Interim Report 2017 For the six months to 31 December March :28 PM Proof 3

Transcription

1 Interim Report 2017 For the six months to 31 December 2016

2 FW 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 Key points: Interim 2017 Interim 2016 Revenue 51.2m 41.4m Operating profit 7.8m 6.5m Profit before tax 7.8m 6.6m Basic earnings per share 5.38p 4.47p 23.8% increase 19.7% increase 18.0% increase 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) Contents Chairman s Statement 01 Financial Statements Consolidated Income Statement 02 Group Statement of Comprehensive Income 03 Consolidated Balance Sheet 04 Group Statement of Changes in Equity 05 Group Statement of Cash Flows 06 Notes to the Interim Financial Statements 07 Further information To access further information please visit:

3 Chairman s Statement Chairman s 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 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 p) this being a 12.5% increase. We remain optimistic of a satisfactory overall result for the year. Andrew Thorpe Chairman 16 March 2017 Stock Code: TFW 01

4 Consolidated Income Statement for the six months to 31 December 2016 Continuing operations Six months to Six months to Twelve months to (audited) Revenue 51,236 41,370 88,946 Operating Profit 7,775 6,494 16,195 Finance income 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 02 FW Thorpe Plc Interim Report 2017

5 Financial Statements Group Statement of Comprehensive Income for the six months to 31 December Six months to Six months to Twelve months to (audited) Profit for the year 6,222 5,174 12,999 Other comprehensive income Items that may be reclassified to profit or loss Arising in period* 227 (207) (74) Reclassified in period Exchange rate differences on translation of foreign operations Arising in period ,627 Reclassified in period Taxation (43) (46) 1,613 Items that will not be reclassified to profit or loss Actuarial gain 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. Stock Code: TFW 03

6 Consolidated Balance Sheet as at 31 December 2016 As at As at As at (audited) Assets 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 Available for sale financial assets 3,574 3,218 3,348 Deferred tax assets ,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 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, , ,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 Capital redemption reserve Foreign currency translation reserve 1,798 1,606 Retained earnings 90,288 83,096 87,119 Total equity 94,068 85,078 90, FW Thorpe Plc Interim Report 2017

7 Financial Statements 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 Balance at 30 June , ,882 82,864 Comprehensive income Profit for six months to 31 December ,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 Total transactions with owners (2,914) (2,914) Balance at 31 December , ,096 85,078 Comprehensive income Profit for six months to 30 June ,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 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 Total transactions with owners (3,665) (3,665) Balance at 30 June , ,606 87,119 90,707 Comprehensive income Profit for six months to 31 December ,222 6,222 Other comprehensive income Total comprehensive income 192 6,406 6,598 Transactions with owners Dividends paid to shareholders (3,297) (3,297) Share-based payment charge Total transactions with owners (3,237) (3,237) Balance at 31 December , ,798 90,288 94,068 Stock Code: TFW 05

8 Group Statement of Cash Flows for the six months to 31 December Six months to Six months to Twelve months to (audited) Cash generated from operations Profit before income tax 7,810 6,620 16,269 Adjustments for Depreciation charge ,523 Amortisation of intangibles and 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 Research and development expenditure (credit)/charge (126) (236) Effects of exchange rate movements (78) 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 Purchase of intangibles (782) (836) (1,764) Purchase of investment property (122) (19) (28) Net sale/(purchase) of available-for-sale financial assets 1 (407) (404) Equity accounted investments acquired (936) Property rental and similar income Dividend income Net sale/(purchase) of deposits 2,143 (3,202) (5,552) Interest received Receipt of loan notes 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 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, FW Thorpe Plc Interim Report 2017

9 Financial Statements 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 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 FW 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. FW 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. Stock Code: TFW 07

10 Notes to the Interim Financial Statements continued 2. Segmental analysis continued Thorlux Lightronics Other Companies Inter- Segment Adjustments Total Continuing Operations 6 months to 31 December 2016 Revenue to external customers 31,470 9,713 10,053 51,236 Revenue to other Group companies 1, ,913 (3,579) Total revenue 33,000 9,849 11,966 (3,579) 51,236 Operating Profit 5,933 1, ,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 ,083 (1,680) Total revenue 27,440 7,030 8,580 (1,680) 41,370 Operating Profit 5, ,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, ,401 (4,870) Total revenue 56,566 15,584 21,666 (4,870) 88,946 Operating Profit 11,699 2,103 2, ,195 Net finance income 75 Share of loss 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. 08 FW Thorpe Plc Interim Report 2017

11 Financial Statements Notes to the Interim Financial Statements continued 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 therefore we 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 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 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 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 ( from 31 March Stock Code: TFW 09

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