Interim Results

Released : 16.03.2017

RNS Number : 6114Z
Thorpe(F.W.) PLC
16 March 2017
 

F W Thorpe Plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2016

 

F W Thorpe Plc, designers, manufacturers and suppliers of professional lighting systems for the specification market is pleased to announce its interim results for the six months ended 31 December 2016.

 

Key points:


Interim

2017

Interim

2016


Revenue

£51.2m 

£41.4m 

23.8% increase

Operating profit

£7.8m 

£6.5m 

19.7%  increase

Profit before tax

£7.8m 

£6.6m 

18.0%  increase

Basic earnings per share

5.38p

4.47p

20.3%  increase

·       Revenue and operating profit growth at Thorlux drives positive interim result

·       Lightronics continues to perform well, driven by one off projects

·       Interim dividend increased to 1.35p (Interim 2016: 1.20p)

 

 

 

For further information please contact:    

 

                                                                        

F W Thorpe Plc

 

Andrew Thorpe - Chairman

01527 583200

Craig Muncaster - Group Financial Director



01527 583200

 

N+1 Singer - Nominated Adviser

 


Richard Lindley

 

020 7496 3000

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

 



CHAIRMAN'S INTERIM STATEMENT

 

I am pleased to be able to report a successful first half of the 2016/17 financial year with Group revenues increased by 23.8% and operating profit increased by 19.7%.

 

Whilst normally expecting a higher level of profit attainment on raised revenues the exceptionally buoyant first half at our largest entity, Thorlux Lighting, had to be met by the imposition of high levels of overtime, shift working etc. which inevitably has led to a higher cost of production than we would have liked.  These actions were necessary to satisfy spikes in customer demand but it is unlikely that the need for such levels of activity will persist.

 

Generally, throughout the Group, the performances in both revenue and profit have improved with the exception of Compact Lighting which is still in a transitory state of merging many product ranges and sales platforms with Thorlux Lighting.

 

Offices abroad have also performed well with renewed optimism at the, now 100% owned, Australian office. Our UAE office is still finding its way, however.

 

Investments throughout the Group continue as desired where decided as prudent by your Board. Product investment, of course, continues not least with the notable recent introduction of "SmartScan" a new highly advanced wireless lighting control system, which has immediately found favour with many of our customers. Hardware investment also continues and this has most recently included the purchase, in Redditch, of a modern 1,800 square metre freehold factory unit for Group firm, TRT Lighting which, as mentioned in my last report, was being constrained through lack of space.

 

This new space will not only increase manufacturing capacity at TRT Lighting but will also house a new paint plant serving not only TRT but for use as a back-up facility in case of paint plant problems at nearby Thorlux where current capacity is stretched. In the same vein, it will house a new surface mount circuit board production line again for TRT use and as a Group back-up facility.

 

The Group carbon offsetting project in Devauden, Monmouthshire has recently partaken of an over doubling of tree stock to a total of some 150,000 plantings. This puts the company somewhat in advance of its carbon offsetting requirements.

 

Group performance for the "first half", therefore, allows your company to pay a dividend for the six months to 31st December 2016 of 1.35p (Interim 2015 1.20p) this being a 12.5% increase.

 

We remain optimistic of a satisfactory overall result for the year.

 

 

 

Andrew Thorpe

Chairman

 

16 March 2017

F W Thorpe Plc



CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2016

 






31.12.16

(six months to)

31.12.15 

(six months to)

30.06.16 

(twelve months to)






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 





Revenue

51,236  

41,370  

88,946 





Operating Profit

7,775  

6,494  

16,195 





Finance income

307  

383  

702 

Finance costs*

  (272) 

  (257) 

(627)   

Share of loss of joint venture

(-) 

(-) 

(1)





Profit before tax expense

7,810  

6,620  

16,269 





Tax expense

  (1,588) 

  (1,446) 

(3,270)





Profit for the period from continuing operations

6,222  

5,174  

12,999 





Profit for the period

6,222  

5,174  

12,999 





 

*Finance costs represents payments made in relation to the acquisition of Lightronics Participaties BV.

 

 

Dividend rate per share:




     Interim

1.35p

1.20p

1.20p

     Final

2.85p

     Special

    - 

     2.00p

2.00p

 

 

                                                                                                           

 

 

Earnings per share

- basic

5.38p

4.47p

11.24p


- diluted

5.35p

4.47p

11.21p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2016

 






31.12.16    (six months to)

31.12.15    (six months to)

30.06.16 

(twelve months to)






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 





Profit for the year

6,222 

5,174 

12,999 





Other comprehensive income








Items that may be reclassified to profit or loss




Revaluation of available-for-sale financial assets

 




     - Arising in period*

227

(207)

(74)





     - Reclassified in period





Exchange rate differences on translation of foreign operations








     - Arising in period

192 

58 

1,627 





     - Reclassified in period





Taxation

(43)

103 

60 






376 

(46)

1,613  









Items that will not be reclassified to profit or loss








Actuarial loss on pension scheme

(1,285)





Movement on unrecognised pension surplus

1,095 






(190)





Other comprehensive income for the year, net of tax

376 

(46) 

1,423













Total comprehensive income for the year

6,598 

5,128 

14,422





 

 

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

 

* The profit on items that may be reclassified to profit or loss of £227,000 is due to the increase in market value of available for sale financial assets.



CONSOLIDATED BALANCE SHEET

as at 31 December 2016


As at 

As at 

As at 


31.12.16 

31.12.15 

30.06.16 






(unaudited)

(unaudited)

(audited)

Assets

£'000 

£'000 

£'000 

Non-Current Assets




Property, plant and equipment

17,570 

14,192 

14,900 

Intangible assets

15,465 

14,160 

15,183 

Investment property

2,219 

2,140 

2,131 

Loans and receivables

4,340 

4,968 

4,980 

Equity accounted investments

936 

936 

Available for sale financial assets

3,574 

3,218 

3,348 

Deferred tax assets

32 

26 

27 


44,136 

38,704 

41,505 

Current assets




Inventories

20,847 

16,813 

18,863 

Trade and other receivables

17,210 

13,908 

21,914 

Other financial assets at fair value through profit or loss

389 

389 

389 

Short term financial assets - deposits

12,767 

12,560 

14,910 

Cash and cash equivalents

22,957 

21,606 

18,295 

Total current assets

74,170 

65,276 

74,371 









Total Assets

118,306 

103,980 

115,876 





Liabilities




Current liabilities




Trade and other payables

(15,804)

(11,545)

(16,700)

Current tax liabilities

(1,667)

(2,197)

(1,963)

Total current liabilities

(17,471)

(13,742)

(18,663)





Net current assets

56,699 

51,534 

55,708 





Non-current liabilities




Retirement benefit deficit

-

-

-

Other payables

(4,811)

(4,044)

(4,619)

Provisions for liabilities and charges

(1,171)

(259)

(1,088)

Deferred tax liabilities

(785)

(857)

(799)

Total liabilities

(24,238)

(18,902)

(25,169)





Net assets

94,068 

85,078 

90,707 





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 

Foreign currency translation reserve

1,798 

1,606

Retained earnings

90,288 

83,096 

87,119 





Total equity

94,068 

85,078 

90,707 





                                                                 



GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2016

 


Share Capital

Share Premium

Capital Redemption Reserve

Foreign Currency Translation Reserve

Retained Earnings

Total Equity









£'000 

£'000 

£'000 

£'000 

£'000 

£'000 








Balance at 30 June 2015

1,189

656

137

-

80,882

82,864








Comprehensive income







Profit for six months to 31 December 2015

-

-

-

-

5,174 

5,174 

Other comprehensive income

-

-

-

-

(46)

(46)

Total comprehensive income

-

-

-

-

5,128 

5,128 








Transactions with owners







Dividends paid to shareholders

-

-

-

-

(2,950)

(2,950)

Share-based payment charge





36    

36    

Total transactions with owners

-

-

-

-

(2,914)

(2,914)








Balance at 31 December 2015

1,189

656

137

-

83,096 

85,078 








Comprehensive income







Profit for six months to 30 June 2016

-

-

-

-

7,825 

7,825 

Actuarial loss on pension scheme

-

-

-

-

(1,285)

 (1,285)

Movement on unrecognised pension surplus

-

-

-

-

1,095 

1,095 

Revaluation of available-for-sale financial assets

-

-

-

-

133 

133 

Movement on associated deferred tax

-

-

-

-

(43)

 (43)

Transfer to foreign currency translation reserve




(21)

21 

-

Exchange rate differences on translation of foreign operations

-

-

-

1,627

(58)

1,569 

Total comprehensive income

-

-

-

1,606

7,688 

9,294 








Transactions with owners







Dividends paid to shareholders

-

-

-

-

(3,701)

(3,701)

Share-based payment charge

-

-

-

-

36 

36 

Total transactions with owners

-

-

-

-

(3,665)

(3,665)








Balance at 30 June 2016

1,189

656

137

1,606

87,119 

90,707 








Comprehensive income







Profit for six months to 31 December 2016

-

-

-

-

  6,222

6,222 

Other comprehensive income

-

-

-

192

184

376 

Total comprehensive income

-

-

-

192

6,406

6,598 








Transactions with owners







Dividends paid to shareholders

-

-

-

-

(3,297)

(3,297)

Share-based payment charge

-

-

-

-

60 

60 

Total transactions with owners

-

-

-

-

(3,237)

(3,237)








Balance at 31 December 2016

1,189

656

137

1,798

90,288 

94,068 








 

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2016

 


31.12.16 

(six months to)

31.12.15 

(six months to)

30.06.16

(twelve months to)






(unaudited)

(unaudited)

(audited)


£'000 

£'000 

£'000 

Cash generated from operations




Profit before income tax

7,810 

6,620 

16,269      

Adjustments for




- Depreciation charge

781 

705 

1,523

- Amortisation of intangibles & investment property

947 

1,085 

2,277

- Profit on disposal of property, plant and  equipment

(44)

(48)

    (89)

- Finance expense

(35)

(383)

(75)

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

(73)

(85)

(190)

- Share of loss from joint venture

1

- Share-based payment expense

122 

88 

193

- Research and development expenditure (credit)/charge

(126)

(236)

- Effects of exchange rate movements

(78)

110 

182

Changes in working capital




- Inventories

(1,919)

949 

(1,128)

- Trade and other receivables

4,116 

5,799  

(2,094)

- Trade and other payables

(1,042)

(2,838)

2,313 

Cash generated from operations

10,459 

12,002 

18,946 





Tax paid

(1,823)

(1,374)

(3,323)





Cash flow from investing activities




Purchase of property, plant and equipment

(3,302)

(1,113)

(2,543)

Proceeds from sale of property, plant and equipment

134 

71 

122 

Purchase of intangibles

(782)

(836)

(1,764)

Purchase of investment property

(122)

(19)

(28)

Net sale/(purchase) of available for sale financial assets

(407)

(404)

Equity accounted investments acquired

(936)

Property rental and similar income

29 

40 

74 

Dividend income

104 

93 

177 

Net sale/(purchase) of deposits

2,143 

(3,202)

(5,552)

Interest received

124 

114 

314 

Receipt of loans notes

710 

11 

200 

Net cash (used in)/generated from investing activities

(961)

(5,248)

(10,340)





Cash flow from financing activities




Dividends paid to company shareholders

(3,297)

(2,950)

(6,651)

Net cash used in financing activities

(3,297)

(2,950)

(6,651)





Effects of exchange rate changes on cash

284 

-

487





Net increase in cash and cash equivalents

4,662 

2,430 

(881)





Cash and cash equivalents at the beginning of the period

18,295 

19,176 

19,176 

Cash and cash equivalents at the end of the period

22,957 

21,606 

18,295 

      

 

 

 

 

 

Notes to the Interim Financial Statements

 

1.   Basis of Preparation

       The consolidated interim financial statements for the six months to 31 December 2016 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 2016 and the comparative period to 31 December 2015 have not been audited or reviewed and are therefore disclosed as unaudited.  The figures for 30 June 2016 have been extracted from the financial statements for the year to 30 June 2016, 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 2016 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 nine 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 markets.  The Lightronics business is a material subsidiary and therefore disclosed separately. 

       The seven remaining continuing operating segments have been aggregated into the 'other companies' segment based on their size, comprising the entities Compact Lighting Limited, Philip Payne Limited, Solite Europe Limited, Portland Lighting Limited, TRT Lighting Limited, Thorlux LLC and Thorlux Australasia PTY Limited.

       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

Lightronics

Other

Inter-

Total




Companies

Segment

Continuing





Adjust-

Operations





ments



£'000 

£'000 

£'000 

£'000 

£'000 

6 months to 31 December 2016






Revenue to external customers

31,470

9,713

10,053

 51,236 

Revenue to other Group companies

1,530

136

1,913

(3,579)







Total revenue

33,000

9,849

11,966

(3,579)

 51,236 







Operating Profit

5,933

1,104

620

118 

7,775 







Finance income





307 

Finance expense





(272)

Share of loss in joint venture











Profit before tax expense





7,810 







 

6 months to 31 December 2015






Revenue to external customers

26,846

7,027

7,497

41,370 

Revenue to other Group companies

594

3

1,083

(1,680)







Total revenue

27,440

7,030

8,580 

(1,680)

 41,370 







Operating Profit

5,166

703

428 

197 

6,494 







Finance income





383 

Finance expense





(257)

Share of loss in joint venture











Profit before tax expense





6,620 







 

Year to 30 June 2016






Revenue to external customers

54,157

15,524

19,265 

 88,946 

Revenue to other group companies

2,409

60

2,401 

(4,870)







Total revenue

56,566

15,584

21,666

(4,870)

 88,946 







Operating Profit

11,699

2,103

2,189 

204 

16,195 







Net finance income





75 

Share of profit in joint venture





(1)













Profit before tax expense





16,269 







 

       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.  Investment in Subsidiary

On 1 July 2016 the Group acquired 49% of the share capital of Thorlux Australasia PTY Limited for a nominal sum. 

Previously Thorlux Australasia was a joint venture with a local partner and we therefore now own 100% of the company.  This will give us the ability to exercise full control over the operations with a view to improving the operating results going forward.

The Group has fully consolidated the results of Thorlux Australasia in the figures for December 2016.

 

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 2016: 115,675,590) 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 116,347,665 (Interim 2016: 115,791,614) during the period.

      

5.  Dividend

       The interim dividend is at the rate of 1.35p per share (Interim 2016: 1.20p), and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £1,562,000 (Interim 2016: £1,388,000).  The interim dividend will be paid on 6 April 2017 to shareholders on the register at the close of business on 24 March 2017, and the shares become ex-dividend on 23 March 2017.

A final dividend for the year ended 30 June 2016 of 2.85p (2015: final of 2.55p) per share, amounting to £3,297,000 (2015: £2,950,000) was paid on 24 November 2016.

 

6.  Availability of interim statement

       Copies of the interim 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 31 March 2017.


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