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Latham(James) PLC  -  LTHM   

Final Results

Released 07:00 22-Jun-2017

RNS Number : 7999I
Latham(James) PLC
22 June 2017
 

James Latham Plc

 

("James Latham" or the "Group")

 

Final Results

 

 

I am pleased to report good trading results for the financial year to 31 March 2017.

 

Group revenue for the financial year to 31 March 2017 was £198.8m, 6.9% up on last year's £185.9m. The operating profit was £14.2m, up £1.0m from £13.2m.

 

Finance income was £56,000 against £56,000 last year. Finance costs, which are principally interest on the pension scheme deficit as calculated under IAS19 (revised), were £408,000 against £421,000 last year.

 

Pre-tax profit was £13.8m, up £0.9m from £12.9m last year. Post-tax profit for the year is £11.0m, up from last year's figure of £10.5m.

 

Earnings per share were 56.0p compared to last year's 53.7p.

 

Net assets (total equity) were £73.3m compared to £71.2m last year.

 

At the year end the Group's cash reserves stood at £17.2m compared to £16.8m last year. 

 

Final dividend

The directors recommend a final dividend of 10.85p per ordinary share (2016 10.3p).  The final dividend will be paid on 25 August 2017 to shareholders on the register at the close of business on 4 August 2017.  The shares will become ex-dividend on 3 August 2017.

 

The total dividend per ordinary share of 15.35p for the year is covered 3.6 times by earnings (2016: 3.8 times).

 

Financial year 2016/17

 

The Group's results are based on the trading of Lathams Limited, a specialist panel and timber distributor.  Revenue continued to grow during the year due to higher prices resulting from the weakness of sterling against both the dollar and the euro and to increased volumes ex-warehouse. Year on year increases in both revenue and volume for the fourth quarter was particularly encouraging. The gross margin, before warehouse costs, was down by 0.3 percentage points, due to competitive pressures and higher stock replacement costs.

 

Panel and Timber prices rose sharply during the year, due to the weakness in sterling. Focus panel products including melamine panels and door blanks, continued to show good growth. Our high quality certified sustainable hardwood for the joinery sector also showed good growth.

 

Overheads have been well controlled in spite of higher volumes through the warehouses and bad debts were low overall for the year.

 

Pension Scheme

At 31 March 2017 the deficit of the defined benefit scheme under IAS19 (revised) was £16.6m up £6.9m compared with £9.7m last year, but down from £23.2m at 30 September 2016. These variations are the result of the changes in the corporate bond yield used to calculate the present value of the scheme's liabilities, offset by the increases in the value of scheme assets, and reflects the volatility of the accounting for this scheme.

 

Current financial year 2017/18

This year like for like revenue, both in panels and timber, is 3% higher for April and May than the corresponding period last year which had two more working days. However the gross margin is still under pressure.

 

Development strategy

The directors continue to identify opportunities for growth and to introduce and promote new products. Construction of the new, up-graded site for our Yate operation is nearing completion and the move is planned for July.  Negotiations are at an advanced stage for the construction of a new site for our Wigston unit and relocation is expected by the end of the financial year.

 

The Group is in a strong financial position to take advantage of opportunities for further business growth, as and when they arise.

 

 

 

 

Peter Latham

Chairman

21 June 2017.



 

 

JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT

For the year to 31 March 2017


Audited

Audited

 

Year to 31 March 2017

Year to 31 March 2016


£000

£000

 



Revenue

198,808

185,929

 



Cost of sales (including warehouse costs)

(162,709)

(151,389)




Gross profit

36,099

34,540




Selling and distribution costs

(15,457)

(15,129)

Administrative expenses

(6,463)

(6,170)

Operating Profit

14,179

13,241

 



Finance income

56

56

Finance costs

(408)

(421)

 

 

 

Profit before tax

13,827

12,876

 

 

 

Tax expense

(2,846)

(2,410)

 

 

 

Profit after tax attributable to owners of the parent company

10,981

10,466

 

 

 

Earnings per ordinary share (basic)

56.0p

53.7p

Earnings per ordinary share (diluted)

55.8p

53.5p

 

All results relate to continuing operations.



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year to 31 March 2017


Audited

Audited


2017
2016


£000

£000

Profit after tax attributable to owners of the parent company

10,981

10,466




Other comprehensive income



Actuarial (loss)/gain on defined benefit pension scheme

(7,543)

825

Deferred tax relating to components of other comprehensive income

 

1,362

 

(219)

Other comprehensive income for the year, net of tax

(6,181)

606

Total comprehensive income attributable to owners of the parent company

 

4,800

 

11,072



JAMES LATHAM PLC                                                           COMPANY REGISTRATION NUMBER 65619

CONSOLIDATED BALANCE SHEET

At 31 March 2017


Audited

Audited


2017

2016

 

£000

£000

Assets



Non-current assets



Goodwill

237

237

Other intangible assets

1

93

Property, plant and equipment

26,312

22,111

Deferred tax asset

2,904

1,802

Total non-current assets

29,454

24,243

 



Current assets



Inventories

35,508

33,403

Trade and other receivables

40,076

35,288

Cash and cash equivalents

17,246

16,832

Total current assets

92,830

85,523

Total assets

122,284

109,766

 

 

 

Current liabilities



Trade and other payables

27,063

23,471

Tax payable

1,517

1,376

Total current liabilities

28,580

24,847




Non-current liabilities



Interest bearing loans and borrowings

987

987

Retirement and other benefit obligation

16,625

9,657

Other payables

349

406

Deferred tax liabilities

2,485

2,686

Total non-current liabilities

20,446

13,736

Total liabilities

49,026

38,583




Net assets

73,258

71,183




Capital and reserves



Issued capital

5,040

5,040

Share-based payment reserve

108

56

Own shares

(291)

(441)

Capital reserve

3

3

Retained earnings

68,398

66,525

Total equity attributable to equity shareholders of the parent company

 

73,258

 

71,183

 

The Company's profit for the year and total comprehensive income for the year were £1,266,000 (2016: loss of £551,000)and £1,270,000 (2016: loss of £631,000) respectively.

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 2015 - audited

5,040

143

(177)

3

57,222

62,231

Profit for the year

-

-

-

-

10,466

10,466

Other comprehensive income:







Actuarial gain on defined benefit pension scheme

-

-

-

-

825

825

Deferred tax relating to components of other comprehensive income

 

-

 

-

 

-

 

-

 

(219)

 

(219)

Total comprehensive income for the year

-

-

-

-

11,072

11,072

Transactions with owners:







Dividends

-

-

-

-

(2,484)

(2,484)

Write down on conversion of ESOP shares

-

-

819

-

(819)

-

Exercise of options

-

(149)

-

-

149

-

Transfer of treasury shares

-

-

(1,385)

-

1,385

-

Conversions of ESOP shares

-

-

507

-

-

507

Change in investment in ESOP shares

-

-

(205)

-

-

(205)

Share-based payment expense

-

62

-

-

-

62

Total transactions with owners

-

(87)

(264)

-

(1,769)

(2,120)

Balance at 31 March 2016 - audited

5,040

56

(441)

3

66,525

71,183

Profit for the year

-

-

-

-

10,981

10,981

Other comprehensive income:







Actuarial loss on defined benefit pension scheme

-

-

-

-

(7,543)

(7,543)

Deferred tax relating to components of other comprehensive income

-

-

-

-

1,362

1,362

Total comprehensive income for the year

-

-

-

-

4,800

4,800

Transactions with owners:







Dividends

-

-

-

-

(2,894)

(2,894)

Exercise of options

-

(19)

-

-

19

-

Write down on conversion of ESOP shares

-

-

52

-

(52)

-

Change in investment in ESOP shares

-

-

98

-

-

98

Share-based payment expense

-

71

-

-

-

71

Total transactions with owners

-

52

150

-

(2,927)

(2,725)

Balance at 31 March 2017 - audited

5,040

108

(291)

3

68,398

73,258



 

JAMES LATHAM PLC

CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2017


Audited

Audited


2017

2016


£000

£000

Net cash flow from operating activities



Cash generated from operations

11,902

11,704

Interest paid

(2)

(23)

Income tax paid

(2,646)

(2,016)

Net cash inflow from operating activities

9,254

9,665

 



Cash flows from investing activities



Interest received and similar income

56

56

Purchase of property, plant and equipment

(6,045)

(2,056)

Proceeds from sale of property, plant and equipment

 

122

 

136

Net cash outflow from investing activities

(5,867)

(1,864)

 



Cash flows from financing activities



Borrowings repaid during the year

-

(907)

Equity dividends paid

(2,894)

(2,484)

Preference dividend paid

(79)

(79)

Net cash outflow from financing activities

(2,973)

(3,470)

Increase in cash and cash equivalents for the year

 

414

 

4,331

Cash and cash equivalents at beginning of the year

 

16,832

 

12,501

Cash and cash equivalents at end of the year

17,246

16,832

 

 

 

 

 

 

 



JAMES LATHAM PLC

 

Notes to the audited preliminary financial information

 

 

1.   The financial information presented in this report is audited and has 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 2016 and 31 March 2017.

 

2.   The directors propose a final dividend of 10.85p per ordinary share, which will absorb £2,127,000 (2016: 10.3p absorbing £2,019,000), payable on 25 August 2017 to shareholders on the Register at the close of business on 4 August 2017.  The ex-dividend date is 3 August 2017.

 

The figures for the year ended 31 March 2017 and as at 31 March 2017 have been extracted from the audited statutory accounts for that year, which have yet to be delivered to the Registrar of Companies and which have 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.  The preliminary financial information 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 2017 will be delivered to the Registrar of Companies and sent to Shareholders shortly.  The Annual Report and Accounts may also be viewed in due course on James Latham plc's website at www.lathams.co.uk

 

The audit report on the statutory financial statements for the year ended 31 March 2017 is unqualified and does not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report  and does not contain any statement under Section 498(2) or (3) of the Companies Act 2006.

 

Statutory accounts for the year ended 31 March 2016 have been filed with the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report  and did not contain a statement under section 498(2) and (3) of the Companies Act 2006.

 

3.   This announcement was approved and authorised for issue by the Board of Directors on 21 June 2017.

 

4.   Net cash flow from operating activities



Year to 31 March 2017 audited

Year to 31 March 2016 audited





Profit before tax


13,827

12,876

Adjustment for finance income and cost


352

365

Depreciation, amortisation and impairment


1,822

1,515

Profit on disposal of property, plant and equipment


(95)

(97)

Write down of intangible asset


86

-

Increase in inventories


(2,105)

(1,497)

Increase in receivables


(4,788)

(1,075)

Increase/(decrease) in payables


3,536

(480)

Retirement benefits non cash amounts


(902)

(267)

Share-based payments non cash amounts


71

62

Own shares non cash amounts


98

302

Cash generated from operations


11,902

11,704





 

5.   The Annual General Meeting of James Latham plc will be held at Gallery Level, Business Design Centre, 52 Upper Street, London, N1 0QH on 23 August 2017 at 12.30pm.

 

 

 

 


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