FW Thorpe FY2025 results: profit up 5.9% and dividend raised despite flat sales
FW Thorpe delivered a tidy set of prelims for the year to 30 June 2025. Revenue was broadly flat, but profit and earnings nudged higher thanks to lower input costs and tighter overheads. The board is rewarding shareholders with a higher dividend and is sitting on substantial cash reserves.
The headline: profit before tax rose 5.9% to £31.6m, basic EPS increased 4.6% to 21.69p, and the total dividend is up 5.0% to 7.12p. The engine room was Thorlux in the UK and Zemper in Spain and Belgium, while Lightronics and Schahl had a tougher year.
| Key FY2025 metrics | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | £175.2m | £175.8m | -0.3% |
| Operating profit | £32.1m | £30.6m | +4.7% |
| PBT | £31.6m | £29.9m | +5.9% |
| Basic EPS | 21.69p | 20.73p | +4.6% |
| Total dividend | 7.12p | 6.78p | +5.0% |
| Proposed final dividend | 5.36p | 5.08p | +5.5% |
| Net cash from operations | £33.2m | £41.4m | Lower – no repeat of £7.4m WC benefit |
| Cash and short-term financial assets | £61.8m | £52.9m | Higher |
| Effective tax rate | 19.64% | 18.61% | Higher |
Margins edged up as costs fell and overheads were contained
Despite flat revenue, operating profit rose to £32.1m, with the chairman crediting lower material costs and reduced administrative expenses. Before acquisition adjustments – which means adding back amortisation of acquired intangibles and fair value changes on redemption liabilities – operating profit was £32.9m, and the Group cites a 19% return on sales at this measure.
People costs are rising, particularly in the UK due to NI changes and higher minimum wage, but those pressures were offset this year. The clear message: ongoing investment in innovation, engineering, and service is considered essential to differentiate against low-cost imports, even if it keeps indirect costs elevated.
Dividend details, cash strength and capital allocation
The board proposes a final dividend of 5.36p per share, taking the total ordinary dividend to 7.12p, up 5.0%. Dates to note: ex-dividend 30 October 2025, record date 31 October, and payment on 28 November, subject to AGM approval.
Cash is a standout. Cash and cash equivalents were £43.0m, and short-term financial assets – essentially term cash deposits – were £18.8m, taking the year-end total to £61.8m. The Group also bought back £3.1m of its own shares and paid £11.0m of dividends during the year, including a 2.50p special paid in FY2025. Management assessed acquisition opportunities but didn’t pull the trigger.
Operating cash flow fell to £33.2m from £41.4m, mainly because last year benefited from a £7.4m working capital tailwind that did not repeat. Even so, net cash increased by £9.2m over the year.
Segment performance: Thorlux and Zemper strong, Lightronics and Schahl weaker
- Thorlux (UK): Delivered a “good increase” in profitability through growth and efficiency. The integrated proposition – survey, design, supply, potential install, commissioning and after-sales – is resonating. Management sees UK market slowdown risk and is pushing hard to stay on the front foot. FY2025 external revenue was £101.0m, with operating profit before acquisition adjustments of £21.3m.
- Zemper (Spain/Belgium/France): An excellent year with higher revenue and profit. Product wins include the Smart Z wireless platform and ALIOTH dynamic evacuation signage. Growth was strong in Spain and Belgium, while France slowed. Operating profit before acquisition adjustments rose to £3.7m.
- Netherlands (Lightronics and Famostar): Famostar was steady with a small profit reduction. Lightronics saw a £2.2m drop in profit versus an exceptional prior year – disappointing but seen as a reversion to more normal levels. Actions include more sales resources, renewed focus on street lighting rollouts, and new products. The Netherlands segment delivered £34.3m of external revenue and £6.4m operating profit before acquisition adjustments.
- Germany – SchahlLED: The German market stayed in recession, with revenue down from £15m to £11m. Still profitable before acquisition costs, but rebuilding the order book may take a couple of years.
- Other UK businesses: Portland Lighting improved markedly as its traffic division offset retail signage weakness. TRT was loss-making for FY2025 but has posted five consecutive profitable months and is forecast to be profitable in the new year. Solite and Philip Payne lifted operating profit by 67% and 46% respectively.
- Joint venture (Ratio): Still struggling to contribute profits, but has launched smart EV chargers – the wall-mounted io6 and UK-manufactured io7 pillar – up to twin 22kW and compliant with UK wiring rules.
Geographic mix shows UK reliance but European breadth
Revenue by region underscores diversification: UK £96.7m, Netherlands £32.5m, Germany £13.2m, Rest of Europe £28.7m, Rest of the World £4.2m. That spread gives resilience, although the UK and Germany pose macro headwinds, and France softened for Zemper.
Standards and sustainability: a commercial edge
Thorlux has achieved ISO 27001 certification for information security, and all Group manufacturing companies hold ISO 14001 for environmental management and EN 45001 for employee safety. These badges matter in procurement-heavy markets and should help with tender credibility.
On sustainability, 82,000 trees were planted at Brook Woodland with up to £1.3m of grant support. Investment of £408k in new lorries capable of running on HVO biofuel aims to cut lifecycle carbon – with the added benefit of being 15% more fuel efficient. Several businesses now run fully electric delivery vans, and 78% of Thorlux’s car fleet is electric or hybrid.
Outlook and what to watch in FY2026
FW Thorpe has started 2025/26 with similar revenue and order book to last year, and performance so far is in line. The priority is clear: restore Lightronics and SchahlLED to expected profit levels, which will take time and sales investment. The board remains selective but acquisitive.
Tax was a 19.64% effective rate, helped by £2.251m of Patent Box relief – a reminder that R&D and IP continue to support earnings quality. Risks include UK wage and NI cost inflation, a weak German industrial backdrop, and a softer French market for Zemper. That said, the strong cash position and disciplined cost control give the Group room to manoeuvre.
My take: quality, cash and a credible plan – but execution needed in NL and DE
- Positives: Profit and EPS up despite flat sales, ordinary dividend up 5.0%, £61.8m of cash and term deposits, and a disciplined approach to investment. Thorlux and Zemper are delivering, innovation remains a core pillar, and certifications strengthen bid pipelines.
- Improvements to prove: Lightronics’ profit drop and Schahl’s revenue decline need reversing. Management’s sales-led plans make sense, but investors should expect a couple of years to rebuild in Germany.
- Why it matters: Lighting is a specification-led market where service, controls and compliance win orders. FW Thorpe’s integrated model and cash-rich balance sheet position it well to defend margins and selectively invest, even if demand bumps along.
Net-net, a reassuring set of numbers with a sensible dividend uplift, strong cash, and a clear focus on fixing the underperformers. If the team executes in the Netherlands and Germany while holding margins elsewhere, FY2026 could be another year of steady progress.
