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Thorpe(F.W.) PLC (TFW)

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Thursday 19 March, 2015

Thorpe(F.W.) PLC

Half Yearly Report

RNS Number : 8376H
Thorpe(F.W.) PLC
19 March 2015
 



F W Thorpe Plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2014

 

Key highlights (continuing operations):


Interim

2015

Interim

2014


Revenue

£32.6m 

£29.6m 

10% increase

Operating profit

£5.5m 

£5.1m 

8%  increase

Profit before tax

£5.8m 

£5.4m 

7%  increase

Basic earnings per share

3.92p

3.59p

9%  increase

 

Growth in LED product sales continues, now 58% of revenue

Sugg Lighting disposal effective 6 February 2015

TRT Lighting profitable year to date

Continued investment in manufacturing facilities

Interim dividend increased to 1.10p (Interim 2014: 1.05p) - 5% increase

 

 

 

 

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

 

The half year to 31 December 2014 produced revenues up 10% with an increase in operating profit of 8% from continuing operations resulting, after taking into account investment income and taxation, in an increase of earnings per share of 9%.

 

These figures reflect your company's success in achieving a continued upward trajectory in its activities with most subsidiaries performing well and building further on the strengthened foundations put in place in recent years in regards to sales penetration capacity and the upgrading of product ranges.

 

Forward momentum has, however, continued to prove difficult at one subsidiary, its products being "retro" in nature and at odds with the company's forward-looking philosophy.  I must, therefore, report that Sugg Lighting was sold for a nominal consideration on 6 February 2015 and is no longer part of your group.  Sugg Lighting has been purchased by a company specialising in traditional English heritage brands.

 

This sale should hold advantage for Sugg Lighting and allow your own company's directors to devote more time to future projects.

 

LED products now represent around 58% of group revenues but Thorlux Lighting, in particular, still suffers from the parallel demand for substantial quantities of "old technology" products.  Measured and careful steps are being taken to withdraw these older products where possible without disruption to customer sentiment or causing stock obsolescence.

 

Investment has continued on funding growth rather than start-up costs at street and road tunnel lighting company TRT Lighting, the completion of the now occupied new factory for Solite Europe, costing £1.4m, and the installation of the second new LED circuit board line at Thorlux.  This latter investment increases board assembly capacity by 100%, notwithstanding the ability to make larger more cost effective units.

 

On a more sombre note it is with regret that I must, at this time, report the death of ex-Chairman, Mr Ernest Thorpe, aged 97.  "EGT" as he was known was a co-founder of F W Thorpe Plc and devoted in excess of 55 years' service broken only by such necessary requirements as his participation in the Second World War.  We hope his light shines on elsewhere.

 

Group performance outlined at the beginning of this report allows your company to pay a dividend for the half year to 31 December 2014 of 1.10p per share (Interim 2014: 1.05p), an increase of 5%.

 

 

 

 

Andrew Thorpe

Chairman

 

19 March 2015

F W Thorpe Plc



CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2014

 


Six months to 

Six months to

Twelve months to

Continuing Operations

31.12.14

31.12.13 

30.06.14 






(unaudited)

(restated unaudited)

(restated unaudited)






£'000 

£'000 

£'000 





Revenue

32,629 

29,584 

61,352 





Operating Profit

5,510 

5,096 

11,752 





Finance income

315 

322 

763 

Share of (loss)/profit of joint venture

(4) 

37









Profit before tax expense

5,821

5,418

12,552





Tax expense

(1,283)

(1,216)

(2,233)





Profit for the period from continuing operations

4,538 

4,202 

10,319 

Loss for the period from discontinued operations

(104)

(4)

(130)

Loss on disposal of subsidiary

(120)

-

-





Profit for the period

4,314

4,198

10,189





 

 

 

 

Dividend rate per share:




     Interim

1.10p

1.05p

1.05p

     Final

2.20p

     Special

1.50p

 

 

 

 

Earnings per share

- basic

3.92p

3.59p

8.72p

(continuing operations)

- diluted

3.90p

3.59p

8.72p

 

 

Earnings per share

- basic

3.73p

3.59p

8.72p


- diluted

3.71p

3.59p

8.72p

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2014

 


Six months to 

Six months to

Twelve months to


31.12.14

31.12.13 

30.06.14 






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 









Profit for the year

4,314 

4,198 

10,189 





Other comprehensive income








Items that may be reclassified to profit or loss








     - Arising in period

(46) 

201 

276 





     - Reclassified in period





Exchange rate movement on investment in joint venture








     - Arising in period

(3)

(2)

(2)





     - Reclassified in period





Taxation

9

72






(40) 

199 

346 









Items that will not be reclassified to profit or loss








Actuarial gain on pension scheme

624 





Movement on unrecognised pension surplus

(1,216)






(592)





Other comprehensive income for the year, net of tax

(40) 

199 

(246)













Total comprehensive income for the year

4,274 

4,397 

9,943 





 

 

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



CONSOLIDATED BALANCE SHEET

as at 31 December 2014


As at 

As at 

As at 


31.12.14 

31.12.13 

30.06.14 






(unaudited)

(unaudited)

(audited)

Assets

£'000 

£'000 

£'000 

Non-Current Assets




Property, plant and equipment

13,190 

12,495 

13,088 

Intangible assets

6,678 

6,550 

6,722 

Investment property

2,135 

2,102 

2,135 

Loans and receivables

1,340 

1,278 

1,340 

Investment in joint venture

50 

20 

57 

Available for sale financial assets

3,124 

2,917 

3,441 

Deferred tax assets

26 

36 


26,543 

25,362 

26,819 

Current assets




Inventories

13,794 

12,307 

14,404 

Trade and other receivables

13,513 

11,037 

14,882 

Other financial assets at fair value through profit or loss

388 

388 

388 

Short term financial assets - deposits

14,605 

20,265 

15,638 

Cash and cash equivalents

19,341 

14,443 

17,911 

Total current assets (excluding non-current assets and disposal groups held for sale)

61,641

58,440 

63,223 





Non-current assets and disposal groups held for sale

1,772

-

-


63,413

58,440

63,223





Total Assets

89,956 

83,802 

90,042 





Liabilities




Current liabilities




Trade and other payables

(9,258)

(7,164)

(11,012)

Current tax liabilities

(1,717)

(991)

(718)

Total current liabilities (excluding liabilities associated with non-current assets and disposal groups held for sale)

(10,975)

(8,155)

(11,730)





Liabilities associated with non-current assets and disposal groups held for sale

(553)

-

-


(11,528)

(8,155)

(11,730)

Net current assets

51,885 

50,285 

51,493 





Non-current liabilities




Provisions for liabilities and charges

(222)

(102)

(102)

Deferred tax liabilities

(911)

(948)

(923)

Total liabilities

(12,661)

(9,205)

(12,755)





Net assets

77,295 

74,597 

77,287 





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

75,313 

72,615 

75,305 





Total equity

77,295 

74,597 

77,287 









                                                                 



GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2014

 


Share

Share

Capital

Retained

Total


Capital

Premium

Redemption

Earnings

Equity




Reserve










£'000 

£'000 

£'000 

£'000 

£'000 







Balance at 30 June 2013

1,189

656

137

70,558 

72,540 







Comprehensive income






Profit for six months to 31 December 2013

-

-

-

4,198 

4,198 

Other comprehensive income

-

-

-

       199

       199

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 







Comprehensive income






Profit for six months to 30 June 2014

-

-

-

5,991 

5,991 

Actuarial gain on pension scheme

-

-

-

624 

624 

Movement on unrecognised pension surplus

-

-

-

(1,216)

(1,216)

Revaluation of available-for-sale financial assets

-

-

-

75 

75 

Movement on associated deferred tax

-

-

-

(47)

(47)

Impact of deferred tax rate change

-

-

-

119 

119 

Exchange rate movement on joint venture

-

-

-

-

-

Total comprehensive income

-

-

-

5,546 

5,546 







Transactions with owners






Dividends paid to shareholders

-

-

-

(1,228)

(1,228)

Purchase of shares

-

-

-

(1,628)

(1,628)

Total transactions with owners

-

-

-

(2,856)

(2,856)







Balance at 30 June 2014

1,189

656

137

75,305

77,287







Comprehensive income






Profit for six months to 31 December 2014

-

-

-

4,314 

4,314 

Other comprehensive income

              -

-

-

(40)

(40)

Total comprehensive income

-

-

-

4,274 

4,274 







Share-based payment expense

-

-

-

14

14







Transactions with owners






Dividends paid to shareholders

-

-

-

(4,280)

(4,280)

Total transactions with owners

-

-

-

(4,280)

(4,280)







Balance at 31 December 2014

1,189

656

137

75,313

77,295







 

 

 

 

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2014

 


Six months to 

Six months to

Twelve months to


31.12.14 

31.12.13 

30.06.14 






(unaudited)

(restated unaudited)

(restated

unaudited)


£'000 

£'000 

£'000 

Cash generated from operations




Profit before income tax

5,821 

5,418 

12,552 

Adjustments for




- Depreciation charge

709 

593 

1,255 

- Amortisation of intangibles

651 

660 

1,439 

- Profit on disposal of property, plant and  equipment

(16)

(23)

(70)

- Share-based payment expense

14

-

-

- Finance income

(315)

(322)

(763)

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

(77)

(170)

(403)

- Share of(profit)/ loss from joint venture

(37) 

Changes in working capital




- Inventories

406

(328)

(2,481)

- Trade and other receivables

1,107

1,131

(2,640)

- Trade and other payables

(1,422)

(1,814)

1,881

Discontinued operations

15 

29

Cash generated from operations

6,889 

5,162 

10,762 





Tax paid

(184)

(784)

(2,009)





Cash flow from investing activities




Purchase of property, plant and equipment

(1,976)

(822)

(2,087)

Proceeds of sale of property, plant and equipment

63 

46 

153 

Purchase of intangibles - development costs and software

(623)

(540)

(1,473)

Purchase of subsidiary net of cash acquired

(390)

Purchase of investment property

(33)

Sale/(Purchase) of available for sale financial assets

271

(201)

(707)

Property rental and similar income

78 

133 

157 

Dividend income

69 

63 

169 

Net sale/(purchase) of deposits

1,033

(117)

4,510

Interest received

90 

153 

365 

Receipt of loans notes

450 

                      450 

Net cash (used in)/generated from investing activities

(995)

(835)

1,114





Cash flow from financing activities




Dividends paid to company shareholders

(4,280)

(2,340)

(3,568)

Purchase of own shares

-

-

(1,628)

Net cash used in financing activities

(4,280)

(2,340)

(5,196)





Net increase in cash and cash equivalents

1,430

1,203

4,671





Cash and cash equivalents at the beginning of the period

17,911 

13,240 

13,240 

Cash and cash equivalents at the end of the period

19,341 

14,443 

17,911 

 

 

 

 

 

 

       Notes to the Interim Financial Statements

 

1.   Basis of Preparation

 

       The consolidated interim financial statements for the six months to 31 December 2014 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 2014 and the comparative period to 31 December 2013 have not been audited or reviewed and are therefore disclosed as unaudited.  The figures for 30 June 2014 have been extracted from the financial statements for the year to 30 June 2014, 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. 

Prior period figures on the Income Statement and Cash Flow Statement have been restated to disclose the results of Sugg Lighting Limited as discontinued operations.

 

       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 2014 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 continuing operating segments, and one discontinued operation, 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 continuing operating segments have been aggregated into the 'other companies' segment based on their size and comprise Compact Lighting Limited, Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited and Thorlux LLC.

       Sugg Lighting Limited is a discontinued operation, and its results are not included in the segmental analysis.

 

       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 2014





Revenue to external customers

26,601

6,028 

- 

32,629 

Revenue to other group companies

572

831 

(1,403)






Total revenue

27,173

6,859 

(1,403)

32,629 






Operating Profit

5,105

283 

122 

5,510 






Net finance income




315 

Share of loss in joint venture




(4) 






Profit before tax expense




5,821 






 

6 months to 31 December 2013





Revenue to external customers

24,637

4,947 

- 

29,584 

Revenue to other group companies

296

451 

(747)






Total revenue

24,933

5,398 

(747)

29,584 






Operating Profit

4,846

153 

97 

5,096 






Net finance income




322 

Share of profit in joint venture














Profit before tax expense



 

5,418 






 

Year to 30 June 2014





Revenue to external customers

49,657

11,695 

61,352 

Revenue to other group companies

650

1,146 

(1,796)






Total revenue

50,307

12,841 

(1,796)

61,352 






Operating Profit

10,593

961 

198 

11,752 






Net finance income




763 

Share of profit in joint venture




37











Profit before tax expense




12,552 






 

       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.  Discontinued operations

 

       At the balance sheet date, the group had entered substantive discussions and was committed to a plan to dispose of its' subsidiary Sugg Lighting Limited. The disposal was concluded on 6 February 2015.

       The results of Sugg Lighting Limited for the current and prior periods are disclosed as discontinued operations.

A loss on disposal of subsidiary of £120,000 has been provided, representing the excess of net assets disposed over consideration receivable. The assets disposed of include the freehold of the premises occupied by Sugg Lighting Limited.

 

 

4.  Earnings per share

 

       The basic earnings per share is calculated on profit after taxation and the weighted average number of ordinary shares in issue of 115,675,590 (Interim 2014: 116,975,590) during the period. 

The diluted earnings per share is calculated on profit after taxation and the weighted average number of potentially dilutive ordinary shares in issue of 116,313,090 (Interim 2014: 116,975,590) during the period.

 

      

5.  Dividend

 

       The interim dividend is at the rate of 1.10p per share (Interim 2014: 1.05p), and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £1,272,000 (Interim 2014: £1,228,000).  The interim dividend will be paid on 2 April 2015 to shareholders on the register at the close of business on 27 March 2015, and the shares become ex-dividend on 26 March 2015.

 

       A final dividend for the year ended 30 June 2014 of 2.20p (2013: final of 2.00p) per share, amounting to £2,545,000 (2013: £2,340,000), and a special dividend of 1.50p per share (2013: nil) amounting to £1,735,000 (2013: nil) was paid on 20 November 2014.

 

 

6.  Share-based payment expense

 

       During the period, the company introduced an Executive Share Ownership Plan ('ESOP'), under which 1.7 million share options were granted on 24 October 2014 at an exercise price of 124p per share each.

Under IFRS2 an expense is recognised in the Income Statement, calculated on the fair value at the date of grant. The application of IFRS2 gave rise to a charge of £14,000 (2013: nil) for the period ended 31 December 2014, using a Black Scholes valuation model.

 

 

7.  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 7 April 2015.


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