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.