DHAIS PLC
Interim results for the six month period ended 31 December 2016
Chairman's statement
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.
As announced in November 2016 when we released our final results as part of the Group's strategy to increase its hearing aid business whilst consolidating its mobility operations, the Group has exited various stores which were either not suitable or viable. This strategy was continued in the 6 months to 31 December 2016. The reduction of 5 stores comparing the last 6 months to 31 December 2016 to the 6 month period to 31 December 2015 has been the main reason for a decline in turnover in these interim results. Hearing aid turnover has remained constant.
Overall the results for the 6 month period to 31 December 2016 show a decrease in Group turnover of 18% to GBP 4,160,023 with an operating profit of GBP 16,422 compared to turnover of GBP 5,067,173 for the equivalent 6 month period to 31 December 2015 in which we made an operating loss of GBP 34,414.
The directors of the Group are continuing to review 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.
Where possible, stores have been disposed of to local Mobility operators whilst retaining the use of the Hearing Aid test facilities within those and other nearby Mobility stores.
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 remaining 7 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 to be in the 'right market space'. The drive to boost the Hearing division follows recognition of the difficulties embedded in operating profitably our Mobility division in which stores can be 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. As required by Financial Reporting requirements in the UK, a notional interest charge has to be included in the profit and loss account as shown in the accounts below.
Outlook
The Group is amongst the leaders in its sectors and its services are continually improving within the growing demographics of the country. The prospects for business growth are good. 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
31 March 2017
The Directors of the Issuer accept responsibility for this announcement.
Enquiries:
Amin Kiddy
Director, DHAIS Plc
Tel: +44 (0) 2920 666888
Jon Isaacs
NEX Exchange Corporate Advisor
Alfred Henry Corporate Finance Limited
www.alfredhenry.com
Tel: +44 (0) 20 7251 3762
Consolidated group profit and loss account
for the six month period ended 31 December 2016
| 6 months to 31.12.16 | 6 months to 31.12.15 | Year to 30.06.16 | |
| GBP | GBP | GBP | |
| Turnover | 4,160,023 | 5,067,173 | 9,857,765 |
| Cost of sales | (1,945,334) | (2,495,155) | (4,178,301) |
| Gross profit | 2,214,689 | 2,572,018 | 5,679,464 |
| Operating expenses | (2,242,525) | (2,678,803) | (6,054,964) |
| Other operating income | (27,836) 44,258 | (106,785) 72,371 | (375,500) 177,895 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) Depreciation and amortisation (Loss) / profit on disposal of fixed assets | 143,063 (93,819) (32,822) | (6,408) (97,992) 69,986 | 93,433 (341,920) 50,882 |
| Operating profit / (loss) | 16,422 | (34,414) | (197,605) |
| Interest payable and similar charges | (46,946) | (51,332) | (97,213) |
| Loss on ordinary activities before taxation | (30,524) | (85,746) | (294,817) |
| Tax on loss on ordinary activities | - | - | - |
| Loss on ordinary activities after taxation | (30,524) | (85,746) | (294,817) |
| Loss per share Basic/diluted | GBP (0.10) | GBP (0.27) | GBP (0.47) |
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 2016
| 31.12.16 | 31.12.15 | 30.06.16 | ||||
| GBP | GBP | GBP | GBP | GBP | GBP | |
| Fixed assets | ||||||
| Tangible assets | 92,109 | 193,826 | 139,822 | |||
| Intangible assets | 1,849,208 | 2,191,679 | 1,968,494 | |||
| 1,941,317 | 2,385,505 | 2,108,316 | ||||
| Current assets | ||||||
| Stock | 403,752 | 607,587 | 455,842 | |||
| Debtors | 480,019 | 452,601 | 830,435 | |||
| Cash at bank and in hand | 29,232 | 69,311 | 215,592 | |||
| 913,003 | 1,129,499 | 1,501,869 | ||||
| Creditors: amounts falling due within one year | (1,313,437) | (1,700,547) | (2,010,727) | |||
| Net current liabilities | (400,434) | (571,048) | (508,858) | |||
| Total assets less current liabilities | 1,540,883 | 1,814,457 | 1,599,458 | |||
| Creditors: amounts falling due after more than one year | | (1,345,128) | | (1,364,587) | (1,373,180) | |
| Total assets less total liabilities | 195,755 | 449,870 | 226,278 | |||
| Capital and reserves | ||||||
| Called up share capital Share premium | 62,396 3,328,604 | 62,396 3,328,604 | 62,396 3,328,604 | |||
| Other reserves | 15,210 | 15,210 | 15,210 | |||
| Profit and loss account | (3,210,455) | (2,956,340) | (3,179,932) | |||
| Shareholders' funds | 195,755 | 449,870 | 226,278 | |||
Group cash flow statement
for the six month period ended 31 December 2016
| 6 months to 31.12.16 | 6 months to 31.12.15 | Year to 30.06.16 | |
| GBP | GBP | GBP | |
| Net cash (outflow) / inflow from operating activities | (152,082) | 56,654 | 32,621 |
| Net cash from investing activities | 65,722 | 90,995 | 84,542 |
| (86,360) | 147,649 | 117,163 | |
| Net cash used in financing activities | (100,000) | (174,985) | (176,510) |
| Decrease in cash in the period | (186,360) | (27,336) | (59,347) |
Notes to interim group results
for the six month period ended 31 December 2016
- These financial statements have been prepared on a going concern basis, under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
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 (31.12.15 - 31,454,271) and the loss after tax was GBP (30,524) (6 month period to 31.12.15 - GBP loss 85,746).
- The financial information set out above, which has not been audited, 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 2016 prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006, upon which the auditors gave an unqualified opinion, have been delivered to the Registrar of Companies.
