FW Thorpe Revenue Dips, Profit Rises

FW Thorpe Plc (LON: TFW), a professional lighting systems group, announced its results for the year ended June 30, 2025, revealing a slight revenue decrease offset by improved profitability and a boosted dividend.

Revenue marginally declined by 0.3% to £175.2m, compared to £175.8m in the previous year. However, operating profit before acquisition adjustments rose by 1.7% to £32.9m. Profit before tax saw more substantial growth, increasing by 5.9% to £31.6m. Basic earnings per share also improved, climbing 4.6% to 21.69p.

The company declared a total interim and final dividend of 7.12p per share, a 5.0% increase from the 6.78p paid in 2024. The final dividend specifically increased by 5.5% to 5.36p.

This return of value to shareholders underscores management's confidence despite the challenging revenue environment.

Share buybacks were also conducted, and with cash reserves, including short-term financial assets, rising to £61.8m (2024: £52.9m) at the end of the financial year, further buybacks are expected.

Driver Breakdown:

• Thorlux and Zemper Strength: Standout performances from Thorlux in the UK and Zemper in Spain and Belgium drove profitability.
• Cost Management: Material cost reductions and controlled administrative expenses contributed to improved profit margins.
• Dividend Boost: Increased final dividend reflects confidence in underlying business despite revenue pressures.

Chairman Mike Allcock noted the variable market conditions, stating, “The overall undertone is one of conditions becoming harder, requiring Group companies to be ready to adapt as required by their individual circumstances.”

He also highlighted the importance of innovation, with new Group-wide teamwork supporting this strategy. Allcock further stated that the Board supports continued investment in R&D to make products as attractive as possible to potential customers compared with foreign-made equipment.

Net cash generated from operating activities was £33.2m (2024: £41.4m), with the prior year benefiting from a £7.4m working capital benefit that did not repeat. Despite this, healthy cash reserves provide flexibility for strategic acquisitions, though opportunities investigated during the year were deemed unsuitable.