TIDMDWHT
RNS Number : 9811H
Dewhurst PLC
09 December 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Dewhurst PLC
("Dewhurst" or the "Group")
Preliminary Results for the year ended 30 September 2020
Chairman's Statement
Results
I am pleased that the Group has been able to navigate the
difficult market conditions of this year reporting sales only
slightly lower than last year. Group sales for the year to 30
September 2020 decreased 1.5% to GBP55.6 million (2019: GBP56.4
million). Despite the small decline in sales, the Group has
achieved profits ahead of revised management expectations. Adjusted
operating profit before amortisation of acquired intangibles and
exceptional pension costs increased to GBP8.6 million (2019: GBP7.7
million) and profit before tax was GBP6.7 million (2019: GBP5.2
million).
Although sales were broadly flat overall, there were falls and
rises across the Group's divisions. The Lift division was down
approximately 4% with the drop primarily in the UK and Canada.
Keypad sales also dropped significantly, partly due to the Covid-19
pandemic and the reduced use of cash machines and partly from the
expected drop due to the run down in stock of an outgoing product.
Transport and Highways on the other hand achieved significant
growth in the UK, with record sales and profits, boosted by sales
of cycle lane products. Currency movements were responsible for a
GBP0.8 million fall in reported sales, with the pound strengthening
against the Australian and Canadian dollars.
The board recognises the importance of dividend payments to
shareholders, but given the abnormal situation this year is
proposing to maintain the same level of final dividend as last
year.
Operations and People
This year's profit figures include some support from Governments
in the various countries in which the Group has operations. During
the third quarter of our financial year we experienced sharp
contractions in sales in a number of our businesses due to the
pandemic and had to furlough staff in several locations. However,
we found that we made up much of the lost ground from these
reductions more quickly than expected in most businesses. It has,
of course, been an extremely turbulent year and a real challenge
for our people. So I would particularly like to thank all our staff
this year for their dedication and determination in continuing to
do their best to serve our customers. Clearly we have put in
protocols and working practices to try to keep our employees safe
during this period and we will continue to operate in this manner
until it is safe to return to more normal arrangements.
Lift Material Australia (LMA) has been a member of the Dewhurst
Group for 15 years and for all that period has been led by Tony
Pegg. Tony has retired this November. I would like to pay tribute
to his achievements in growing the sales and the breadth of the
company during his long tenure and to thank him for his loyalty and
support over the years. We welcome Halen Brown who is taking over
as LMA general manager and wish him every success in the role.
Halen joins us from a management role in Otis' Melbourne
branch.
Closer to home, we are delighted to welcome Peter Dewhurst to
the business. Peter has taken on responsibility for commercial
operations at Dewhurst UK.
Investment
The major investment of the year is the building of a new
factory for Dupar Controls in Canada. Work started on the building
in January and is well on the way to completion. However, the build
and fit out has inevitably been affected by the pandemic and so is
a little behind schedule. We are still hoping to be able to occupy
the new premises in early 2021. In the meantime, we have secured an
offer to purchase Dupar's current factory, subject to contract.
Outlook
In terms of demand for lift products, we have escaped relatively
lightly from the pandemic this year, but our business tends to lag
behind movements in the economy generally by 1-2 years. Many of the
projects for which we have been providing components this year were
initiated before there was any hint of a pandemic. Market feedback
suggests there is a definite lull in the commissioning of new
projects, so we do have some concerns that demand may soften during
2021. However, at present demand is steady in most of our lift
markets. Some of the current UK demand may be companies stocking up
ahead of Brexit at the end of the year, but we should get a clearer
picture of that impact during the first quarter of 2021.
Keypads were much more seriously affected this year and the weak
demand continues into the new year. We are not expecting to see an
improvement in this division until economies begin to recover.
Highways and transport products may provide an opportunity for
growth. The UK Government is committing more funds to providing
safe cycle lanes, but at this stage it is not clear when these
projects will be open for bidding, so timing for our sales
opportunity is difficult to predict.
Richard Dewhurst
Chairman
Strategic Report
Business Review
The Group's principal activity in the year continued to be the
manufacture of electrical components and control equipment for
industrial and commercial capital goods. The Group maintained its
position as a speciality supplier of equipment to lift, transport
and keypad sectors. A business review of the Group's operations is
dealt with below in operating highlights and in the Chairman's
Statement.
Key performance indicators
The directors believe that the key financial performance
indicators relevant to the Group are earnings per share, adjusted
operating profit, profit before tax and return on equity. The key
non-financial performance indicators relevant to the Group are
quality measures and on-time deliveries to our customers.
Operating Highlights
The hundredth and first year in the Company's history has been
exceptional! The first half was business as usual. The second half
was anything but, with the Covid-19 pandemic impacting business
significantly. As a Group, we were extremely fortunate compared to
many other businesses. Only one of our subsidiaries, (Dewhurst UK)
closed for just three weeks. All other businesses remained open
throughout.
Since March we have worked hard to create a safe environment for
all our stakeholders at our various locations around the world.
That all our companies have effectively remained open throughout
the pandemic is a great credit to our management team and staff. I
join with our Chairman in thanking all our employees for their
contributions in this very challenging year. The nature of many of
our businesses is that staff are not able to work effectively from
home, so in particular we thank our colleagues in the UK and
overseas who continued to travel in to work when their respective
countries were in lockdown.
The underlying reduction in demand for office space and for
hotel accommodation is a concern. It has not affected the
construction industry this year but it will likely have an impact
in the future. That in turn will have a negative effect on demand
for some of our products.
UNITED KINGDOM
Dewhurst UK Limited
This financial year has proved to be difficult for Dewhurst UK,
with significantly reduced demand from our Middle East markets
coupled with the impact of the pandemic. The business closed in
late March for three weeks and demand in the following quarter was
well below expectations. In July we took the decision to
restructure the business, which involved a number of
redundancies.
The increased concern about viruses around the world has created
a need for us to seek solutions to improve safety for lift users.
At Dewhurst UK we quickly developed a touchless solution for
calling a lift at a landing and we are in the process of launching
two new products that provide a solution to touchless floor
designation in the lift car.
We received our first significant order for our Train Despatch
Equipment Unit (TDEU) which is for Birmingham New Street station.
We will be fulfilling this order over the next two years. We also
received Network Rail approval for the two critical components of
the TDEU, which will lead to further business in the future.
We are continuing to invest in plant and machinery with the
commissioning of a new semi-automatic studding machine for our
pressel plates. In the coming year there will be significant focus
on reducing waste as we work to minimise our carbon footprint.
Traffic Management Products (TMP)
TMP continued to build on the sales success they had generated
in the second half of last year. Throughout the first half of the
year, we were successful in winning a number of significant orders
for our Traffic Bollards both at home and overseas. The hard work
of the team of TMP to create effective contacts within Local
Authority traffic departments had paid off.
This work perhaps gained even more importance in the second half
of the year. In May, the Government announced that it would create
an emergency GBP250 million fund to create protected cycleways
throughout Britain. TMP have a wide range of traffic separator
products which are ideally positioned to meet the needs of the
Government's desire to make it easier and safer for cyclists to get
around. Helped by this government initiative demand for TMP's cycle
products grew significantly in the second half of the year. This
combined with a very solid first half performance led to record
sales and profits at TMP.
A&A Electrical Distributors (A&A)
A&A completed its second full year within the Group and the
integration of the business is essentially complete.
Sales and profits were down on last year but as with Dewhurst
UK, the business was significantly impacted by the pandemic. Sales
in April and May were around half of normal levels. In June sales
started to recover. The business continued to operate throughout
the whole of the UK lockdown period, providing a vital role for the
industry in the supply of spares items for breakdowns and
repairs.
A&A rose to the challenge to develop products which helped
make the lift environment a safer place. A new range of 'Site
Essentials' was launched which included products such as
anti-bacterial wipes, safe space floor stickers, surface sanitisers
and face masks.
We continue to work to develop our e-Commerce solution and this
project has moved on well. We are looking to launch our new site in
the first quarter of 2021.
EUROPE
Dewhurst Hungary
We have experienced a challenging business environment
throughout the year at Dewhurst Hungary, with significant
variations in production volumes.
Demand for both ATMs and ATM spares was lower primarily due to
the pandemic and this in turn meant that our sales and profits were
down on the previous year.
NORTH AMERICA
Dupar Controls
The year started positively at Dupar with an improvement in the
modernisation market, however as in the UK, Canada was impacted
quite badly by the pandemic. Revenues were hit hard in April, May
and June, which led to full year sales being down on last year.
Good control of overheads however meant that we managed to achieve
profits broadly in line with last year.
Early in 2020 we broke ground on our new facility at Boxwood
Business Park in Cambridge, Ontario, just five miles from our
existing plant. At 57,000 square feet, it is over twice the size of
our current facility. We envisage that it will satisfy our
manufacturing needs in Canada for the foreseeable future.
The building is now close to completion and we anticipate
handover in early 2021, with manufacturing at the new site due to
commence in March. It has been frustrating not to be able to visit
the site during the construction process due to current travel
restrictions. It has meant that additional responsibility for this
project has been borne by George Foleanu. He has done an excellent
job in managing the build and we look forward to visiting the new
plant when restrictions are lifted.
Elevator Research & Manufacturing (ERM)
It has been a turbulent year in the USA and perhaps even more so
in Los Angeles. However, throughout the year the team at ERM have
worked diligently and efficiently, continuing to focus on improving
service levels to their customers. This has led to another year of
sales and profit growth.
AUSTRALIA & ASIA
Australian Lift Components (ALC)
After the excellent growth we achieved last year, sales this
year were broadly flat. In the circumstances that was a very
creditable achievement. Business was well spread across the Eastern
States and with the borders between States shut for much of the
year, we benefitted from our local sales presence.
Towards the end of the year the reliability of our current laser
cutting machine was becoming a concern. We therefore took the
decision to invest in a new Amada Fibre Laser machine, very similar
to the machines that we have at Dupar Controls and Dewhurst UK. The
ALC machine will also benefit from an automated loader/unloader,
which will allow us to operate the machine unmanned after hours.
This will boost our capacity and improve productivity.
P&R Lift Cars (P&R)
P&R have experienced another very busy year, with continued
high demand for their bespoke lift interiors. They have built
specialist lift interiors for a number of high end developments
this year, such as Paramatta Square and the new Crown Casino in
Sydney.
ALC and P&R continue to benefit from joint sales with
virtually all P&R's interiors using lift fixtures supplied by
ALC.
Lift Material
We were unable to recruit a suitable candidate as General
Manager at Lift Material before the pandemic struck, so Tony Pegg
kindly delayed his retirement. He has run the business throughout
the course of this year.
The escalator handrail installation business has been curtailed
by the pandemic and the subsequent closure of State borders. This
has meant that we could only operate this element of the business
in New South Wales. Sales and Profits at Lift Material were reduced
primarily due to these restrictions.
We continue to promote a range of A&A products through Lift
Material and although take up started relatively slowly, we are
beginning to see increased traction for these products.
Lift Material moved into their new premises at the start of the
year. We now have a 20,000 square feet warehouse, which is
sufficient for our needs for the foreseeable future. The warehouse
is located in Matraville which is within easy reach of all the
major lift companies in Sydney.
In the late summer we restarted our search for Tony Pegg's
replacement. We are pleased to welcome Halen Brown as our new
General Manager. He has a wealth of experience in the lift industry
and we wish him every success in his new role.
Dual Engraving
Sales and profits grew at Dual Engraving as the market in
Western Australia continued to be reasonably buoyant.
Dual Engraving have an involvement in many high profile local
projects. One such project is Metronet. This is the West Australian
Government's ongoing plan to invest in public transport in Perth.
The project involves the construction of 18 new stations over the
next few years. Dual Engraving have been working closely with the
lift contractor to supply interiors, fixtures and other components
for the bespoke lift cars required for the stations.
Dewhurst Hong Kong
Good progress has been made at Dewhurst Hong Kong over the last
year. Although sales have fallen slightly, which is not surprising
in the current economic environment, profits have remained more or
less on a par with last year.
We continue to strengthen our relations with our customers in
Hong Kong and South East Asia and are looking to introduce a number
of new products to the market over the next twelve months.
David Dewhurst
Group Managing Director
Financial Review
Trading results
It is pleasing to report strong trading results despite an
extremely difficult year due to the Covid-19 pandemic impacting
operations from the start of 2020 onwards. With local shutdowns and
travel restrictions the Group and its staff, to their testament,
adjusted very quickly to the new 'Covid safe' working arrangements
to continue to manufacture products and deliver to customers in
what can only be described as challenging times. Keypad sales saw
the biggest impact being 36% down on last year whereas we saw a
relatively modest 4% reduction in Lift sales. However, with the UK
Government looking to 'build back greener' TMP saw a 143% increase
in Transport sales in the latter part of the year through cycle
lane delineators.
Jobs and salaries were maintained as much as possible during
shutdowns with some staff furloughed but supported by the Company
and various Governments' schemes around the world. The total
support from all Governments was GBP1.5 million of which GBP0.5
million was received in the UK.
Overall revenue decreased by 1.5% to GBP55.6 million (2019:
GBP56.4 million) but adjusted operating profit increased by 12.1%
to GBP8.6 million (2019: GBP7.7 million).
Although a significant proportion of the Group's revenue and
profits are generated and held in foreign currency, foreign
exchange retranslation had a negligible impact on the reporting
performance of the Group this year with like-for-like revenue and
profit before tax decreasing by 2% each.
Solid cash position
At the start of the pandemic any Group cash 'on notice' was
drawn back into instant access accounts to be available to support
our trading subsidiaries. Equally, the funding of the Dupar
building construction was switched from an intended Group loan to a
local line of credit with our Canadian Bank in Toronto to maximise
available Group cash if support were needed. Despite our initial
concerns, it is pleasing to look back now, and report Group support
was not needed as our customers and their orders returned shortly
after lockdowns were lifted for construction and manufacturing. We
started the year with no borrowing or bank overdraft facility and
finished the year with only a small bank borrowing of GBP69k in
Canada.
During the year, the Group spent GBP3.4 million (C$5.8 million)
on the Dupar building construction, GBP1.6 million on a share
repurchase as well as GBP0.6 million as result of the first
12-month deferred consideration payment to the former owners of
A&A Electrical Distributors Ltd (A&A). A second and final
12-month deferred consideration to the former owners of A&A is
still to be made in 2021. The Group ended the year with cash of
GBP18.1 million, up GBP1.1 million from GBP17.0 million in
2019.
Pension scheme deficit
The Company paid in a total of GBP1.4 million contributions into
the pension scheme during the year and despite significant
volatility in the equity markets the pension scheme assets
outperformed expectations by GBP0.7 million. Nevertheless, the
scheme deficit still increased by GBP0.7 million to GBP11.3 million
in 2020 (2019: GBP10.6 million) as a result of the liability
discount rate dropping and mortality assumptions improving which
both negatively impacted the scheme deficit.
All recommendations made by the scheme's actuary to eliminate
the scheme deficit within an agreed timeframe have been fully
implemented.
Capital management and treasury policy
The Group defines capital as total equity plus net debt. The
objective is to maintain a strong and efficient capital base to
support the Group's strategic objectives, provide optimal returns
for shareholders and safeguard the Group's assets and status as a
going concern. The Group is not subject to externally imposed
capital requirements and the Group's philosophy is to have minimal
or no borrowing where possible.
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.
The Group continues to hedge foreign currencies internally where
possible and does not use derivatives in the form of foreign
exchange contracts to manage its currency risk.
Dividends
Dividends are accounted for when paid or approved by
shareholders, and not when proposed, therefore the proposed final
dividend for 2020 has not been accrued at the end of the reporting
period. The total dividend for 2020 of 13.0p per share is the same
as 2019 and is covered 4.4 times by earnings.
Following a share repurchase, there was a reduction in the
number of allotted shares during the year.
Jared Sinclair
Finance Director
Consolidated statement of comprehensive income
For the year ended 30 September 2020
-----------------------------------------------------------------------------
2020 2019
GBP(000) GBP(000)
--------- ---------
Continuing operations
Revenue 55,617 56,446
Operating costs (48,654) (51,052)
---------------------------------------------------- --------- ---------
Adjusted operating profit* 8,630 7,700
Pension charge - GMP equalisation - (639)
Amortisation of acquired intangibles (1,667) (1,667)
Operating profit 6,963 5,394
Finance income 58 34
Finance costs (281) (184)
----------------------------------------------------- --------- ---------
Profit before taxation 6,740 5,244
Taxation (2,061) (2,149)
---------------------------------------------------- --------- ---------
Profit from continuing operations 4,679 3,095
Discontinued operations
Profit and gain from discontinued operations
(net of tax)(^) - 7,079
Profit for the period 4,679 10,174
Other comprehensive income:
Actuarial gains/(losses) on the defined benefit
pension scheme (1,886) (4,559)
Deferred tax effect 358 775
Tax on items taken directly to equity 226 314
------------------------------------------------------ -------- --------
Total that will not be subsequently reclassified
to income statement (1,302) (3,470)
Exchange differences on translation of foreign
operations (215) 308
Total that may be subsequently reclassified
to income statement (215) 308
------------------------------------------------------ -------- --------
Other comprehensive income/(expense) for the
year, net of tax (1,517) (3,162)
------------------------------------------------------ -------- --------
Total comprehensive income for the year 3,162 7,012
------------------------------------------------------ -------- --------
Profit for the year attributable to:
Equity Shareholders of the Company 4,312 9,780
Non-controlling interests 367 394
------------------------------------------------------ -------- --------
4,679 10,174
------------------------------------------------------ -------- --------
Total comprehensive income for the year attributable
to:
Equity Shareholders of the Company 2,783 6,620
Non-controlling interests 379 392
------------------------------------------------------ -------- --------
3,162 7,012
------------------------------------------------------ -------- --------
Basic and diluted earnings per share 51.78p 116.23p
Basic and diluted earnings per share
- continuing operations 51.78p 32.09p
--------------------------------------- ------- --------
* Operating profit before amortisation of acquired intangibles
and pension GMP equalisation (see Financial review)
^ Thames Valley Controls Ltd was disposed of on 30/09/19 and the
comparative profit and gain was fully reported in the 2019 annual
report and accounts.
Consolidated statement of financial position
At 30 September 2020
--------------------------------------------------------
2020 2019
GBP(000) GBP(000)
------------------------------- --------- ---------
Non-current assets
Goodwill 9,743 9,719
Other intangibles 1,139 2,831
Property, plant and equipment 16,947 13,225
Right-of-use assets 3,273 -
Deferred tax asset 2,621 2,198
33,723 27,973
Current assets
Inventories 6,208 6,010
Trade and other receivables 9,553 10,993
Cash and cash equivalents 18,139 16,980
---------------------------------- --------- ---------
33,900 33,983
------------------------------- --------- ---------
Total assets 67,623 61,956
---------------------------------- --------- ---------
Current liabilities
Trade and other payables 9,433 8,180
Borrowings 69 -
Current tax liabilities 268 249
Short-term provisions 343 277
Lease liabilities 443 -
------------------------------- --------- ---------
10,556 8,706
Non-current liabilities
Retirement benefit obligation 11,268 10,570
Lease liabilities 2,973 -
------------------------------- --------- ---------
Total liabilities 24,797 19,276
Net assets 42,826 42,680
---------------------------------- --------- ---------
Equity
Share capital 808 841
Share premium account 157 157
Capital redemption reserve 329 296
Translation reserve 2,047 2,274
Retained earnings 38,042 37,847
---------------------------------- --------- ---------
Total attributable to
equity Shareholders of
the Company 41,383 41,415
---------------------------------- --------- ---------
Non-controlling interests 1,443 1,265
---------------------------------- --------- ---------
Total equity 42,826 42,680
---------------------------------- --------- ---------
The financial statements were approved by the Board of Directors
and authorised for issue on 7 December 2020 and were signed on its
behalf by:
Richard Dewhurst Chairman
Jared Sinclair Finance Director
Company Registration Number: 160314
Consolidated statement of changes in equity
For the year ended 30 September 2020
Share Share Capital Translation Retained Non Total
capital premium redemption reserve earnings controlling equity
account reserve interest
GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000) GBP(000)
------------------- --------- --------- ----------- ------------ ---------- ------------ ----------
At 30 September
2018 842 157 295 1,964 32,693 1,057 37,008
Share repurchase (1) - 1 - (82) - (82)
Exchange
differences
on
translation of
foreign
operations - - - 310 - (2) 308
Actuarial
gains/(losses)
on defined
benefit pension
scheme - - - - (4,559) - (4,559)
Deferred tax
effect - - - - 775 - 775
Tax on items taken
directly
to equity - - - - 314 - 314
Dividends paid - - - - (1,074) (184) (1,258)
Profit for the
year - - - - 9,780 394 10,174
At 30 September
2019 841 157 296 2,274 37,847 1,265 42,680
Impact from IFRS
16 'leases' - - - - (85) (11) (96)
------------------- --------- --------- ----------- ------------ ---------- ------------ ----------
At 30 September
2019
(restated) 841 157 296 2,274 37,762 1,254 42,584
Share repurchase (33) - 33 - (1,637) - (1,637)
Exchange
differences
on
translation of
foreign
operations - - - (227) - 12 (215)
Actuarial
gains/(losses)
on defined
benefit pension
scheme - - - - (1,886) - (1,886)
Deferred tax
effect - - - - 358 - 358
Tax on items taken
directly
to equity - - - - 226 - 226
Dividends paid - - - - (1,093) (190) (1,283)
Profit for the
year - - - - 4,312 367 4,679
At 30 September
2020 808 157 329 2,047 38,042 1,443 42,826
------------------- --------- --------- ----------- ------------ ---------- ------------ ----------
Consolidated cash flow statement
For the year ended 30 September 2020
-----------------------------------------------------------------------
2020 2019
GBP(000) GBP(000)
-------------------------------------------- ---------- ----------
Cash flows from operating activities
Operating profit - continuing operations 6,963 5,394
Operating profit - discontinued operations - 1,077
----------------------------------------------- ---------- ----------
Operating profit 6,963 6,471
Depreciation and amortisation 2,663 2,857
Right-of-use asset depreciation 351 -
Contributions to pension scheme, net
of administration fee & GMP equalisation
costs (1,366) (1,800)
Exchange adjustments (33) 111
(Profit)/loss on disposal of property,
plant and equipment 64 (13)
----------------------------------------------- ---------- ----------
8,642 7,626
(Increase)/decrease in inventories (198) (838)
(Increase)/decrease in trade and other
receivables 1,385 888
Increase/(decrease) in trade and other
payables 1,243 617
Increase/(decrease) in provisions 66 46
----------------------------------------------- ---------- ----------
Cash generated from operations 11,138 8,339
Interest paid (2) (1)
Tax paid - continuing operations (1,871) (1,921)
Tax paid - discontinued operations - 10
----------------------------------------------- ---------- ----------
Tax paid (1,873) (1,912)
----------------------------------------------- ---------- ----------
Net cash from operating activities 9,265 6,427
----------------------------------------------- ---------- ----------
Cash flows from investing activities
Acquisition of subsidiary undertaking (624) -
Proceeds on disposal of a subsidiary
(net of cash disposed) 55 7,514
Proceeds from sale of property, plant
and equipment 35 57
Purchase of property, plant and equipment (4,257) (5,233)
Development costs capitalised (12) (41)
Interest received 58 34
----------------------------------------------- ---------- ----------
Net cash generated from/(used in)
investing activities (4,745) 2,331
----------------------------------------------- ---------- ----------
Cash flows from financing activities
Dividends paid (1,283) (1,258)
Purchase of own shares (1,637) (82)
Repayment of lease liabilities including (381) -
interest
Proceeds from bank borrowings 69 -
Net cash used in financing activities (3,232) (1,340)
----------------------------------------------- ---------- ----------
Net increase/(decrease) in cash and
cash equivalents 1,288 7,418
----------------------------------------------- ---------- ----------
Cash and cash equivalents at beginning
of year 16,980 9,440
Exchange adjustments on cash and cash
equivalents (129) 122
----------------------------------------------- ---------- ----------
Cash and cash equivalents at end of
year 18,139 16,980
----------------------------------------------- ---------- ----------
Notes
1. AGM, results and dividends
The profit for the year, after taxation, amounted to GBP4.7
million (2019: GBP10.2 million).
A final dividend on the Ordinary and 'A' non-voting ordinary
shares of 9.25p per share (2019: 9.25p) for the financial year
ended 30 September 2020 will be proposed at the Annual General
Meeting (AGM) to be held on 16 February 2021. If approved, this
dividend will be paid on 24 February 2021 to members on the
register at 22 January 2021. The ex-dividend date will be 21
January 2021.
An interim dividend of 3.75p per share (2019: 3.0) was paid on
18 August 2020.
2. Earnings per share and dividend per share
2020 2019
Weighted average number of shares No. No.
------------------------------------------ ---------- ----------
For basic and diluted earnings per share 8,328,365 8,413,983
------------------------------------------ ---------- ----------
The calculation of basic and diluted earnings per share is based
on the profit for the financial year of GBP4,312,233 and on
8,328,365 Ordinary 10p and 'A' non-voting ordinary 10p shares,
being the weighted average number of shares in issue throughout the
financial year. There are no share options issued.
2020 2019
Paid dividends per 10p Ordinary share GBP(000) GBP(000)
--------------------------------------------- --------- ---------
2019 final paid of 9.25p (2018: 9.00p) (778) (758)
2020 interim paid of 3.75p (2019: 3.75p) (315) (316)
Dividends paid - The Company (1,093) (1,074)
Dividends paid to non-controlling interests
- Dual Engraving Pty Ltd
& P&R Liftcars Pty Ltd (190) (184)
--------------------------------------------- --------- ---------
Dividends paid - The Group (1,283) (1,258)
The final proposed dividend is based on 3,309,200 Ordinary 10p
shares and 4,772,198 ' A' non-voting ordinary 10p shares, being the
latest number of shares in issue. The Directors are proposing a
final dividend of 9.25p (2019: 9.25p) per share, totalling GBP748k
(2019: GBP778k). This dividend has not been accrued at the end of
the reporting period.
3. Accounting policies
The accounting policies applied to the 2020 accounts have been
consistent with 2019 in all manners apart from IFRS 16 'Leases' as
stated below. With effect from 1 October 2019 the Group has adopted
the new accounting standard IFRS 16 'Leases' and applied the
modified retrospective approach. IFRS 16 provides a single
on-balance sheet accounting model for lessees which recognises a
right-of-use asset, representing its right to use the underlying
asset, and a lease liability, representing its obligations to make
payment in respect of the use of the underlying asset. The
distinction between finance and operating leases for lessees is
removed. Comparatives for the prior year have not been restated and
the reclassifications and adjustments arising from the new leasing
standard are therefore recognised in the opening balance sheet on 1
October 2019 as follows:
1 Oct 2019
GBP(000)
---------------------------------------------------------- -----------
Non-current assets
Right-of-use assets 2,764
---------------------------------------------------------- -----------
Total assets 2,764
---------------------------------------------------------- -----------
Current liabilities
Lease liabilities (274)
Non-current liabilities
Lease liabilities (2,586)
---------------------------------------------------------- -----------
Total liabilities (2,860)
---------------------------------------------------------- -----------
Total movement in retained earnings as at 1 October 2019 (96)
---------------------------------------------------------- -----------
On adoption of IFRS 16, the Group recognised liabilities for
leases which had been classified as operating leases under previous
accounting standards. The lease liability has been measured at the
present value of the remaining lease payments, discounted using the
incremental borrowing rate as at 1 October 2019. The weighted
average lessee's incremental borrowing rate applied to the lease
liabilities on 1 October 2019 was between 3.5%-4.3%.
Practical expedients applied
In applying IFRS 16 for the first time, the Group has used the
following practical expedients permitted by the standard:
- Relied on previous assessments of whether leases are
onerous.
- Excluded initial direct costs for the measurement of
right-of-use assets at the date of the initial application.
- Applied the transition relief to long-term leases ending
within 12 months of the date of initial application of the
standard.
- Applied the transition relief exempting short-term leases and
low value leases.
- Used hindsight in determining the lease term where the
contract contains options to extend or terminate the lease.
1 Oct 2019
GBP(000)
---------------------------------------------------------- -----------
Operating lease commitments as disclosed at 30 September
2019 1,747
Reconciling items
- Low-value leases recognised on a straight-line basis
as expense (40)
- Long-term leases ending within 12 months recognised on
a straight-line basis as expense (389)
- Recognition difference on lease changes and extension
assumptions 1,991
- Effect of discounting (at incremental borrowing rate
as at 1 October 2019) (449)
Lease Liability recognised as at 1 October 2019 2,860
---------------------------------------------------------- -----------
Impact on the income statement
The impact on the income statement for the twelve months ended
30 September 2020 is to increase operating profit by GBP30k but
increase finance costs by GBP101k resulting in a decrease in profit
before tax of GBP71k.
Impact on the cash flow statement
There has been a change to the classification of cash flows in
the cash flow statement with operating lease payments previously
categorised as net cash used in operations now reported within
financing activities as repayment of lease liabilities including
interest. In the twelve months to 30 September 2020 there are
GBP381k of lease repayments comprising GBP280k of capital
repayments of lease liabilities and GBP101k of interest paid.
4. Basis of preparation
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 September 2020
or 2019. Statutory accounts for 2019 have been delivered to the
Registrar of Companies. The statutory accounts for 2020 which are
prepared under IFRS as adopted by the EU will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting.
The preliminary statement of results has been reviewed by and
agreed with the Company's auditor, Jeffreys Henry LLP, who have
indicated that they will be giving an unqualified opinion in their
report on the statutory financial statements for 2020.
Dewhurst plc has prepared its consolidated and Company financial
statements in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU) from 1
October 2005. The Group and Company financial statements have been
prepared in accordance with those parts of the Companies Act 2006
that are applicable to companies adopting IFRS. The company is
registered and incorporated in the United Kingdom; and quoted on
AIM.
It is expected that the audited Report and Accounts for the year
ended 30 September 2020 will be sent to shareholders and will also
be available on the Company's website www.dewhurst.plc.uk on 15
January 2021.
- Ends -
For further details please contact:
Dewhurst Plc Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
N+1 Singer Tel: +44 (0) 207 496 3089
Will Goode / Rick Thompson
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END
FR KKFBKOBDDABK
(END) Dow Jones Newswires
December 09, 2020 02:00 ET (07:00 GMT)
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