Interim Results - 6 Months to 2 April 2000

Dewhurst PLC
15 June 2000

 
Directors' Interim Report 
 
FIRST HALF 
 
The first half showed an 8% improvement in sales, of which 5% was organic
growth from continuing operations. Profit before tax was marginally down
after absorbing acquisition costs. Operating profit before acquisition
expenses showed a 5% improvement and earnings per share were also up 5%. 
 
Lift Division sales showed continuing growth. Sales were particularly strong
in export markets despite the high pound, but margins were affected. All Lift
Division subsidiaries registered sales improvements. 
 
Rail sales fell back and keypad sales improved, leaving sales of these
product groups together broadly similar to last year. 
 
Margins fell slightly, with conflicting downward price pressures and upward
cost pressures. 
 
ACQUISITION 
 
In February we completed the acquisition of Australian Lift Components. The
company, based in Sydney, Australia, enables us to strengthen our presence in
the Australasian market and enhance our customer service in the region. It
provides another building block in our strategy of establishing local
companies to configure our standard products to local market and customer
requirements. The goodwill arising on the acquisition has been capitalised
and is being amortised over its useful economic life. 
 
OUTLOOK 
 
The acquisition should assist in building steady progress in group sales, but
we expect margins to remain under considerable pressure. The second half will
see the start of a major refurbishment of our Hounslow factory. The
refurbishment is essential to modernise our facilities and to reorganise the
plant for improved workflow and efficiency. The cost of the refurbishment
will impact principally in the next financial year, though there will be some
effect in this year's second half. 
 
As a result of the above factors, it is not expected that this year's profits
will achieve the record set last year. 
 
DIVIDENDS 
 
The Directors have declared an interim dividend of 1.25p, compared with 1.15p
last year. The interim dividend is payable on 4th September 2000 and warrants
will be posted on 31st August 2000 to shareholders appearing in the Register
at 3:00 p.m. on 21st July 2000. 
 
By Order of the Board 
M N GREEN 
Secretary 
 
 
Dewhurst plc 
 
The unaudited balance sheet of Dewhurst plc and its subsidiaries as at 2nd
April 2000 and 3rd October 1999 is detailed opposite. The consolidated profit
and loss account for the 26 weeks to 2nd April 2000, as compared with the
corresponding 26 weeks ended 28th March 1999 and the 53 weeks ended 3rd
October 1999, shows the following results: 
 
Consolidated profit and loss account 
 
                                        26 weeks     26 weeks     53 weeks 
                                           ended        ended        ended 
                                       2nd April   28th March  3rd October 
                                            2000         1999         1999 
                                        £(000)'s     £(000)'s     £(000)'s 
 
Turnover - continuing operations          10,104        9,560       19,877 
         - acquisitions                      266            -            -
                                         ---------------------------------
                                          10,370        9,560       19,877 
 
Operating costs                           (9,568)      (8,759)     (18,072) 
                                         ---------------------------------
Operating profit - continuing operations     738          801        1,805 
                 - acquisitions               64            -            - 
                                         ---------------------------------
                                             802          801        1,805 
 
Net interest                                  21           49           80 
                                         ---------------------------------
Profit on ordinary activities before tax     823          850        1,885 
Taxation                                    (256) Est.   (287) Est.   (581)
                                         --------------------------------- 
Profit for the financial period              567          563        1,304 
Dividends                                   (129)        (119)        (356) 
                                         ---------------------------------
Retained profit for the period               438          444          948 
 
Basic earnings per share                    5.50p        5.23p       12.46p 
Diluted earnings per share                  5.45p        5.19p       12.36p 
Dividends per share                         1.25p        1.15p        3.45p 
 
 
Dewhurst plc 
 
Consolidated balance sheet 
 
                                       2nd April 2000     3rd October 1999 
                                             £(000)'s             £(000)'s 
Fixed assets 
Tangible 
- Land and buildings                            1,386                1,375 
- Plant and machinery                           1,765                1,684
                                            ------------------------------
                                                3,151                3,059 
Intangible assets                               1,376                    -
                                            ------------------------------
                                                4,527                3,059 
 
Current assets 
Stocks                                          4,112                3,492 
Debtors                                         4,246                3,317 
Investments                                        25                   23 
Cash                                              757                1,702
                                            ------------------------------
                                                9,140                8,534 
Creditors:
amounts falling due within one year            (3,399)              (2,928) 
                                            ------------------------------
Net current assets                              5,741                5,606 
 
Total assets less current liabilities          10,268                8,665 
 
Creditors: 
amounts falling due after one year             (1,135)                   - 
Provisions for liabilities and charges           (185)                (172) 
                                            ------------------------------
Net assets                                      8,948                8,493 
                                            ______________________________
Capital and reserves 
Called up share capital                         1,032                1,032 
Revaluation reserve                               423                  423 
Share premium account                             127                  127 
Capital redemption reserve                         97                   97 
Profit and loss account                         7,269                6,814 
                                            ------------------------------
Equity shareholders' funds                      8,948                8,493 
                                            ______________________________
 

The results for the 1999 year set out above are abridged. Full accounts for
that year, on which the auditors of the company made an unqualified report,
have been delivered to the Registrar of Companies. 
 
 
Dewhurst plc