Dewhurst FY to reap benefits of slump in pound

Shares in Dewhurst soared as the independent supplier of lift, keypad and transport components said the slump in the pound after June's Brexit vote would help it to post “significantly” higher-than-expected full year profits.

“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,” Dewhurst said in a trading update.

“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.”

Dewhurst said the recovery reported at the interim stage had 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,” it added.

The UK vote to leave the European Union sent the pound plummeting, although the decision had 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 company said.

Shares in Dewhurst were up 13.94% to 715p at 1227 BST.