DHAIS plc
LSE : DHAP

November 28, 2014 03:00 ET

Final Results to 30 June 2014

                  
                                          DHAIS Plc ("DHAIS" or the "Company")
                                                            
                                      Final Results for the year ended 30 June 2014
        

        
        Chairman's Statement
        
        I  am  pleased  to report on our thirteenth year of trading and our sixth year as an ISDX Growth  Market  listed
        company.
        
        Results
        
        The  group's business and activities have progressed in line with expectation.  The results for the year  to  30
        June  2014  show  an  increase in group turnover to GBP9.6m with a profit for the year of  GBP161k  compared  to
        turnover of GBP7.9m for the year to 30 June 2013 in which the group incurred a loss of GBP152k.
        
        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  15  'Hearing and Mobility' stores, most of them 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 their businesses on the back of Dhais leads and  some  have
        successfully  sold their businesses to larger operators.  In order to mitigate such risk, and  with  a  view  to
        bolstering  shareholder value, the directors of the group decided to focus on and grow HHML's  retail  business.
        As  a  result, sales of hearing aids in the year to 30 June 2014 increased by 65% compared to the previous  year
        and sales of mobility products were up 11% on last year.
        
        The  group's  activities are principally funded by an interest free loan from a hearing  aid  manufacturer,  the
        first  repayment instalment of which has just been made. This funding is reflective of the confidence  shown  in
        Dhais plc by its suppliers.
        
        Outlook
        
        The  group is amongst the leaders in its sectors and its range of products and services is continually improving
        and  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  future  strategy is to build on the group's robust business model of advertising, retail sales  of  hearing
        aids  in  store  and  in  customers' homes and by increasing the number of mobility stores  to  give  a  greater
        geographic presence across the United Kingdom.
        
        Mark Moss
        Chairman
        
        28 November 2014
        
        
        
        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 2014 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 2014.
        
        The  Annual  Report  of  DHAIS Plc for year ended 30 June 2014 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 2014


                                                                       30.6.14                         30.6.13
                                                                   GBP             GBP            GBP             GBP
          
          TURNOVER                                                           9,650,222                      7,909,194
          )
          Cost of sales                                                     (4,388,256)                    (3,648,905)
                                                                             ---------                      ---------
          GROSS PROFIT                                                       5,261,966                      4,260,289
          
          Distribution costs                                 4,424,009                      3,862,146
          Administrative expenses                              780,943                        585,537
                                                             ---------      (5,204,952)      ---------     (4,447,683)
                                                                             ---------                      ---------
                                                                                57,014                       (187,394)
          
          Other operating income                                               105,254                        101,063
                                                                             ---------                      ---------   
          OPERATING PROFIT/(LOSS)                                              162,268                        (86,331)
          
          Interest receivable and similar income                                    50                             72
                                                                             ---------                      ---------
                                                                               162,318                        (86,259)
          
          Interest payable and similar charges                                  (1,061)                       (64,641)
                                                                             ---------                      ---------    
          PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE                                         
          TAXATION                                                             161,257                       (150,900)
          
          Tax on profit/(loss) on ordinary activities                                -                           (740)
                                                                             ---------                      ---------
          PROFIT/(LOSS) FOR THE FINANCIAL YEAR FOR THE                                        
          GROUP                                                                161,257                       (151,640)
                                                                             =========                      =========
     
          Earnings per share expressed
          in pence per share:
          Basic                                                                   0.26                          (0.25)
          Diluted                                                                 0.26                          (0.25)
                                                                                 =====                          =====

          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 profit for the current  year  and  the
          loss for the previous year.
          
          
          
          CONSOLIDATED BALANCE SHEET
          30 JUNE 2014
                                                                       30.6.14                         30.6.13
                                                                   GBP             GBP            GBP             GBP
          FIXED ASSETS
          Intangible assets                                                  2,190,050                      1,992,106
          Tangible assets                                                      144,466                        127,079
          Investments                                                          260,759                        260,759
                                                                             ---------                      ---------
                                                                             2,595,275                      2,379,944
          
          CURRENT ASSETS
          Stocks                                               543,174                        492,627
          Debtors                                              703,981                        475,273
          Cash at bank and in hand                             316,889                        408,522
                                                             ---------                      ---------              
                                                             1,564,044                      1,376,422
          
          CREDITORS
          Amounts falling due within one year               (1,877,472)                    (1,587,270)
                                                             ---------                      ---------             
          NET CURRENT LIABILITIES                                             (313,428)                      (210,848)
                                                                             ---------                      ---------
          TOTAL ASSETS LESS CURRENT LIABILITIES                                               
                                                                             2,281,847                      2,169,096
          
          CREDITORS
          Amounts falling due after more than one                                             
          year                                                              (2,222,494)                    (2,531,000)
                                                                             ---------                      ---------
          NET ASSETS/(LIABILITIES)                                              59,353                       (361,904)
                                                                             =========                      =========
          
          CAPITAL AND RESERVES
          Called up share capital                                               62,396                         61,450
          Share premium                                                      3,328,604                      3,069,550
          Capital redemption reserve                                             4,000                          4,000
          Other reserves                                                        11,210                         11,210
          Profit and loss account                                           (3,346,857)                    (3,508,114)
                                                                             ---------                      ---------   
          SHAREHOLDERS' FUNDS                                                   59,353                       (361,904)
                                                                             =========                      =========
            
          
          
          
          CONSOLIDATED CASH FLOW STATEMENT
          FOR THE YEAR ENDED 30 JUNE 2014
           
                                                                       30.6.14                         30.6.13
                                                                   GBP             GBP            GBP             GBP
          Net cash inflow
          from operating activities                                            213,735                        130,944
          
          Returns on investments and
          servicing of finance                                                  (1,011)                      (188,757)
          
          Capital expenditure
          and financial investment                                            (430,851)                       (27,435)
                                                                             ---------                      ---------
                                                                              (218,127)                       (85,248)
          
          Financing                                                            126,494                        378,779
                                                                             ---------                      --------- 
          (Decrease)/increase in cash in the period                            (91,633)                       293,531
                                                                             =========                      =========
          
          
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 30 JUNE 2014
          
          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 2014.  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.
          
                  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 have been historically affected by trading  losses  suffered  in  prior
                years.   The directors believe that the group will remain profitable going forward and  will
                continue  to support its subsidiary companies. 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.
                                                                                                 30.6.14
                                                                                                 Weighted
                                                                                                 average
                                                                                                  number     Per-share
                                                                                 Earnings           of          amount
                                                                                   GBP            shares         pence
                Basic EPS
                Earnings attributable to ordinary shareholders                    161,257       62,364,618        0.26
                Effect of dilutive securities                                           -                -           -
                                                                                  -------       ----------        ----
                Diluted EPS
                Adjusted earnings                                                 161,257       62,364,618        0.26
                                                                                  =======       ==========        ====
 
                                                                                                 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)
                                                                                 ========       ==========       =====
                                                                                                                 
          

Contact Information

  • DHAIS plc