DHAIS plc
LSE : DHAP

November 25, 2015 11:00 ET

Final results to 30 June 2015

                                DHAIS Plc ("DHAIS" or the "Company")                                
                                                                                                    
                            Final Results for the year ended 30 June 2015                           

Chairman's Statement 

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

Results 

The  group's  business  and  activities have progressed with group  turnover  increasing  to  £10.6m
compared  to  turnover  of  £9.7m  for the previous year,  however  an  increase  in  marketing  and
infrastructure  costs  has resulted in the group incurring a loss of £83k compared to  a  profit  of
£161k for the year to 30 June 2014.

Turnover  was expected to have increased by more than the 10% actually achieved,  and infrastructure
and  related costs had been geared accordingly.  This investment,  however,  will provide a  sounder
foundation for growth in the future.

At the EBITDA level, the group continued to be cash generative to the extent of £195k in the year to
30 June 2015. The directors are therefore satisfied with the performance of the business.

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  a leading 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.

With  a  view to bolstering shareholder value,  the directors of the group continue to focus on  and
grow  HHML's  retail  business.  As a result,  sales of hearing aids in the year  to  30  June  2015
increased  by  15% compared to the previous year and sales of mobility products were up 12% on  last
year.

The  group's  activities  are  principally  funded by an interest  free  loan  from  a  hearing  aid
manufacturer, this funding is reflective of the confidence shown in Dhais Plc by its suppliers.

Outlook 

The group is amongst the leaders in its sectors,  its range of products and services is  continually
improving and expanding within the growing demographics of the country.

The future strategy is to build on the group's robust business model of advertising, retail sales of
hearing aids and mobility products in store and in customers' homes across the United Kingdom.

Mark Moss
Chairman
25 November 2015


Enquiries:

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DHAIS Plc                                  029 2066 6888                                    
Amin Kiddy, Finance Director                                                                
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ISDX Growth Market Advisor:                020 7251 3762                                    
Alfred Henry Corporate Finance Ltd                                                          
www.alfredhenry.com                                                                         
Jon Isaacs/Nick Michaels                                                                    
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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 2015 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,  PricewaterhouseCoopers LLP,  gave an unqualified report on 25
November 2015.

The  Annual  Report  of  DHAIS Plc for year ended 30 June 2015 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 2015

                                                                             2015              2014 
                                                                                £                 £ 
Turnover                                                               10,578,102         9,650,222 
Cost of sales                                                          (4,682,154)       (4,388,256)
----------------------------------------------------------------------------------------------------
Gross profit                                                            5,895,948         5,261,966 
Operating expenses                                                     (6,124,173)       (5,204,952)
----------------------------------------------------------------------------------------------------
                                                                         (228,225)           57,014 
Other operating income                                                    146,650           105,254 
----------------------------------------------------------------------------------------------------
Earnings before interest, tax and depreciation (EBITDA)                   195,457           368,456 
Depreciation and amortisation                                            (277,032)         (206,188)
----------------------------------------------------------------------------------------------------
                                                                                                    
Operating (loss)/profit                                                   (81,575)          162,268 
Interest payable and similar charges                                       (1,401)           (1,011)
----------------------------------------------------------------------------------------------------
(Loss)/profit on ordinary activities before taxation                      (82,976)          161,257 
Tax on (loss)/profit on ordinary activities                                     -                 - 
----------------------------------------------------------------------------------------------------
(Loss)/profit for the financial year                                      (82,976)          161,257 
----------------------------------------------------------------------------------------------------
                                                                                                    
(Loss)/earnings per share expressed in pence per share:                                             
Basic                                                                       (0.13)             0.26 
Diluted                                                                     (0.13)             0.26 
----------------------------------------------------------------------------------------------------


None  of  the group's activities were acquired or discontinued during the current year  or  previous
year.

The  group  has  no recognised gains or losses other than the (loss) for the current  year  and  the
profit for the previous year.

There  is  no  difference between the (loss)/profit on ordinary activities before taxation  and  the
(loss)/profit for the year above and their historical cost equivalents.

The  comparatives  for distribution costs and administrative costs have been restated  (see note 1 -
Accounting Policies).


Consolidated Balance Sheet as at

30 June 2015

                                                      2015                          2014            
                                                £              £              £              £      
FIXED ASSETS                                                                                        
Intangible assets                                           2,260,937                     2,190,050 
Tangible assets                                               204,673                       144,466 
Investments                                                         -                       260,759 
                                                        --------------                --------------
                                                                                                    
                                                            2,465,610                     2,595,275 
                                                                                                    
CURRENT ASSETS                                                                                      
Stocks                                         649,463                       543,174                
Debtors                                        884,096                       703,981                
Cash at bank and in hand                       274,939                       316,889                
                                         --------------                --------------               
                                                                                                    
                                             1,808,498                     1,564,044                
                                                                                                    
CREDITORS                                                                                           
Amounts falling due within one year         (2,250,237)                   (1,877,472)               
                                         --------------                --------------               
                                                                                                    
NET CURRENT LIABILITIES                                      (441,739)                     (313,428)
                                                        --------------                --------------
                                                                                                    
TOTAL ASSETS LESS CURRENT LIABILITIES                       2,023,871                     2,281,847 
                                                                                                    
                                                                                                    
CREDITORS                                                                                           
Amounts falling due after more than one                                                             
year                                                       (2,047,494)                   (2,222,494)
                                                        --------------                --------------
                                                                                                    
NET (LIABILITIES)/ASSETS                                      (23,623)                       59,353 
                                                        --------------                --------------
                                                        --------------                --------------
                                                                                                    
                                                                                                    
CAPITAL AND RESERVES                                                                                
Called up share capital                                        62,396                        62,396 
Share premium account                                       3,328,604                     3,328,604 
Capital redemption reserve                                      4,000                         4,000 
Other reserves                                                 11,210                        11,210 
Profit and loss account                                    (3,429,833)                   (3,346,857)
                                                        --------------                --------------
                                                                                                    
TOTAL SHAREHOLDERS'                                                                                 
(DEFICIT)/FUNDS                                               (23,623)                       59,353 
                                                        --------------                --------------
                                                        --------------                --------------


Consolidated Cash Flow Statement

for the year ended 30 June 2015

                                                                             2015              2014 
                                                                                £                 £ 
                                                                                                    
Net cash inflow from operating activities                                 281,814           213,735 
Returns on investments and servicing of finance                            (1,400)           (1,011)
Capital expenditure and financial investment                             (147,362)         (430,851)
----------------------------------------------------------------------------------------------------
                                                                          133,052          (218,127)
Financing                                                                (175,000)          126,494 
----------------------------------------------------------------------------------------------------
(Decrease) in cash in the period                                          (41,948)          (91,633)
----------------------------------------------------------------------------------------------------


Notes to the Consolidated Financial Statements 

for the year ended 30 June 2015 

1. ACCOUNTING POLICIES

   Accounting convention 

   The financial statements have been prepared in accordance with applicable Accounting Standards in
   the United Kingdom. A summary of the more important accounting policies is set out below.

   Basis of accounting Companies Act 2006

   These  financial statements are prepared on the going concern basis,  under the  historical  cost
   convention  and in accordance with the Companies Act 2006 and applicable accounting standards  in
   the  United  Kingdom.  The principal accounting policies,  which have been  applied  consistently
   throughout the year, are set out below.

   Basis of consolidation 

   The  consolidated  financial  statements  include  the  Company  and  its  subsidiary  companies.
   Inter-company sales and profits are eliminated on consolidation.  The financial statements of the
   subsidiary companies are made up to 30 June 2015.  The acquisition method of accounting has  been
   adopted.  Under this method,  the results of the subsidiary undertakings acquired are included in
   the  consolidated  profit and loss account from the date of acquisition.  Associates  are  equity
   accounted in the consolidated financial statements.

   Going concern 

   The  group  financial  statements have been historically affected by trading losses  suffered  in
   prior  years.  The  directors  expect  the group to trade profitably  and  continue  to  be  cash
   generative in the future and as a result,  the financial statements have been prepared on a going
   concern basis.

   Goodwill and amortisation

   Purchased  goodwill and goodwill (representing the excess of the fair value of the  consideration
   given  over  the  fair value of the separable net assets acquired) arising  on  consolidation  in
   respect of acquisitions and associates is capitalised and amortised on a straight line basis over
   its  estimated  useful  economic life.  The estimated useful economic life is  calculated  having
   regard  to  the period over which the Group expects to derive economic benefits from the  assets.
   The  directors  consider  that the estimated useful economic life of the goodwill arising  is  20
   years.

   Impairment 

   Tangible and intangible assets are reviewed for impairment if events or changes in  circumstances
   indicate that the carrying amount may not be recoverable.

   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.

   Tangible fixed assets 

   Tangible  fixed assets are stated at historic purchase cost less accumulated  depreciation.  Cost
   includes  the  original purchase price of the asset and the costs attributable  to  bringing  the
   asset to its working condition for its intended use.  Depreciation is provided on tangible  fixed
   assets  so as to write off the cost or valuation,  less any estimated residual value,  over their
   expected useful economic life as follows:


   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.  Stocks items mainly comprise of goods for resale and is  valued
   using the average historical cost basis for each product.

   Deferred tax 

   Full  provision  is  made  for  deferred  tax assets and  liabilities  arising  from  all  timing
   differences  between  the  recognition  of  gains and losses  in  the  financial  statements  and
   recognition  in  the tax computation.  A net deferred tax asset is recognised only if it  can  be
   regarded  as  more  likely than not that there will be suitable taxable profits  from  which  the
   future reversal of the underlying timing differences can be deducted.

   Deferred  tax assets and liabilities are calculated at the tax rates expected to be effective  at
   the time the timing differences are expected to reverse.  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.

   Pension scheme arrangements

   The  group  operates a defined contribution pension scheme.  The assets of the  scheme  are  held
   separately from those of the group in an independently administered fund. The pension cost charge
   represents contributions payable by the group to those funds.

   Foreign currencies

   Transactions  in  foreign  currencies  are  recorded at the exchange rate  at  the  date  of  the
   transaction.  Monetary assets and liabilities denominated in foreign currencies are  retranslated
   at  the  closing rates of the balance sheet date.  All exchange differences are included  in  the
   profit and loss account.

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 year.

   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:


                                                                           2015                     
                                                                         Weighted                   
                                                                          average                   
                                                                          number         Per-share  
                                                         Earnings           of            amount    
                                                             £            shares           pence    
Basic EPS                                                                                           
Earnings attributable to ordinary shareholders              (82,976)     62,395,701           (0.13)
Effect of dilutive securities                                     -               -               - 
                                                      --------------  --------------  --------------
                                                                                                    
                                                                                                    
Diluted EPS                                                                                         
Adjusted earnings                                           (82,976)     62,395,701           (0.13)
                                                      --------------  --------------  --------------
                                                      --------------  --------------  --------------
                                                                                                    
                                                                                                    
                                                                           2014                     
                                                                         Weighted                   
                                                                          average                   
                                                                          number         Per-share  
                                                         Earnings           of            amount    
                                                             £            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 
                                                      --------------  --------------  --------------
                                                      --------------  --------------  --------------

Contact Information

  • DHAIS plc