Final Results

RNS Number : 9594H

Latham(James) PLC

27 June 2013

 



James Latham Plc

("James Latham" or the "Group")

Audited Full Year Results

I am pleased to report results for the financial year to 31 March 2013 that show a solid trading performance and a strong balance sheet, in what has been another challenging year for the economy as a whole and our target markets.

Group revenue for the financial year to 31 March 2013 was £143,069,000, 0.4% down on last year's £143,645,000.

Operating profit was £7,546,000, down £177,000 from £7,723,000 last year.  Slightly higher trading margins were offset by higher operating costs.

Finance income was £26,000 against £43,000 last year. Financial costs, which are principally interest on the pension scheme deficit as calculated under IAS19, were £947,000 against £580,000 last year.  There was a profit of £257,000 on the sale of the Ossett site.

Pre-tax profit was £6,882,000 down from last year's figure of £7,186,000.

Profit after tax was £5,454,000 compared to £6,070,000 last year.  Last year's lower tax charge resulted from a one-off change in the deferred tax provision.

Earnings per share were 28.4p compared to last year's 31.9p.

Net assets (total equity) were £47,467,000 compared to £46,924,000 last year.

At the year end the group's cash reserves stood at £8,075,000 compared to £7,004,000 at 31 March 2012. 

Final dividend

The directors recommend a final dividend of 7.1p per ordinary share (2012 6.75p).  The final dividend will be paid on 23 August 2013 to shareholders on the register at the close of business on 2 August 2013.  The shares will become ex-dividend on 31 July 2013.

The total dividend per ordinary share of 10.2p for the year is covered 2.8 times by earnings.

Financial year 2012/13

The Group's results are based on the trading of Lathams Limited, a specialist panel and timber distributor.  Revenue was 0.4% lower than the previous year in spite of being ahead by £582,000 at 30 September 2012.  Trading was difficult in the March quarter, particularly for timber, with some weakness in the joinery sector.  The gross margin per cent was higher as a result of focus on improving margins on specialist products, in spite of competition for business.

The international market for hardwood and panel products was stable, with prices for both increasing mainly due to the pound weakening against both the US Dollar and the Euro. MDF based panels, a major element of panel sales, saw prices fluctuate throughout the period.

Overheads have been well controlled.  Staff numbers are slightly higher as sales staff have been recruited in areas of the business where we see opportunities.

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

At 31 March 2013 the deficit of the defined benefit scheme under IAS19 was £16,793,000 compared with £12,316,000 last year.  Although the scheme's assets increased by £5,283,000, the liabilities increased more due to a reduction in yield on high quality corporate bonds, a measure that is highly volatile.

Current financial year 2013/14

Although the March quarter was difficult, this year volumes are higher for April and May than the corresponding period last year.  This is led by panels but timber has recovered from the poor March quarter.  The European Union Timber Regulation, which makes it an offence to place illegally harvested timber on the European market, came into force on 3 March 2013.  This is creating opportunities for the group to sell its range of 3^rd party certified products.  While customer order books are generally short term there appears to be a bit more optimism.

Development strategy

The directors continue to identify opportunities for growth and to introduce and promote new products. Increasing levels of business are being done in Ireland from the new Leeds depot with the appointment of a local sales team.  Following the successful relocation of our biggest depot in Ossett to a larger, modern site in Leeds plans are being drawn up to upgrade our two older sites over the coming years.

The Group is in a strong financial position to take advantage of opportunities for further business growth.

The date of the Annual General Meeting is 21 August 2013.

Peter Latham

Chairman

26 June 2013

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

James Latham Plc	Tel:  [phone]
Peter Latham, Chairman
David Dunmow, Finance Director
Northland Capital Partners Limited - Nomad & Broker	Tel:  [phone]
Louis Castro / Matthew Johnson

 

JAMES LATHAM PLC

CONSOLIDATED INCOME STATEMENT

For the year to 31 March 2013

	Audited	Audited
	Year to 31 March 2013	Year to 31 March 2012
	£000	£000
Revenue	143,069	143,645
Cost of sales (including warehouse costs)	(117,831)	(118,564)
Gross profit	25,238	25,081
Selling and distribution costs	(12,051)	(11,687)
Administrative expenses	(5,647)	(5,702)
Other operating income	6	31
	(17,692)	(17,358)
Operating Profit	7,546	7,723
Profit on disposal of property	257	-
Finance income	26	43
Finance costs	(947)	(580)
Profit before tax	6,882	7,186
Tax expense	(1,428)	(1,116)
Profit after tax attributable to owners of the parent company	5,454	6,070
Earnings per ordinary share (basic)	28.4p	31.9p
Earnings per ordinary share (diluted)	28.2p	31.4p

All results relate to continuing operations

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year to 31 March 2013

	Audited		Audited
		Year to 31 March 2013	Year to 31 March 2012
		£000	£000
Profit after tax		5,454	6,070
Other comprehensive income
Actuarial losses on defined benefit pension scheme		(4,832)	(4,304)
Deferred tax relating to components of other comprehensive income		1,330	973
Other comprehensive income for the year, net of tax		(3,502)	(3,331)
Total comprehensive income attributable to owners of the parent company		1,952	2,739

JAMES LATHAM PLC

CONSOLIDATED BALANCE SHEET

At 31 March 2013

		Audited	Audited
	As at 31 March 2013		As at 31 March 2012
	£000		£000
Assets
Non-current assets
Goodwill	237		237
Other intangible assets	115		123
Property, plant and equipment	22,965		22,673
Deferred tax asset	803		-
Total non-current assets	24,120		23,033
Current assets
Inventories	26,222		24,829
Trade and other receivables	28,877		29,133
Cash and cash equivalents	8,075		7,004
Non-current assets held for sale	-		758
Total current assets	63,174		61,724
Total assets	87,294		84,757
Current liabilities
Trade and other payables	19,561		20,207
Interest bearing loans and borrowings	229		1,161
Tax payable	537		760
Total current liabilities	20,327		22,128
Non-current liabilities
Interest bearing loans and borrowings	2,128		2,403
Retirement and other benefit obligation	16,793		12,316
Other payables	579		641
Deferred tax liabilities	-		345
Total non-current liabilities	19,500		15,705
Total liabilities	39,827		37,833
Net assets	47,467		46,924
Capital and reserves
Issued capital	5,040		5,040
Share-based payment reserve	91		144
Own shares	(218)		(356)
Capital reserve	3		3
Retained earnings	42,551		42,093
Total equity attributable to equity shareholders of the parent company	47,467		46,924

JAMES LATHAM PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to the owners of the parent company

	Issued capital	Share-based payment reserve	Own shares	Capital reserve	Retained earnings	Total Equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 April 2011 - audited	5,040	30	(401)	3	41,095	45,816
Profit for the year	-	-	-	-	6,070	6,070
Other comprehensive income:
Actuarial loss on defined benefit pension scheme	-	-	-	-	(4,304)	(4,304)
Deferred tax relating to components of other comprehensive income	-	-	-	-	973	973
Total comprehensive income for the year	-	-	-	-	2,739	2,739
Transactions with owners:
Dividends	-	-	-	-	(1,741)	(1,741)
Change in investment in ESOP shares	-	-	45	-	-	45
Share-based payment expense	-	65	-	-	-	65
Total transactions with owners	-	65	45	-	(1,741)	(1,631)
Balance at 31 March 2012 - audited	5,040	144	(356)	3	42,093	46,924
Profit for the year	-	-	-	-	5,454	5,454
Other comprehensive income:
Actuarial loss on defined benefit pension scheme	-	-	-	-	(4,832)	(4,832)
Deferred tax relating to components of other comprehensive income	-	-	-	-	1,330	1,330
Total comprehensive income for the year	-	-	-	-	1,952	1,952
Transactions with owners:
Dividends	-	-	-	-	(1,883)	(1,883)
Transfer of treasury shares	-	-	(562)	-	562	-
Write down on conversion of ESOP shares	-	-	293	-	(293)	-
Sale of own shares	-	-	365	-		365
Exercise of options	-	(120)	-	-	120	-
Change in investment in ESOP shares	-	-	42	-	-	42
Share-based payment expense	-	67	-	-	-	67
Total transactions with owners	-	(53)	138	-	(1,494)	(1,409)
Balance at 31 March 2013 - audited	5,040	91	(218)	3	42,551	47,467

JAMES LATHAM PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year to 31 March 2013

	Audited	Audited
	Year to 31 March 2013	Year to 31 March 2012
	£000	£000
Net cash flow from operating activities
Cash generated from operations	5,829	7,039
Interest paid	(64)	(48)
Income tax paid	(1,469)	(1,954)
Net cash inflow from operating activities	4,296	5,037
Cash flows from investing activities
Interest received and similar income	26	50
Purchase of property, plant and equipment	(1,517)	(5,922)
Proceeds from sale of property, plant and equipment	1,070	25
Net cash outflow from investing activities	(421)	(5,847)
Cash flows from financing activities
Finance leases repaid during the year	-	(11)
Borrowings repaid during the year	(1,207)	(168)
Borrowings received during the year	-	2,700
Equity dividends paid	(1,883)	(1,741)
Preference dividend paid	(79)	(79)
Sale of Own Shares	365	-
Net cash (outflow)/inflow from financing activities	(2,804)	701
Increase/(Decrease) in cash and cash equivalents for the year	1,071	(109)
Cash and cash equivalents at beginning of the year	7,004	7,113
Cash and cash equivalents at end of the year	8,075	7,004

 

JAMES LATHAM PLC

 

Notes to the audited preliminary financial information

1.   The results presented in this report are audited 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 2012 and 31 March 2013.

2.   The directors propose a final dividend of 7.1p per ordinary share, which will absorb £1,372,000 (2012: 6.75p absorbing £1,286,000), payable on 23 August 2013 to shareholders on the Register at the close of business on 2 August 2013.  The ex-dividend date is 31 July 2013.

3.   The figures for the year ended 31 March 2013 have been extracted from the audited statutory accounts for that year, which have yet to be delivered to the Registrar of Companies.  The financial information set out has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and those parts of the Companies Act 2006 that remain applicable to companies reporting under IFRS and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006, and does not contain all the information required to be disclosed in a full set of IFRS financial statements.

Statutory accounts for the year ended 31 March 2013 will be delivered to the Registrar of Companies and sent to Shareholders shortly. 

The audit report on these financial statements is unqualified and does not contain any statement under Section 498(2) or (3) of the Companies Act 2006, on the statutory financial statements for the year ended 31 March 2013.

Statutory accounts for the year ended 31 March 2012 have been filed with the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not contain a statement under section 498(2) and (3) of the Companies Act 2006.

4.   This announcement was approved and authorised for issue by the Board of Directors on 26 June 2013.

5.   Net cash flow from operating activities

Year to 31 March 2013 audited Year to 31 March 2012 audited Profit before tax 6,882 7,186 Adjustment for finance income and expense 921 537 Depreciation and impairment 1,208 985 Loss on disposal of property, plant and equipment (287) 25 Increase in inventories (1,393) (58) Decrease/(increase) in receivables 256 (615) Decrease in payables (663) (173) Retirement benefits non cash amounts (1,204) (958) Share-based payments non cash amounts 67 65 Own shares non cash amounts 42 45 Cash generated from operations 5,829 7,039

6.   The Annual General Meeting of James Latham plc will be held at Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU on 21 August 2013 at 12.30pm.

The Annual Report and Accounts for the year ended 31 March 2013 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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