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Thorpe(F.W.) PLC (TFW)

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Thursday 20 March, 2014

Thorpe(F.W.) PLC

Half Yearly Report

RNS Number : 7297C
Thorpe(F.W.) PLC
20 March 2014
 



F W Thorpe Plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2013

 

Key points:


Interim

2014

Interim

2013


Revenue

£30.4m 

£27.1m 

12% increase

Operating profit

£5.1m 

£4.7m 

7%  increase

Profit before tax

£5.4m 

£5.1m 

7%  increase

Basic earnings per share - continuing operations

3.59p

3.31p

8%  increase

 

Growth in LED product sales continues - 35% of revenue

Continued investment in manufacturing facilities

Interim dividend increased to 1.05p (Interim 2013: 1.00p)

 

 

 

 

For further information please contact:                                                                            

F W Thorpe Plc

 

Andrew Thorpe - Chairman and Joint Chief Executive

01527 583200

Craig Muncaster - Financial Director

01527 583200

 

N+1 Singer - Nominated Adviser

 

Richard Lindley

 

0113 388 4789

 

 



CHAIRMAN'S INTERIM STATEMENT

 

I am pleased to say that revenues for the half year ending on December 31st 2013 increased by 12% resulting in a group operating profit increase of 7%.  Investment income and other factors gave a basic earnings per share increase of 8% on continuing operations.

 

My last half year and full year reports explained a number of reasons why our 2012/13 year had fallen short of our expectations but I did indicate that order input had resumed to more satisfactory levels.

 

The general improvement has been seen in all parts of the business over the first six months of the financial year with the march of the LED light source being ever more prominent in all sectors.  I can report that the group is currently producing 35% of its revenue in LED format, up from 25% at the turn of the financial year.

 

Group export efforts continue with sales growth in excess of 10% compared to the equivalent six months last year. Some notable successes have been achieved by Sugg in Canada, Solite in Ireland, Thorlux with a welcome modest step-change upwards at its German operation, improvements in Australia and better vibrations coming now from the Republic of Ireland.

 

Notwithstanding continuing investment in the design of these sophisticated LED luminaires and systems, the list of plant investments includes installation of the previously mentioned powder coating facility at Philip Payne and the £0.5m cleanroom facility at Thorlux to produce populated LED electronic circuit boards for the group. This line augments the small line previously reported as working 24/7 at the time of the last report.

 

Our quest for improved sales ability also continues with further appointments at field sales level both home and abroad, and further, at business development level in the UK.

 

A brief comment should be made at this time in isolation about TRT Lighting, our start-up street and road tunnel lighting enterprise.  TRT, having completed design and tooling operations for its initial products, is now increasing production as orders gather pace, providing a welcome narrowing of group financial support.

 

In the light of the results outlined above your company will pay a dividend of 1.05p per share (Interim 2013 1.00p) for the half year to December 31st 2013, representing an increase of 5%.

 

 

 

 

 

Andrew Thorpe

Chairman

 

20 March 2014

F W Thorpe Plc



CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2013

 


Six months to 

Six months to

Twelve months to

Continuing Operations

31.12.13

31.12.12 

30.06.13 






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 





Revenue

30,410 

27,076 

55,332 





Operating Profit

5,096 

4,744 

10,750 





Finance income

317 

352 

903 

Share of loss of joint venture

(19) 

(80)





Profit before tax expense

5,413 

5,077 

11,573 





Tax expense

(1,215)

(1,200)

(2,008)





Profit for the period

4,198 

3,877 

9,565 





 

 

 

 

Dividend rate per share:




     Interim

1.05p

1.00p

1.00p

     Final

2.00p

 

 

 

 

 

Earnings per share

- basic

3.59p

3.31p

8.16p


- diluted

3.59p

3.31p

8.16p

 

 

All share calculations have been rebased and restated following the sub-division of shares (10 for 1) which became effective on 19 August 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2013

 


Six months to 

Six months to

Twelve months to


31.12.13

31.12.12 

30.06.13 






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 









Profit for the year

4,198 

3,877 

9,565 





Other comprehensive income








Items that may be reclassified to profit or loss








     - Arising in period

201 

201 





     - Reclassified in period





Exchange rate movement on investment in joint venture








     - Arising in period

(2)

(9)





     - Reclassified in period





Taxation

(18)






199 

-

174 









Items that will not be reclassified to profit or loss








Actuarial gain/(loss) on pension scheme

814 





Movement on unrecognised pension surplus

(1,667)






(853)





Other comprehensive income for the year, net of tax

199 

(679)













Total comprehensive income for the year

4,397 

3,877 

8,886 





 

 

All comprehensive income is attributable to the owners of the company.



CONSOLIDATED BALANCE SHEET

as at 31 December 2013


As at 

As at 

As at 


31.12.13 

31.12.12 

30.06.13 






(unaudited)

(unaudited)

(audited)

Assets

£'000 

£'000 

£'000 

Non-Current Assets




Property, plant and equipment

12,495 

11,909 

12,380 

Intangible assets

6,550 

6,177 

6,686 

Investment property

2,102 

2,083 

2,102 

Loans and receivables

1,278 

1,728 

1,728 

Investment in joint venture

20 

92 

22 

Available for sale financial assets

2,917 

1,967 

2,458 

Deferred tax assets

32 


25,362 

23,956 

25,408 

Current assets




Inventories

12,307 

10,146 

11,942 

Trade and other receivables

11,037 

9,778 

12,099 

Other financial assets at fair value through profit or loss

388 

387 

388 

Short term financial assets - deposits

20,265 

17,205 

20,148 

Cash and cash equivalents

14,443 

15,477 

13,240 

Total current assets

58,440 

52,993 

57,817 





Total Assets

83,802 

76,949 

83,225 





Liabilities




Current liabilities




Trade and other payables

(7,164)

(5,938)

(9,099)

Current tax liabilities

(991)

(1,073)

(540)

Total current liabilities

(8,155)

(7,011)

(9,639)





Net current assets

50,285 

45,982 

48,178 





Non-current liabilities




Retirement benefit deficit

Provisions for liabilities and charges

(102)

(102)

(102)

Deferred tax liabilities

(948)

(858)

(944)

Total liabilities

(9,205)

(7,971)

(10,685)





Net assets

74,597 

68,978 

72,540 





Equity attributable to owners of the company




Issued share capital

1,189 

1,189 

1,189 

Share premium account

656 

656 

656 

Capital redemption reserve

137 

137 

137 

Retained earnings

72,615 

66,996 

70,558 





Total equity

74,597 

68,978 

72,540 









                                                                 



GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2013

 


Share

Share

Capital

Retained

Total


Capital

Premium

Redemption

Earnings

Equity




Reserve










£'000 

£'000 

£'000 

£'000 

£'000 







Balance at 30 June 2012

1,189

656

137

64,831 

66,813 







Comprehensive income






Profit for six months to 31 December 2012

-

-

-

3,877 

3,877 

Revaluation of available for sale assets

-

-

-

-

-







Total comprehensive income

-

-

-

3,877 

3,877 







Transactions with owners






Dividends paid to shareholders

-

-

-

(1,712)

(1,712)







Total transactions with owners

-

-

-

(1,712)

(1,712)







Balance at 31 December 2012

1,189

656

137

66,996 

68,978 







Comprehensive income






Profit for six months to 30 June 2013

-

-

-

5,688 

5,688 

Actuarial loss on pension scheme

-

-

-

814 

814 

Movement on unrecognised pension surplus

-

-

-

(1,667)

(1,667)

Revaluation of available-for-sale financial assets

-

-

-

201 

201 

Movement on associated deferred tax

-

-

-

(48)

(48)

Impact of deferred tax rate change

-

-

-

30 

30 

Exchange rate movement on joint venture

-

-

-

(9)

(9)







Total comprehensive income

-

-

-

5,009 

5,009 







Transactions with owners






Dividends paid to shareholders

-

-

-

(1,172)

(1,172)

Purchase of shares

-

-

-

(275)

(275)







Total transactions with owners

-

-

-

(1,447)

(1,447)







Balance at 30 June 2013

1,189

656

137

70,558

72,540







Comprehensive income






Profit for six months to 31 December 2013

-

-

-

4,397 

4,397 







Total comprehensive income

-

-

-

4,397 

4,397 







Transactions with owners






Dividends paid to shareholders

-

-

-

(2,340)

(2,340)







Total transactions with owners

-

-

-

(2,340)

(2,340)







Balance at 31 December 2013

1,189

656

137

72,615 

74,597 







 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2013

 


Six months to 

Six months to

Twelve months to


31.12.13 

31.12.12 

30.06.13 






(unaudited)

(unaudited)

(audited)


£'000 

£'000 

£'000 

Cash generated from operations




Profit before income tax

5,413 

5,077 

11,573 

Adjustments for




- Depreciation charge

600 

613 

1,182 

- Amortisation of intangibles

660 

512 

1,082 

- Profit on disposal of property, plant and  equipment

(28)

(37)

(63)

- Finance income - net

(317)

(352)

(903)

- Retirement benefit contributions in excess of current and past service charge

(170)

(329)

(863)

- Share of loss from joint venture

19 

80 

Changes in working capital




- Inventories

(287)

998 

(798)

- Trade and other receivables

1,068 

1,140 

(1,189)

- Trade and other payables

(1,779)

(988)

1,745

Discontinued operations

-

Cash generated from operations

5,162 

6,653 

11,846 





Tax paid

(784)

(1,433)

(2,737)





Cash flow from investing activities




Purchase of property, plant and equipment

(822)

(1,362)

(2,281)

Proceeds of sale of property, plant and equipment

46 

50 

93 

Purchase of intangibles - development costs and software

(540)

(707)

(1,771)

Purchase of subsidiary net of cash acquired

(383)

(383)

Purchase of investment property

(3)

(21)

Purchase of available for sale financial assets

(201)

(125)

(416)

Property rental and similar income

133 

107 

188 

Dividend income

63 

71 

130 

Net purchase of deposits

(117)

(96)

(3,040)

Interest received

153 

197 

571 

Repayment of loans and receivables

450 

100 

                      100 





Net cash outflow from investing activities

(835)

(2,151)

(6,830)





Cash flow from financing activities




Dividends paid to company shareholders

(2,340)

(1,712)

(2,884)

Purchase of own shares

-

-

(275)

Net cash outflow from financing activities

(2,340)

(1,712)

(3,159)





Net increase/(decrease) in cash and cash equivalents

1,203

1,357 

(880)





Cash and cash equivalents at the beginning of the period

13,240 

14,120 

14,120 

Increase/(decrease) in cash and cash equivalents

1,203 

1,357 

(880) 

Cash and cash equivalents at the end of the period

14,443 

15,477 

13,240 

 

 

 

 

 

       Notes to the Interim Financial Statements

 

1.   Basis of Preparation

 

       The consolidated interim financial statements for the six months to 31 December 2013 have been prepared in accordance with the recognition and measurement principles of applicable International Financial Reporting Standards (IFRS) in issue as adopted by the European Union (EU) and International Financial Reporting Standards as issued by the International Accounting Standards Board and the AIM Rules for Companies. 

 

       The figures for the period to 31 December 2013 and the comparative period to 31 December 2012 have not been audited or reviewed and are therefore disclosed as unaudited.  The figures for 30 June 2013 have been extracted from the financial statements for the year to 30 June 2013, which have been delivered to the Registrar of Companies.  The interim financial statements do not constitute statutory accounts within the meaning of the Companies Act 2006. 

 

       The financial statements are presented in Pounds Sterling, rounded to the nearest thousand.

 

       The interim financial statements are prepared under the historical cost convention, modified by the revaluation of certain current and non-current investments at fair value through profit or loss.

 

       The accounting policies set out in the financial statements for the year ended 30 June 2013 have been applied consistently throughout the group during the period.

 

 

2.   Segmental analysis

 

       The segmental analysis is presented on the same basis as that used for internal reporting purposes.  For internal reporting F W Thorpe is organised into seven operating segments based on the products and customer base in the lighting market.  The largest business is Thorlux which manufactures professional lighting systems for the industrial, commercial and controls market.  The six remaining operating segments have been aggregated into the 'other companies' segment based on their size and comprise Compact Lighting, Philip Payne, Sugg Lighting, Solite Europe, Portland Lighting and TRT Lighting.

 

       F W Thorpe's chief operating decision-maker (CODM) is the group board.  The group board reviews the group's internal reporting in order to monitor and assess the performance of the operating segments for the purpose of making decisions about resources to be allocated.  Performance is evaluated based on a combination of revenue and operating profit.  Assets and liabilities have not been segmented which is consistent with the group's internal reporting.

 

 

  

 

 

 

 

 

 

 

 

 

 

       2.     Segmental analysis (continued)

 


Thorlux

Other

Inter-

Total



Companies

Segment

Continuing




Adjust-

Operations




ments



£'000 

£'000 

£'000 

£'000 

6 months to 31 December 2013





Revenue to external customers

24,637

5,773 

- 

30,410 

Revenue to other group companies

296

451 

(747)






Total revenue

24,933

6,224 

(747)

30,410 






Operating Profit

4,846

153 

97 

5,096 






Net finance income




317 

Share of loss in joint venture









Profit before tax expense




5,413 






6 months to 31 December 2012





Revenue to external customers

22,259

4,817 

- 

27,076 

Revenue to other group companies

46

275 

(321)






Total revenue

22,305

5,092 

(321)

27,076 






Operating Profit

4,526

121 

97 

4,744 






Net finance income




352 

Share of loss in joint venture




(19)











Profit before tax expense



 

5,077 






Year to 30 June 2013





Revenue to external customers

45,197

10,135 

55,332 

Revenue to other group companies

101

562 

(663)






Total revenue

45,298

10,697 

(663)

55,332 






Operating Profit

10,239

317 

194 

10,750 






Net finance income




903 

Share of loss in joint venture




(80)











Profit before tax expense




11,573 






 

       Inter-segment adjustments to operating profit consist of property rentals on premises owned by FW Thorpe Plc, adjustments to profit related to stocks held within the group that were supplied by another segment and adjustments to investment provisions relating to group companies.

 

 

 

 

 

 

 

3.  Earnings per share

 

       The earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 116,975,590 (Interim 2013: 117,235,590) during the period.  The company does not have any dilutive potential ordinary shares; hence there is no difference between basic and diluted earnings per share.

 

       All share calculations have been rebased and restated following the sub-division of shares (10 for 1) which became effective on 19 August 2013.

 

4.  Dividend

 

       The interim dividend is at the rate of 1.05p per share (Interim 2013: 1.00p), and based on 116,975,590 shares in issue at the announcement date the dividend will amount to £1,228,000 (Interim 2013: £1,172,000).  The interim dividend will be paid on Tuesday 6 May 2014 to shareholders on the register at the close of business on 11 April 2014 and the shares become ex-dividend on 9 April 2014.

 

       A final dividend for the year ended 30 June 2013 of 2.00p (2012: final of 1.46p) per share, amounting to £2,340,000 (2012: £1,712,000) was paid on 21 November 2013.

 

5.  Availability of interim statement

 

       Copies of this report are being sent to shareholders and will also be available from the company's registered office or on the company's website (www.fwthorpe.co.uk) from 4 April 2014.


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