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DJ DHAIS plc Dhais Plc: Final Results For The Year Ended 30 June 2016

 
TIDMDHAP 
 
 
   DHAIS Plc ("DHAIS" or the "Company") 
 
   Final Results for the year ended 30 June 2016 
 
   Chairman's statement 
 
   I am pleased to report on our fifteenth year of trading and our eighth 
year as an ISDX Growth Market listed company. 
 
   The results for the 12 month period to 30 June 2016 show a decrease in 
Group turnover of 7% to GBP 9,857,765 with an operating loss of GBP 
197,605 compared to turnover of GBP 10,578,102 for the equivalent 12 
month period to 30 June 2015 in which we made an operating loss of GBP 
85,157. 
 
   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 12 month period to 30 June 2016 was 
largely due to the decrease in turnover and realignment costs in the 
Mobility division of the Group.  As part of the current strategy, 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. 
 
   At the EBITDA level the Group continued to be cash generative to the 
extent of GBP 93k in the year to 30 June 2016. 
 
   In line with the above strategy, during the year to 30 June 2016 the 
Group disposed of its Swindon and Staines stores to local Mobility 
operators whilst retaining the use of the Hearing Aid test facilities 
within the stores. Two other stores were closed and the respective 
leases surrendered where such transfer opportunities were not available. 
The Sidmouth store has been transferred to a local Mobility operator 
after the year end and the Hearing Aid test facilities retained, the 10 
remaining stores are in manageable clusters. 
 
   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 sector 
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. 
 
   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 
 
   Chairman 
 
   30 November 2016 
 
   Enquiries: 
 
 
 
 
DHAIS Plc 
 Amin Kiddy, Finance Director         029 2066 6888 
ISDX Growth Market Advisor: 
 Alfred Henry Corporate Finance Ltd 
 www.alfredhenry.com 
 Jon Isaacs/Nick Michaels             020 7251 3762 
 
 
   The Directors accept responsibility for this announcement. 
 
   Statutory Information 
 
   The financial information set out below does not constitute the Group's 
statutory accounts for the year ended 30 June 2016 but is derived from 
those accounts. 
 
   The financial information has been extracted from the statutory accounts 
of DHAIS Plc and is presented using the same accounting policies, which 
have not yet been filed with the Registrar of companies, but on which 
the auditors, PricewaterhouseCoopers LLP, gave an unqualified report on 
30 November 2016. 
 
   The Annual Report of DHAIS Plc for year ended 30 June 2016 is available 
upon request from the Company's registered office at 61 Cowbridge Road 
East, Cardiff, CF11 9AE. 
 
   Consolidated Profit and Loss Account 
 
   for the Year Ended 30 June 2016 
 
 
 
 
                                              30.6.16                   30.6.15 
                                          GBP          GBP          GBP          GBP 
 
TURNOVER                                             9,857,765                10,578,102 
Cost of sales                                      (4,178,301)               (4,682,154) 
GROSS PROFIT                                         5,679,464                 5,895,948 
 
Distribution costs                    (4,717,545)               (4,967,969) 
Administrative expenses               (1,337,419)               (1,159,786) 
                                                   (6,054,964)               (6,127,755) 
 
                                                     (375,500)                 (231,807) 
Other operating income                                 177,895                   146,650 
 
OPERATING LOSS                                       (197,605)                  (85,157) 
 
Interest payable and similar charges                  (97,213)                 (101,073) 
 
LOSS ON ORDINARY ACTIVITIES BEFORE 
 TAXATION                                            (294,817)                 (186,230) 
 
Tax on loss on ordinary activities                           -                         - 
 
LOSS FOR THE FINANCIAL YEAR                          (294,817)                 (186,230) 
 
 
Loss attributable to: Owners of the 
 parent                                              (294,817)                 (186,230) 
 
Earnings per share expressed in 
pence per share: 
Basic                                                    -0.47                     -0.30 
Diluted                                                  -0.47                     -0.30 
 
 
   Consolidated Balance Sheet as at 
 
   30 June 2016 
 
 
 
 
                                30.6.16                   30.6.15 
                            GBP          GBP          GBP          GBP 
 
FIXED ASSETS 
Intangible assets                      1,968,494                 2,260,937 
Tangible assets                          139,822                   204,673 
 
                                       2,108,316                 2,465,610 
 
CURRENT ASSETS 
Stocks                      455,842                   649,463 
Debtors                     830,435                   884,096 
Cash at bank and in 
 hand                       215,592                   274,939 
 
                          1,501,869                 1,808,498 
 
CREDITORS 
Amounts falling due 
 within one year        (2,010,727)               (2,275,536) 
NET CURRENT 
 LIABILITIES                           (508,858)                 (467,038) 
 
TOTAL ASSETS LESS 
 CURRENT LIABILITIES                   1,599,458                 1,998,572 
 
CREDITORS 
Amounts falling due 
 after more than one 
 year                                (1,373,180)               (1,477,477) 
 
NET ASSETS                               226,278                   521,095 
 
 
CAPITAL AND RESERVES 
Called up share 
 capital                                  62,396                    62,396 
Share premium                          3,328,604                 3,328,604 
Capital redemption 
 reserve                                   4,000                     4,000 
Other reserves                            11,210                    11,210 
Retained earnings                    (3,179,932)               (2,885,115) 
 
SHAREHOLDERS' FUNDS                      226,278                   521,095 
 
   Consolidated Cash Flow Statement 
 
   for the year ended 30 June 2016 
 
 
 
 
                                                   30.6.16   30.6.15 
                                                       GBP     GBP 
 
Cash flows from operating activities 
 
Cash generated from operations                      32,621    281,812 
 
Net cash from operating activities                  32,621    281,812 
 
 
Cash flows from investing activities 
Purchase of tangible fixed assets                 (29,515)  (147,362) 
Sale of intangible fixed assets                     89,057          - 
Sale of tangible fixed assets                       25,000          - 
 
Net cash from investing activities                  84,542  (147,362) 
 
 
Cash flows from financing activities 
Loan repayments in year                          (175,000)  (175,000) 
Interest paid                                      (1,510)    (1,400) 
 
Net cash from financing activities               (176,510)  (176,400) 
 
Decrease in cash and cash equivalents             (59,347)   (41,950) 
Cash and cash equivalents at beginning of year     274,939    316,889 
 
Cash and cash equivalents at end of year           215,592    274,939 
 
 
 
   Notes to the Consolidated Financial Statements 
 
   for the year ended 30 June 2016 
 
   1.       ACCOUNTING POLICIES 
 
   1     General information 
 
   Dhais plc and its subsidiary company's activities comprise a marketing 
lead generating business and the sale of hearing aids and mobility 
products. 
 
   The company is a public company limited by shares and is incorporated in 
the United Kingdom.  The address of its registered office is 61 
Cowbridge Road East, Cardiff, CF11 9AE. 
 

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DJ DHAIS plc Dhais Plc: Final Results For The Year -2-

   2.1 Basis of preparation of financial statements 
 
   The group and company's 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. 
 
   2.2     Basis of consolidation 
 
   The Group consolidated financial statements include the financial 
statements of the company and all of its subsidiary undertakings made up 
to 30 June 2016. 
 
   A subsidiary is an entity controlled by the Group. Control is the power 
to govern the financial and operating policies of an entity so as to 
obtain benefits from its activities. 
 
   All intra-Group transactions, balances, income and expenses are 
eliminated on consolidation. 
 
   2.3     Business combinations and goodwill 
 
   Business combinations are accounted for by applying the purchase method. 
 
   The cost of a business combination is the fair value of the 
consideration given, liabilities incurred or assumed and of equity 
instruments issued plus the costs directly attributable to the business 
combination. Where control is achieved in stages the cost is the 
consideration at the date of each transaction 
 
   On acquisition of a business, fair values are attributed to the 
identifiable assets, liabilities and contingent liabilities unless the 
fair value cannot be measured reliably, in which case the value is 
incorporated in goodwill. Where the fair value of contingent liabilities 
cannot be reliably measured they are disclosed on the same basis as 
other contingent liabilities. 
 
   Goodwill recognised represents the excess of the fair value and directly 
attributable costs of the purchase consideration over the fair values of 
the Group's interest in the identifiable net assets, liabilities and 
contingent liabilities acquired. 
 
   Goodwill is amortised over its expected useful life.  The Group is able 
to make a reliable estimate of useful life and goodwill is amortised 
over a period of 20 years. 
 
   An associate is an entity, being neither a subsidiary nor a joint 
venture in which the group holds a long term interest and where the 
group has significant influence.  The group considers that it has 
significant influence where it has the power to participate in the 
financial and operating decisions of the associate.  The results of 
associates are accounted for using the equity method of accounting. 
 
   The group has elected not to apply section 19 of FRS102 to business 
combinations occurring before the date of transition. 
 
   2.4    Revenue 
 
   Revenue is recognised to the extent that it is probable that the 
economic benefits will flow to the Group and the revenue can be reliably 
measured. Revenue is measured as the fair value of the consideration 
received or receivable, excluding discounts, rebates, value added tax 
and other sales taxes. The following criteria must also be met before 
revenue is recognised: 
 
   Revenue from the sale of goods is recognised when all of the following 
conditions are satisfied: 
 
 
   -- the Group has transferred the significant risks and rewards of ownership 
      to the buyer; 
 
   -- the Group retains neither continuing managerial involvement to the degree 
      usually associated with ownership nor effective control over the goods 
      sold; 
 
   -- the amount of revenue can be measured reliably; 
 
   -- it is probable that the Group will receive the consideration due under 
      the transaction; 
 
   -- the costs incurred or to be incurred in respect of the transaction can be 
      measured reliably. 
 
 
   On the sale of mobility products, revenues are recognised when goods 
have been sold over the counter or delivered to the customer.  Income on 
the sale of hearing aids is accounted for when the hearing aids have 
been fitted.  Income arising on marketing leads is accounted for on 
delivery of service. 
 
   2.5 Tangible assets 
 
   Tangible assets under the cost model are stated at historical cost less 
accumulated depreciation and any accumulated impairment losses. 
Historical cost includes expenditure that is directly attributable to 
bringing the asset to the location and condition necessary for it to be 
capable of operating in the manner intended by management. 
 
   The Group adds to the carrying amount of an item of fixed assets the 
cost of replacing part of such an item when that cost is incurred, if 
the replacement part is expected to provide incremental future benefits 
to the Group. The carrying amount of the replaced part is derecognised. 
Repairs and maintenance are charged to profit or loss during the period 
in which they are incurred. 
 
   Depreciation is charged so as to allocate the cost of assets less their 
residual value over their estimated useful lives, using the 
straight-line method. 
 
   The estimated useful lives range as follows: 
 
   Fixtures and fittings          25% 
 
   Motor vehicles                  25% 
 
   Office equipment              25% 
 
   The assets' residual values, useful lives and depreciation methods are 
reviewed, and adjusted prospectively if appropriate, or if there is an 
indication of a significant change since the last reporting date. 
 
   Gains and losses on disposals are determined by comparing the proceeds 
with the carrying amount and are recognised within the consolidated 
income statement. 
 
   2.6      Operating leases 
 
   Rentals paid under operating leases are charged to the consolidated 
income statement on a straight line basis over the period of the lease. 
 
   2.7     Stocks 
 
   Stocks are stated at the lower of cost and net realisable value, being 
the estimated selling price less costs to complete and sell.  Cost is 
determined on an average cost basis. 
 
   At each balance sheet date, stocks are assessed for impairment. If stock 
is impaired, the carrying amount is reduced to its selling price less 
costs to complete and sell. The impairment loss is recognised 
immediately in the consolidated income statement. 
 
   2.8      Debtors 
 
   Short term debtors are measured at transaction price, less any 
impairment. Loans receivable are measured initially at fair value, net 
of transaction costs, and are measured subsequently at amortised cost 
using the effective interest method, less any impairment. 
 
   2.9    Cash and cash equivalents 
 
   Cash is represented by cash in hand and deposits with financial 
institutions repayable without penalty on notice of not more than 24 
hours. Cash equivalents are highly liquid investments that mature in no 
more than three months from the date of acquisition and that are readily 
convertible to known amounts of cash with 
 
   2.10    Financial instruments 
 
   The Group only enters into basic financial instruments transactions that 
result in the recognition of financial assets and liabilities like trade 
and other accounts receivable and payable, loans from banks and other 
third parties, loans to related parties and investments in non-puttable 
ordinary shares. 
 
   Debt instruments (other than those wholly repayable or receivable within 
one year), including loans and other accounts receivable and payable, 
are initially measured at present value of the future cash flows and 
subsequently at amortised cost using the effective interest method. 
 
   Debt instruments that are payable or receivable within one year, 
typically trade payables or receivables, are measured, initially and 
subsequently, at the undiscounted amount of the cash or other 
consideration, expected to be paid or received. However if the 
arrangements of a short-term instrument constitute a financing 
transaction, like the payment of a trade debt deferred beyond normal 
business terms or financed at a rate of interest that is not a market 
rate or in case of an outright short-term loan not at market rate, the 
financial asset or liability is measured, initially, at the present 
value of the future cash flow discounted at a market rate of interest 
for a similar debt instrument and subsequently at amortised cost. 
 
   Financial assets that are measured at cost and amortised cost are 
assessed at the end of each reporting period for objective evidence of 
impairment. If objective evidence of impairment is found, an impairment 
loss is recognised in the consolidated income statement. 
 
   For financial assets measured at amortised cost, the impairment loss is 
measured as the difference between an asset's carrying amount and the 
present value of estimated cash flows discounted at the asset's original 
effective interest rate. If a financial asset has a variable interest 
rate, the discount rate for measuring any impairment loss is the current 
effective interest rate determined under the contract. 
 
   Financial assets and liabilities are offset and the net amount reported 
in the Balance Sheet when there is an enforceable right to set off the 
recognised amounts and there is an intention to settle on a net basis or 
to realise the asset and settle the liability simultaneously. 
 
   2.11    Creditors 
 
   Short term creditors are measured at the transaction price. Other 
financial liabilities, including bank loans, are measured initially at 
fair value, net of transaction costs, and are measured subsequently at 
amortised cost using the effective interest method. 
 
   2.12    Foreign currency translation 
 
   Functional and presentation currency 
 
   The company's functional and presentational currency is GBP. 
 
   Transactions and balances 
 
   Foreign currency transactions are translated into the functional 
currency using the spot exchange rates at the dates of the transactions. 
At each period end foreign currency monetary items are translated using 
the closing rate. Non-monetary items measured at historical cost are 
translated using the exchange rate at the date of the transaction and 
non-monetary items measured at fair value are measured using the 
exchange rate when fair value was determined. 
 

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DJ DHAIS plc Dhais Plc: Final Results For The Year -3-

   Foreign exchange gains and losses resulting from the settlement of 
transactions and from the translation at period-end exchange rates of 
monetary assets and liabilities denominated in foreign currencies are 
recognised in the consolidated income statement except when deferred in 
other comprehensive income as qualifying cash flow hedges. 
 
   Foreign exchange gains and losses that relate to borrowings and cash and 
cash equivalents are presented in the consolidated income statement 
within 'finance income or costs'. All other foreign exchange gains and 
losses are presented in the Consolidated Income Statement. 
 
   2.13     Finance costs 
 
   Finance costs are charged to the consolidated income statement over the 
term of the debt using the effective interest method so that the amount 
charged is at a constant rate on the carrying amount. Issue costs are 
initially recognised as a reduction in the proceeds of the associated 
capital instrument. 
 
   2.14     Leased assets 
 
   Where assets are financed by leasing agreements that give rights 
approximating to ownership (finance leases), the assets are treated as 
if they had been purchased outright. The amount capitalised is the 
present value of the minimum lease payments payable over the term of the 
lease. The corresponding leasing commitments are shown as amounts 
payable to the lessor. Depreciation on the relevant assets is charged to 
profit or loss over the shorter of estimated useful economic life and 
the term of the lease. 
 
   Lease payments are analysed between capital and interest components so 
that the interest element of the payment is charged to profit or loss 
over the term of the lease and is calculated so that it represents a 
constant proportion of the balance of capital repayments outstanding. 
The capital part reduces the amounts payable to the lessor. 
 
   Lessors that do not transfer the risks and rewards of ownership  are 
classified as operating leases.  Payments under operating leases are 
charged to the consolidated statement of income on a straight line basis 
over the period of the lease. 
 
   2.15    Pensions 
 
   Defined contribution pension plan 
 
   The group operates a defined contribution plan for its employees. A 
defined contribution plan is a pension plan under which the Group pays 
fixed contributions into a separate entity. Once the contributions have 
been paid the Group has no further payments obligations. 
 
   The contributions are recognised as an expense in the consolidated 
income statement when they fall due. Amounts not paid are shown in 
accruals as a liability in the Balance Sheet. The assets of the plan are 
held separately from the Group in independently administered funds. 
 
   2.16    Borrowing costs 
 
   All borrowing costs are recognised in the consolidated income statement 
in the year in which 
 
   they are incurred. 
 
   2.17    Current and deferred taxation 
 
   The tax expense for the year comprises current and deferred tax. Tax is 
recognised in the consolidated income statement, except that a charge 
attributable to an item of income and expense recognised as other 
comprehensive income or to an item recognised directly in equity is also 
recognised in other comprehensive income or directly in equity 
respectively. 
 
   The current income tax charge is calculated on the basis of tax rates 
and laws that have been enacted or substantively enacted by the balance 
sheet date in the countries where the Company operates and generates 
income. 
 
   Deferred tax balances are recognised in respect of all timing 
differences that have originated but not reversed by the Balance Sheet 
date, except that: 
 
 
   -- The recognition of deferred tax assets is limited to the extent that it 
      is probable that they will be recovered against the reversal of deferred 
      tax liabilities or other future taxable profits; and 
 
   -- Any deferred tax balances are reversed if and when all conditions for 
      retaining associated tax allowances have been met. 
 
   -- Deferred tax balances are not recognised in respect of permanent 
      differences except in respect of business combinations, when deferred tax 
      is recognised on the differences between the fair values of assets 
      acquired and the future tax deductions available for them and the 
      differences between the fair values of liabilities acquired and the 
      amount that will be assessed for tax. Deferred tax is determined using 
      tax rates and laws that have been enacted or substantively enacted by the 
      balance sheet date. 
 
 
   2.18     Impairment of non-financial assets 
 
   At each balance sheet date non-financial assets not carried at fair 
value are assessed to determine whether there is an indication that the 
asset (or asset's cash generating unit) may be impaired.  If there is 
such an indication the recoverable amount of the asset (or asset's cash 
generating unit) is compared to the carrying amount of the asset (or 
asset's cash generating unit). 
 
   The recoverable amount of the asset (or asset's cash generating unit) is 
the higher of the fair value less costs to sell and value in use.  Value 
in use is defined as the present value of the future cash flows before 
interest and tax obtainable as a result of the assets (or asset's cash 
generating unit) continued use.  These cash flows are discounted using a 
pre-tax discount rate that represents the current market risk free rate 
and the risks inherent in the asset. 
 
   If the recoverable amount of the asset (or asset's cash generating unit) 
is estimated to be lower than the carrying amount, the carrying amount 
is reduced to be a recoverable amount.  An impairment loss is recognised 
in the consolidated income statement. 
 
   If an impairment loss is subsequently reversed, the carrying amount of 
the asset (or asset's cash generating unit) is increased to the revised 
estimate of its recoverable amount but only to the extent that the 
revised carrying amount does not exceed the carrying amount that would 
have been determined (net of depreciation or amortisation) had no 
impairment loss been recognised in prior periods.  A reversal of an 
impairment loss is recognised in the consolidated income statement. 
 
   2.19     Going concern 
 
   The group financial statements have been historically affected by 
trading losses suffered in prior years.  The directors expect the group 
to trade profitably and continue to be cash generative in the future and 
as a result, the financial statements have been prepared on a going 
concern basis 
 
   2.       EARNINGS PER SHARE 
 
   Basic earnings per share is calculated by dividing the earnings 
attributable to ordinary shareholders by the weighted average number of 
ordinary shares outstanding during the period. Diluted earnings per 
share is calculated using the weighted average number of shares adjusted 
to assume the conversion of all dilutive potential ordinary shares. 
 
   Reconciliations are set out below. 
 
 
 
 
                                             30.6.16 
                                     Weighted average     Per-share amount 
                      Earnings GBP   number of shares           pence 
 
Basic EPS 
Earnings 
 attributable to 
 ordinary 
 shareholders            (294,817)           62,395,701                -0.47 
 
Diluted EPS 
Adjusted earnings        (294,817)           62,395,701                -0.47 
 
 
                                             30.6.15 
                                       Weighted average     Per-share amount 
                      Earnings GBP     number of shares                pence 
 
Basic EPS 
Earnings 
 attributable to 
 ordinary 
 shareholders            (186,230)           62,395,701                -0.30 
 
Diluted EPS 
Adjusted earnings        (186,230)           62,395,701                -0.30 
 
 
 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: DHAIS plc via Globenewswire 
 
 
  http://www.dhais.co.uk/ 
 

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November 30, 2016 08:44 ET (13:44 GMT)