Final Results

RNS Number : 9489I

Latham(James) PLC

23 June 2011

 



James Latham plc

("James Latham", the "Company")

Full Year Results

In what has been another difficult year for the economy as a whole, I am pleased to report very positive results for the financial year to 31 March 2011 which show a good trading performance and a strong balance sheet.

Group revenue for the financial year to 31 March 2011 was £130,151,000, 12.8% up on last year's £115,372,000. 

Operating profit has increased by 25.4% to £8,070,000 from £6,437,000 last year.

Finance income was £106,000 against £43,000 last year. Financial costs, which are principally interest on the pension scheme deficit as calculated under IAS19, were £532,000 against £893,000 last year. There was an additional receipt of £360,000 from the contract for the sale of the Clapton site in 2004/2005 due to additional development.

Pre-tax profit was £8,004,000 a significant increase of 43.3% on last year's figure of £5,587,000.

Profit after tax was £5,884,000 compared to £4,113,000 last year.

Earnings per share was 30.8p compared to last year's 21.5p.

Net assets (total equity) are £45,816,000.

At the year end the company's cash reserves stood at £7,113,000 compared to £10,545,000 at 31 March 2010.  The balance was reduced by £4,000,000 as a result of working capital injected into DLH UK Limited, the hardwood trading business, in March 2011.

Final dividend

The directors recommend a final dividend of 6.25p per ordinary share (2010 5.25p).  The final dividend will be paid on 26 August 2011 to shareholders on the register at the close of business on 5 August 2011.  The shares will become ex-dividend on 3 August 2011.

The total dividend per ordinary share of 9.25p for the year is covered 3.3 times by earnings.

Financial year 2010/11

The Group's results are based on the trading of Lathams Limited, a specialist panel and timber distributor.  Revenue was 12.8% higher than the previous year but maintaining a similar gross margin per cent.

The international market for hardwood and panel products was more stable than last year. Hardwood prices remained steady. Panel prices continued to strengthen from the low levels seen during the winter 2008-09, particularly during the first six months of this year. MDF based panels, a major element of panel sales, saw prices rise due to an increase in the cost and availability of raw materials, rather than rising demand.

On the whole turnover during the winter months held up well considering the adverse weather experienced in most parts of the country.

Overheads have risen noticeably as a result of higher fuel costs and additional sales staff that have been employed in areas where we are seeking to grow the business.

Bad debts were slightly higher than last year but the deterioration that we had anticipated over the Christmas period as a result of seasonal cash flow pressures did not materialise.

The defined benefit pension scheme triennial actuarial valuation based on 31 March 2011 is under way and this will determine future funding levels.

Current financial year 2011/12

The increasing level of demand and growing volumes seen in the first half of last year slowed in the second half. This year volumes are generally similar to 2010-11 but competition remains intense and higher cost prices threaten to erode margins. There are regional differences in demand and order books are generally short term. Balancing the desire to increase volumes and the need to manage customer credit levels continues to be a difficult equation.

Development strategy

The Directors have added resources to areas where they have identified opportunities for growth, such as hardwood flooring, door blanks and decorative panels. DLH UK Limited has been successfully integrated into the company. It will trade separately as LDT (Latham Direct Timber) principally in African and South East Asia hardwood and decking and will increase sales opportunities. Investment planned at Hemel Hempstead and Thurrock will help the company grow business in door blanks and decorative panels. Over the coming years it will be necessary to invest in our older sites to mirror the success which the investment in new facilities has delivered elsewhere.  There are plans in the current year to relocate the company's largest business in Ossett, near Leeds to another site in the same area and this will have a short-term impact on profitability of that depot during the transition.

The company is in a strong financial position to take advantage of opportunities to continue growing the business.

Peter Latham

Chairman

23 June 2011

 

For further enquiries please visit www.lathams.co.uk or contact:

James Latham Plc
Peter Latham, Chairman	Tel:  [phone]
David Dunmow, Finance Director	Tel:  [phone]
Northland Capital Partners Ltd
Shane Gallwey	Tel:  [phone]

 

 

JAMES LATHAM PLC

CONSOLIDATED INCOME STATEMENT

For the year to 31 March 2011

	Unaudited	Audited
	Year to 31 March 2011	Year to 31 March 2010
	£000	£000
Revenue	130,151	115,372
Cost of sales (including warehouse costs)	(106,422)	(94,838)
Gross profit	23,729	20,534
Selling and distribution costs	(10,405)	(9,435)
Administrative expenses	(5,346)	(4,749)
Other operating income	92	87
	(15,659)	(14,097)
Operating Profit	8,070	6,437
Profit on disposal of property, plant and equipment	360	-
Finance income	106	43
Finance costs	(532)	(893)
Profit before tax	8,004	5,587
Tax expense	(2,120)	(1,474)
Profit after tax attributable to owners of the parent company	5,884	4,113
Earnings per ordinary share (basic)	30.8p	21.5p
Earnings per ordinary share (diluted)	30.5p	21.4p

All results relate to continuing operations

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year to 31 March 2011

	Unaudited		Audited
		Year to 31 March 2011	Year to 31 March 2010
		£000	£000
Profit after tax		5,884	4,113
Other comprehensive income
Actuarial losses on defined benefit pension scheme		(719)	(3,387)
Deferred tax relating to components of other comprehensive income		139	943
Other comprehensive income for the year, net of tax		(580)	(2,444)
Total comprehensive income attributable to owners of the parent company		5,304	1,669

JAMES LATHAM PLC

CONSOLIDATED BALANCE SHEET

At 31 March 2011

		Unaudited	Audited
	As at 31 March 2011		As at 31 March 2010
	£000		£000
Assets
Non-current assets
Goodwill	237		237
Other intangible assets	131		138
Property, plant and equipment	18,536		18,359
Total non-current assets	18,904		18,734
Current assets
Inventories	24,771		19,210
Trade and other receivables	28,525		23,658
Cash and cash equivalents	7,113		10,545
Total current assets	60,409		53,413
Total assets	79,313		72,147
Current liabilities
Trade and other payables	20,316		16,934
Interest bearing loans and borrowings	11		21
Tax payable	1,090		878
Total current liabilities	21,417		17,833
Non-current liabilities
Interest bearing loans and borrowings	987		998
Retirement and other benefit obligation	8,561		8,311
Other payables	705		855
Deferred tax liabilities	1,827		1,915
Total non-current liabilities	12,080		12,079
Total liabilities	33,497		29,912
Net assets	45,816		42,235
Capital and reserves
Issued capital	5,040		5,040
Share-based payment reserve	79		30
Own shares	(401)		(203)
Capital reserve	3		3
Retained earnings	41,095		37,365
Total equity attributable to owners of the parent company	45,816		42,235

JAMES LATHAM PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Issued capital	Share-based payment reserve	Own shares	Capital reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
At 1 April 2009	5,040	1	(139)	3	36,986	41,891
Profit for the year	-	-	-	-	4,113	4,113
Other comprehensive income:
Actuarial loss on defined benefit pension scheme	-	-	-	-	(3,387)	(3,387)
Deferred tax relating to components of other comprehensive income	-	-	-	-	943	943
Total comprehensive income for the year	-	-	-	-	1,669	1,669
Transactions with owners:
Dividends	-	-	-	-	(1,290)	(1,290)
Change in investment in ESOP shares	-	-	(64)	-	-	(64)
Share-based payment expense	-	29	-	-	-	29
Total transactions with owners	-	29	(64)	-	(1,290)	(1,325)
Balance at 31 March 2010	5,040	30	(203)	3	37,365	42,235
Profit for the year	-	-	-	-	5,884	5,884
Other comprehensive income:
Actuarial loss on defined benefit pension scheme	-	-	-	-	(719)	(719)
Deferred tax relating to components of other comprehensive income	-	-	-	-	139	139
Total comprehensive income for the year	-	-	-	-	5,304	5,304
Transactions with owners:
Dividends	-	-	-	-	(1,574)	(1,574)
Change in investment in ESOP shares	-	-	(198)	-	-	(198)
Share-based payment expense	-	49	-	-	-	49
Total transactions with owners	-	49	(198)	-	(1,574)	(1,723)
Balance at 31 March 2011	5,040	79	(401)	3	41,095	45,816

JAMES LATHAM PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year to 31 March 2011

	Unaudited	Audited
	Year to 31 March 2011	Year to 31 March 2010
	£000	£000
Net cash flow from operating activities
Cash generated from operations	4,772	2,757
Interest paid	(9)	(5)
Income tax paid	(1,857)	(943)
Net cash inflow from operating activities	2,906	1,809
Cash flows from investing activities
Interest received and similar income	111	39
Purchase of property, plant and equipment	(1,004)	(568)
Purchase of intangible asset	(1)	-
Proceeds from sale of property, plant and equipment	2	2
Proceeds from prior year sale of property	360	-
Net cash outflow from investing activities	(532)	(527)
Cash flows from financing activities
Finance leases repaid during the year	(21)	(22)
Borrowings repaid during the year	(3,924)	-
Equity dividends paid	(1,574)	(1,290)
Preference dividend paid	(79)	(79)
Purchase of own shares	(208)	(64)
Net cash outflow from financing activities	(5,806)	(1,455)
Decrease in cash and cash equivalents for the year	(3,432)	(173)
Cash and cash equivalents at beginning of the year	10,545	10,718
Cash and cash equivalents at end of the year	7,113	10,545

 

JAMES LATHAM PLC

 

Notes to the preliminary financial information

1.   The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS) as adopted by the EU set out in the Group accounts for the years ended 31 March 2010 and 31 March 2011.  The figures for the year ended 31 March 2010 have been audited.

2.   The directors propose a final dividend of 6.25p per ordinary share, which will absorb £1,189,000 (2010: 5.25p absorbing £1,003,000), payable on 26 August 2011 to shareholders on the Register at the close of business on 5 August 2011.  The ex-dividend date is 3 August 2011.

3.   The financial information in this announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006 for the years ended 31 March 2011 or 2010.  The statutory financial statements for the year ended 31 March 2011 will be finalised and signed on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.  The financial information for the year ended 31 March 2010 is derived from the statutory accounts for that year.  The auditor reported on those statutory accounts which have been delivered to the Registrar of Companies and which did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

4.   This announcement was approved by the Board of Directors on 22 June 2011.

5.   The Annual General Meeting of James Latham plc will be held at Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU on 24 August 2011 at 12.30pm.

The Annual Report and Accounts for the year ended 31 March 2011 will be sent to all shareholders in due course. The Annual Report and Accounts may also be viewed in due course on James Latham plc's website at www.lathams.co.uk

 

END

 

 

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