Financial Highlights

Financial Highlights

Operational Highlights

  1. Revenue growth supported by Lightronics and Famostar
  2. Improved second half performance of Thorlux
  3. Operating result supported by sale of Portsmouth property
  4. Continued investment in the Group – Thorlux factory equipment investments, Lightronics and TRT facilities

Investment Case

01A well positioned portfolio of companies over seven different countries

02Innovative products with market-leading technology

03Strong profit margins and robust balance sheet

Operational Performance

Operational Performance

Overview

FW Thorpe Plc encompasses individual companies that concentrate on particular market sectors and geographical locations. The companies provide the Group with diversity as well as risk mitigation by not directly competing and by being complementary.

The companies within the Group can be affected differently by trends and economic impacts within their respective markets. The continuing development and market adoption of LED and lighting controls technology means that Group companies can share the benefits of product and technical expertise to differentiate themselves from competitors.

Group performance was below the best-ever results of last year, although this year’s results are supported by the first full-year inclusion of Famostar following its acquisition in December 2017. During the year, the Group has been impacted by economic and political uncertainty and has taken the decision to carry additional stock of certain components in case of disruption from a disorderly exit from the European Union.

Continued new product introductions, investment in manufacturing facilities, and sales into new markets have helped the Group deliver results ahead of those of its peers in the lighting market. The business continues to be underpinned by the development of market-leading lighting equipment and the delivery of excellent customer service.

Click onTouch the chart for further information on each company.

Thorlux Lighting

Revenue £65.9m, -4% (2018:-1%)

The 2018/19 financial year has been a “game of two halves”, with revenue and operating profit improving in the second half, but not enough to match the results of last year. Coupled with significantly reduced demand in the first quarter of the year, additional costs were incurred to meet a sudden and sustained increase in demand over a number of months. There were also additional costs for closing the Portsmouth factory, which weighed heavily on the result. Order income finished strongly, ending marginally ahead of that of the prior year – a great turnaround, providing a healthy order book with which to commence the new financial year.

Philip Payne

Revenue £3.4m, +2% (2018:+11%)

The architect’s choice, Philip Payne, delivered yet another set of positive results, with both revenue and operating profit increasing again this year. Providing modified standard products for a discerning client base continues to be a key to ongoing success.

Solite

Revenue £3.4m, -5% (2018:+3%)

Following three solid years of growth, Solite has taken a small step backwards this year. Solite is very much a project-orientated business, servicing the pharmaceutical and healthcare sectors in the main. In a similar way to Thorlux, Solite has seen some positive momentum in the second half of the year, with total order income for the year finishing ahead of that for last year; this gives some optimism for the year ahead.

Portland Lighting

Revenue £3.0m, –10% (2018:-4%)

Whilst Portland’s return-on-sales ratio remains the best in the Group, revenues have declined for another year. This can partially be explained by the dependence on the high street retail sector a sector which seems to have been subject to a much-publicised decline over the last few years.

TRT Lighting

Revenue £8.5m, -1% (2018:-2%)

Revenue slipped slightly again this year, but operating profit certainly did not, improving over 100% from a difficult 2017/18. This has been achieved by improving operational efficiency in the final assembly of products, in the main, but also with a renewed focus on material costs.

Lightronics

Revenue £23.5m, +12% (2018:+8%) (constant currency +12% (2018:+7%))

Lightronics delivered another good set of results, with orders, revenue and operating profit increasing again this year. Growth has been supported by street lighting this year, as it was last year. Major projects included various city projects in the Netherlands and Germany.

Famostar

Revenue £7.9m, +13% (versus equivalent 12 months)

This is the first full year inclusion of the Famostar business following its introduction in the second half of 2017/18. The Group acquired the business in December 2017, with the support of the management at Lightronics, as a specialist in emergency lighting for a range of market sectors.

Back to Overview

Our Marketplace

Across the Group we work in a number of different sectors and various geographical territories. This diversified market ensures we have mitigation against any sudden fluctuations in a particular sector or region. Below is an outline of some of the overarching trends that affect us as a Group.

UK

Revenue

-3%

  • Weakened demand in
    some traditional sectors.
    Increased business from
    healthcare and logistics

Netherlands

Revenue

+24%

  • Increased percentage driven
    by full year of Famostar and growth at Lightronics

Rest of Europe

Revenue

+4%

  • Additional business in
    Norway, France, Germany

Rest of the World

Revenue

-54%

  • Caused by lack of demand in Australia and the UAE
  • Lower level of project activity

Chairman's Statement

Overall, Management are pleased with the recovery and satisfied that, to the best of our judgement, the Group has gained market share in tough trading conditions.

Financial Performance

Underlying operating profit was dampened by a number of issues in 2019. This was partially offset with improvements at Lightronics and TRT.

Queen's Awards 2019 Winner

We are delighted to announce that the Prime Minister and Her Majesty the Queen have selected Thorlux Lighting as a winner of the Queen’s Award for Enterprise in the Innovation category. This prestigious accolade is for the development of the SmartScan wireless lighting management system.

Product Innovation: Flex System

LED technology affords fresh thinking when it comes to luminaire design

In 2019, Thorlux launched the revolutionary Flex System range. Flex System provides a radical solution for suspended ceiling systems and comprises two luminaire types, Flexline and Flexview.

Product Innovation: Optio

During the product development stage, there were four key elements of focus

Optio is the new residential street lighting range from TRT, which has been developed through gathering feedback from customers and listening to the daily challenges they face.

Investing in a greener future

The system is estimated to produce 224,470 kWh of electricity per annum

Thorlux manufactures over 400,000 luminaires per annum at its modern self-contained factory in Redditch, Worcestershire, UK. Energy-intensive processes, such as sheet metal punching, laser cutting and forming, powder coating and assembling LED printed circuit boards, take place in the factory.

On the Road with the SmartScan Van

10

Countries visited

23,721

Miles travelled

138

SmartScan Demos Completed

In the summer of 2018, Thorlux invested in a custom-made SmartScan demonstration van. The vehicle is fitted out with the latest SmartScan technology and product innovations and travels throughout the UK and mainland Europe visiting potential and existing customers.