Half Yearly Report

RNS Number : 9972G
Latham(James) PLC
26 November 2015
 



 

James Latham plc

 

("James Latham" or the "Company")

 

 

HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015 

 

 

Chairman's statement

 

I am pleased to report good results for the six months to 30 September 2015.

 

Results

 

The results are better than the same period last year.  Revenue for the six months to 30 September 2015 was £96.2m, up 8.0 per cent on £89.1m for the same period last year.  The operating profit was £6.5m, 20.4 per cent up on £5.4m last year.  Finance costs were £227,000 (2014: £263,000), reflecting reduced interest charges on the lower pension scheme deficit.  Profit before tax was £6.3m, up 21.2 per cent on last year's £5.2m.  Earnings per ordinary share were 25.8p (2014: 20.5p) an increase of 25.9 per cent.

 

As at 30 September 2015 shareholder funds had increased to £67.8m (2014: £63.3m) with cash and cash equivalents of £12.4m (2014: £12.6m).

 

Interim dividend

 

The Board has declared an increased interim dividend of 4.0p per Ordinary Share (2014: 3.7p), which is covered 6.5 times (2014: 5.5 times).  The dividend is payable on 29 January 2016 to ordinary shareholders on the Company's Register at close of business on 8 January 2016.  The ex-dividend date will be 7 January 2016.

 

Six months trading to 30 September 2015

 

In trading conditions which have been different for the various markets that we serve, group revenue has grown by £7.1m, as a result of higher sales volumes and product mix, which offset lower prices.  This growth was both in panel products and timber, with increased sales in decorative panels, doors, Accoya® and WoodEx, our engineered wood sections.

 

Trading margins for the six months to 30 September 2015 are similar to the previous year, with an improvement in panels and a small decline in timber.  Overheads have been controlled, with higher warehouse and distribution costs reflecting higher volumes handled and the extended working day at a number of depots.  Bad debts have been significantly lower than previous periods.  We continue to take advantage of cash settlement discounts from suppliers where this represents a good return.

 

Current and future trading

 

Management information shows growing revenue for October and the first half of November, at slightly improved margins.  Market conditions continue to be difficult in some areas, while improving in others. We are in a good position with our wide range of customers and we are trading comfortably in line with market expectations.  We are progressing with our plans to relocate our two oldest depots. We are close to agreeing heads of terms on the new Yate site and are in negotiations for the new Wigston site.

 

Future management

 

From 1 January 2016 I will become non-executive Chairman of James Latham PLC rather than executive Chairman and Nick Latham will take up the majority of my executive duties. I will continue as a director of the Programme for the Endorsement of Forest Certification (PEFC).

 

 

Peter Latham

Chairman

26 November 2015

 

 

Enquiries

James Latham plc

Tel:  01442 849 100

Peter Latham, Chairman


David Dunmow, Finance Director




Northland Capital Partners Limited 

Nominated Adviser and Broker

Tel:  020 7382 1100

Matthew Johnson / Edward Hutton


 

 



 

 

JAMES LATHAM PLC




CONSOLIDATED INCOME STATEMENT








For the six months to 30 September 2015









Six months to 30 Sept. 2015 unaudited

Six months to 30 Sept. 2014 unaudited

Year to
31 March 2015 audited






£000

£000

£000





Revenue

96,209

89,120

174,855





Cost of sales (including warehouse costs)

(78,975)

(73,281)

(143,978)





Gross profit

17,234

15,839

30,877





Selling and distribution costs

(7,674)

(7,031)

(14,082)

Administrative expenses

(3,102)

(3,392)

(6,237)

Other operating income

3

3

6





Operating profit

6,461

5,419

10,564





Finance income

25

21

46

Finance costs

(227)

(263)

(503)





Profit before tax

6,259

5,177

10,107





Tax expense

(1,257)

(1,209)

(2,285)





Profit after tax attributable to owners of the parent company

5,002

3,968

7,822





Earnings  per ordinary share (basic)

25.8p

20.5p

40.3p





Earnings  per ordinary share (diluted)

25.5p

20.3p

40.0p









All results relate to continuing operations.




 



 

JAMES LATHAM PLC








CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








For the six months to 30 September 2015









Six months to 30 Sept. 2015 unaudited

Six months to 30 Sept. 2014 unaudited

Year to
31 March 2015 audited






£000

£000

£000





Profit after tax

5,002

3,968

7,822

Other Comprehensive income




Actuarial gains/(losses) on defined benefit pension scheme

2,766

3,492

(1,849)

Deferred tax relating to components of other comprehensive income

(491)

(661)

434

Other comprehensive income for the period, net of tax

2,275

2,831

(1,415)

Total comprehensive income, attributable to owners of the parent company

7,277

6,799

6,407

 



 

JAMES LATHAM PLC




CONSOLIDATED BALANCE SHEET








At 30 September 2015









As at 30 Sept. 2015 unaudited

As at 30 Sept. 2014 unaudited

As at 31 March 2015 audited






£000

£000

£000

ASSETS




Non-current assets




Goodwill

237

237

237

Intangible assets

97

104

101

Property, plant and equipment

21,477

22,056

21,601

Total non-current assets

21,811

22,397

21,939





Current assets




Inventories

32,419

28,639

31,906

Trade and other receivables

37,612

35,617

34,213

Cash and cash equivalents

12,432

12,592

12,501

Total current assets

82,463

76,848

78,620









Total assets

104,274

99,245

100,559





Current liabilities




Trade and other payables

24,917

25,278

23,893

Current portion of interest bearing loans and borrowings

-

242

907

Current tax payable

1,297

1,005

947

Total current liabilities

26,214

26,525

25,747





Non-current liabilities




Interest bearing loans and borrowings

987

1,768

987

Retirement and other benefit obligation

7,679

5,473

10,430

Other payables

435

492

464

Deferred tax liabilities

1,188

1,649

700

Total non-current liabilities

10,289

9,382

12,581









Total liabilities

36,503

35,907

38,328









Net assets

67,771

63,338

62,231





Capital and reserves




Issued capital

5,040

5,040

5,040

Share-based payment reserve

172

152

143

Own shares

(235)

(226)

(177)

Capital reserve

3

3

3

Retained earnings

62,791

58,369

57,222





Total equity attributable to owners of the parent company

67,771

63,338

62,231



 

JAMES LATHAM PLC








CONSOLIDATED CASH FLOW STATEMENT








For the six months to 30 September 2015









Six months to 30 Sept 2015 unaudited

Six months to 30 Sept 2014 unaudited

Year to
31 March 2015 audited






£000

£000

£000

Net cash flow from operating activities




Cash generated from operations

4,055

4,211

6,218

Interest paid

(25)

(24)

(44)

Income tax paid

(909)

(1,007)

(1,996)

Net cash inflow from operating activities

3,121

3,180

4,178





Cash flows from investing activities




Interest received and similar income

25

21

46

Purchase of property, plant and equipment

(608)

(137)

(383)

Proceeds from sale of property, plant and equipment

46

-

6

Net cash outflow from investing activities

(537)

(116)

(331)





Cash flows before financing activities




Borrowings repaid during the period

(907)

(118)

(234)

Equity dividends paid

(1,707)

(1,549)

(2,267)

Preference dividend paid

(39)

(39)

(79)

Net cash outflow from financing activities

(2,653)

(1,706)

(2,580)









Cash and cash equivalents at beginning of the period

12,501

11,234

11,234





Cash and cash equivalents at end of the period

12,432

12,592

12,501

 

 



 

JAMES LATHAM PLC

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                      Attributable to owners of the parent company


Issued capital £000

Share-based payment reserve 
£000

Own shares £000

Capital reserve £000

Retained earnings £000

Total equity £000








As at 1 April 2014 (audited)

5,040

123

(175)

3

53,117

58,108

Profit for the period

-

-

-

-

3,968

3,968

Other comprehensive income:







Actuarial gain on defined benefit pension scheme

-

-

-

-

3,492

3,492

Deferred tax relating to components of other comprehensive income

-

-

-

-

(661)

(661)

Total comprehensive income for the year

-

-

-

-

6,799

6,799

Transaction with owners:







Dividends

-

-

-

-

(1,549)

(1,549)

Write down on conversions of ESOP shares

-

-

2

-

(2)

-

Exercise of options

-

(4)

-

-

4

-

Change in investment in ESOP shares

-

-

(53)

-

-

(53)

Share-based payment expense

-

33

-

-

-

33

Total transactions with owners

-

29

(51)

-

(1,547)

(1,569)

Balance at 30 September 2014 (unaudited)

5,040

152

(226)

3

58,369

63,338

Profit for the period

-

-

-

-

3,854

3,854

Other comprehensive income:







Actuarial loss on defined benefit pension scheme

-

-

-

-

(5,341)

(5,341)

Deferred tax relating to components of other comprehensive income

-

-

-

-

1,095

1,095

Total comprehensive income for the period

-

-

-

-

(392)

(392)

Transactions with owners:







Dividends

-

-

-

-

(718)

(718)

Write down on conversions of ESOP shares

-

-

80

-

(80)

-

Exercise of options

-

(43)

-

-

43

-

Change in investment in ESOP shares

-

-

(31)

-

-

(31)

Share-based payment expense

-

34

-

-

-

34

Total transactions with owners

-

(9)

49

-

(755)

(715)

Balance at 31 March 2015 (audited)

5,040

143

(177)

3

57,222

62,231

Profit for the period

-

-

-

-

5,002

5,002

Other comprehensive income:







Actuarial gain on defined benefit pension scheme

-

-

-

-

2,766

2,766

Deferred tax relating to components of other comprehensive income

-

-

-

-

(491)

(491)

Total comprehensive income for the period

-

-

-

-

7,277

7,277

Transactions with owners:







Dividends

-

-

-

-

(1,707)

(1,707)

Write down on conversions of ESOP shares

-

-

1

-

(1)

-

Change in investment in ESOP shares

-

-

(59)

-

-

(59)

Share-based payment expense

-

29

-

-

-

29

Total transactions with owners

-

29

(58)

-

(1,708)

(1,737)

Balance at 30 September 2015 (unaudited)

5,040

172

(235)

3

62,791

67,771



 

JAMES LATHAM PLC


NOTES TO THE HALF YEARLY REPORT



1. The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement of International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the financial statements for the year ending 31 March 2016 and on the basis of the accounting policies to be used in those financial statements.  The figures for the year ended 31 March 2015 are extracted from the statutory accounts of the group for that period.


2.  The directors propose an interim dividend of 4.0p per ordinary share which will absorb £780,000 (2015: 3.7p absorbing £720,000), payable on 29 January 2016 to shareholders on the Register at the close of business on 8 January 2016. The ex-dividend date is 7 January 2016.


3. This half yearly report does not constitute financial statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2015 were filed with the Registrar of Companies.  The audit report on those financial statements was not qualified and did not contain a reference to any matters which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.  The half yearly report has not been audited by the company's auditor.


4.  Earnings per ordinary share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.



Six months to 30 Sept 2015 unaudited

Six months to 30 Sept 2014 unaudited

Year to 31 March 2015 audited


£000

£000

£000





Net profit attributable to ordinary shareholders

5,002

3,968

7,822






Number '000

Number '000

Number '000

Weighted average share capital

19,399

19,393

19,389

Add: diluted effect of share capital options issued

203

196

169

Weighted average share capital for diluted earnings per ordinary share calculation

19,602

19,589

19,558







 

5.  Net cash flow from operating activities



Six months to 30 Sept 2015 unaudited

Six months to 30 Sept 2014 unaudited

Year to 31 March 2015 audited

 

Profit before tax

6,259

5,177

10,107

Adjustment for finance income and expenditure

202

242

457

Depreciation and amortisation

728

729

1,435

Loss on disposal of property, plant and equipment

(38)

3

(5)

Increase in inventories

(513)

(702)

(3,969)

Increase in receivables

(3,399)

(2,775)

(1,371)

Increase in payables

993

2,059

647

Own shares non cash amounts

(58)

(53)

(84)

Retirement benefits non cash amounts

(148)

(502)

(1,066)

Share-based payments non cash amounts

29

33

67

Cash generated from operations

4,055

4,211

6,218


6.  Copies of this statement will be posted on our website, www.lathams.co.uk.  A copy can be emailed or posted upon application to the Company Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road Hemel Hempstead, Herts, HP2 7QU, or by email to plc@lathams.co.uk

 

 


This information is provided by RNS
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