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Half Yearly Report six months to 31 December 2013(Marketwire (UK Regulatory) Via Acquire Media NewsEdge) DHAIS PLC Interim results for the six month period ended 31 December 2013 Chairman's statement I am pleased to report that we have progressed generally in line with expectation. The results for the first 6 month period to 31 December 2013 show an increase in Group turnover to GBP 4.7 million with a profit of GBP 74k compared to turnover of GBP 3.8 million for the equivalent 6 month period to 31 December 2012 in which we made a profit of GBP 46k. The Group activities continue to comprise of the parent company's marketing activities based in London and its subsidiary, Hearing Health and Mobility Ltd ("HHML")'s retail activities of Hearing and Mobility stores which are spread across the UK with its central offices now based in Cardiff. HHML operates 15 Hearing and Mobility stores and has increasing numbers of new customers to supplement the established customer base with lots of inherent goodwill in respective communities. The stores now include Crowborough in Sussex following the acquisition of Owen Hearing Ltd in July 2013. Sales and service are provided inside our stores and in customers' own homes. Both routes to market are as important as each other, to us and to our customers. The stores which are based predominantly in the South and in the Midlands are now supplemented with associated stores and representation in 10 Northern towns. We therefore have national coverage between our own employees and associates. The Northern towns include Macclesfield where we operate hearing aid services within Express Hearing & Mobility, a local long established store in which we have use of a consulting room. Mobility Division - Keep Able The Mobility division is an accredited Motability dealer. Following acquisitions and subsequent rationalisations and reorganisations over the last 5 years, the Group is now growing its sales organically whilst at the same time considering carefully targeted acquisitions in strategic areas to further consolidate in a highly fragmented market and gain from economies of scale and experience. A number of other Mobility operators have closed down within the last 12 months given difficult conditions for raising cash for stock and working capital, some have chosen to retire. They include CF Hewerdine Ltd, a large operator with many employees established for over 50 years. There are others presently who seek to sell their businesses in order to retire. There is no doubt that our core market of the over 55's is growing rapidly and the demand for our products is increasing as the average age of the population rises. Also, there is a growing expectation that the financial constraints and commitment within the NHS will lead to further opportunity for well run private operators, as out sourcing providers. Our offerings include now over 850 stock lines for customers to choose from in store, or in the comfort of their homes. Hearing Aid Division - Invisible Hearing The Hearing Aid division is buoyed up consistently by new products at the top end of the market, especially with new technology to help 'understand speech in noise' and we also have even more consumer friendly "invisible" products than ever. Some products are designed to link directly with iPhones and TV monitors, plus there is direct streaming and wireless linkage for clarity and convenience. Hearing Aid sales have increased faster than Mobility sales during the 6 month period to 31 December 2013 as we have taken opportunities in what we regard as still being a highly fragmented market place. At the lower end of our market we have the changes in distribution to NHS patients to consider. Some members of the private sector are becoming more prominent in the Government's plans with AQP (Alternative Qualified Providers). The effect on us is generally neutral as far as we are concerned. We are not completely ambivalent to this and generally welcome these changes as the private sector becomes more closely involved with mass distribution amidst the unique '2 tier' market place whereby potential users have a choice between NHS and the private sector to obtain a hearing aid. We work very closely with our suppliers who are amongst the world's largest hearing aid manufacturers and we review the changing landscape on a regular basis. As some of these suppliers have their feet in both camps, manufacturing as well as retailing, they are well positioned to influence our future progress. Hearing and Mobility Making life easier In the same way that opticians do not dispense spectacles to the blind, hearing aid dispensers do not supply hearing aids to the deaf. Mobility aids are supplied as aids to mobility to those who need assistance, and that is the need of the growing over 55's 'grey' market. Our customers and their families and friends seek lifestyle improvements with products 'generally not available at the chemist', with advice and service in strategically placed stores and in customers' own homes. Where such service is non-existent elsewhere, or not easily facilitated over the internet, we have the solutions. Solutions for the kitchen, bathroom, bedroom, living areas as well as outside the home. This is vitally important for us. As other retailers exit shops, we may be able to take their place. As internet enquirers call into shops for service and advice locally, even if their purchase journey starts on the web, we are able to provide excellent solutions and a full service. The Directors of the Group are content that we are in the 'right market space' and 'at the right time'. Our existing customers grow older and seek more of our products. We have the exceptional capability of nationally stimulating our market with effective press advertising and also by generating lots of enquiries from our stores. Dhais Marketing Dhais Marketing was established in 2002 by experienced professionals as an expert Grey Market national advertiser. We help retailers and manufacturers to promote goods and services throughout the UK, mainly to people over 55 years of age. This is now a constantly growing sector of the population. Dhais Marketing employs creative and analytical media experts with many years of relevant experience, particularly in advertising to the market for the elderly and has a modest but established client base of experts in their own fields. Clever Bookers Clever Bookers Ltd is a top class independent tele appointing operator based in Blackburn with years of experience in the telephone handling of enquiries and customer service within the Grey Market. The Group has a 50% stake in Clever Bookers Ltd. To cope with increased demand, the business of Clever Bookers has now been relocated near to its origin in Blackburn to larger, more suitable premises. The staff can now operate in better surroundings and greater comfort. Stock Market Dhais Plc is still one of only 2 former Plus Markets (now ISDX Growth Markets) quoted companies in South Wales. The Group's Head Office is in Cardiff where the functions of financial control, strategic planning and business development are based. The objectives being to improve fiscal performance, enhance shareholder value and fulfil staff and customer expectations to above average for our industry. The Group's mission includes having the best products, the best service, the best marketing and the best staff, both customer facing and back office. With such attributes, the Group has a robust and sustainable business model going forward. We have aspirations to replicate the success of our business nationally. The Group is already amongst the leaders in its sectors, perhaps one of the top 3 mobility retail groups by store numbers (which number between 10-25 stores) and has an ever expanding range of products and services to serve a growing and ageing population. The prospects for business growth are substantial and blend well with the Government's overall economic policies in the UK. Future Prospects Though our sales grew by 25% in the 6 month period to 31 December 2013 compared with the same period in the previous year and the profit increased by 60%, there is room for improvement in the bottom line net profit achieved. Our priority is therefore to enhance profitability by increasing sales and further reducing costs whilst expediting efficiencies in our working practices. As and when we can afford to do so, we shall seek earnings enhancing 'bolt on' acquisitions so that the Group may reduce operating costs and further increase sales. Such opportunities are certainly available. We chose to become a public company for that very reason, to give opportunity to shareholders and suppliers alike. Our core business model is strong and expandable, and there are enormous barriers to entry for competitors and newcomers. We remain totally dedicated to a first class service in our stores and in our customers' own homes. Sales over the first quarter since 1 January 2014 have increased in line with expectation. We took the usual 'hit ' over the Christmas and New Year shut down period, and have had some disruption and exceptional costs from the centralisation of managerial and administrative functions to the Cardiff Head Office. Alongside our conventional route to market we are cautiously making inroads into the Web arena, both for existing outlet support and for mail order facilities for those who prefer to buy remotely. Funding The change in our funding arrangements over a year ago has worked out very well. I would like to give a big 'Thank You' to all fellow shareholders, our suppliers and our staff for their support and hard work. We look forward optimistically to the remainder of the financial year ending 30 June 2014 and we shall work incessantly to enhance shareholder value and future prospects for all, including our friends and associates throughout the UK. Mark Moss [email protected] +44(0)7727 648664 27 March 2014 The Directors of the Issuer accept responsibility for this announcement. Enquiries: Amin Kiddy Director, DHAIS Plc Tel: +44 (0) 2920 666888 Jon Isaacs Alfred Henry Corporate Finance Limited Tel: +44 (0) 20 7251 3762 Consolidated group profit and loss account for the six month period ended 31 December 2013 6 months to 6 months to Year to 31.12.13 31.12.12 30.06.13 GBP GBP GBP Turnover 4,717,354 3,783,107 7,909,194 Cost of sales (1,930,610) (1,823,249) (3,648,905) ------------------------------------------------ Gross profit 2,786,744 1,959,858 4,260,289 Distribution costs (2,370,922) (1,719,210) (3,862,146) Administrative expenses (392,130) (189,048) (585,537) ------------------------------------------------ 23,692 51,600 (187,394) Other operating income 51,274 50,882 101,063 ------------------------------------------------ Operating profit / (loss) 74,966 102,482 (86,331) Interest receivable and similar income 40 4 72 ------------------------------------------------ 75,006 102,486 (86,331) Interest payable and similar charges (750) (56,290) (64,641) ------------------------------------------------ Profit / (Loss) on ordinary activities before 74,256 46,196 (150,900) taxation Tax on profit / loss on ordinary activities - - (740) ------------------------------------------------ Profit / (Loss) on ordinary activities after 74,256 46,196 (151,640) taxation ------------------------------------------------ Profit / (Loss) retained for the period 74,256 46,196 (151,640) Retained deficit brought forward (3,508,114) (3,356,474) (3,356,474) ------------------------------------------------- Retained deficit carried forward (3,433,858) (3,310,278) (3,508,114) ================================================= Profit / (Loss) per share Basic/diluted GBP 0.24 GBP 0.15 GBP (0.25) ================================================= Continuing Operations Turnover and operating loss derive wholly from continuing operations. Total Recognised Gains and Losses The group has no recognised gains or losses other than the profits or losses above and therefore no separate statement of total recognised gains or losses has been presented. Group balance sheet As at 31 December 2013 31.12.13 31.12.12 30.06.13 GBP GBP GBP GBP GBP GBP Fixed assets Tangible assets 139,162 136,281 127,079 Intangible assets 2,241,095 2,059,145 1,992,106 Fixed asset investment 260,759 260,759 260,759 ------------------------------------------------------------------------------ 2,641,016 2,456,185 2,379,944 Current assets Stock 521,530 457,585 492,627 Debtors 260,723 496,390 475,273 Cash at bank and in hand 365,211 417,516 408,522 ------------------------------------------------------------------------------- 1,147,464 1,371,491 1,376,422 Creditors: amounts falling due within one year (1,355,128) (1,410,744) (1,587,270) ------------------------------------------------------------------------------- Net current assets / (207,664) (39,253) (210,848) (liabilities) ------------------------------------------------------------------------------- Total assets less current liabilities 2,433,352 2,416,932 2,169,096 Creditors: amounts falling due after more than one year (2,461,000) (2,581,000) (2,531,000) =============================================================================== Total assets less total liabilities (27,648) (164,068) (361,904) =============================================================================== Capital and reserves Called up share capital 62,396 61,450 61,450 Share premium 3,328,604 3,069,550 3,069,550 Other reserves 15,210 15,210 15,210 Profit and loss account (3,433,858) (3,310,278) (3,508,114) ------------------------------------------------------------------------------- Shareholders' funds (27,648) (164,068) (361,904) =============================================================================== Group cash flow statement for the six month period ended 31 December 2013 6 months to 6 months to Year to 31.12.13 31.12.12 30.06.13 GBP GBP GBP Net cash inflow from operating activities 100,686 10,847 130,944 Returns on investments and servicing of finance (710) (188,824) (188,757) Taxation - - - Capital expenditure and financial investment (333,287) (3,287) (27,435) ------------------------------------------------ (233,311) (181,264) (85,248) Financing 190,000 483,790 378,779 ------------------------------------------------ (Decrease) / Increase in cash in the period (43,311) 302,526 293,531 ================================================ Notes to interim group results for the six month period ended 31 December 2013 1. The financial information set out above does not constitute statutory accounts for the purpose of Section 435 of the Companies Act 2006. The financial information has been extracted from the management accounts of DHAIS plc and its subsidiary company's Hearing Health & Mobility Limited and Owen Hearing Limited and is presented using the same accounting policies as those used in the statutory accounts of the respective companies. The accounts for the year ended 30 June 2013 have been extracted from the statutory accounts filed with the Registrar of Companies; the report of the auditors on those accounts was unqualified. 2. Profit per share Basic profit per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares during the period. The weighted average number of equity shares in issue during the period was 31,423,188 (31.12.12 - 30,977,659) and the profit after tax was GBP 74,256 (6 month period to 31.12.12 - GBP 46,196). © 2014 - Marketwire |