Regulatory Story
Go to market news section View chart   Print
RNS
Latham(James) PLC  -  LTHM   

Half-year Report

Released 07:00 24-Nov-2016

RNS Number : 9933P
Latham(James) PLC
24 November 2016
 

James Latham plc

 

("James Latham" or "the Company")

 

HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2016 

 

Chairman's statement

 

I am pleased to report good results for the six months to 30 September 2016.

 

Results

 

The results are better than the same period last year.  Revenue for the six months to 30 September 2016 was £100.3m, up 4.2 per cent on £96.2m for the same period last year.  The operating profit was £7.8m, 21.3 per cent up on £6.5m last year. Profit before tax was £7.7m, up 22.4 per cent on last year's £6.3m.  Earnings per ordinary share were 31.2p (2015: 25.8p) an increase of 20.9 per cent.

 

As at 30 September 2016 net assets had reduced to £64.5m (2015: £67.8m) with cash and cash equivalents of £16.1m (2015: £12.4m).  The actuarial calculation of the pension deficit is very sensitive to changes in the discount rate, and due to the fall in corporate bond yields, the pension deficit is calculated as increasing from £7.7m to £23.2m.  However the scheme investments have grown faster than the scheme assumptions.

 

Interim dividend

 

The Board has declared an increased interim dividend of 4.5p per Ordinary Share (2015: 4.0p), which is covered 6.9 times (2015: 6.5 times).  The dividend is payable on 27 January 2017 to ordinary shareholders on the Company's Register at close of business on 6 January 2017.  The ex-dividend date will be 5 January 2017.

 

Six months trading to 30 September 2016

 

In trading conditions which have been different for the various markets that we serve, group revenue has grown by £4.1m as a result of higher prices of imported goods resulting from the fall in the value of sterling with small gains from sales volumes and product mix.  

 

Trading margins for the six months to 30 September 2016 are higher than for the previous year.  Overheads have been well controlled.  Bad debts have remained lower than expected.  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 lower margins.  The weakness of sterling, whilst increasing prices, could put pressure on margins in the coming months.  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.  Construction work has started on the new Yate site and terms have been agreed for the new Wigston site, subject to planning.

 

 

Peter Latham

Chairman

23 November 2016

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.

 

Enquiries

 

James Latham plc

Tel: 01442 849 100

David Dunmow, Finance Director




Northland Capital Partners Limited

Nominated Adviser and Broker

Tel: 0203 861 6625

Matthew Johnson / Edward Hutton


 

JAMES LATHAM PLC




CONSOLIDATED INCOME STATEMENT








For the six months to 30 September 2016









Six months to 30 Sept. 2016 unaudited

Six months to 30 Sept. 2015 unaudited

Year to                31 March 2016 audited






£000

£000

£000





Revenue

100,334

96,209

185,929





Cost of sales (including warehouse costs)

(81,582)

(78,975)

(151,389)





Gross profit

18,752

17,234

34,540





Selling and distribution costs

(7,889)

(7,674)

(15,129)

Administrative expenses

(3,027)

(3,099)

(6,170)





Operating profit

7,836

6,461

13,241





Finance income

33

25

56

Finance costs

(209)

(227)

(421)





Profit before tax

7,660

6,259

12,876





Tax expense

(1,545)

(1,257)

(2,410)





Profit after tax attributable to owners of the parent company

6,115

5,002

10,466





Earnings  per ordinary share (basic)

31.2p

25.8p

53.7p





Earnings  per ordinary share (diluted)

31.1p

25.5p

53.5p









All results relate to continuing operations.




 



 

JAMES LATHAM PLC








CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








For the six months to 30 September 2016









Six months to 30 Sept. 2016 unaudited

Six months to 30 Sept. 2015 unaudited

Year to                31 March 2016 audited






£000

£000

£000





Profit after tax

6,115

5,002

10,466

Other Comprehensive income




Actuarial (losses)/gains on defined benefit pension scheme

(13,313)

2,766

825

Deferred tax relating to components of other comprehensive income

2,396

(491)

(219)

Other comprehensive income for the period, net of tax

(10,917)

2,275

606

Total comprehensive income, attributable to owners of the parent company

(4,802)

7,277

11,072

 



 

JAMES LATHAM PLC




CONSOLIDATED BALANCE SHEET








At 30 September 2016









As at 30 Sept. 2016 unaudited

As at 30 Sept. 2015 unaudited

As at 31 March 2016 audited






£000

£000

£000

ASSETS

Non-current assets




Goodwill

237

237

237

Intangible assets

89

97

93

Property, plant and equipment

25,315

21,477

22,111

Deferred tax asset

4,245

1,773

1,802

Total non-current assets

29,886

23,584

24,243





Current assets




Inventories

35,065

32,419

33,403

Trade and other receivables

38,003

37,612

35,288

Cash and cash equivalents

16,102

12,432

16,832

Total current assets

89,170

82,463

85,523









Total assets

119,056

106,047

109,766


Current liabilities

Trade and other payables

Current tax payable

1,590

1,297

1,376

Total current liabilities


Non-current liabilities

Interest bearing loans and borrowings

Retirement and other benefit obligation

Other payables

Deferred tax liabilities

2,686

2,961

2,686

Total non-current liabilities






Total liabilities






Net assets

64,478

67,771

71,183


Capital and reserves




Issued capital

5,040

5,040

5,040

Share-based payment reserve

70

172

56

Own shares

(344)

(235)

(441)

Capital reserve

3

3

3

Retained earnings

59,709

62,791

66,525





Total equity attributable to owners of the parent company

64,478

67,771

71,183



 

JAMES LATHAM PLC








CONSOLIDATED CASH FLOW STATEMENT








For the six months to 30 September 2016









Six months to 30 Sept 2016 unaudited

Six months to 30 Sept 2015 unaudited

Year to                31 March 2016 audited






£000

£000

£000

Net cash flow from operating activities




Cash generated from operations

6,665

4,055

11,704

Interest paid

(2)

(25)

(23)

Income tax paid

(1,376)

(909)

(2,016)

Net cash inflow from operating activities

5,287

3,121

9,665





Cash flows from investing activities




Interest received and similar income

33

25

56

Purchase of property, plant and equipment

(4,035)

(608)

(2,056)

Proceeds from sale of property, plant and equipment

41

46

136

Net cash outflow from investing activities

(3,961)

(537)

(1,864)





Cash flows before financing activities




Borrowings repaid during the period

-

(907)

(907)

Equity dividends paid

(2,017)

(1,707)

(2,484)

Preference dividend paid

(39)

(39)

(79)

Net cash outflow from financing activities

(2,056)

(2,653)

(3,470)





(Decrease)/increase in cash and cash equivalents for the period

(730)

(69)

4,331





Cash and cash equivalents at beginning of the period

16,832

12,501

12,501





Cash and cash equivalents at end of the period

16,102

12,432

16,832

 

 



 

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 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

Transaction 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

Profit for the period

-

-

-

-

5,464

5,464

Other comprehensive income:







Actuarial loss on defined benefit pension scheme

-

-

-

-

(1,941)

(1,941)

Deferred tax relating to components of other comprehensive income

-

-

-

-

272

272

Total comprehensive income for the period

-

-

-

-

3,795

3,795

Transactions with owners:







Dividends

-

-

-

-

(777)

(777)

Transfer of treasury shares

-

-

(1,385)

-

1,385

-

Write down on conversions of ESOP shares

-

-

818

-

(818)

-

Conversion of ESOP shares

-

-

507

-

-

507

Exercise of options

-

(149)

-

-

149

-

Change in investment in ESOP shares

-

-

(146)

-

-

(146)

Share-based payment expense

-

33

-

-

-

33

Total transactions with owners

-

(116)

(206)

-

(61)

(383)

Balance at 31 March 2016 (audited)

5,040

56

(441)

3

66,525

71,183

Profit for the period

-

-

-

-

6,115

6,115

Other comprehensive income:







Actuarial loss on defined benefit pension scheme

-

-

-

-

(13,313)

(13,313)

Deferred tax relating to components of other comprehensive income

-

-

-

-

2,396

2,396

Total comprehensive income for the period

-

-

-

-

(4,802)

(4,802)

Transactions with owners:







Dividends

-

-

-

-

(2,017)

(2,017)

Exercise of options

-

(3)

-

-

3

-

Change in investment in ESOP shares

-

-

97

-

-

97

Share-based payment expense

-

17

-

-

-

17

Total transactions with owners

-

14

97

-

(2,014)

(1,903)

Balance at 30 September 2016 (unaudited)

5,040

70

(344)

3

59,709

64,478



 

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 2017 and on the basis of the accounting policies to be used in those financial statements.  The figures for the year ended 31 March 2016 are extracted from the statutory accounts of the group for that period.


2.  The directors propose an interim dividend of 4.5p per ordinary share which will absorb £880,000 (2016: 4.0p absorbing £780,000), payable on 27 January 2017 to shareholders on the Register at the close of business on 6 January 2017. The ex-dividend date is 5 January 2017.


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 2016 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 2016 unaudited

Six months to 30 Sept 2015 unaudited

Year to 31 March 2016 audited


£000

£000

£000





Net profit attributable to ordinary shareholders

6,115

5,002

10,466






Number '000

Number '000

Number '000

Weighted average share capital

19,590

19,399

19,493

Add: diluted effect of share capital options issued

85

203

65

Weighted average share capital for diluted earnings per ordinary share calculation

19,675

19,602

19,558







 

5.  Net cash flow from operating activities



Six months to 30 Sept 2016 unaudited

Six months to 30 Sept 2015 unaudited

Year to 31 March 2016 audited

 

Profit before tax

7,660

6,259

12,876

Adjustment for finance income and expenditure

176

202

365

Depreciation and amortisation

829

728

1,515

Profit on disposal of property, plant and equipment

(35)

(38)

(97)

Increase in inventories

(1,662)

(513)

(1,497)

Increase in receivables

(2,715)

(3,399)

(1,075)

Increase in payables

2,228

993

(480)

Own shares non cash amounts

97

(58)

302

Retirement benefits non cash amounts

70

(148)

(267)

Share-based payments non cash amounts

17

29

62

Cash generated from operations

6,665

4,055

11,704


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
The company news service from the London Stock Exchange
 
END
 
 
IR FEAFWDFMSEFF
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Half-year Report - RNS