging
however that Key Performance Service Indicators are becoming a way of life in
this sector, since our monitoring products can help deliver such indicators very
simply.

In the Fixture Division, the resources that we have put into strengthening our
fixture team are paying off and we continue to develop that business.

A great deal of emphasis has been put into Lean Manufacturing throughout the
group, but particularly in our Flint factory. The required assembly space has
been halved, stocks significantly reduced and we are in a good position to reap
efficiency gains as Ethos volumes increase.

Traffic Management Products (TMP)

We acquired the TMP business in January of this year. Dewhurst have been
involved in the transport industry for many years. Although it may appear that
TMP's main product lines are outside areas where we have historically operated,
we consider that there are similarities in the marketing approach which provide
synergies. TMP mainly sells products driven by legislation and specification to
a local authority customer base with which we are very familiar.

TMP's lead product range is the Flecta non-illuminated keep left bollard, which
has sold strongly throughout the year. The product, as its name suggests, does
not need to be illuminated, unlike the majority of bollards on the UK's roads.
This advantage reduces the operational cost to virtually zero as well as
eliminating carbon emissions and light pollution. As well as these important
advantages, the Flecta can withstand impact from a car and simply bounce back
into place, providing significant maintenance savings.

We have also been working closely with our manufacturing partner for Passive
Safety lighting columns, signposts and traffic signal posts. Preparing these
products for sale has been a lengthy process, as we are required to carry out a
significant number of tests on the various posts. However there is an excellent
long-term market for these products and the future prospects for TMP's products
look very encouraging.


NORTH AMERICA

Dupar Controls

The North American market softened during the year giving both Dupar Controls
and The Fixture Company a challenging time. Competition is intensifying in the
market but the launch in North America of the M-20 pushbutton has been of real
benefit to Dupar Controls and has allowed us to win new business as well as
secure existing contracts.

We have continued to work on the Lean Manufacturing programme at Dupar Controls,
particularly improving the final assembly process. There are still significant
opportunities to improve administrative and manufacturing processes, which we
intend to carry out in the coming year.

The Fixture Company (TFC)

After last year's solid growth TFC lost momentum somewhat this year and sales
are not as strong as we would like. The market for our products in the United
States is very large and offers us real opportunity for sustained growth. We are
currently not making the most of these opportunities and through 2007 we will be
readdressing our marketing plan.


AUSTRALASIA

Australian Lift Components (ALC)

The Australian market remained relatively flat through the year. We suffered a
downturn in sales from our largest customer, who is sourcing more packages from
China, but have worked hard in developing other customers to minimise the effect
of any downturn.

ALC have focused heavily on initiating a Lean Manufacturing programme with the
help of a team from Hounslow and will continue through 2007 with local support.
In April the factory space was re-laid out and the flow around the plant has
been extensively streamlined. There is still opportunity for significant
reductions in stock and we would expect to see the effect of this through 2007.

Lift Material

This has been a good first full year for Lift Material with sales of all key
products performing in line with expectations. Towards the end of the year the
company won an order for its largest project: pushbuttons, displays and safety
edges for the prestigious Central Plaza One building in Brisbane, the third
highest in the city.

One of our drivers for acquiring the business was to add new product lines to
their offering and we have been successful in introducing two particularly
strong brands to our portfolio that will lead to increased revenues during the
current year.

David Dewhurst
Group Managing Director


FINANCIAL REVIEW

International Financial Reporting Standards ('IFRS')

Dewhurst plc has elected to prepare its consolidated and company financial
statements in accordance with International Financial Reporting Standards as
adopted by the EU (IFRS). These are the first financial statements of the
company and the group prepared under IFRS and so in line with the transitional
provisions set out in IFRS 1, the directors have restated the comparative 2005
year figures, where necessary, to align the numbers previously reported under UK
GAAP with IFRS.

As reported last year despite the inclusion in the Balance Sheet of a pension
deficit and deferred tax and the change from goodwill amortisation to
impairment, the move to IFRS did not change how the group was managed and had no
impact on cash flow.

The full financial statements will provide a more detailed explanation of the
transition to IFRS but I have summarised the key elements of the restatement of
last year's figures in the table below.

Profit on ordinary             2005
activities before taxation   £(000)

UK GAAP                       3,485
Pension costs                   151
Goodwill                        160
R&D capitalised                  75
                            --------
IFRS                          3,871
                            --------

Results

Despite a difficult year, revenue decreased only marginally by 0.8% from £30.0
million to £29.8 million. Profit on ordinary activities before taxation on the
other hand dropped £477k, from £3,871k to £3,394k. Only £183k of the fall was
due to trading performance, £294k was as a result of a movement in the pension
charge.

Strong Cash Flow

Cash flow was once again very good. The group generated £4.9 million cash from
operations and, despite utilising £4.3 million to acquire Traffic Management
Products Ltd, ended the year down just £1.3 million at £5.1 million. The
continuation of our lean programmes across the group reduced inventories by £1.0
million whilst maintaining service levels.

We started and finished the year ungeared.

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 25, 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 29% of profit before tax being
earned in foreign currencies during the year ended 30 September 2006.

Dividends

Dividends are now accounted for when paid and approved, and not when proposed, 
therefore the proposed final dividend for 2006 has not been accrued at the
balance sheet date. The total dividend for 2006 of 5.13p per share, up 4.9%
against last year's 4.89p, is covered 4.6 times by earnings. Shareholders' funds
improved from £11.2 million to £13.9 million. There was no reduction of shares
during the year.

Jared Sinclair
Finance Director


Consolidated income statement

For the year ended 30 September 2006
------------------------------------------------------  -----------   ----------
                                                             2006          2005
Continuing Operations                                       £(000)        £(000)
------------------------------------------------------  -----------   ----------

Revenue                                                    29,766        29,994

Operating costs                                           (26,438)      (26,171)

Operating profit                                            3,328         3,823
Finance Income                                                165           191
Finance Costs                                                 (99)         (143)
------------------------------               --------   -----------   ----------
Profit before taxation                                      3,394         3,871
Tax on profit                                              (1,081)       (1,173)
------------------------------               --------   -----------   ----------
Profit for the financial year                               2,313         2,698
------------------------------               --------   -----------   ----------
Basic and diluted earnings per share                        23.48p        27.39p
------------------------------               --------   -----------   ----------



Consolidated statement of recognised income and expense
 -----------  -----------  -----------  -----------  -----------  -----------
                                                          2006         2005
                                                         £(000)       £(000)
 -----------  -----------  -----------  -----------  -----------  -----------
Net income/(expense) recognised directly in equity:
Actuarial gains/(losses) on the defined benefit
pension scheme                                           1,637       (1,561)
Exchange differences on translation of foreign
operations                                                (346)         652
Tax on items taken directly to equity                     (387)         273
-------------------------------------                -----------  -----------
Net income/(expense) recognised directly in equity
in the year.                                               904         (636)
-------------------------------------                -----------  -----------
Profit for the financial year                            2,313        2,698
-------------------------------------                -----------  -----------
Total recognised income and expense for the year         3,217        2,062
-------------------------------------                -----------  -----------


Consolidated balance sheet

At 30 September 2006
-----------------------------------------------------     ----------  ----------
                                                              2006        2005
                                                             £(000)      £(000)
------------------------  ------  ----------  ----------  ----------  ----------
Non-current assets
Goodwill                                                     5,192       1,531
Other intangibles                                               89          34
Property, plant and                                          2,804       2,952
equipment
Deferred tax asset                                           1,746       2,100
--------------------      ------  ----------  ----------  ----------  ----------
                                                             9,831       6,617
Current assets
Inventories                                                  3,037       3,778
Trade and other receivables                                  5,664       5,726
Cash and cash equivalents                                    5,077       6,438
--------------------      ------  ----------  ----------  ----------  ----------
                                                            13,778      15,942
--------------------      ------  ----------  ----------  ----------  ----------
Total assets                                                23,609      22,559
--------------------      ------  ----------  ----------  ----------  ----------

Current liabilities
Trade and other payables                                     3,442       3,588
Current tax liabilities                                        388         464
Short term provisions                                          150         200
--------------------      ------  ----------  ----------  ----------  ----------
                                                             3,980       4,252
Non-current liabilities
Retirement benefit    
obligation                                                   5,697       7,104
--------------------      ------  ----------  ----------  ----------  ----------
                                                             5,697       7,104
--------------------      ------  ----------  ----------  ----------  ----------
Total Liabilities                                            9,677      11,356
--------------------      ------  ----------  ----------  ----------  ----------
Net assets                                                  13,932      11,203
--------------------      ------  ----------  ----------  ----------  ----------

Equity

Share capital                                                  985         985
Share premium account                                          157         157
Capital redemption reserve                                     152         152
Translation reserve                                            215         457
Retained earnings                                           12,423       9,452
--------------------      ------  ----------  ----------  ----------  ----------
Total equity                                                13,932      11,203
--------------------      ------  ----------  ----------  ----------  ----------


Consolidated cash flow statement

For the year ended 30 September 2006
-------------------------------------------------------------------------------
                                                                2006      2005
-----------------------------        -------  ---  --------  --------  --------
                                                               £(000)    £(000)
Cash flows from operating activities
Operating profit                                               3,328     3,823
Depreciation and amortisation                                    463       478
Additional costs to pension scheme                               131      (293)
Exchange adjustments                                             (98)      314
(Profit)/loss on disposal of
property, plant and equipment                                     (3)       (3)
-----------------------------         -------  ---  --------  --------  --------
                                                               3,821     4,319
(Increase)/decrease in inventories                               996       663
(Increase)/decrease in trade and                                 
other receivables                                                513      (717)
Increase/(decrease) in trade and                               
other payables                                                  (366)     (601)
Increase/(decrease) in provisions                                (50)      (10)
-----------------------------         -------  ---  --------  --------  --------
Cash generated from operations                                 4,914     3,654
Interest paid                                                      -        (1)
Income tax paid                                               (1,147)   (1,298)
-----------------------------         -------  ---  --------  --------  --------
Net cash from operating activities                             3,767     2,355

Cash flows from investing activities
Acquisition of subsidiary
undertakings (net of cash    
acquired)                                                     (4,322)     (915)

Proceeds from sale of property,   
plant and equipment                                               14        18
Purchase of property, plant and    
equipment                                                       (320)     (227)
Development costs capitalised                                   (109)      (49)
Interest received                                                165       191
-----------------------------         -------  ---  --------  --------  --------
Net cash used in investing    
activities                                                    (4,572)     (982)

Cash flows from financing activities
Dividends paid                                                  (490)     (466)
-----------------------------         -------  ---  --------  --------  --------
Net cash used in financing                                      (490)     (466)
activities
-----------------------------         -------  ---  --------  --------  --------
Net increase/(decrease) in cash and       
cash equivalents                                              (1,295)      907
-----------------------------         -------  ---  --------  --------  --------

Cash and cash equivalents at                          
beginning of year                                              6,438     5,448

Exchange adjustments on cash and   
cash equivalents                                                 (66)       83
-----------------------------         -------  ---  --------  --------  --------

Cash and cash equivalents at end of 
year                                                           5,077     6,438
-----------------------------         -------  ---  --------  --------  --------



AGM, results and dividends

The trading profit for the year, after taxation, amounted to £2,313k (2005:
£2,698k).

A final dividend on the Ordinary and 'A' ordinary shares of 3.42p per 10p share
(2005: 3.26p) will be proposed at the Annual General Meeting to be held on 31
January 2007. If approved, this dividend will be paid on 5 March 2007 to members
on the register at 12 January 2007.

An interim dividend of 1.71p per share (2005: 1.63p) was paid on 29 August 2006.


Earnings per share and dividend per share
Weighted average number of shares
-------------------------------------               -----------     -----------
                                                         2006            2005
                                                           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.

-------------------------------------               -----------     -----------
                                                         2006            2005
Paid dividends per 10p ordinary share                   £(000)          £(000)
-------------------------------------               -----------     -----------
2005 final paid of 3.26p (2004: 3.10p)                   (322)           (305)
2006 interim paid of 1.71p (2005: 1.63p)                 (168)           (161)
-------------------------------------               -----------     -----------

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. The directors are proposing a final dividend of 3.42p (2005
3.26p) per share, totalling £337k (2005: £322k). This dividend has not been
accrued at the balance sheet date.


Basis of preparation

The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 September 2006 or 2005. Statutory
accounts for 2005, which were prepared under UK GAAP, have been delivered to the
Registrar of Companies. The statutory accounts for 2006 which are prepared under
accounting standards adopted by the EU will be delivered to the Registrar of
Companies following the company's annual general meeting. The auditors have
reported on the 2006 and 2005 accounts; their reports were unqualified, did not
include references to any matters to which the auditors drew attention by way of
emphasis without qualifying their reports and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985.

Dewhurst plc has elected to prepare its consolidated and company financial
statements in accordance with International Financial Reporting Standards
adopted for use in the European Union ('EU') (IFRS) from 1 October 2005. The
group and company financial statements will be prepared in accordance with those
parts of The Companies Act 1985 that are applicable to companies adopting IFRS
and comply with Article 4 of the EU IAS legislation. The transition date to IFRS
for Dewhurst plc is 1 October 2004. IFRS 1 has been applied in the preparation
of the financial statement and the disclosures required by IFRS 1 concerning the
transition from UK GAAP to IFRSs are explained and given in the notes.



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