Lighting group illuminated by strong interims
WORCESTERSHIRE lighting manufacturer F W Thorpe has seen increases in half year revenue and profits despite the group having to sell-off an under-performing subsidiary.
In the half year to December 31, 2014 revenues grew 10% to £32.6m (2014: £29.6m) with an 8% increase in operating profit to £5.5m (2014: £5.1m). Pre-tax profit increased 7% to £5.8m (2014; £5.4m). Basic earnings per share grew 9% and the board is recommending a dividend of 1.10p per share (Interim 2014: 1.05p), an increase of 5%.
Chairman Andrew Thorpe said the figures reflected the company’s success, with most of its subsidiaries performing strongly. The results also benefited from the stronger foundations put in place in recent years in regards to sales penetration capacity and the upgrading of product ranges, he added.
“Forward momentum has, however, continued to prove difficult at one subsidiary, its products being ‘retro’ in nature and at odds with the company’s forward-looking philosophy,” he said.
“I must, therefore, report that Sugg Lighting was sold for a nominal consideration on February 6, 2015 and is no longer part of (the) group. Sugg Lighting has been purchased by a company specialising in traditional English heritage brands.”
He said the sale would allow the business would allow the group to devote more time to future projects.
The company is heavily involved in the LED products sector and this now represents around 58% of group revenues. However, it said its Thorlux Lighting subsidiary was restricted in its growth pattern because of continued demand for old technology.
“Measured and careful steps are being taken to withdraw these older products where possible without disruption to customer sentiment or causing stock obsolescence,” said Thorpe.
Investment into street and road tunnel lighting company TRT Lighting has continued along with funding for the now occupied new factory for Solite Europe, costing £1.4m. There has also been the installation of a second new LED circuit board line at Thorlux, which has increased board assembly capacity by 100%.
The company has also reported the death of ex-chairman, Ernest Thorpe, at the age of 97. ‘EGT’ as he was known was a co-founder of F W Thorpe Plc and devoted in excess of 55 years’ service to the business.
