Dewhurst plc, an independent supplier of quality components to the lift, keypad and transport industries, is pleased to provide a trading update for the financial year ending 30 September 2016.
The recovery reported at the interim stage has continued through the third quarter and into the fourth to date. Seasonal effects mean that the Company's second half is traditionally stronger than the first half, but the effect is expected to be greater than usual this year.
The UK vote to leave the EU had an immediate effect on the value of the pound. A significant proportion of the Company's sales and earnings are generated in foreign currencies. With the fall in the pound these sales and earnings are worth more to us. If currencies remain broadly at today's level through to the end of September, it will benefit our reported sales and profits for the year, compared to expectations at the half year.
The recent EU Referendum decision has not yet affected Dewhurst's underlying level of business. There have been reports in the media of cancellations and deferrals in commercial property transactions. However, whilst the decision has generated a period of uncertainty, it is too early to speculate what impact, if any, there will be on Dewhurst.
The combined effects of these factors mean that the Board now anticipate full year profits will be significantly higher than current market expectations.
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.
This information is provided by RNS