FW Thorpe reports serious first-half growth
Professional lighting system designer and manufacturer FW Thorpe reported a significant increase in first-half revenue and operating profit on Thursday, on the back of like-for-like growth primarily driven by Thorlux.
The AIM-traded firm said revenue in the six months ended 31 December surged 29%, reaching £81.9m.
Its operating profit increased by 24%, rising to £11m, and its profit before tax grew 25% to £10.6m.
Meanwhile, the company’s basic earnings per share expanded by 21%, reaching 7.15p.
FW Thorpe hiked its interim dividend by 5.2% to 1.62p per share.
The board said its like-for-like growth was driven by Thorlux, which saw supply chain challenges easing alongside solid revenue and operating profit growth.
However, the performances of the Netherlands and Zemper operations were suppressed by margin pressures.
Thorpe’s other UK units showed overall improvement, with the company generating net cash of £9.9m from operating activities, compared to £8.9m in the interim period of the prior financial year.
The firm also noted the completion of the initial acquisition of SchahlLED in Germany in September.
“It is pleasing to report that group manufacturing operations have returned to a more normal and orderly situation, supply shortages have eased, and good customer service levels are returning,” said chairman Mike Allcock.
“High energy costs and the imminent ban on the sale of fluorescent lamps in the UK and EU are both stimulating activity in the group's key market sectors.
“The outlook for the second half remains quite positive, although the revenue growth percentage is unlikely to be maintained at such a high level due to the good performance in the second half of last year.”
At 1505 GMT, shares in FW Thorpe were up 1.37% at 370p.
Reporting by Josh White for Sharecast.com.