REG - Headlam Group PLC - Preliminary Results <Origin Href="QuoteRef">HEAD.L</Origin> - Part 2
03/03/2016 07:11
- Part 2: For the preceding part double click ID:nRSC8732Qa
- 29,207 28,829
Transactions with equity shareholders, recorded directly in equity
Share-based payments - - - - - - 1,100 1,100
Share options exercised by employees - - - - - 1,824 (819) 1,005
Current tax on share options - - - - - - 95 95
Deferred tax on share options - - - - - - (22) (22)
Dividends to equity holders - - - - - - (14,655) (14,655)
Total contributions by and distributions to equity shareholders - - - - - 1,824 (14,301) (12,477)
Balance at 31 December 2015 4,268 53,512 88 5,429 (516) (5,276) 140,924 198,429
Cash Flow Statements
for the year ended 31 December 2015
2015£000 2014£000
Cash flows from operating activities
Profit before tax for the year 35,624 30,300
Adjustments for:
Depreciation, amortisation and impairment 5,179 4,900
Finance income (738) (819)
Finance expense 1,891 1,981
Profit on sale of property, plant and equipment (31) (30)
Share-based payments 1,100 692
Operating cash flows before changes in working
capital and other payables 43,025 37,024
Change in inventories (1,827) (1,514)
Change in trade and other receivables (1,524) (143)
Change in trade and other payables 7,270 2,656
Cash generated from the operations 46,944 38,023
Interest paid (1,268) (1,477)
Tax paid (6,245) (6,357)
Additional contributions to defined benefit plan (2,925) (2,996)
Net cash flow from operating activities 36,506 27,193
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 277 92
Interest received 726 846
Acquisition of subsidiaries, net of cash acquired (1,977) (331)
Acquisition of property, plant and equipment (2,856) (5,668)
Net cash flow from investing activities (3,830) (5,061)
Cash flows from financing activities
Proceeds from the issue of treasury shares 1,005 1,028
Repayment of borrowings (2,817) (10,210)
Dividends paid (14,655) (12,689)
Net cash flow from financing activities (16,467) (21,871)
Net increase in cash and cash equivalents 16,209 261
Cash and cash equivalents at 1 January 47,589 47,477
Effect of exchange rate fluctuations on cash held 134 (149)
Cash and cash equivalents at 31 December 63,932 47,589
Notes
1 Segment reporting
The group has 56 operating segments in the UK and five operating segments in
Continental Europe. Each segment represents an individual trading operation,
and each operation is wholly aligned to the sales, marketing, supply and
distribution of floorcovering products. The operating results of each
operation are regularly reviewed by the Chief Operating Decision Maker, which
is deemed to be the Group Chief Executive. Discrete financial information is
available for each segment and used by the Group Chief Executive to assess
performance and decide on resource allocation.
The operating segments have been aggregated to the extent that they have
similar economic characteristics. The key economic indicators considered by
management in assessing whether operating segments have similar economic
characteristics are the products supplied, the type and class of customer,
method of sale and distribution and the regulatory environment in which they
operate.
As each operating segment is a trading operation wholly aligned to the sales,
marketing, supply and distribution of floorcovering products, management
consider all segments have similar economic characteristics except for the
regulatory environment in which they operate, which is determined by the
country in which the operating segment resides.
The group's internal management structure and financial reporting systems
differentiate the operating segments on the basis of the differing economic
characteristics in the UK and Continental Europe and accordingly present these
as two separate reportable segments. This distinction is embedded in the
construction of operating reports reviewed by the Group Chief Executive, the
board and the executive management team and forms the basis for the
presentation of operating segment information given below.
UK Continental Europe Total
2015£000 2014£000 2015£000 2014£000 2015£000 2014£000
Revenue
External revenues 575,341 548,393 78,737 86,849 654,078 635,242
Reportable segment operating profit 37,363 30,695 575 1,183 37,938 31,878
Reportable segment assets 257,984 256,274 34,067 34,444 292,051 290,718
Reportable segment liabilities (158,859) (151,566) (13,326) (14,568) (172,185) (166,134)
During the year there are no inter-segment revenues for the reportable
segments (2014: £nil).
Reconciliations of reportable segment profit, assets and liabilities and other
material items:
2015£000 2014£000
Profit for the year
Total profit for reportable segments 37,938 31,878
Unallocated expense (1,161) (416)
Operating profit 36,777 31,462
Finance income 738 819
Finance expense (1,891) (1,981)
Profit before taxation 35,624 30,300
Taxation (7,213) (6,515)
Profit for the year 28,411 23,785
Notes continued
1 Segment reporting- continued
2015£000 2014£000
Assets
Total assets for reportable segments 292,051 290,718
Unallocated assets:
Properties, plant and equipment 89,828 91,493
Deferred tax assets 2,238 2,726
Cash and cash equivalents 33,001 14,237
Total assets 417,118 399,174
Liabilities
Total liabilities for reportable segments (172,185) (166,134)
Unallocated liabilities:
Employee benefits (19,014) (21,736)
Other interest-bearing loans and borrowings (20,000) (23,022)
Income tax payable (6,974) (6,073)
Derivative liabilities (516) (132)
Total liabilities (218,689) (217,097)
UK£000 ContinentalEurope£000 Reportable segment total£000 Unallocated£000 Consolidated total£000
Other material items 2015
Capital expenditure 2,064 543 2,607 287 2,894
Depreciation 2,246 538 2,784 2,020 4,804
Amortisation - - - 375 375
Other material items 2014
Capital expenditure 2,586 421 3,007 2,661 5,668
Depreciation 2,260 567 2,827 1,998 4,825
Amortisation - - - 75 75
In the UK the group's freehold properties are held within Headlam Group plc
and a rent is charged to the operating segments for the period of use.
Therefore, the operating reports reviewed by the Group Chief Executive show
all the UK properties as unallocated and the operating segments report a
segment result that includes a property rent. This is reflected in the above
disclosure.
Each segment is a continuing operation.
The Group Chief Executive, the board and the senior executive management team
have access to information that provides details on revenue by principal
product group for the two reportable segments, as set out in the following
table:
Notes continued
1 Segment reporting - continued
Revenue by principal product group and geographic origin is summarised below:
UK Continental Europe Total
2015£000 2014£000 2015£000 2014£000 2015£000 2014£000
Revenue
Residential 399,453 378,910 40,281 43,415 439,734 422,325
Commercial 175,888 169,483 38,456 43,434 214,344 212,917
575,341 548,393 78,737 86,849 654,078 635,242
2 Earnings per share
2015£000 2014£000
Earnings
Earnings for basic and diluted earnings per share 28,411 23,785
2015 2014
Number of shares
Issued ordinary shares at 31 December 85,363,743 85,363,743
Effect of shares held in treasury (1,331,576) (2,053,036)
Weighted average number of ordinary shares for the purposes of basic earnings per share 84,032,167 83,310,707
Effect of diluted potential ordinary shares:
Weighted average number of ordinary shares at 31 December 84,032,167 83,310,707
Dilutive effect of share options 282,078 264,178
Weighted average number of ordinary shares for the purposes of diluted earnings per share 84,314,245 83,574,885
Notes continued
3 Dividends
2015£000 2014£000
Interim dividend for 2014 of 5.20p paid 2 January 2015 4,355 -
Final dividend for 2014 of 12.30p paid 1 July 2015 10,300 -
Interim dividend for 2013 of 4.65p paid 2 January 2014 - 3,856
Final dividend for 2013 of 10.65p paid 1 July 2014 - 8,833
14,655 12,689
The final proposed dividend of 14.70p per share (2014: 12.30p per share) will
not be provided for until authorised by shareholders at the forthcoming AGM.
There are no income tax consequences.
The interim dividends of 6.00p per share (2014: 5.20p per share) was provided
for when the dividend was paid. The dividend was paid on 2 January 2016 and
totalled £5,048,000.
The total value of dividends proposed but not recognised at 31 December 2015
is £17,416,000 (2014: £14,655,000).
A special dividend has been declared of 6.00p per share that will be paid on
25 April 2016.
4. Additional information
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2015 or 2014 but is derived
from those accounts. Statutory accounts for 2014 have been delivered to the
registrar of companies, and those for 2015 will be delivered in due course.
The auditors have reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
We anticipate that the company's statutory accounts will be posted to
shareholders during April 2016 and will be displayed on the company's website
at www.headlam.com at the same time. Copies of the statutory accounts will
also be available from the company's registered office at Headlam Group plc,
PO Box 1, Gorsey Lane, Coleshill, Birmingham, B46 1LW.
This preliminary announcement of results for the year ended 31 December 2015
was approved by the board on
3 March 2016.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Headlam
See all newsREG - Headlam Group PLC - Employee Long Service Awards Scheme
AnnouncementREG - Headlam Group PLC - Director Declaration
AnnouncementREG - Headlam Group PLC - ARA & Notice of AGM
AnnouncementREG - Headlam Group PLC - Grant of awards under Deferred Bonus Plan & PSP
AnnouncementREG - Headlam Group PLC - Director/PDMR Shareholding
Announcement