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Thorpe(F.W.) PLC (TFW)

Thorpe(F.W.) PLC

Half Yearly Report
RNS Number : 6511S
Thorpe(F.W.) PLC
21 March 2016
 

F W Thorpe Plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2015

 

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 2015.

 

Key points:

Continuing operations

Interim

2016

Interim

2015


Excluding Lightronics acquisition

Revenue

£41.4m 

£32.6m 

26.8% increase

5.2% increase

Operating profit

£6.5m 

£5.5m 

17.9%  increase

5.1% increase

Profit before tax

£6.6m 

£5.8m 

13.7%  increase

6.0% increase

Basic earnings per share

4.47p

3.92p

14.0%  increase

7.5% increase

 

·       Revenue and operating profit boosted by Lightronics acquisition

·       Lightronics performed ahead of expectations in first six months, driven by one off projects

·       TRT Lighting profitable growth continues

·       Investment of €1.2m for 40% of Luxintec S.L., a luminaire and specialist lenses manufacturer based in Spain, was completed post period end on 9 March 2016

·       Interim dividend increased to 1.20p (Interim 2015: 1.10p)

·       Special dividend of 2.00p (Interim 2015: nil)

 

 

 

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

 



CHAIRMAN'S INTERIM STATEMENT

 

Pleasingly results for the half year to 31 December 2015 proved rewarding with Group revenues up 27% and operating profit up 18% from continuing operations.  On a like-for-like basis, excluding Lightronics (which we acquired in April 2015), revenues and operating profits increased by 5.2% and 5.1% respectively.  Including the effects of investment income and taxation, earnings per share rose by 14%.

 

Generally whilst underlying growth throughout most of the Group subsidiaries can be described as solid rather than astounding, good progress has been made in most quarters.

 

Global economies still show shakiness and whilst we are not present in many, the general malaise does not endow any of our markets with booming economies and high demand.

 

In our overseas markets business is, therefore, currently hard fought, your company having to persuade new customers, often with different cultures, of the benefits of using our product offering of high quality, highly sophisticated lighting systems and excellent before and after sales service.

 

The Thorlux offices in Dusseldorf, Germany and Dublin, Ireland are continuing to make forward strides, however, the Thorlux office in Brisbane, Australia and the Group office in the UAE are still not performing as required.

 

The approach of opening new Group offices abroad takes time and whilst more maturity is sought on those fronts we have widened our approach, as reported in my last statement, with the purchase of Lightronics BV the successful Netherlands based lighting company.

 

In the same vein I can now report that your company has just approved a €1.2m investment in a 40% shareholding in Luxintec S.L., a €3.5m revenue Spanish manufacturer of precision LED lighting lenses and a limited range of luminaires, the latter being a market in which they wish to expand.

 

Both the investments in Lightronics and Luxintec allow a wide scope for the interchange of products in both directions but most probably allowing a wider platform for most Group companies to participate in the Netherlands and Spanish speaking markets of which there are many.

 

The first half of the 2015/16 year has been driven by exceptional performance of Lightronics BV and marked further progress at TRT Lighting our road tunnel and street lighting systems manufacturer. Your Group continues to strive for growth and the Board is cautiously optimistic about the rest of the financial year.

 

Group results outlined above allow your company to pay a dividend for the half year to 31 December 2015 of 1.20p per share (Interim 2015: 1.10p), an increase of 9%.  Further, at this time and in consideration of adequate Group reserves, a special dividend of 2.00p per share (Interim 2015: nil) will be paid at the same time as the interim dividend.

 

 

 

 

Andrew Thorpe

Chairman

 

21 March 2016

F W Thorpe Plc



CONSOLIDATED INCOME STATEMENT

for the six months to 31 December 2015

 





Continuing Operations

31.12.15

(six months to)

31.12.14 

(six months to)

30.06.15 

(twelve months to)






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 





Revenue

41,370  

32,629 

73,554 





Operating Profit

6,494  

5,510 

13,718





Finance income

383  

315 

727   

Finance expense*

  (257) 

-   

Share of loss of joint venture

(-) 

(4) 

(50)





Profit before tax expense

    6,620

5,821

14,395





Tax expense

(1,446)  

(1,283)

(2,691)





Profit for the period from continuing operations

5,174 

4,538 

11,704 

Loss for the period from discontinued operations

-   

(104)

(253)

Loss on disposal of subsidiary

-

  (120)

-





Profit for the period

5,174 

4,314

11,451





 

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

 

 

Dividend rate per share:




     Interim

1.20p

1.10p

1.10p

     Final

2.55p

     Special

     2.00p

-

 

 

                                                                                                           

 

Earnings per share

- basic

4.47p

3.92p

10.12p

(continuing operations)

- diluted

4.47p

3.90p

10.11p

 

 

Earnings per share

- basic

4.47p

3.73p

9.90p


- diluted

4.47p

3.71p

9.89p

 

 

 

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December 2015

 






31.12.15    (six months to)

31.12.14 

(six months to)

30.06.15 

(twelve months to)






(unaudited)

(unaudited)

(audited)






£'000 

£'000 

£'000 





Profit for the year

5,174 

4,314 

11,451 





Other comprehensive income








Items that may be reclassified to profit or loss








     - Arising in period*

(207)

(46)

(152)





     - Reclassified in period





Exchange rate movement on investment in joint venture








     - Arising in period

58 

(3)

(21)





     - Reclassified in period





Taxation

103 

30 






(46)

(40)

(143)









Items that will not be reclassified to profit or loss








Actuarial gain on pension scheme

(247)





Movement on unrecognised pension surplus

18 






(229)





Other comprehensive income for the year, net of tax

(46) 

(40) 

(372)













Total comprehensive income for the year

5,128 

4,274 

11,079 





 

 

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

 

* The loss on items that may be reclassified to profit or loss of £207,000 is due to the decrease in market value of available for sale financial assets.



CONSOLIDATED BALANCE SHEET

as at 31 December 2015


As at 

As at 

As at 


31.12.15 

31.12.14 

30.06.15 






(unaudited)

(unaudited)

(audited)

Assets

£'000 

£'000 

£'000 

Non-Current Assets




Property, plant and equipment

14,192 

13,190 

13,834 

Intangible assets

14,160 

6,678 

14,349 

Investment property

2,140 

2,135 

2,171 

Loans and receivables

4,968 

1,340 

4,760 

Investment in joint venture

50 

Available for sale financial assets

3,218 

3,124 

3,018 

Deferred tax assets

26 

26 

17 


38,704 

26,543 

38,149 

Current assets




Inventories

16,813 

13,794 

17,762 

Trade and other receivables

13,908 

13,513 

19,698 

Other financial assets at fair value through profit or loss

389 

388 

389 

Short term financial assets - deposits

12,560 

14,605 

9,358 

Cash and cash equivalents

21,606 

19,341 

19,176 

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

65,276 

61,641 

66,383 





Non-current assets and disposal groups held for sale

-

1,772

-


65,276 

63,413

66,383





Total Assets

103,980 

89,956 

104,532 





Liabilities




Current liabilities




Trade and other payables

(11,545)

(9,258)

(14,656)

Current tax liabilities

(2,197)

(1,717)

(2,051)

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

(13,742)

(10,975)

(16,707)





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

-

(553)

-


(13,742)

(11,528)

(16,707)

Net current assets

51,534 

51,885 

49,676 





Non-current liabilities




Retirement benefit deficit

-

-

-

Other payables

(4,044)

-

(3,838)

Provisions for liabilities and charges

(259)

(222)

(102)

Deferred tax liabilities

(857)

(911)

(1,021)

Total liabilities

(18,902)

(12,661)

(21,668)





Net assets

85,078 

77,295 

82,864 





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

83,096 

75,313 

80,882 





Total equity

85,078 

77,295 

82,864 





                                                                 



GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2015

 


Share

Share

Capital

Retained

Total


Capital

Premium

Redemption

Earnings

Equity




Reserve










£'000 

£'000 

£'000 

£'000 

£'000 







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 







Transactions with owners






Dividends paid to shareholders

-

-

-

(4,280)

(4,280)

Share-based payment charge




14 

14 

Total transactions with owners

-

-

-

(4,266)

(4,266)







Balance at 31 December 2014

1,189

656

137

75,313

77,295







Comprehensive income






Profit for six months to 30 June 2015

-

-

-

7,137 

7,137

Actuarial loss on pension scheme

-

-

-

(247)

 (247)

Movement on unrecognised pension surplus

-

-

-

18 

18 

Revaluation of available-for-sale financial assets

-

-

-

(106)

(106)

Movement on associated deferred tax

-

-

-

21 

21 

Exchange rate movement on joint venture

-

-

-

(18)

(18)

Total comprehensive income

-

-

-

6,805 

6,805







Transactions with owners






Dividends paid to shareholders

-

-

-

(1,272)

(1,272)

Share-based payment charge

-

-

-

36 

36 

Total transactions with owners

-

-

-

(1,236)

(1,236)







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







 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF CASH FLOWS

for the six months to 31 December 2015

 


31.12.15 

(six months to)

31.12.14 

(six months to)

30.06.15

(twelve months to)






(unaudited)

(unaudited)

(audited)


£'000 

£'000 

£'000 

Cash generated from operations




Profit before income tax

6,620 

5,821 

14,395      

Adjustments for




- Depreciation charge

705 

709 

1,288

- Amortisation of intangibles & investment property

1,085 

651 

1,484

- Profit on disposal of property, plant and  equipment

(48)

(16)

    (104)

- Finance income

(383)

(315)

(727)

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

(85)

(77)

(229)

- Share of loss from joint venture

50

- Share-based payment expense

88

14 

76

- Effects of exchange rate movements

110

(28)

Changes in working capital




- Inventories

949

406 

(1,707)

- Trade and other receivables

5,799 

1,107 

(3,659)

- Trade and other payables

(2,838)

(1,422)

2,215

Discontinued operations

261

Cash generated from operations

12,002 

6,889 

13,315





Tax paid

(1,374)

(184)

(1,280)





Cash flow from investing activities




Purchase of property, plant and equipment

(1,113)

(1,976)

(3,271)

Proceeds from sale of property, plant and equipment

71 

63 

167 

Purchase of intangibles

(836)

(623)

(1,621)

Purchase of subsidiary net of cash acquired

(6,392)

Disposal of subsidiary

(561)

Purchase of investment property

(19)

(36)

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

(407)

271 

271 

Property rental and similar income

40 

78 

154 

Dividend income

93 

69 

149 

Net sale/(purchase) of deposits

(3,202)

1,033 

6,280 

Interest received

114 

90 

301 

Receipt of loans notes

11 

1,261 

Net cash (used in)/generated from investing activities

(5,248)

(995)

(3,298)





Cash flow from financing activities




Repayment of borrowings

(1,920)

Dividends paid to company shareholders

(2,950)

(4,280)

(5,552)

Net cash used in financing activities

(2,950)

(4,280)

(7,472)





Net increase in cash and cash equivalents

2,430 

1,430

1,265 





Cash and cash equivalents at the beginning of the period

19,176 

17,911

17,911 

Cash and cash equivalents at the end of the period

21,606 

19,341

19,176 

 

 

 

 

 

 

 

 

       Notes to the Interim Financial Statements

 

1.   Basis of Preparation

       The consolidated interim financial statements for the six months to 31 December 2015 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 2015 and the comparative period to 31 December 2014 have not been audited or reviewed and are therefore disclosed as unaudited.  The figures for 30 June 2015 have been extracted from the financial statements for the year to 30 June 2015, 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 2015 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 eight operating segments, based on the products and customer base in the lighting market.  The largest business is Thorlux which manufactures professional lighting systems for the industrial, commercial and controls market.  The recently acquired Lightronics business is the next largest business. 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.
                                                          

       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 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 







 

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







 

Year to 30 June 2015






Revenue to external customers

54,192

3,275

16,077 

73,544

Revenue to other group companies

2,329

-

1,781 

(4,110)







Total revenue

56,521

3,275

17,858

(4,110)

 73,544 







Operating Profit

11,267

481

1,944 

26 

13,718 







Net finance income





727 

Share of profit in joint venture





(50)













Profit before tax expense





14,395 







 

       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.  Post Balance Sheet Event - Investment in Associate

On 9 March 2016, subsequent to the period end, the Group invested €1,200,000 for a 40% shareholding in a luminaire and specialist lens manufacturer based in Spain, Luxintec S.L. This investment provides a platform to sell the Group's products in Spain and secures a part of the supply chain for the Group in the future.  In 2015 Luxintec's annual revenues were €3.5m with operating profit of €0.3m.

The Group intends to apply the equity method of accounting to recognise this interest.

 

4.  Income tax expense

 

For the period ending 30 June 2015, the effective tax rate for the Group was 18.7% however the effective tax rate applied for the period ended 31 December 2015 has increased to 21.8%.  The main reasons for this increase are:

·    The Group is no longer being classified as a Small or Medium sized Enterprise resulting in a lower rate of tax relief for research and development expenses;

·    An increasing share of the Group's profits are being generated in the Netherlands where the main corporate tax rate is 25%; and

·    No adjustment in 31 December 2015 for prior year tax credit.

 

5.  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 2015: 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 115,791,614 (Interim 2015: 116,313,090) during the period.

      

6.  Dividend

       The interim dividend is at the rate of 1.20p per share (Interim 2015: 1.10p), and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £1,388,000 (Interim 2015: £1,272,000).  A special dividend of 2.00p per share (Interim 2015: nil) will also be declared and based on 115,675,590 shares in issue at the announcement date the dividend will amount to £2,314,000 (Interim 2015: £nil).  The interim and special dividends will be paid on 5 April 2016 to shareholders on the register at the close of business on 29 March 2016, and the shares become ex-dividend on 24 March 2016.

The company has obtained dispensation from the Stock Exchange to pay the dividends within a reduced timetable due to the Easter bank holidays and operational commitments preventing the earlier announcement of these results.  This enables the dividend to be paid in a similar timeframe to the previous year.

A final dividend for the year ended 30 June 2015 of 2.55p (2014: final of 2.20p) per share, amounting to £2,950,000 (2014: £2,545,000) was paid on 19 November 2015.

 

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 2016.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LLFERVFITLIR
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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