DHAIS plc
LSE : DHAP

March 27, 2014 04:00 ET

Half Yearly Report six months to 31 December 2013

DHAIS PLC

Interim results for the six month period ended 31 December 2013


Chairman's statement

I  am  pleased  to report that we have progressed generally in line with expectation.  The results  for  the
first 6 month period to 31 December 2013 show an increase in Group turnover to GBP 4.7 million with a profit
of  GBP 74k compared to turnover of GBP 3.8 million for the equivalent 6 month period to 31 December 2012 in
which we made a profit of GBP 46k.

The  Group activities continue to 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 now based in Cardiff.

HHML  operates 15 Hearing and Mobility stores and has increasing numbers of new customers to supplement  the
established customer base with lots of inherent goodwill in respective communities.  The stores now  include
Crowborough in Sussex following the acquisition of Owen Hearing Ltd in July 2013.

Sales and service are provided inside our stores and in customers' own homes.  Both routes to market are  as
important as each other, to us and to our customers.  The stores which are based predominantly in the  South
and in the Midlands are now supplemented with associated stores and representation in 10 Northern towns.  We
therefore  have  national  coverage between our own employees and associates.  The  Northern  towns  include
Macclesfield  where  we  operate  hearing aid services within Express  Hearing  &  Mobility,  a  local  long
established store in which we have use of a consulting room.

Mobility Division - Keep Able

The   Mobility  division  is  an  accredited  Motability  dealer.   Following  acquisitions  and  subsequent
rationalisations  and reorganisations over the last 5 years, the Group is now growing its sales  organically
whilst  at  the  same  time  considering  carefully targeted acquisitions  in  strategic  areas  to  further
consolidate in a highly fragmented market and gain from economies of scale and experience.

A  number  of other Mobility operators have closed down within the last 12 months given difficult conditions
for  raising cash for stock and working capital, some have chosen to retire.  They include CF Hewerdine Ltd,
a  large operator with many employees established for over 50 years. There are others presently who seek  to
sell their businesses in order to retire.

There  is  no doubt that our core market of the over 55's is growing rapidly and the demand for our products
is  increasing  as  the average age of the population rises. Also, there is a growing expectation  that  the
financial  constraints and commitment within the NHS will lead to further opportunity for well  run  private
operators, as out sourcing providers.

Our  offerings include now over 850 stock lines for customers to choose from in store, or in the comfort  of
their homes.

Hearing Aid Division - Invisible Hearing

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

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

Hearing Aid sales have increased faster than Mobility sales during the 6 month period to 31 December 2013 as
we have taken opportunities in what we regard as still being a highly fragmented market place.  At the lower
end  of  our  market we have the changes in distribution to NHS patients to consider. Some  members  of  the
private  sector  are  becoming  more prominent in the Government's plans  with  AQP  (Alternative  Qualified
Providers).  The  effect  on  us  is generally neutral as far as we are concerned.  We  are  not  completely
ambivalent  to this and generally welcome these changes as the private sector becomes more closely  involved
with mass distribution amidst the unique '2 tier' market place whereby potential users have a choice between
NHS and the private sector to obtain a hearing aid.

We work very closely with our suppliers who are amongst the world's largest hearing aid manufacturers and we
review  the changing landscape on a regular basis. As some of these suppliers have their feet in both camps,
manufacturing as well as retailing, they are well positioned to influence our future progress.

Hearing and Mobility

Making life easier

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 the need of the growing over 55's 'grey' market.

Our  customers  and  their  families and friends 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 elsewhere, 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 may be 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 content 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  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  55 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 to the market for the elderly and has a modest but established client base of experts  in  their
own fields.

Clever Bookers

Clever  Bookers  Ltd is a top class 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.

Stock Market

Dhais  Plc  is still 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 above 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 has a robust and sustainable business  model  going  forward.   We  have
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 10-25
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

Though our sales grew by 25% in the 6 month period to 31 December 2013 compared with the same period in  the
previous  year and the profit increased by 60%, there is room for improvement in the bottom line net  profit
achieved.

Our  priority  is therefore to enhance profitability by increasing sales and further reducing  costs  whilst
expediting  efficiencies  in our working practices.  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 chose to become a public  company  for  that  very
reason,  to  give opportunity to shareholders and suppliers alike.  Our core business model  is  strong  and
expandable,  and  there are enormous barriers to entry for competitors and newcomers.    We  remain  totally
dedicated to a first class service in our stores and in our customers' own homes.

Sales  over  the first quarter since 1 January 2014 have increased in line with expectation.  We   took  the
usual  'hit ' over the Christmas and New Year shut down period, and have had some disruption and exceptional
costs from the centralisation of managerial and administrative functions to the Cardiff Head Office.

Alongside  our  conventional route to market we are cautiously making inroads into the Web arena,  both  for
existing outlet support and for mail order facilities for those who prefer to buy remotely.

Funding

The change in our funding arrangements over a year ago has worked out very well.

I  would  like to give a big 'Thank You' to all fellow shareholders, our suppliers and our staff  for  their
support and hard work.  We look forward optimistically to the remainder of the financial year ending 30 June
2014 and we shall work incessantly to enhance shareholder value and future prospects for all, including  our
friends and associates throughout the UK.

Mark Moss
Mark@mmoss.co.uk
+44(0)7727 648664

27 March 2014

The Directors of the Issuer accept responsibility for this announcement.

Enquiries:

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 2013

                                                          6 months to         6 months to            Year to
                                                             31.12.13            31.12.12           30.06.13
                                                                  GBP                 GBP                GBP
                                                                                            
 Turnover                                                   4,717,354           3,783,107          7,909,194
                                                                                            
 Cost of sales                                             (1,930,610)         (1,823,249)        (3,648,905)
                                                            ------------------------------------------------
                                
 Gross profit                                               2,786,744           1,959,858          4,260,289
                                                                                            
 Distribution costs                                        (2,370,922)         (1,719,210)        (3,862,146)
                                                                                            
 Administrative expenses                                     (392,130)           (189,048)          (585,537)
                                                            ------------------------------------------------
                                
                                                               23,692              51,600           (187,394)
                                                                                            
 Other operating income                                        51,274              50,882            101,063
                                                            ------------------------------------------------
                               
 Operating profit / (loss)                                     74,966             102,482            (86,331)
                                                                                            
 Interest receivable and similar income                            40                   4                 72
                                                            ------------------------------------------------
                               
                                                               75,006             102,486            (86,331)
                                                                                                 
 Interest payable and similar charges                           (750)             (56,290)           (64,641)
                                                            ------------------------------------------------
                                
 Profit / (Loss) on ordinary activities before                74,256              46,196            (150,900)
 taxation
                                                                                            
 Tax on profit / loss on ordinary activities                       -                   -                (740)
                                                            ------------------------------------------------
                                
 Profit / (Loss) on ordinary activities after                 74,256              46,196            (151,640)
 taxation                  
                                                            ------------------------------------------------

 Profit / (Loss) retained for the period                      74,256              46,196            (151,640)

 Retained deficit brought forward                         (3,508,114)         (3,356,474)         (3,356,474)

                                                           -------------------------------------------------
                                 
 Retained deficit carried forward                         (3,433,858)         (3,310,278)         (3,508,114)
    
                                                           ================================================= 
Profit / (Loss) per share                                                                  
 Basic/diluted                                              GBP 0.24            GBP 0.15           GBP (0.25)

                                                           ================================================= 
  

Continuing Operations

Turnover and operating loss derive wholly from continuing operations.

Total Recognised Gains and Losses

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 2013

                                      31.12.13                     31.12.12                    30.06.13
                                 GBP            GBP            GBP           GBP           GBP           GBP
 Fixed assets                                                                                            
                                                                                                         
 Tangible assets                                139,162                     136,281                    127,079
 Intangible assets                            2,241,095                   2,059,145                  1,992,106
 Fixed asset investment                         260,759                     260,759                    260,759
                                ------------------------------------------------------------------------------

                                              2,641,016                   2,456,185                  2,379,944
                                                                                                         
 Current assets                                                                                          
                                                                                                         
 Stock                           521,530                       457,585                     492,627       
 Debtors                         260,723                       496,390                     475,273       
 Cash at bank and in hand        365,211                       417,516                     408,522       
                               -------------------------------------------------------------------------------   
                               1,147,464                     1,371,491                   1,376,422     
                                                                                                         
 Creditors: amounts falling                                                                              
 due within one year                                                                       
                              (1,355,128)                   (1,410,744)                 (1,587,270)
                               -------------------------------------------------------------------------------                                                                          
 Net current assets /                         (207,664)                    (39,253)                   (210,848)
 (liabilities)
                               -------------------------------------------------------------------------------                                                                          
 Total assets less current                                                                               
 liabilities                                 2,433,352                   2,416,932                   2,169,096
                                                                                                         
 Creditors: amounts falling                                                                              
 due after more than one year                                                                            
                                            (2,461,000)                 (2,581,000)                 (2,531,000)
                               ===============================================================================        
 Total assets less total                                                                                 
 liabilities                                  (27,648)                    (164,068)                   (361,904)

                               ===============================================================================
 
 Capital and reserves                                                                                    
                                                                                                         
 Called up share capital                       62,396                       61,450                      61,450
 Share premium                              3,328,604                    3,069,550                   3,069,550
 Other reserves                                15,210                       15,210                      15,210
 Profit and loss account                   (3,433,858)                  (3,310,278)                 (3,508,114)
                               -------------------------------------------------------------------------------                                                                          
 Shareholders' funds                          (27,648)                    (164,068)                   (361,904)

                               ===============================================================================


Group cash flow statement
for the six month period ended 31 December 2013

                                                        6 months to         6 months to            Year to
                                                           31.12.13            31.12.12           30.06.13
                                                                GBP                 GBP                GBP
                                                                                            
                                                                                          
 Net cash inflow from operating activities                 100,686               10,847            130,944
                                                                                           
 Returns on investments and servicing of finance              (710)            (188,824)          (188,757)
                                                                                           
 Taxation                                                        -                    -                  -
                                                                                           
 Capital expenditure and  financial investment            (333,287)              (3,287)           (27,435)
                                                          ------------------------------------------------
                                 
                                                          (233,311)            (181,264)           (85,248)
                                                                                           
 Financing                                                 190,000              483,790            378,779
                                                          ------------------------------------------------
                                 
 (Decrease) / Increase  in cash in the period              (43,311)             302,526            293,531

                                                          ================================================


Notes to interim group results
for the six month period ended 31 December 2013


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's Hearing Health & Mobility Limited  and
        Owen  Hearing  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  2013  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 31,423,188 (31.12.12 - 30,977,659) and the  profit
        after tax was GBP 74,256 (6 month period to 31.12.12 - GBP 46,196).
        
        



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