DHAIS plc
LSE : DHAP

March 29, 2016 06:41 ET

Interim results for the six month period ended 31 December 2015

DHAIS PLC

Interim results for the six month period ended 31 December 2015


Chairman's statement

The  results  for the 6 month period to 31 December 2015 show a decrease in Group turnover of  1.2%  to  GBP
5,067,173  with an operating loss of GBP 104,400 compared to turnover of GBP 5,129,585 for the equivalent  6
month period to 31 December 2014 in which we made an operating profit of GBP 74,649.

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 based in Cardiff.

The  reason  for  the  loss for the 6 month period to 31 December 2015 was largely due to  the  decrease  in
turnover  and increased operational costs in the Mobility division of the Group.  As a result, the directors
of  the  Group are reviewing options for the Mobility division and focusing on the expansion of the  Hearing
Aid  division, which continues to offer significant growth and profit potential. The advertising  activities
of the Group are being varied accordingly.

As  part of the above strategy, the Group disposed of its Swindon store in December 2015 to a local Mobility
operator and has retained the use of the Hearing Aid test facilities within that and other nearby stores  of
that Mobility operator.

Generally,  and as before, sales and services are provided inside stores and in customers' own homes.   Both
routes  to  market  are  as  important as each other, to us and to our  customers.   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 Directors of the Group are content that we are in the 'right market space' and 'at the right time'.  The
emphasis  to  boost  the  Hearing  division follows recognition of the difficulties  embedded  in  operating
profitably our Mobility division in which some of the stores are spread far apart thus not benefitting  from
the cluster advantage enjoyed by some of our Mobility competitors.

The  Group's mission continues to be to have the best products, the best service, the best marketing and the
best staff, both customer facing and back office.

The Group's activities are principally funded by an interest free loan from a hearing aid manufacturer.  Due
to  changes in certain Financial Reporting requirements in the UK, some adjustments have had to be  made  to
now  include a notional interest charge in the profit and loss account and restate prior period  profit  and
loss accounts and balance sheets, as shown in the accounts below.
        
Outlook
        
The  group  is  amongst  the leaders in its sectors and its range of products and  services  is  continually
improving  within  the  growing  demographics  of  the country.   The  prospects  for  business  growth  are
substantial.  The future strategy is to build on the Group's business model of advertising, retail sales  of
hearing aids in store and in customers' homes and to maximise the return from the mobility division.


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

29 March 2016

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 2015

                                                          6 months to         6 months to            Year to
                                                             31.12.15            31.12.14           30.06.15
                                                                  GBP                 GBP                GBP
                                                                                            
 Turnover                                                   5,067,173           5,129,585         10,578,102
                                                                                            
 Cost of sales                                             (2,495,155)         (2,546,533)        (4,682,154)
                                                            ---------           ---------          --------- 
 Gross profit                                               2,572,018           2,583,052          5,895,948
                                                                                            
 Operating expenses                                        (2,748,789)         (2,595,445)        (6,124,173)
                                                            ---------           ---------          ---------
                                                             (176,771)            (12,393)          (228,225)
                                                                                           
 Other operating income                                        72,371              87,042            146,650
                                                                                           
 -----------------------------------------------------------------------------------------------------------
                                                                                          
 Earnings before interest, tax,  depreciation and              (6,408)            180,274            195,457
 amortisation (EBITDA) 
                                                                                             
 Depreciation and amortisation                                (97,992)           (105,625)          (277,032)
 -----------------------------------------------------------------------------------------------------------
                                                                                            
 Operating (loss) / profit                                   (104,400)             74,649            (81,575)

 Profit on sale of store                                       69,986                   -                  -
                                                                                            
 Interest payable and similar charges                         (51,332)            (53,362)          (105,224)
                                                            ---------           ---------          ---------
                                                                                           
 (Loss)/Profit on ordinary activities before                  (85,746)             21,287           (186,799)
 taxation                                                               
                                                                                             
 Tax on profit on ordinary activities                               -                   -                  -
                                                            ---------           ---------          ---------
                                
 (Loss)/Profit on ordinary activities after                   (85,746)             21,287           (186,799)
 taxation                                                   =========           =========          =========
                                                                                       
 Loss per share  
 Basic/diluted                                              GBP (0.27)           GBP 0.07          GBP (0.30)
                                                            =========           =========          =========

STATEMENT OF COMPREHENSIVE INCOME

The  group  has  no  comprehensive income other than the profits or losses above and therefore  no  separate
Statement of Comprehensive Income has been presented.


Group balance sheet
As at 31 December 2015

                                               31.12.15                   31.12.14                   30.06.15
                                          GBP            GBP         GBP           GBP           GBP           GBP
 Fixed assets                                                                                            
                                                                                                         
 Tangible assets                                     193,826                   196,363                     204,673
 Intangible assets                                 2,191,679                 2,111,909                   2,260,937
 Fixed asset investment                                    -                   260,759                           -
                                                   ---------                 ---------                   ---------
                                                   2,385,505                 2,569,031                   2,465,610
                                                                                                         
 Current assets                                                                                          
                                                                                                           
 Stock                                607,587                   666,400                      649,463       
 Debtors                              452,601                   403,223                      884,096       
 Cash at bank and in hand              69,311                   289,553                      274,939       
                                    ---------                 ---------                    ---------
                                    1,129,499                 1,359,176                    1,808,498
  
 Creditors: amounts falling                                                                              
 due within one year               (1,700,547)               (1,571,696)                  (2,250,237)
                                    ---------                 ---------                    ---------               
 Net current liabilities                           (571,048)                 (212,520)                   (441,739)
                                                   ---------                ---------                   --------- 
 Total assets less current                                                                               
 liabilities                                      1,814,457                 2,356,511                   2,023,871
                                                                                                         
 Creditors: amounts falling                                                                              
 due after more than one year                    (1,364,587)               (1,612,809)                 (1,488,255)
                                                  ---------                 ---------                   ---------
 Total assets less total                                                                                 
 liabilities                                        449,870                   743,702                     535,616
                                                  =========                 =========                   =========
                                                                                                
 Capital and reserves                                                                                    
                                                                                                         
 Called up share capital                             62,396                    62,396                      62,396
 Share premium                                    3,328,604                 3,328,604                   3,328,604
 Other reserves                                      15,210                    15,210                      15,210
 Profit and loss account                         (2,956,340)               (2,662,508)                 (2,870,594)
                                                  ---------                 ---------                   ---------
 Shareholders' funds                                449,870                   743,702                     535,616
                                                  =========                 =========                   =========


Group cash flow statement
for the six month period ended 31 December 2015

                                                        6 months to         6 months to            Year to
                                                           31.12.15            31.12.14           30.06.15
                                                                GBP                 GBP                GBP
                                                                                            
                                                                                          
 Net cash (outflow) / inflow from operating                (118,507)            151,654            281,814
 activities
                                                                                               
  Net cash from / (used in) investing activities             87,876              (4,005)          (147,362)
                                                          ---------           ---------          ---------
                                                            (30,631)            147,649            134,452
                                                                                           
 Net cash used in financing activities                     (175,000)           (174,985)          (176,400)
                                                          ---------           ---------          ---------
 Decrease  in cash in the period                           (205,631)            (27,336)           (41,948)
                                                          =========           =========          =========

Notes to interim group results
for the six month period ended 31 December 2015

1.      This  is  the first period in which the financial statements have been prepared under FRS  102.  The
        date of transition to FRS102 was 1 July 2014. Set out below is the change in accounting policy which
        reconciles the loss for the financial year ended 30 June 2015 and for the financial period ended 31 December
        2014 and total equity as at the 1 July 2014, 31 December 2014 and 30 June 2015 between UK GAAP as previously
        reported and FRS 102.
            
        
        Financial liabilities
        
        The  loan  from a hearing aid manufacturer is now held in the respective balance sheets  at  present
        value, discounted at a market rate of interest.
        
        
        Restated balance sheets
                                                      31. 12. 14          30. 06. 15           01. 07. 14
                                                                                                         
        Original Shareholders' funds                     134,017            (23,623)               59,353
                                                                                                         
        Loan at fair value adjustment                    609,685             559,239              663,062
                                                                                                         
        Restated shareholders' funds                     743,702             535,616              722,415
        


        Restated profit or loss
                                                                         6 months to              Year to
                                                                          31. 12. 14           30. 06. 15
                                                                                                         
        Original profit / (loss)                                              74,664             (82,976)
                                                                                                         
        Interest charge on loan adjustment                                  (53,377)            (103,823)
                                                                                                         
        Restated profit / (loss)                                              21,287            (186,799)

        

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 31,454,271 (31.12.14 - 31,454,271)  and  the  loss
        after tax was GBP (85,746) (6 month period to 31.12.14 - GBP profit 21,287).
        
3.      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 unaudited
        management accounts of DHAIS plc and its subsidiary company Hearing Health & Mobility Limited and is
        prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting
        Standard 102 - "The Financial Reporting Standard applicable in the United Kingdom and the Republic of
        Ireland" ("FRS 102"). Statutory accounts for the year ended 30 June 2015 prepared under previous UK GAAP,
        upon which the auditors gave an unqualified opinion, have been delivered to the Registrar of Companies. The
        adjustments made to comply with FRS102 have not been audited.
        
        



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