REG - Howden Joinery Grp - Howdens Group PLC 2016 Preliminary Results <Origin Href="QuoteRef">HWDN.L</Origin> - Part 2

Howden JoineryAnnouncement

23/02/2017 07:06

- Part 2: For the preceding part double click  ID:nRSW6081Xa 

                                                                               
 IFRS2 share scheme charge                                 (0.4)                          (0.3)                          
 Expenses not deductible for tax purposes                  2.2                            1.5                            
 Overseas losses not utilised                              1.6                            1.1                            
 Change of tax rate*                                       0.4                            0.7                            
 Non-qualifying depreciation                               0.9                            0.9                            
 Other tax adjustment in respect of previous years         (0.7)                          (4.2)                          
 Total tax charged in the income statement                 51.4                           44.2                           
 
 
The Group's effective rate of tax is 21.7% (2015: 20.1%) 
 
*   In September 2016, Parliament approved the Finance Bill which reduces the
UK standard rate of Corporation Tax from 20% to 19% with effect from 1 April
2017 and 19% to 17% from 1 April 2020.  All deferred tax assets and
liabilities have been recognised at 17% with the exception of items expected
to reverse before the rate reduces to 17%. 
 
5 Earnings per share 
 
                                   52 weeks to 24 December 2016                                    52 weeks to 26 December 2015  
                                   Earnings£m                    Weighted averagenumberof sharesm  Earnings per sharep             Earnings£m  Weighted average numberof sharesm  Earningsper sharep  
 Basic earnings per share          185.6                         629.6                             29.5                            175.4       642.8                              27.3                
 Effect of dilutive share options  -                             1.9                               (0.1)                           -           1.6                                (0.1)               
 Diluted earnings per share        185.6                         631.5                             29.4                            175.4       644.4                              27.2                
 
 
6 Dividends 
 
                                                                                 52 weeks to24 December 2016£m  52 weeks to26 December 2015£m  
 Amounts recognised as distributions to equity holders in the period                                                                           
 Interim dividend for the 52 weeks to 24 December 2016 - 3.3p/share              20.6                           -                              
 Final dividend for the 52 weeks to 26 December 2015 - 7.1p/share                44.8                           -                              
 Interim dividend for the 52 weeks to 26 December 2015 - 2.8p/share              -                              17.9                           
 Final dividend for the 52 weeks to 27 December 2014 - 6.5p/share                -                              42.0                           
                                                                                 65.4                           59.9                           
 Dividends proposed at the end of the period (but not recognised in the period)  
 Proposed final dividend for the 52 weeks to 24 December 2016 - (7.4p/share)     46.1                                                          
 Proposed final dividend for the 52 weeks to 26 December 2015 - (7.1p/share)                                    45.2                           
 
 
The directors propose a final dividend in respect of the 52 weeks to 24
December 2016 of 7.4p per share, payable to ordinary shareholders who are on
the register of shareholders at 19 May 2017 and payable on 16 June 2017. 
 
Dividends have been waived indefinitely on all shares held by the Group's
employee share trusts, which have not yet been awarded to employees. 
 
The proposed final dividend for the current period is subject to the approval
of the shareholders at the 2017 Annual General Meeting and has not been
included as a liability in these financial statements. 
 
7 Provisions 
 
                                         Property£m  Warranty£m  Other£m  Total£m  
 At 27 December 2014                     6.8         3.6         0.2      10.6     
 Additional provision in the period      2.4         4.1         -        6.5      
 Provision released in the period        (1.9)       -           -        (1.9)    
 Utilisation of provision in the period  (1.8)       (3.5)       -        (5.3)    
 At 26 December 2015                     5.5         4.2         0.2      9.9      
 Additional provision in the period      3.8         3.6         0.1      7.5      
 Provision released in the period        (0.4)       -           -        (0.4)    
 Utilisation of provision in the period  (4.2)       (3.8)       -        (8.0)    
 At 24 December 2016                     4.7         4.0         0.3      9.0      
 
 
Property provision 
 
The property provision covers two main area: (i) onerous leases on any
non-trading leased properties, and 
 
(ii) obligations to make dilapidations payments to landlords of leased
properties. 
 
The timing of outflows from the provision is variable and is dependent on
property lease expiry dates, on opportunities to surrender leases, and on the
timing of dilapidations assessments and works. 
 
Warranty provision 
 
The warranty provision relates to amounts due in respect of product
warranties.  As products are sold, the Group makes provision for claims under
warranties.  As claims are made, the Group utilises the provision and then
uses this historical data to periodically revise the basis on which it makes
further provision. 
 
8 Notes to the cash flow statement 
 
Analysis of net cash 
 
                         Cash at bank and in hand £m  Short term investments*£m  Cash and cash equivalents, and net cash£m  
 As at 26 December 2015  166.1                        60.0                       226.1                                      
 Cash flow               (26.8)                       27.3                       0.5                                        
 As at 24 December 2016  139.3                        87.3                       226.6                                      
 
 
* The short term investments have a maturity of less than three months and, as
such, are considered to be cash equivalents for the purposes of the cash flow
statement. 
 
FINANCIAL CALENDAR 
 
 2017                                          
 Trading update                   27 April     
 Half Yearly Report               20 July      
 Trading update                   2 November   
 End of financial year (53-week)  30 December  
 
 
This information is provided by RNS
The company news service from the London Stock Exchange