DHAIS plc
LSE : DHAP

November 28, 2013 07:08 ET

Final Results to 30 June 2013

          
                    
          
                                          DHAIS Plc ("DHAIS" or the "Company")

                                        
                   
                                      Final Results for the year ended 30 June 2013
        


        
        Chairman's Statement

        
        I  am  pleased  to  report  on our twelfth year of trading and our fifth year as an ISDX  Growth  Market  listed
        company.

        
        Results
        
        The  group's business and activities have progressed broadly in line with expectation.  The results for  the  12
        month  period to 30 June 2013 show an increase in group turnover to GBP7.9m with a reduced operating loss, after
        depreciation and amortisation, of GBP86k compared to turnover of GBP7.4m for the equivalent 12 month  period  to
        30 June 2012 in which the group incurred an operating loss of GBP142k.

        
        The  group  activities comprise of the parent company's marketing lead generation business based in  London  and
        its  subsidiary,  Hearing  Health and Mobility Ltd ("HHML") whose retail activities  relating  to  the  sale  of
        hearing  aids  and  mobility products are spread across the United Kingdom, with its central  offices  based  in
        Cardiff.

        
        HHML  operates  14  'Hearing and Mobility' stores, all of which were previously Mobility Centres  with  lots  of
        repeat  customers  and  many  years  of goodwill within their respective communities.   Sales  and  service  are
        provided inside the group's stores and in the customers' own homes.  The stores are based predominantly  in  the
        South and in the Midlands.

        
        HHML  is an accredited Motability dealer, participating in the national scheme which helps people get mobile  by
        exchanging their mobility allowance to lease a scooter or powered wheelchair.
        

        The  parent company's marketing lead generation activity, Dhais Marketing, was established in 2001 as an  expert
        Grey  Market  national  advertiser.   It  has  helped retailers and manufacturers  promote  goods  and  services
        throughout  the United Kingdom, to mainly people over 50 years of age.  This is a constantly growing  sector  of
        the  population.   Dhais  Marketing  employs creative, analytical and  media  experts  with  years  of  relevant
        experience, particularly in national advertising, and has an established client base.

        
        Clients  of  Dhais Marketing have historically grown on the back of Dhais leads and some have successfully  sold
        their  businesses  to  larger  operators.  In order to mitigate such risk in the future,  and  with  a  view  to
        bolstering  shareholder  value,  the directors of the group have decided to focus  on  and  grow  HHML's  retail
        business.   As  a  result, sales of hearing aids in the year to 30 June 2013 increased by 25%  compared  to  the
        previous year and sales of mobility products were up 7% on last year.

        
        In  December 2012, the group replaced loans from 2 hearing aid manufacturers with an interest free, longer  term
        loan  from another hearing aid manufacturer. This funding is reflective of the confidence shown in Dhais plc  by
        its suppliers.

        
        Outlook

        
        The  group  is already amongst the leaders in its sectors and its range of products and services is  continually
        expanding  within  the  growing demographics of the country.  The prospects for business  growth  are  therefore
        substantial, and they blend well with the government's overall economic policies in the United Kingdom.

        
        The  directors of the group are satisfied with the progress made thus far and remain confident that the  group's
        activities will continue to grow and that profitability will be attained in the near future.
        

        Mark Moss
        Chairman
        

        28 November 2013
       

        
        Enquiries:

        
   
        DHAIS Plc                                          029 2066 6888
        Amin Kiddy, Finance Director
        

        ISDX Growth Market Advisor:                        020 7251 3762
        Alfred Henry Corporate Finance Ltd
        www.alfredhenry.com
        Jon Isaacs/Nick Michaels
        

        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 2013 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 2013.
        

        The  Annual  Report  of  DHAIS Plc for year ended 30 June 2013 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 2013

          
                                                                       30.6.13                         30.6.12
                                                                   GBP             GBP            GBP             GBP
          
        TURNOVER                                                             7,909,194                      7,439,205
          
        Cost of sales                                                        3,648,905                      3,646,822
                                                                             ---------                      ---------
        GROSS PROFIT                                                         4,260,289                      3,792,383

          
        Distribution costs                                   3,862,146                      3,415,566
        Administrative expenses                                585,537                        609,714
                                                             ---------       4,447,683      ---------       4,025,280
                                                                             ---------                      ---------
                                                                             (187,394)                      (232,897)

        Other operating income                                                 101,063                         90,931
                                                                             ---------                      ---------
        OPERATING LOSS                                                         (86,331)                      (141,966)
          
        Interest receivable and similar income                                      72                             22
                                                                             ---------                      ---------
                                                                               (86,259)                      (141,944)
          
        Interest payable and similar charges                                    64,641                        135,940
                                                                             ---------                      ---------            
        LOSS ON ORDINARY ACTIVITIES 
        BEFORE TAXATION                                                       (150,900)                      (277,884)

        Tax on loss on ordinary activities                                         740                              -
                                                                             ---------                      ---------

        LOSS FOR THE FINANCIAL YEAR FOR THE GROUP                             (151,640)                      (277,884)
                                                                             =========                      =========
  
          
        Earnings per share expressed
        in pence per share:
          
        Basic                                                                  (0.25)                         (0.49)
          
        Diluted                                                                (0.25)                         (0.49)
          
  

    
          
        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 2013


                                                                       30.6.13                         30.6.12
                                                                   GBP             GBP            GBP             GBP
        FIXED ASSETS
        Intangible assets                                                    1,992,106                      2,126,888
        Tangible assets                                                        127,079                        185,295
        Investments                                                            260,759                        260,759
                                                                             ---------                      --------- 
                                                                             2,379,944                      2,572,942
          
        CURRENT ASSETS
        Stocks                                                  492,627                        441,779
        Debtors                                                 475,273                        614,360
        Cash at bank and in hand                                408,522                        114,991
                                                              ---------                      ---------        
                                                              1,376,422                      1,171,130
        CREDITORS
        Amounts falling due within one year                   1,587,270                      2,039,336
                                                              ---------                      ---------            
        NET CURRENT LIABILITIES                                               (210,848)                      (868,206)
                                                                             ---------                      --------- 
        TOTAL ASSETS LESS CURRENT LIABILITIES                                2,169,096                      1,704,736 

        
        CREDITORS

        Amounts falling due after more than one year                         2,531,000                      1,915,000
                                                                             ---------                      ---------
        NET LIABILITIES                                                       (361,904)                      (210,264)
                                                                             =========                      =========


       CAPITAL AND RESERVES
       Called up share capital                                                  61,450                         61,450
       Share premium                                                         3,069,550                      3,069,550
       Capital redemption reserve                                                4,000                          4,000
       Other reserves                                                           11,210                         11,210
       Profit and loss account                                              (3,508,114)                    (3,356,474)
                                                                             ---------                      ---------
       SHAREHOLDERS' FUNDS                                                    (361,904)                      (210,264)
                                                                             =========                      =========
       



       CONSOLIDATED CASH FLOW STATEMENT
       FOR THE YEAR ENDED 30 JUNE 2013
          

                                                                       30.6.13                         30.6.12
                                                                   GBP             GBP            GBP             GBP
       Net cash inflow from operating activities                               130,944                        307,003
          
       Returns on investments and servicing of finance                        (188,757)                      (188,176)
          
       Taxation                                                                      -                         10,240
                                                                             
       Capital expenditure and financial investment                            (27,435)                      (780,570)
                                                                             ---------                      ---------
                                                                               (85,248)                      (651,503)
          
       Financing                                                               378,779                        671,109
                                                                             ---------                      ---------
       Increase in cash in the period                                          293,531                         19,606
                                                                             =========                      =========
  


       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 30 JUNE 2013
   
      


       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 2013.  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  retail sectors.  The second source of income arises from the retail  sale  of
                hearing  aids.  The third comprises sales of mobility equipment 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 various  businesses,
                is  amortised  evenly over its estimated useful life of twenty years as  determined  by  the
                directors.  The directors carry out full impairment reviews each year on the 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.

          
                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 which has arisen due to  trading   losses
                suffered to date.  The directors believe that the group will trade profitably going  forward
                and  will  continue to support the subsidiary company. As a result, the accounts  have  been
                prepared 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.
          
                                                                                            30.6.13
                                                                                            Weighted
                                                                                            average
                                                                                            number        Per-share
                                                                            Earnings        of            amount
                                                                               GBP          shares        pence
                Basic EPS
                Earnings attributable to ordinary shareholders             (151,640)        61,450,247      (0.25)
                Effect of dilutive securities                                     -                  -          -
                                                                          ---------         ----------      -----

                Diluted EPS
                Adjusted earnings                                          (151,640)        61,450,247      (0.25)
                                                                          =========         ==========      =====


                                                                                            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