INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2023
FW Thorpe Plc – a group of companies that design, manufacture and supply professional lighting systems – is pleased to announce its interim results for the six months ended 31 December 2023.
Financial highlights:
| Interim2024 (unaudited) | Interim2023 (unaudited) | |||
| Revenue | £82.6m | £81.9m | +1% | |
| Operating profit (before acquisition adjustments)* | £12.3m | £12.6m | -2% | |
| Operating profit | £11.2m | £11.0m | +2% | |
| Profit before tax | £10.7m | £10.6m | +1% | |
| Basic earnings per share | 7.31p | 7.15p | +2% | |
| *Acquisition adjustments include amortisation of intangible assets. | ||||
· Interim dividend 1.70p (Interim 2023: 1.62p) – 4.9% increase
· Steady performance during the period, supported by, margin improvements at Thorlux and Lightronics
· Zemper improved export revenues to France and Belgium
· Other UK companies showing marginal improvement overall
· Net cash generated from operating activities – £14.0m (Interim 2023: £9.9m)
Note: This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 (MAR).
For further information, please contact:
| FW Thorpe Plc | |
| Mike Allcock – Chairman and Joint Chief Executive | 01527 583200 |
| Craig Muncaster – Joint Chief Executive and Group Financial Director | 01527 583200 |
| Singer Capital Markets – Nominated Adviser | |
| James Moat / Sam Butcher | 020 7496 3000 |
CHAIRMAN’S INTERIM STATEMENT
Results for the half year are in line with the expectations given in the Group’s November trading update, overall performance being broadly level with last year’s. It seems that customers finished for Christmas very early: December was particularly slow across all parts of the Group, thus suppressing results at the half year point when compared with the prior year. I am pleased to say that trading bounced back with a vengeance in January, giving the Group a good start for its run-in to the full year.
Raw material costs, the Group’s largest costs, are showing welcome reductions, whilst inflationary pressure on wages and salaries remains. The Group is experiencing some issues with rising shipping costs again and some minor supply delays due to the situation in the Red Sea region. The Group has, overall, managed these inflationary pressures well, with Group operating margins maintained; Thorlux and Lightronics, in particular, show margin improvements. Stock has continued to be reduced in a carefully controlled way whilst good stock levels are maintained for strategically important items.
In Spring 2024, some interesting patent-applied-for products are being launched. These new products have a unique approach to sustainability, being 3D machined from oak which is harvested from sustainable European forests. (Hopefully, one day, the Group will be able to use its own wood from its sustainable forests.) The Portland traffic range has started to gather traction following receipt of some sizeable first orders. Group product synergy initiatives have advanced, and the Group’s first shared technology emergency range, designed and manufactured by Zemper, is due for launch this summer. In recent weeks, Ratio sales in the UK have started to gather some momentum, especially for the IO7 illuminated post; however, the UK and the Netherlands are loss making in these early days whilst investment is made in improved technology to satisfy market requirements.
The road to Net Zero continues, and the Group’s short and long term objectives are currently being assessed by a third party, the Science Based Targets initiative (SBTi). The Group’s internal programme of improvement continues, and an investment of around £300k has been made, at Solite, to trial a new concept of powder coating using electricity for heating the oven, with only intermittent boosting from the gas supply when required. Powder coating facilities across the Group are extensive, so the Board will watch this trial with interest; big reductions in CO2 are forecast, due to reduced gas usage in favour of solar-produced or sustainable electricity. The £2m woodland investment in Longtown, Hereford, UK, has completed, and plans and planning applications are progressing to allow the next phase of the Group’s carbon offsetting activity, which will ultimately facilitate the planting of a further 130,000-plus trees. As the Group hopes to continually reduce its carbon emissions, it expects this scheme’s planting capacity to last for a decade, and hopefully much more.
As a result of ongoing performance and the strong balance sheet, the Board has approved a dividend of 1.70p (interim 2023: 1.62p) for the six months to 31 December 2023, being an increase of 4.9%.
At the time of writing, the general order book and revenue for the Group as a whole are good. Within the Group, therefore, we look forward to an improved situation at the year end, providing there are no sudden changes to the economic outlook.
Mike Allcock
Chairman
14 March 2024
FW Thorpe Plc
CONSOLIDATED INCOME STATEMENT
For the six months to 31 December 2023
| 31.12.23(six months to) | 31.12.22(six months to) | 30.06.23 (twelve months to) | |
| (unaudited) | (unaudited) | (audited) | |
| £’000 | £’000 | £’000 | |
| Revenue | 82,593 | 81,853 | 176,749 |
| Operating profit | 11,203 | 10,979 | 27,832 |
| Finance income | 424 | 261 | 716 |
| Finance expense | (312) | (620) | (1,094) |
| Share of loss of joint ventures | (597) | – | (520) |
| Profit before tax | 10,718 | 10,620 | 26,934 |
| Income tax expense | (2,148) | (2,240) | (5,000) |
| Profit for the period | 8,570 | 8,380 | 21,934 |
| Dividend rate per share: | |||
| Interim | 1.70p | 1.62p | 1.62p |
| Final | – | – | 4.84p |
| Earnings per share | – basic | 7.31p | 7.15p | 18.72p |
| – diluted | 7.31p | 7.15p | 18.70p |