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11 Jun 2019 | 14:25

Dewhurst profit rises 8% amid strong Australia sales

Industrial component supplier Dewhurst booked an 8% rise in first-half profit, buoyed by its acquisition of A&A Electrical Distributors and underlying sales growth in Australia.

Pre-tax profit for the six months through March rose to £3.1m, compared to £2.8m on-year.

Revenue rose 31% to £32.3m, while adjusted operating profit rose 36% to £4.0m.

Dewhurst declared an interim dividend of 3.75p per share, up from 3.50p on-year.

'Whilst the group's performance was encouraging in almost all areas, continued pressure on UK local authority spending has dampened transport sales,' Dewhurst said.

'Elsewhere, UK lift sales have so far remained resilient despite the uncertainty caused by Brexit and overseas lift sales have performed well.'

'Keypad sales have remained stable at a similar level of sales to the second half of last year, which was a significant improvement on last year's first half.'

Looking to its outlook, the company said demand in most of its markets, excluding the transportation sector, was currently steady or improving.

'In the UK we are still faced with uncertainty regarding Brexit,' it added.

'We cannot tell how this might affect demand later in the second half, but we are retaining our higher inventory levels for the time being until the way forward is clearer.'

'In Australia, the previous government has just been re-elected.'

'As a result, it is expected that the economic climate should remain positive and the recent hesitancy in committing to some projects may be resolved.'

'North America remains busy and the trade tensions have, so far not had an impact in our market sector.'

'The uncertainty in the UK clouds our overall view for the future, but elsewhere we are encouraged by the prospects for the group.'

At 2:25pm: (LON:DWHT) Dewhurst PLC share price was 0p at 1100p

Story provided by StockMarketWire.com
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