Interim Results

Dewhurst PLC 08 June 2006 Dewhurst plc Directors' Interim Report FIRST HALF This report is prepared under International Financial Reporting Standards for the first time. The main substantive changes for the Group are that goodwill is no longer amortised in the accounts and the pension scheme deficit is shown on the face of the consolidated balance sheet. Comparative figures for last year have been adjusted to the new standards. Turnover at the Group was slightly down at £15.0 million compared to £15.1 million last year. Profit before tax rose 18% to £1.80 million (£1.52 million). Earnings per share grew 13% to 11.7p (10.3p). Lift and Rail Division sales were broadly flat in the first half with overseas sales showing a small increase and sales in the UK slightly lower. Keypad Division sales were down a little over 10%, reflecting the significant price reductions that we have implemented over the last 12 months. However the volume of sales at the Keypad Division remains steady. Two years ago we reported that we had lost the contract to provide keyboard products for the next generation of machines for a major ATM customer. We are delighted to report that we have now won this business back, albeit at lower prices. Acquisitions provided £1.0 million of sales in the first half, with a full 6 months contribution from Lift Material and two months from Traffic Management Products (TMP). Both acquisitions are performing satisfactorily to date. AIM Following shareholder approval at the EGM on 24th January 2006, the company transferred trading in its shares to AIM on 22nd February 2006. OUTLOOK The profit on continuing operations was slightly up in a difficult market of declining prices and significant cost pressures. We have continued, in the first half, to generate efficiency and sourcing improvements to offset these adverse impacts. We will need further improvements in the second half to maintain our position. As stated at the year-end, we expect growth to come from our acquisitions. We believe there are good prospects for the products of our latest acquisition, TMP, but it will take a little time for these sales to build. DIVIDENDS The Directors have declared an interim dividend of 1.71p which amounts to £168k, compared with 1.63p last year (£161k). The interim dividend is payable on 29th August 2006 and warrants will be posted on 24th August 2006 to shareholders appearing in the Register at 3:00 p.m. on 14th July 2006. By Order of the Board J C SINCLAIR Finance Director & Secretary 8 June 2006 Dewhurst plc The unaudited consolidated income statement, balance sheet and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31st March 2006, as compared with the corresponding half-year ended 31st March 2005 and the year ended 30th September 2005, shows the following results: Consolidated income statement Half year ended Half year ended Year ended 31st March 2006 31st March 2005 30th September 2005 £(000)'s £(000)'s £(000)'s (Restated) (Restated) ----------------------- ---------- ---------- ----------- Revenue - Continuing operations 13,876 15,134 29,649 - Acquisitions 1,074 - 345 ----------------------- ---------- ---------- ----------- 14,950 15,134 29,994 Operating costs - Continuing operations (12,387) (13,706) (26,296) - Acquisitions (848) - (243) ----------------------- ---------- ---------- ----------- (13,235) (13,706) (26,539) Operating profit - Continuing operations 1,489 1,428 3,353 - Acquisitions 226 - 102 ----------------------- ---------- ---------- ----------- 1,715 1,428 3,455 Net interest 88 97 190 ----------------------- ---------- ---------- ----------- Profit before tax 1,803 1,525 3,645 Taxation Est. (654) Est. (510) (1,250) ----------------------- ---------- ---------- ----------- Profit for the period 1,149 1,015 2,395 ----------------------- ---------- ---------- ----------- Basic earnings per share (Restated) 11.66p 10.30p 24.31p Diluted earnings per share (Restated) 11.66p 10.30p 24.31p Dividends per share 1.71p 1.63p 4.89p Dewhurst plc Consolidated balance sheet Half year Half year Year ended ended ended 31st March 31st March 30th September 2006 2005 2005 £(000)'s £(000)'s £(000)'s (Restated) (Restated) ------------------------ --------- ---------- ----------- Non-current assets Goodwill 5,342 839 1,531 Property, plant and equipment 2,872 2,955 2,911 Deferred tax asset 1,886 1,916 2,129 ------------------------ --------- ---------- ----------- 10,100 5,710 6,571 Current assets Inventories 3,575 4,067 3,778 Trade and other receivables 5,846 5,083 5,726 Cash and cash equivalents 3,867 5,323 6,438 ------------------------ --------- ---------- ----------- 13,288 14,473 15,942 ------------------------ --------- ---------- ----------- Total assets 23,388 20,183 22,513 ------------------------ --------- ---------- ----------- Non-current liabilities Retirement benefit deficit (6,286) (6,384) (7,098) Long term provisions (200) (210) (200) ------------------------ --------- ---------- ----------- (6,486) (6,594) (7,298) Current liabilities Trade and other payables (2,417) (1,881) (2,143) Current tax liabilities (602) (326) (464) Short term provisions (1,331) (1,350) (1,445) ------------------------ --------- ---------- ----------- (4,350) (3,557) (4,052) ------------------------ --------- ---------- ----------- Total liabilities (10,836) (10,151) (11,350) ------------------------ --------- ---------- ----------- Net assets 12,552 10,032 11,163 ------------------------ --------- ---------- ----------- Capital and reserves Share capital 985 985 985 Share premium account 157 157 157 Revaluation reserve 423 423 423 Capital redemption reserve 152 152 152 Retained earnings 10,835 8,315 9,446 ------------------------ --------- ---------- ----------- Equity shareholders' funds 12,552 10,032 11,163 ------------------------ --------- ---------- ----------- The results for the 2005 year set out above are abridged. Full accounts for that year reported under UK GAAP, on which the auditors of the company made an unqualified report, have been delivered to the Registrar of Companies. Dewhurst plc Consolidated cash flow statement Half year ended Half year ended Year ended 31st March 2006 31st March 2005 30th September 2005 £(000)'s £(000)'s £(000)'s (Restated) (Restated) ----------------------- ---------- ----------- ---------- Cash flows from operating activities Operating profit 1,715 1,428 3,455 Depreciation 182 236 441 Foreign exchange (profit)/loss (11) 129 397 (Profit)/loss on sale of fixed assets 1 (1) (3) ----------------------- ---------- ----------- ---------- 1,887 1,792 4,290 (Increase)/decrease in inventories 587 97 663 (Increase)/decrease in trade and other receivables 496 (20) (717) Increase/(decrease) in trade and other payables (263) (930) (611) ----------------------- ---------- ----------- ---------- Cash generated from operations 2,707 939 3,625 Interest paid - - (1) Income tax paid (557) (754) (1,298) ----------------------- ---------- ----------- ---------- Net cash from operating activities 2,150 185 2,326 Cash flows from investing activities Purchase of subsidiary undertakings (4,352) - (913) Sale of property, plant and equipment 1 10 18 Purchase of property, plant and equipment (137) (112) (166) Interest received 88 97 191 ----------------------- ---------- ----------- ---------- Net cash used in investing activities (4,400) (5) (870) Cash flows from financing activities Dividends paid (321) (305) (466) ----------------------- ---------- ----------- ---------- Net cash used in financing activities (321) (305) (466) ----------------------- ---------- ----------- ---------- Net increase/(decrease)in cash and cash equivalents (2,571) (125) 990 ----------------------- ---------- ----------- ---------- Cash and cash equivalents at beginning of period 6,438 5,448 5,448 ----------------------- ---------- ----------- ---------- Cash and cash equivalents at end of period 3,867 5,323 6,438 ----------------------- ---------- ----------- ---------- Dewhurst plc Notes to the accounts 1. Basis of preparation Dewhurst plc's consolidated financial statements were prepared in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP) until 30 September 2005. The 30 September 2006 consolidated financial statements will be prepared in accordance with International Financial Reporting Standards (IFRSs). The transition date was 1 October 2004 being the start date of the earliest period for which the group presents full comparative information in its 2006 Annual Report and Accounts. In preparing this interim report in accordance with IFRS 1, the group has applied the mandatory exceptions from full retrospective application of IFRS. UK GAAP differs in some areas from IFRS and so in preparing these interim statements management has amended certain accounting, valuation and consolidation methods applied in the UK GAAP financial statements to comply with the recognition and measurement criteria of IFRS. The comparative figures in respect of 2005 are restated to reflect these adjustments. Presentation - IAS 1, Presentation of Financial Statements The presentation format of IFRS is different from UK GAAP. Apart from the obvious key heading changes in the primary statements, the following information is designed to assist the reader to understand the format and numerical changes. Goodwill - IAS 38, Intangible assets Goodwill arising on acquisitions before the date of transition to IFRS has been retained at the previous UK GAAP amounts subject to being tested for impairment at that date. Goodwill arising on consolidation represents the excess of the cost of acquisition over the group's interest in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Under IAS 38 goodwill is not amortised. Instead it is subject to an annual impairment review. Any impairment is recognised immediately in the income statement and is not subsequently reversed. An adjustment has been made to remove the goodwill amortisation charge. Pension Costs - IAS 19, Employee Benefits Under IAS 19, the group has shown the full actuarial value of the surplus or deficit of the pension scheme on the balance sheet. Any movements in the pension assets and liabilities arising from actuarial gains and losses will be recognised immediately in full through the statement of recognised income and expense (SORIE). Dividends - IAS 10, Events After the Balance Sheet Date Under IFRS dividends proposed are not recognised as liabilities. Accordingly the 2005 proposed interim and final dividend amounts reported under UK GAAP have been removed from the IFRS income statements. Cash Flow The differences between UK GAAP and IFRS cash flows relate to the reclassification of some of the headings and the inclusion of some of the UK GAAP notes to the cash flow statement. There is no impact on the final cash position nor the movement in the period. This information is provided by RNS The company news service from the London Stock Exchange

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