Unaudited Full Year Results

RNS Number : 8061F

Latham(James) PLC

21 June 2012

 



James Latham Plc

("James Latham" or the "Company")

Unaudited Full Year Results

In what has been another difficult year for the economy as a whole, I am pleased to report good results for the financial year to 31 March 2012 showing a good trading performance and a strong balance sheet.

Group revenue for the financial year to 31 March 2012 was £143,645,000, 10.4% up on last year's £130,151,000. 

Operating profit was £7,723,000, down £347,000 from £8,070,000 last year.  The reduction is due to lower trading margins and some £150,000 temporary duplication of costs as the company relocated its largest trading site to Leeds during the year. Last years figure included non-recurring income of £192,000.

Finance income was £43,000 against £106,000 last year. Financial costs, which are principally interest on the pension scheme deficit as calculated under IAS19, were £580,000 against £532,000 last year.

Pre-tax profit was £7,186,000 down from last year's figure of £8,004,000. Last year included receipt of £360,000 from the contract for the sale of the Clapton site in 2004/2005 due to additional development.

Profit after tax was £6,070,000 compared to £5,884,000 last year. The lower tax charge has resulted from changes in the deferred tax provision.

Earnings per share were 31.9p compared to last year's 30.8p.

Net assets (total equity) were £46,924,000 compared to £45,816,000 last year.

At the year end the company's cash reserves stood at £7,004,000 compared to £7,113,000 at 31 March 2011. 

Final dividend

The directors recommend a final dividend of 6.75p per ordinary share (2011 6.25p).  The final dividend will be paid on 24 August 2012 to shareholders on the register at the close of business on 3 August 2012.  The shares will become ex-dividend on 1 August 2012.

The total dividend per ordinary share of 9.75p for the year is covered 3.3 times by earnings.

Financial year 2011/12

The Group's results are based on the trading of Lathams Limited, a specialist panel and timber distributor.  Revenue was 10.4% higher than the previous year but the gross margin per cent was 0.8% lower as a result of competition for business and the duplication of warehousing costs associated with the Leeds site move.

The international market for hardwood and panel products was stable. 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 fluctuate throughout the period.

Throughout the year revenue has been above expectations, but trading margins, as predicted have been under pressure.

Overheads have generally been well controlled, although higher fuel costs added to transport costs. This year's figures included the first full year's revenue and costs of DLH UK Limited, acquired in February 2011 and now trading as LDT. The division achieved good external sales and made a useful contribution to group profits.

Bad debts were slightly 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 2012 the deficit of the defined benefit scheme under IAS19 was £12,316,000 compared with £8,561,000 last year, with the deficit increasing due to a reduction in yield on high quality corporate bonds and improved life expectancy assumptions. The defined benefit pension scheme triennial actuarial valuation based on 31 March 2011 showed an increased deficit of £9,033,000, up from £5,130,000 and the recovery plan agreed with the trustees results in an increase in company contribution of £267,000 from 1 April 2012.

Current financial year 2012/13

The increasing level of demand resulting in  growing volumes of sales seen in the first half of last year slowed in the second half, with revenue £900,000 lower in the second six months. This year volumes are higher for April and May than the corresponding period last year, but competition remains intense and this continues to put pressure on margins. This seasonal pattern seems to be repeating itself this year with higher daily sales in April and May; however order books are generally short term.

Development strategy

The Directors continue to identify opportunities for growth and to introduce new products. Over the coming years it will be necessary to invest in our older sites to emulate the success which the investment in new facilities has delivered elsewhere.  Last year we relocated our biggest depot in Ossett to a larger, modern site in Leeds. The phased moved started in December 2011 and was completed at the end of March providing the opportunity to grow business in the North of England.

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

The date of the Annual General Meeting is 22 August 2012.

Peter Latham

Chairman

21 June 2012

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 - Nomad & Broker	Tel:  [phone]
Shane Gallwey / Tim Metcalfe

JAMES LATHAM PLC

CONSOLIDATED INCOME STATEMENT

For the year to 31 March 2012

	Unaudited	Audited
	Year to 31 March 2012	Year to 31 March 2011
	£000	£000
Revenue	143,645	130,151
Cost of sales (including warehouse costs)	(118,564)	(106,422)
Gross profit	25,081	23,729
Selling and distribution costs	(11,687)	(10,405)
Administrative expenses	(5,702)	(5,346)
Other operating income	31	92
	(17,358)	(15,659)
Operating Profit	7,723	8,070
Profit on disposal of property, plant and equipment	-	360
Finance income	43	106
Finance costs	(580)	(532)
Profit before tax	7,186	8,004
Tax expense	(1,116)	(2,120)
Profit after tax attributable to owners of the parent company	6,070	5,884
Earnings per ordinary share (basic)	31.9p	30.8p
Earnings per ordinary share (diluted)	31.4p	30.5p

All results relate to continuing operations

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year to 31 March 2012

	Unaudited		Audited
		Year to 31 March 2012	Year to 31 March 2011
		£000	£000
Profit after tax		6,070	5,884
Other comprehensive income
Actuarial losses on defined benefit pension scheme		(4,304)	(719)
Deferred tax relating to components of other comprehensive income		973	139
Other comprehensive income for the year, net of tax		(3,331)	(580)
Total comprehensive income attributable to owners of the parent company		2,739	5,304

JAMES LATHAM PLC

CONSOLIDATED BALANCE SHEET

At 31 March 2012

		Unaudited	Audited
	As at 31 March 2012		As at 31 March 2011
	£000		£000
Assets
Non-current assets
Goodwill	237		237
Other intangible assets	123		131
Property, plant and equipment	22,673		18,536
Total non-current assets	23,033		18,904
Current assets
Inventories	24,829		24,771
Trade and other receivables	29,133		28,525
Cash and cash equivalents	7,004		7,113
Non-current assets held for sale	758		-
Total current assets	61,724		60,409
Total assets	84,757		79,313
Current liabilities
Trade and other payables	20,207		20,316
Interest bearing loans and borrowings	1,161		11
Tax payable	760		1,090
Total current liabilities	22,128		21,417
Non-current liabilities
Interest bearing loans and borrowings	2,403		987
Retirement and other benefit obligation	12,316		8,561
Other payables	641		705
Deferred tax liabilities	345		1,827
Total non-current liabilities	15,705		12,080
Total liabilities	37,833		33,497
Net assets	46,924		45,816
Capital and reserves
Issued capital	5,040		5,040
Share-based payment reserve	144		79
Own shares	(356)		(401)
Capital reserve	3		3
Retained earnings	42,093		41,095
Total equity attributable to equity shareholders of the parent company	46,924		45,816

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 2010 - audited	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 - audited	5,040	79	(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 - unaudited	5,040	144	(356)	3	42,093	46,924

JAMES LATHAM PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year to 31 March 2012

	Unaudited	Audited
	Year to 31 March 2012	Year to 31 March 2011
	£000	£000
Net cash flow from operating activities
Cash generated from operations	7,039	4,772
Interest paid	(48)	(9)
Income tax paid	(1,954)	(1,857)
Net cash inflow from operating activities	5,037	2,906
Cash flows from investing activities
Interest received and similar income	50	111
Purchase of property, plant and equipment	(5,922)	(1,004)
Purchase of intangible asset	-	(1)
Proceeds from sale of property, plant and equipment	25	2
Proceeds from prior year sale of property	-	360
Net cash outflow from investing activities	(5,847)	(532)
Cash flows from financing activities
Finance leases repaid during the year	(11)	(21)
Borrowings repaid during the year	(168)	(3,924)
Borrowings received during the year	2,700	-
Equity dividends paid	(1,741)	(1,574)
Preference dividend paid	(79)	(79)
Purchase of own shares	-	(208)
Net cash inflow/(outflow) from financing activities	701	(5,806)
Decrease in cash and cash equivalents for the year	(109)	(3,432)
Cash and cash equivalents at beginning of the year	7,113	10,545
Cash and cash equivalents at end of the year	7,004	7,113

 

JAMES LATHAM PLC

 

Notes to the unaudited 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 2011 and 31 March 2012.  The figures for the year ended 31 March 2011 have been audited.

2.   The directors propose a final dividend of 6.75p per ordinary share, which will absorb £1,286,000 (2011: 6.25p absorbing £1,189,000), payable on 24 August 2012 to shareholders on the Register at the close of business on 3 August 2012.  The ex-dividend date is 1 August 2012.

3.   The financial information in this announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 for the years ended 31 March 2012 or 2011.  The statutory financial statements for the year ended 31 March 2012 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 2011 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, the 2011 audit report was unqualified and did not include any matter to which the auditor drew attention to by way of emphasis and which did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

4.   This announcement was approved and authorised for issue by the Board of Directors on 20 June 2012.

5.   Net cash flow from operating activities

Year to 31 March 2012 unaudited Year to 31 March 2011 audited Operating profit 7,723 8,070 Depreciation and impairment 985 815 Loss on disposal of property, plant and equipment 25 18 Increase in inventories (58) (5,561) Increase in receivables (615) (4,872) (Decrease)/increase in payables (173) 7,156 Own shares non cash amounts 45 10 Retirement benefits non cash amounts (958) (913) Share-based payments non cash amounts 65 49 Cash generated from operations 7,039 4,772

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 22 August 2012 at 12.30pm.

The Annual Report and Accounts for the year ended 31 March 2012 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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