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Latham(James) PLC (LTHM)

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Thursday 28 November, 2013

Latham(James) PLC

Half Yearly Report

RNS Number : 1199U
Latham(James) PLC
28 November 2013
 



HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2013 

 

Chairman's statement

 

I am pleased to report good results for the six months to 30 September 2013, in trading conditions which after a low point in the March 2013 quarter, have shown a steady improvement.

 

Results

 

Overall the results are better than the same period last year. Revenue for the six months to 30 September 2013 was £82.2m up almost 10 per cent on £74.9m for the same period last year. The operating profit was £4.6m, 8.7 per cent up on £4.2m last year. Finance Income was £14,000 (2012: £13,000) and Finance Costs were £423,000 (2012: £376,000), reflecting higher assumed interest on the pension scheme deficit. Profit before tax was £4.15m, up on last year's £4.09m. Last years results included a profit of £257,000 on the sale of the Ossett site. Earnings per ordinary share were 16.9p (2012: 16.6p).

 

As at 30 September 2013 shareholder funds had increased to £51.5m (30.9.2012: £47.2m) with cash and cash equivalents of £5.7m (2012: £5.2m)

 

Interim dividend

 

The Board has declared an interim dividend of 3.4p per Ordinary Share (2012: 3.1p), which is covered 5.0 times (2012: 5.3 times). The dividend is payable on 31 January 2014 to ordinary shareholders on the Company's Register at close of business on10 January 2014.  The ex-dividend date will be 8 January 2014.

 

Six months trading to 30 September 2013.

 

In improving trading conditions, group revenue has grown by £7.4m, as a result of higher sales volumes. This growth was mainly in panel products, although timber saw good improvement from the dip experienced in the March 2013 quarter.

 

Trading margins for the six months to 30 September 2013 have remained under competitive pressure and are slightly down on the previous year. Overheads have been well controlled, although higher selling and distribution costs reflect higher volumes handled and more sales people directed at target markets. Cash balances at the end of September 2013 were £5.7m (2012: £5.2m). We continue to take advantage of cash settlement discounts from suppliers where this represents a good return.

 

Pension scheme

 

The IAS19R valuation shows that the scheme deficit has decreased to £13.7m from £16.8m in March. Although scheme assets have seen a good increase, AA grade bond yields which are used to calculate the present value of pension scheme liabilities remain historically low. This measure is very volatile. The trustees and the company have an agreed  recovery plan to pay off the actuarial deficit over ten years.

 

Current and future trading

 

The management accounts and information show growing revenue for October and the first half of November, at slightly improved margins. Bad debts have been below our expectations but will remain a concern over the next few months. We have a wide range of customers who are generally busier and more confident about future prospects than this time last year. The company is in a strong position to meet increasing demand.

 

Peter Latham

Chairman

28 November 2013

 

 

James Latham Plc

Tel:  01442 849 100

Peter Latham, Chairman


David Dunmow, Finance Director




Northland Capital Partners - Nomad & Broker

Tel:  020 7796 8800

Louis Castro / Matthew Johnson




 

 



 

JAMES LATHAM PLC




CONSOLIDATED BALANCE SHEET








At 30 September 2013









As at 30 Sept. 2013 unaudited

As at 30 Sept. 2012 unaudited

As at 31 March 2013 audited






£000

£000

£000

ASSETS




Non-current assets




Goodwill

237

237

237

Intangible assets

112

120

115

Property, plant and equipment

23,238

22,662

22,965

Deferred tax asset

-

420

803

Total non-current assets

23,587

23,439

24,120





Current assets




Inventories

27,984

25,160

26,222

Trade and other receivables

34,091

31,290

28,877

Cash and cash equivalents

5,672

5,171

8,075

Total current assets

67,747

61,621

63,174









Total assets

91,334

85,060

87,294





Current liabilities




Trade and other payables

22,346

18,851

19,561

Current portion of interest bearing loans and borrowings

234

207

229

Current tax payable

846

911

537

Total current liabilities

23,426

19,969

20,327





Non-current liabilities




Interest bearing loans and borrowings

2,010

2,308

2,128

Retirement and other benefit obligation

13,695

14,924

16,793

Other payables

550

613

579

Deferred tax liabilities

125

-

-

Total non-current liabilities

16,380

17,845

19,500









Total liabilities

39,806

37,814

39,827









Net assets

51,528

47,246

47,467





Capital and reserves




Issued capital

5,040

5,040

5,040

Share-based payment reserve

135

84

91

Own shares

(208)

(256)

(218)

Capital reserve

3

3

3

Retained earnings

46,558

42,375

42,551





Total equity attributable to owners of the parent company

51,528

47,246

47,467



 

JAMES LATHAM PLC




CONSOLIDATED INCOME STATEMENT








For the six months to 30 September 2013









Six months to 30 Sept. 2013 unaudited

Six months to 30 Sept. 2012 unaudited

Year to 31 March 2013 audited



(restated)

(restated)


£000

£000

£000





Revenue

82,210

74,789

143,069





Cost of sales (including warehouse costs)

(68,273)

(61,697)

(117,847)





Gross profit

13,937

13,092

25,222





Selling and distribution costs

(6,449)

(6.102)

(12,093)

Administrative expenses

(2,931)

(2,801)

(5,766)

Other operating income

3

5

6






(9,377)

(8,898)

(17,853)





Operating profit

4,560

4,194

7,369





Profit on disposal of property

-

257

257

Finance income

14

13

26

Finance costs

(423)

(376)

(683)





Profit before tax

4,151

4,088

6,969





Tax expense

(886)

(901)

(1,448)





Profit after tax attributable to owners of the parent company

3,265

3,187

5,521





Earnings  per ordinary share (basic)

16.9p

16.6p

28.9p





Earnings  per ordinary share (diluted)

16.7p

16.5p

28.7p









All results relate to continuing operations.




 



 

JAMES LATHAM PLC








CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








For the six months to 30 September 2013









Six months to 30 Sept. 2013 unaudited

Six months to 30 Sept. 2012 unaudited

Year to 31 March 2013 audited



(restated)

(restated)


£000

£000

£000





Profit after tax

3,265

3,187

5,521

Other Comprehensive income




Actuarial gains/(losses) on defined benefit pension scheme

3.004

(2,781)

(4,919)

Deferred tax relating to components of other comprehensive income

(890)

775

1,350

Other comprehensive income for the period, net of tax

2,114

(2,006)

(3,569)

Total comprehensive income, attributable to owners of the parent company

5,379

1,181

1,952

 



 

JAMES LATHAM PLC








CONSOLIDATED CASH FLOW STATEMENT








For the six months to 30 September 2013









Six months to 30 Sept 2013 unaudited

Six months to 30 Sept 2012 unaudited

Year to 31 March 2013 audited






£000

£000

£000

Net cash flow from operating activities




Cash generated from operations

712

821

5,829

Interest paid

(25)

(41)

(64)

Income tax paid

(539)

(740)

(1,469)

Net cash inflow from operating activities

148

40

4,296





Cash flows from investing activities




Interest received and similar income

14

13

26

Purchase of property, plant and equipment

(1,041)

(564)

(1,517)

Proceeds from sale of property, plant and equipment

-

1,050

1,070

Net cash (outflow)/inflow from investing activities

(1,027)

499

(421)





Cash flows before financing activities




Borrowings repaid during the period

(113)

(1,049)

(1,207)

Equity dividends paid

(1,372)

(1,284)

(1,883)

Preference dividend paid

(39)

(39)

(79)

Sale of own shares

-

-

365

Net cash outflow from financing activities

(1,524)

(2,372)

(2,804)





Decrease in cash and cash equivalents for the period





Cash and cash equivalents at beginning of the period

8,075

7,004

7,004





Cash and cash equivalents at end of the period

5,672

5,171

8,075

 

 



 

JAMES LATHAM PLC

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



Issued capital £000

Share-based payment reserve £000

Own shares £000

Capital reserve £000

Retained earnings £000

Total equity £000








As at 1 April 2012 (audited)

5040

144

(356)

3

42,093

46,924

Profit for the period (restated)

-

-

-

-

3,187

3,187

Other comprehensive income:







Actuarial loss on defined pension scheme (restated)

-

-

-

-

(2,781)

(2,781)

Deferred tax relating to components of other comprehensive income (restated)

-

-

-

-

775

775

Total comprehensive income for the year

-

-

-

-

1,181

1,181

Transaction with owners:







Dividends

-

-

-

-

(1,284)

(1,284)

Transfer of treasury shares

-

-

(562)

-

562

-

Conversion of ESOP shares

-

-

259

-

(259)

-

Sale of own shares

-

-

365

-

-

365

Exercise of options

-

(82)

-

-

82

-

Change in investment in ESOP shares

-

-

38

-

-

38

Share-based payment expense

-

22

-

-

-

22

Total transactions with owners

-

(60)

100

-

(899)

(859)

Balance at 30 September 2012 (unaudited)

5,040

84

(256)

3

42,375

47,246

Profit for the period (restated)

-

-

-

-

2,334

2,334

Other comprehensive income:







Actuarial loss on defined pension scheme (restated)

-

-

-

-

(2,138)

(2,138)

Deferred tax relating to components of other comprehensive income (restated)

-

-

-

-

575

575

Total comprehensive income for the period

-

-

-

-

771

771

Transactions with owners:







Dividends

-

-

-

-

(599)

(599)

Conversions of ESOP shares

-

-

34

-

(34)

-

Exercise of options

-

(38)

-

-

38

-

Change in investment in ESOP shares

-

-

4

-

-

4

Share-based payment expense

-

45

-

-

-

45

Total transactions with owners

-

7

38

-

(595)

(550)

Balance at 31 March 2013 (audited)

5,040

91

(218)

3

42,551

47,467

Profit for the period

-

-

-

-

3,265

3,265

Other comprehensive income:







Actuarial gain on defined benefit pension scheme

-

-

-

-

3,004

3,004

Deferred tax relating to components of other comprehensive income

-

-

-

-

(890)

(890)

Total comprehensive income for the period

-

-

-

-

5,379

5,379

Transactions with owners:







Dividends

-

-

-

-

(1,372)

(1,372)

Change in investment in ESOP shares

-

-

10

-

-

10

Share-based payment expense

-

44

-

-

-

44

Total transactions with owners

-

44

10

-

(1,372)

(1,318)

Balance at 30 September 2013 (unaudited)

5,040

135

(208)

3

46,558

51,528



 

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 2014 and on the basis of the accounting policies to be used in those financial statements.  The figures for the year ended 31 March 2013 are extracted from the statutory accounts of the group for that period.


For the financial statements for the year ended 31 March 2014 the group had adopted IAS 19 (revised) "Employee Benefits" where past service costs will be recognised as an expense at the earlier of the date when the plan amendment or curtailment occurs and the entity recognises related restructuring costs or termination benefits and where only interest income on plan assets will recognised in the profit and loss account with other changes in the fair value of plan assets being recognised in other comprehensive income.  While this has not impacted the Retirement and other benefit obligation or net assets of the group as at 31 March 2013, the impact to the Consolidated Income Statement and the Consolidated Statement of Comprehensive income for the year then ended are as follows:


Cost of Sales increasing by £16,000; Selling and Distribution increasing by £42,000; Administration increasing by £119,000; Finance costs decreasing by £264,000; Tax expense increasing by £20,000; Profit after tax increasing by £67,000; Actuarial losses on defined pension scheme increasing by £87,000 and deferred taxation on the actuarial loss increasing by £20,000.  Appropriate corresponding adjustments have also been made to the results for the 6 month period ended 30 September 2012.


2.  The directors propose an interim dividend of 3.4p per ordinary share which will absorb £660,000 (2013: 3.1p absorbing £571,000), payable on 31 January 2014 to shareholders on the Register at the close of business on 10 January 2014. The ex-dividend date is 8 January 2014.


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 2013 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 2013 unaudited

Six months to 30 Sept 2012 unaudited

Year to 31 March 2013 audited


£000

£000

£000



(restated)

(restated)

Net profit attributable to ordinary shareholders

3,265

3,187

5,521






Number '000

Number '000

(restated)

Number '000

(restated)

Weighted average share capital

19,376

19,207

19,217

Add: diluted effect of share capital options issued

179

111

141

Weighted average share capital for diluted earnings per ordinary share calculation

19,555

19,318

19,358







 

5.  Net cash flow from operating activities



Six months to 30 Sept 2013 unaudited

Six months to 30 Sept 2012 unaudited

(restated)

Year to 31 March 2013 audited

(restated)

Profit before tax

4,151

4,088

6,969

Adjustment for finance income and expenditure

409

363

657

Depreciation and impairment

768

575

1,208

Loss/(profit) on disposal of property, plant and equipment

3

(289)

(287)

Increase in inventories

(1,562)

(331)

(1,393)

(Increase)/decrease in receivables

(5,414)

(2,157)

256

Increase/(decrease) in payables

2,756

(1,384)

(663)

Own shares non cash amounts

10

403

42

Retirement benefits non cash amounts

(453)

(469)

(1,027)

Share-based payments non cash amounts

44

22

67

Cash generated from operations

712

821

5,829


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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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