DHAIS plc
LSE : DHAP

November 29, 2012 11:42 ET

Final Results to 30 June 2012

          
          
          
          
                                          DHAIS Plc ("DHAIS" or the "Company")
                                                            
                                      Final Results for the year ended 30 June 2012
        


        
        Chairman's Statement
        
        I am  pleased  to  report  on our eighth year of trading and our fourth year as an ISDX  Growth  Market  listed
        company (formerly PLUS Markets).
        
        Results
        
        Sales  for  the  period  increased  to GBP 7,439,205 (2011: GBP 6,986,043) and  we  produced  a  pre-tax  loss
        of GBP 277,884 down from a loss of GBP 790,430 in 2011.
        
        The  group's  business and activities and reduction in operating losses have progressed broadly in  line  with
        expectation.   The  losses in earlier years occurred primarily due to our rapid expansion which  was  directed
        towards taking advantage of opportunities to buy businesses from administrators, to obtain economies of  scale
        and  achieve a strong position in the market place within sectors which have significant barriers to entry for
        newcomers,  predominantly within the burgeoning 'grey market' arena in which lie opportunities to  consolidate
        fragmented family type operations with strong growth prospects.
        
        This  was  followed  by  a period of rationalisation, consolidation and restructuring in  order  to  strike  a
        balance  between  economies  of  scale and minimising waste. The price of  this  process  was  the  losses  we
        incurred,  comprising of the financial costs of merging, downsizing, closure of surplus stores,  reduction  in
        the number of offices and staff, rather than any inherent lack of demand for our products and services.
        
        The  loss  for  this year of GBP 277k is after an interest charge of GBP 135k and a 'cost of  entry'  loss  of
        circa  GBP  100k on a product range of Electric Bikes and Trikes, a new introduction to our range  of  product
        offerings. Following a small acquisition, a bespoke Electric Bike store was established in the City Centre  of
        Cardiff  for a limited period during which time we gained invaluable experience and expertise with a  view  to
        extending this range of products to our other Hearing and Mobility stores.  The bespoke store in the  City  of
        Cardiff is now closed and the business successfully transferred to our other Hearing and Mobility stores.
        
        In  December 2011 we acquired a 50% stake in Clever Bookers Ltd, a company specialising in tele appointing and
        diary  management for hearing aid dispensers.  The cost of the investment was GBP 260k which was  partly  paid
        by  way of an issue of new shares in Dhais plc of GBP 150k and the balance in cash.  This acquisition helps us
        enormously in being able to manage quality dispensing of hearing aids.
        
        In  April  2012, certain major loan holders converted their loans to shares to the value of GBP 800k, reducing
        group  debt substantially and reflecting their continued belief in the underlying business model.   The  group
        has no bank funding whatsoever.
        
        In  June  2012  we repurchased the Hearing & Mobility store in Staines which we had previously  sold  to  Owen
        Hearing  Ltd  in April 2011.  The repurchase was for a non-cash consideration of GBP 550k paid by  way  of  an
        issue  of  new shares in Dhais plc.  This repurchase has regained for us a sizeable store with extremely  good
        footfall which can be further developed as our flagship store.
        
        Whilst  for  most  part  of the year the group traded profitably, we had some seasonal losses  in  the  winter
        months,  and we believe we can manage the seasonal downturn better going forward by identifying what are  best
        and worse lines.
        
        Retail
        
        We  supply Hearing, Health and Mobility products from 13 very well established stores, with years of  goodwill
        and  also  a very well established domiciliary service. We have disposed of sites we did not require and  have
        taken advantage of bulk purchases over the last few years and maintained a leading position as one of the  top
        3  Mobility store operators in the United Kingdom. Our stores are based predominantly in the South and in  the
        Midlands.  We  are  however  the only Mobility operation with a fully integrated  Hearing  Aid  Service  which
        employs  dispensers  registered under the Health and Care Professions Council.  The  combination  of  our  own
        dispensers  and  the dispensers employed by the companies which purchase marketing leads from our  advertising
        arm,  including  independents,  gives  a geographic spread for sales of hearing  aids  throughout  the  United
        Kingdom.
        
        We  ended  the  year  with  an  even  greater foundation of retail customers,  professional  connections,  and
        goodwill,  together  with strong supplier relationships. Our mission is to be the best  provider  of  Hearing,
        Health  and  Mobility products, with advice and personal service which is not provided on the Internet.   Over
        50%  of our business is from repeat customers and the remainder from specialist Grey market advertising,  shop
        windows, referrals, recommendations, and professional assessors.
        
        Outlook
        
        The  Directors  cautiously  expect continuing improvement in sales, margins and cost  reduction  coupled  with
        general  growth  in  our  target  market  places  to enable a  profitable  outcome  for  the  first  half  and
        ultimately the full year to 30 June 2013.
        
        There  is potential for substantial growth in the Grey market place over the next few years and there is  also
        a  trend  towards private operators gaining from the inability of the NHS in providing everything for free  to
        users.
        
        Our  unique  style  and position of having 2 major disciplines under one roof, Hearing and  Mobility,  coupled
        with national advertising expertise gives us a robust and strong foundation to build on.
        
        We  are  now 5 months in to a new financial year and after a hesitant start following the Jubilee and  Olympic
        jitters,  we  are  trading  in  line with expectations and remain cautiously optimistic  for  the  forthcoming
        months.  We are following up a number of trade enquiries which may or may not lead to further acquisitions  in
        the future.
        
        Conclusion
        
        Thank  you very much to all suppliers who, in common with many industries, are and have been very helpful  and
        supportive  during  a period when the traditional role of the banks to enable stock and business  acquisitions
        has disappeared.
        
        Thank  you  to  all shareholders, large and small, and I remind you that discounts of between  10  -  20%  are
        available to all those on the share register, of our entire product range.
        
        Our  objectives are to continue to grow sales, profits and increase shareholder value both organically and  by
        taking opportunities to consolidate in the fragmented market places of Hearing Aid and Mobility operations.
        
        Mark Moss
        Chairman
        
        28 November 2012
        
        
        
        Enquiries:
        
        DHAIS Plc                                          029 2066 6888
        Amin Kiddy, Finance Director
        
        ISDX Growth Market Advisor:       
        Alfred Henry Corporate Finance Ltd
        www.alfredhenry.com
        Jon Isaacs/Nick Michaels                           020 7251 3762
        
        The Directors accept responsibility for this announcement.
        
        
        Statutory Information
        
        The  financial information set out below does not constitute the Group's statutory accounts for the year ended
        30 June 2012 but is derived from those accounts.
        
        The  financial information has been extracted from the statutory accounts of DHAIS Plc and is presented  using
        the  same accounting policies, which have not yet been filed with the Registrar of companies, but on which the
        auditors, Williams & Co, gave an unqualified report on 28 November 2012.
        
        The  Annual  Report  of  DHAIS Plc for year ended 30 June 2012 is available upon request  from  the  Company's
        registered office at 61 Cowbridge Road East, Cardiff, CF11 9AE.
        
        
        
        
        
        CONSOLIDATED PROFIT AND LOSS ACCOUNT
        FOR THE YEAR ENDED 30 JUNE 2012
          
                                                                       30.6.12                        30.6.11
                                                                   GBP             GBP            GBP             GBP

        TURNOVER                                                               7,439,205                     6,986,043

        Cost of sales                                                         (3,646,822)                   (3,382,965)
                                                                               ---------                     ---------

        GROSS PROFIT                                                           3,792,383                     3,603,078

        Distribution costs                                  (3,415,566)                       (3,889,169)
        Administrative expenses                               (609,714)                         (660,970)
                                                             ---------                         ---------
                                                                              (4,025,280)                   (4,550,139)
                                                                               ---------                     ---------                                
                                                                                (232,897)                     (947,061)

        Other operating income                                                    90,930                        53,437
                                                                               ---------                     ---------
                               
        OPERATING LOSS                                                         (141,967)                      (893,624)

        Profit on sale of store                                                      -                         368,380
                                                                               ---------                     ---------                                
                                                                               (141,967)                      (525,244)

        Interest receivable and similar income                                       23                            946
                                                                               ---------                     ---------                                
                                                                               (141,944)                      (524,298)

        Interest payable and similar charges                                   (135,940)                      (266,132)
                                                                               ---------                     ---------                                
        LOSS ON ORDINARY ACTIVITIES
        BEFORE TAXATION                                                        (277,884)                      (790,430)

        Tax on loss on ordinary activities                                           -                          (5,199)
                                                                               ---------                     ---------
        
        LOSS FOR THE FINANCIAL YEAR FOR THE GROUP                              (277,884)                      (785,231)
                                                                               =========                     =========


        Earnings per share expressed
        in pence per share:

        Basic                                                                     (0.49)                        (1.40)
        Diluted                                                                   (0.49)                        (1.40)
                                                                                  =====                         =====
    
          CONTINUING OPERATIONS
          None of the group's activities were acquired or discontinued during the current year or previous year.
          
          TOTAL RECOGNISED GAINS AND LOSSES
          The  group  has  no  recognised gains or losses other than the losses for the current year  or  previous
          year.
          
          
          CONSOLIDATED BALANCE SHEET
          30 JUNE 2012

                                                                       30.6.12                        30.6.11
                                                                   GBP            GBP             GBP             GBP
          FIXED ASSETS
          Intangible assets                                                    2,126,888                     1,722,390
          Tangible assets                                                        185,295                       280,095
          Investments                                                            260,759                           -
                                                                               ---------                     ---------                                                                               2,572,942                     2,002,485

          CURRENT ASSETS
          Stocks                                                 441,779                         389,995
          Debtors                                                614,360                         712,035
          Cash at bank and in hand                               114,991                          95,385
                                                               ---------                       ---------

                                                               1,171,130                       1,197,415

          CREDITORS
          Amounts falling due within one year                 (2,039,336)                     (1,998,890)
                                                               ---------                       ---------                               
          NET CURRENT LIABILITIES                                              (868,206)                      (801,475)
                                                                              ---------                      ---------
          TOTAL ASSETS LESS CURRENT
          LIABILITIES                                                         1,704,736                      1,201,010

          CREDITORS
          Amounts falling due after more than one                                             
                                                                             (1,915,000)                    (2,683,390)
                                                                              ---------                      ---------                                 
          NET LIABILITIES                                                      (210,264)                    (1,482,380)
                                                                              =========                      =========

          CAPITAL AND RESERVES
          Called up share capital                                                61,450                         55,814
          Share premium                                                       3,069,550                      1,525,186
          Capital redemption reserve                                              4,000                          4,000
          Other reserves                                                         11,210                         11,210
          Profit and loss account                                            (3,356,474)                    (3,078,590)
                                                                              ---------                      ---------                                 
          SHAREHOLDERS' FUNDS                                                  (210,264)                    (1,482,380)
                                                                              =========                      ========= 
          
  
          CONSOLIDATED CASH FLOW STATEMENT
          FOR THE YEAR ENDED 30 JUNE 2012
          
                                                                       30.6.12                        30.6.11
                                                                    GBP             GBP            GBP             GBP
          Net cash inflow/(outflow)
          from operating activities                                             307,002                       (787,037)

          Returns on investments and
          servicing of finance                                                 (188,175)                      (209,992)

          Taxation                                                               10,240                        (34,800)

          Capital expenditure
          and financial investment                                             (780,570)                       378,523
                                                                              ---------                      ---------                                    
                                                                               (651,503)                      (653,306)

          Financing                                                             671,109                        519,172
                                                                              ---------                      ---------                                  
          Increase/(decrease) in cash in the period                              19,606                       (134,134)
                                                                              =========                      ========= 

          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 30 JUNE 2012
          
          1.      ACCOUNTING POLICIES
                 
          Accounting convention
          The financial statements have been prepared under the historical cost convention and are in accordance  with
          applicable accounting standards.
          
          Basis of consolidation
          The group financial statements consolidate the accounts of Dhais Plc and all its subsidiary undertakings 
          made up to 30 June 2012.  The group profit and loss account includes the results of all subsidiary
          undertakings.  Turnover and profits arising on trading between group companies are excluded.

          Turnover
          Group turnover (excluding VAT) comprises income from three main sources. The first represents income from
          the supply of marketing leads to various companies in the hearing and mobility industries.  The second 
          source of income arises from the retail sale of hearing aids.  The third comprises sales of mobility and
          other related products.   Income is recognised when the supply of marketing leads is invoiced to the various
          customers.  On the sale of mobility  products, revenues are recognised when goods have been sold over the
          counter or delivered to the  customer.  Income on the sale of hearing aids is accounted for when the hearing
          aids have been fitted.

          Goodwill
          Goodwill, being the amount paid in connection with the acquisition of several businesses, is amortised
          evenly over its estimated useful life of twenty years.  The directors carry out full impairment reviews each
          year on the various businesses and stores purchased.  Although the group has incurred losses in recent 
          years, the directors believe that given the rationalisation of the business and the improved trading
          performance, goodwill is fairly stated in the accounts.

          Tangible fixed assets
          Depreciation is  provided at the following annual rates in order to write off each asset over its
          estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

                 Fixtures and fittings          -   25% on cost
                 Motor vehicles                 -   25% on cost
                 Computer equipment             -   25% on cost

          Stocks
          Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete
          and slow moving items.   Stock items mainly comprise of goods for resale.  In accordance with standard 
          industry practice, stock is valued using the average historical cost basis for each product.  No borrowing
          or distribution costs are included in the valuation basis.

          Deferred tax
          Deferred tax arises as a result of including items of income and expenditure in taxation computations in
          periods different from those in which they are included in the accounts. Deferred tax is provided in full
          on timing differences which result in an obligation to pay more (or a right to pay less) tax at a future
          date,  at the tax rates that are expected to apply when the timing differences reverse, based on current tax
          rates and laws.

          Deferred tax is not provided on timing differences arising from revaluation of fixed assets where there is
          no commitment to sell the asset.

          Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they
          will be recovered. Deferred tax assets and liabilities are not discounted.

          Foreign currencies
          Assets  and  liabilities in foreign currencies are translated into sterling at the rates of exchange 
          ruling  at  the balance  sheet date.  Transactions in foreign currencies are translated into sterling at the
          rate of exchange  ruling at the date of transaction. Exchange differences are taken into account in arriving
          at the operating result.

          Hire purchase and leasing commitments
          Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.  Those
          held under hire purchase contracts are depreciated over their estimated useful  lives.   Those  held  under
          finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

          The interest element of these obligations is charged to the profit and loss account over the relevant period.
          The capital element of the future payments is treated as a liability.

          Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over
          the period of the lease.

          Segmental Reporting
          The directors have chosen not to publish details of its turnover and profit by activity as required  by  SSAP
          25.   The reason for this non disclosure is that the directors believe that competitor companies  could  use
          such information to their advantage.

          Going Concern
          The group accounts  show a negative balance sheet and this is due to trading losses suffered  to  date.  The
          directors  expect to trade profitably going forward and as a result, the accounts have been  drawn  up on  a
          going concern basis.
          

          2.    EARNINGS PER SHARE
          
          Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by  the
          weighted average number of ordinary shares outstanding during the period.
          
          Diluted earnings per share is calculated using the weighted average number of shares adjusted to  assume  the
          conversion of all dilutive potential ordinary shares.
          
          Reconciliations are set out below.
                                                                                                 30.6.12
                                                                                                 Weighted
                                                                                                 average
                                                                                                  number      Per-share
                                                                                 Earnings           of          amount
                                                                                   GBP            shares        pence
         Basic EPS
         Earnings attributable to ordinary shareholders                         (277,884)       56,992,463      (0.49)
         Effect of dilutive securities                                               -               -             -
                                                                                ---------       ----------       -----
         Diluted EPS
         Adjusted earnings                                                      (277,884)       56,992,463      (0.49)
                                                                                =========       ==========       =====
                                                                                                                 

Contact Information

  • DHAIS plc