March 22, 2013 08:24 ET

Half Year Report six months to 31 December 2012


Interim results for the six month period ended 31 December 2012

Chairman's statement

I  am  pleased to confirm that we have progressed generally in line with expectation.  The results  for  the
first  6  month  period to 31 December 2012 show an increase in Group turnover to GBP 3.78  million  with  a
profit  of GBP 46k compared to turnover of GBP 3.70 million for the equivalent 6 month period to 31 December
2011 in which we made a profit of GBP 3k.

The  Group  activities  comprise  of  the parent company's marketing activities  based  in  London  and  its
subsidiary,  Hearing  Health and Mobility Ltd ("HHML")'s retail activities of Hearing  and  Mobility  stores
which are spread across the UK with its central offices based in Kettering and Cardiff.

HHML  now  operates 14 Hearing and Mobility stores, with lots of repeat customers and many years of goodwill
within  respective communities.  This includes Enderby in Leicester, reopened in January 2013 after 2  years
with a new product mix.

Sales and services are provided inside our stores and in customers' own homes.  Both routes to market are as
important  as  each  other.  The stores are based predominantly in the South and in the Midlands.   We  have
national coverage with agents and employees.

Mobility Division - Keep Able

The  Mobility  division is an accredited Motability dealer.  Following bold acquisitions and rationalisation
over the last 3 years, the Group is in a position to further consolidate in a highly fragmented market.

A  number  of  smaller operators have closed down within the last 12 months given difficult  conditions  for
raising  cash for stock and working capital.  They faced the problem of being freestanding stores, dependent
on a limited range of products and being without economy of scale in marketing or purchasing.

Last year, following research, we expanded our electric mobility offerings to include 2 wheel electric bikes
in  order to supplement our 3 and 4 wheel electric transport range. This was not without the cost of  buying
in  expertise, and testing stock lines and suppliers.  I am pleased to say that the investment  in  widening
our  product  range  is now contributing to our enquiry rate and footfall.  The Electric  Bike  business  is
largely  in store, predominantly from the affluent Grey Market and brings above average return on space  and
employee  time.  There is also a very strong 'Green' message attracted to this line.  As the  cost  of  fuel
rises  and roads become more congested with cars, we are able to provide more products which are growing  in
demand, plus these products are economic and keep people mobile for longer.

Our catalogue contains 850 stock lines for customers to choose from, they can purchase in store, online,  by
telephone or from the comfort of their homes.

Hearing Aid Division - Invisible Hearing

The  Hearing  Aid  division  is  buoyed up by new products at the top end  of  the  market,  especially  new
technology to help 'understand speech in noise' and we have more "invisible" products than ever.

There  are  also  products  designed to link directly with iPhones and TV monitors,  plus  there  is  direct
streaming and wireless linkage for clarity and convenience.

A larger dispensing team is envisaged in the Group in due course, to take advantage of opportunities in what
we  regard  as  also being a highly fragmented market place.  At the lower end, there have been  changes  in
distribution  to  NHS  hearing  aid  patients,  with the private  sector  becoming  more  prominent  in  the
Government's plans with AQP (Alternative Qualified Providers).  We welcome these changes generally,  as  the
private  sector becomes more closely involved with mass distribution and we are cautiously following  events
in  the unique '2 tier' market place.  We are working closely with our suppliers who are amongst the  top  5
hearing aid manufacturers in the world.  They are of course interested in all levels of the market.

In the same way that opticians do not dispense spectacles to the blind, hearing aid dispensers do not supply
hearing aids to the deaf.  Mobility aids are supplied as aids to mobility to those who need assistance,  and
that is a need of the growing over 50's 'grey' market.

Our  customers  seek  lifestyle improvements with products 'generally not available at  the  chemist',  with
advice  and service in strategically placed stores and in customers' own homes.  Where such service is  non-
existent,  or  not easily facilitated over the internet, we have the solutions.  Solutions for the  kitchen,
bathroom,  bedroom, living areas as well as outside the home.  This is vitally important for us.   As  other
retailers  exit shops, we are able to take their place.  As internet enquirers call into shops  for  service
and  advice  locally,  even if their purchase journey starts on the web, we are able  to  provide  excellent
solutions and a full service.

The  Directors of the Group are more certain than ever that we are in the 'right market space' and  'at  the
right  time'.   Our  existing customers grow older and seek more of our products.  We have  the  exceptional
capability of nationally stimulating our market with effective press advertising and also by generating lots
of direct enquiries from our stores.

Dhais Marketing

Dhais  Marketing  was  established in 2002 by experienced professionals as an expert  Grey  Market  national
advertiser.  We help retailers and manufacturers to promote goods and services throughout the UK, mainly  to
people  over  50 years of age.  This is now a constantly growing sector of the population.  Dhais  Marketing
employs  creative  and  analytical  media experts with many years of relevant  experience,  particularly  in
advertising and has an established client base.

Clever Bookers

Clever  Bookers  Ltd  is  an expert independent tele appointing operator based in Blackburn  with  years  of
experience in the telephone handling of enquiries and customer service within the Grey Market.

The  Group  has  a 50% stake in Clever Bookers Ltd.  To cope with increased demand, the business  of  Clever
Bookers has now been relocated near to its origin in Blackburn to larger, more suitable premises.  The staff
can  now  operate  in better surroundings and greater comfort, especially given the increase  in  number  of

Stock Market

Dhais  Plc  is one of only 2 former Plus Markets (now ISDX Growth Markets) quoted companies in South  Wales.
The  Group's  Head  Office is in Cardiff where the functions of financial control,  strategic  planning  and
business  development  are based.  The objectives being to improve fiscal performance,  enhance  shareholder
value and fulfil staff and customer expectations to beyond the average for our industry.

The  Group's  mission includes having the best products, the best service, the best marketing and  the  best
staff, both customer facing and back office.

With  such  attributes, the Group will have a solid and sustainable business model going forward.   We  have
ongoing  aspirations to replicate the success of our business nationally.  The Group is already amongst  the
leaders  in  its  sectors, perhaps one of the top 3 mobility retail groups by store  numbers  (which  number
between 14-18 stores) and has an ever expanding range of products and services to serve a growing and ageing
population.  The prospects for business growth are substantial and blend well with the Government's  overall
economic policies in the UK.

Future Prospects

Our  main  objective over the next few months is to improve profitability by increasing  sales  and  further
reducing costs whilst expediting efficiencies in our working practices.  In the longer term, as and when  we
can  afford  to do so, we shall seek earnings enhancing 'bolt on' acquisitions so that the Group may  reduce
operating costs and further increase sales.  Such opportunities are certainly available.  We have  become  a
public  company  for that very reason, to give opportunity to shareholders and suppliers  alike.   Our  core
business  model  is  robust  and expandable, and there are enormous barriers to entry  for  competitors  and
newcomers.    We  are  totally dedicated to a strong service ethos in our stores and in our  customers'  own


There  was  a  GBP  1.3  million loan from a major supplier bearing interest at  10%  per  annum  which,  as
highlighted  in  my  previous statement, was repayable in November 2013.  The balance of another  loan  from
another major supplier, bearing interest at 5% per annum, was due for repayment in June 2014.  The Directors
were pleased to have successfully negotiated a new favourable long term loan with a different major supplier
in December 2012 which enabled the repayment of the 2 aforementioned loans.  As a result, going forward, the
interest charge in the Group's profit and loss account will thereby be reduced substantially.

Last  year certain other major loan holders converted their loans to shares.  We are very grateful  for  the
confidence they have shown.  Group indebtedness has thereby been reduced significantly.

Thank  you  to all our shareholders, our suppliers and our staff for their support and hard work.   We  look
forward with cautious optimism for the remainder of the financial year ending on 30 June 2013.

Mark Moss

22 March 2013

The Directors of the Issuer accept responsibility for this announcement.


Amin Kiddy
Director, DHAIS Plc
Tel:  +44 (0) 2920 666888

Jon Isaacs
Alfred Henry Corporate Finance Limited
Tel: +44 (0) 20 7251 3762

Consolidated group profit and loss account
for the six month period ended 31 December 2012

                                                       6 months to         6 months to            Year to
                                                          31.12.12            31.12.11           30.06.12
                                                               GBP                 GBP                GBP
 Turnover                                                3,783,107           3,702,182          7,439,205
 Cost of sales                                          (1,823,249)         (1,707,544)        (3,646,822)
                                                         ---------           ---------          ---------
 Gross profit                                            1,959,858           1,994,638          3,792,383
 Distribution costs                                     (1,719,210)         (1,647,054)        (3,415,566)
 Administrative expenses                                  (189,048)           (291,910)          (609,714)
                                                         ---------           ---------          ---------
                                                            51,600              55,674           (232,897)
 Other operating income                                     50,882              55,656             90,930
                                                         ---------           ---------          ---------                                                                       
 Operating profit / (loss)                                 102,482             111,330           (141,967)
 Interest receivable and similar income                          4                  13                 23
 Interest payable and similar charges                      (56,290)           (107,143)          (135,940)
                                                         ---------           ---------          ---------                                                                                           
 Profit / (Loss) on ordinary activities before              46,196               4,200           (277,884)
 Tax on profit / loss on ordinary activities                     -                (840)                 -
                                                         ---------           ---------          ---------                                                                                           
 Profit / (Loss) on ordinary activities after               46,196               3,360           (277,884)
                                                         ---------           ---------          ---------                                                                                           
 Profit / (Loss) retained for the period                    46,196               3,360           (277,884)
                                                         =========           =========          =========
 Retained deficit brought forward                         (210,264)         (3,078,590)        (3,078,590)
                                                         =========           =========          =========
 Retained deficit carried forward                         (164,068)         (3,075,230)          (210,264)
                                                         =========           =========          =========
 Profit / (Loss) per share                                                                  
 Basic/diluted                                            GBP 0.15            GBP 0.01          GBP (0.49)
                                                         =========           =========          =========


Turnover and operating loss derive wholly from continuing operations.


The group has no recognised gains or losses other than the profits or losses above and therefore no separate
statement of total recognised gains or losses has been presented.

Group balance sheet
As at 31 December 2012

                                      31.12.12                     31.12.11                    30.06.12
                                 GBP            GBP            GBP           GBP           GBP           GBP
 Fixed assets                                                                                            
 Tangible assets                             136,281                      228,906                     185,295
 Intangible assets                         2,059,145                    1,669,525                   2,126,888
 Fixed asset investment                      260,759                      250,000                     260,759
                                           ---------                    ---------                   ---------
                                           2,456,185                    2,148,431                   2,572,942
 Current assets                                                                                          
 Stock                         457,585                       423,743                     441,779       
 Debtors                       496,390                       437,196                     614,360       
 Cash at bank and in hand      417,516                       159,695                     114,991       
                             ---------                     ---------                   ---------
                             1,371,491                     1,020,634                   1,171,130
 Creditors: amounts falling                                                                              
 due within one year                                                                       
                            (1,410,744)                   (1,693,085)                 (2,039,336)
                             ---------                     ---------                   ---------
 Net current assets /                        (39,253)                    (672,451)                   (868,206)
 (liabilities)                             ---------                    ---------                   ---------
 Total assets less current                                                                               
 liabilities                               2,416,932                    1,475,980                   1,704,736
 Creditors: amounts falling                                                                              
 due after more than one year                                                                            
                                          (2,581,000)                  (2,755,000)                 (1,915,000)
                                           ---------                    ---------                   ---------
 Total assets less total liabilities        (164,068)                  (1,279,020)                   (210,264)
                                           =========                    =========                   =========
 Capital and reserves                                                                                    
 Called up share capital                      61,450                       56,541                      61,450
 Share premium                             3,069,550                    1,724,459                   3,069,550
 Other reserves                               15,210                       15,210                      15,210
 Profit and loss account                  (3,310,278)                  (3,075,230)                 (3,356,474)
                                           ---------                    ---------                   ---------
 Shareholders' funds                        (164,068)                  (1,279,020)                   (210,264)
                                           =========                    =========                   =========

Group cash flow statement
for the six month period ended 31 December 2012

                                                        6 months to         6 months to            Year to
                                                           31.12.12            31.12.11           30.06.12
                                                                GBP                 GBP                GBP
 Net cash inflow from operating activities                   10,847             127,914            307,002
 Returns on investments and servicing of finance           (188,824)           (132,264)          (188,175)
 Taxation                                                         -               9,400             10,240
 Capital expenditure and financial investment                (3,287)            (50,000)          (780,570)
                                                           --------             -------           --------
                                                           (181,264)            (44,950)          (651,503)
 Financing                                                  483,790             109,260            671,109
                                                           --------             -------           --------
 Increase in cash in the period                             302,526              64,310             19,606
                                                           ========             =======           ========

Notes to interim group results
for the six month period ended 31 December 2012

1.      The  financial information set out above does not constitute statutory accounts for the  purpose  of
        Section  435  of  the  Companies Act 2006.  The financial information has been  extracted  from  the
        management  accounts of DHAIS plc and its subsidiary company Hearing Health & Mobility  Limited  and
        is  presented  using  the same accounting policies as those used in the statutory  accounts  of  the
        respective  companies.  The accounts for the year ended 30 June 2012 have been  extracted  from  the
        statutory  accounts  filed  with the Registrar of Companies; the report of  the  auditors  on  those
        accounts was unqualified.

2.      Profit per share

        Basic  profit per share is calculated by dividing the earnings attributable to ordinary shareholders
        by  the  weighted average number of ordinary shares during the period.  The weighted average  number
        of  equity  shares in issue during the period was 30,977,659 (31.12.11 - 28,502,938) and the  profit
        after tax was GBP 46,196 (6 month period to 31.12.11 - GBP 3,360).

Contact Information

  • DHAIS plc