REG - James Halstead PLC - Preliminary Results
02/10/2023 07:00
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RNS Number : 2460O James Halstead PLC 02 October 2023
2 October 2023
JAMES HALSTEAD PLC
("James Halstead", the "Group" or the "Company")
PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS
FOR THE YEAR ENDED 30 JUNE 2023
James Halstead plc, the AIM listed manufacturer and international distributor
of commercial flooring, announces its results for the year ended 30 June 2023:
Financial highlights
· Revenue at £303.6 million (2022: £291.9 million) - up 4%
· Profit before tax of £52.1 million (2022: £52.1 million) - a small increase
· Profit after tax of £42.4 million (2022: £40.3 million) - up 5.1%
· Earnings per 5p ordinary share of 10.2p (2022: 9.7p) - up 5.2%
· Final dividend per ordinary share proposed of 5.75p (2022: 5.50p) - up 4.5%
· Cash of £63.2 million (2022: £52.1 million)
Mr Mark Halstead, Chief Executive, commenting on the results, said:
"Against a challenging backdrop, I am pleased to announce a very respectable
performance across the Group and another record sales performance. Good demand
across a number of our key markets has continued to drive the positive top
line. Consequently, we are also pleased to report a record level of profit and
record EPS, creating even more value for our shareholders.
We continue to invest in driving process improvement and developing our
product offering, with a view to also improve output efficiency. It is this
approach and our tested business model which position us resiliently in the
inflationary environment that has been seen across global markets.
We ended the year with a robust balance sheet and in a position to propose a
record dividend to our shareholders. Whilst inflationary issues and spending
constraints remain, I and the Board remain confident in the Group's progress
going forward and look ahead to the future with confidence".
Enquiries:
James Halstead:
Mark Halstead, Chief Executive Telephone: 0161 767 2500
Gordon Oliver, Finance Director
Hudson Sandler:
Nick Lyon Telephone: 020 7796 4133
Nick Moore
Panmure Gordon (NOMAD & Joint Broker):
Dominic Morley Telephone: 020 7886 2500
WH Ireland (Joint Broker):
Ben Thorne Telephone: 020 7220 1666
CHAIRMAN'S STATEMENT
Results
Revenue for the year at £303.6m (2022: £291.9m) is 4% ahead of the
comparative year largely driven by increased demand across a number of our key
markets. This is a record level of sales.
The reported profit before tax for the year of £52.1m (2022: £52.1m) is a
fraction over the comparative. Nevertheless, profit after tax is £42.4m
(2022: £40.3m) - an increase of 5.1%. A record level of profit. Furthermore,
earnings per share are at 10.2p (2022: 9.7p) which is an increase of 5.2% and
a record level of EPS.
The financial year was one of contrast, with the earlier months having
encountered escalating energy costs, severe difficulties as a result of the
lack of timely availability of international shipping and increased
transportation costs. However, the latter months of the year were much more
positive with the easing of energy costs and a great improvement in shipping
and transportation costs. In addition, our export sales in many markets
developed as demand increased. The breadth of projects stretches from The
Media Centre for the Paris 2024 Olympics, Castlerock Farm in British Columbia
to The Centre for Autism Research (CFAR) at the King Faisal Specialist
Hospital & Research Centre in Riyadh.
Sales growth has, on the whole, proved positive with the UK, the Americas,
Australia, New Zealand and Malaysia all reporting increased demand, although
Central Europe sales were lower than last year. As the year progressed, gross
margins improved for the reasons already noted helped by the price increases
and also by a swing in the mix of sales to pure commercial ranges as opposed
to light commercial/heavy domestic. The core focus of our flooring ranges in
healthcare, education and retail infrastructure, rather than private
residential, remains a key benefit to our business model. Nevertheless, in
Germany we have seen recent successes in new residential apartment buildings
such as Quartier Möllner Straße in Rostock (Mecklenburg-Vorpommern
(https://en.wikipedia.org/wiki/Mecklenburg-Vorpommern) ) and York-Quartier in
Münster (North Rhine-Westphalia
(https://en.wikipedia.org/wiki/North_Rhine-Westphalia) ).
The Company and our strategy
James Halstead is a group of companies involved in the manufacture and supply
of flooring for commercial and domestic purposes, based in Bury, UK. James
Halstead plc has been listed on the London Stock Exchange for 75 years. The
Group was established in 1914 and continues to operate out of the original
premises in Bury. In its factories in Bury and Teesside it manufactures
resilient flooring for distribution in the UK and worldwide.
The Company's strategy is to constantly develop its brand identity and its
reputation for quality, product innovation, durability and availability,
thereby enhancing and maintaining goodwill with the aim of achieving repeat
business. Our focus is to work with stockists who in turn distribute those
bulk deliveries whilst promoting and representing the products to the end
users and specifiers who will purchase the stock from those stockists.
This approach is designed to increase and secure revenue streams and drive
profitability and cash flow which enables the continuation of dividends, in
turn creating shareholder value. In the normal course of business one key
element of the Company ethos is having dedicated sales personnel to present
our product to our customers' clientele.
Over many years our strategy has also included a policy of continual
investment in both process improvement and in product development to improve
output efficiency and our product offering.
Sustainability, social responsibility and the environment
We have in recent weeks published our 18(th) sustainability report that
details our actions and ambitions in the areas of the environment,
sustainability and social responsibility. Climate change has led to a greater
focus on carbon dioxide levels but climate change it is not, in our view, a
matter of trying to highlight any one single measure such as carbon emissions
or net zero targets. As a manufacturer in the UK there are basic levels of
environmental legislation that far exceed the standards of many countries.
However we look to go far beyond that. Further information on the actions that
we have taken are included further down in this report.
Dividend
Our cash balances stand at £63.2 million (2022: £52.1 million) with one of
the major reasons for the increase being decreased stock. The finished goods
inventory at the year-end is £77.1 million (2022: £101.9 million) which is
about 24.3% lower than the prior year comparative.
Also of note regarding the cash flow for the year is taxation paid of £11.9
million (2022: £9.9 million), fixed asset additions of £2.9 million (2022:
£3.2 million) and equity dividends paid of £32.3 million (2022: £32.3
million).
The interim dividend of 2.25p (2022: 2.25p) was paid in June 2023. The Board,
having regard to the cash balances and profitability, is proposing a final
dividend of 5.75p (2022: 5.50p) which will mean a total dividend for the year
of 8.0p (2022: 7.75p) an increase of 3.23%. This is a record level of
dividend.
Acknowledgements
Once again, I would like to thank our colleagues for their continued efforts
in achieving this year's result.
Our thanks also to the UK Contract Flooring Association for their members'
accolades with Polyflor being awarded the 2023 Manufacturer of the Year, as
well as the best use of flooring in a charitable initiative with the community
interest company House of Books and Friends, Manchester.
Outlook
Trading from the year-end to date, overall, has been positive. Flooring has been supplied to diverse end customers from Medica Sur, which is recognised as the best hospital in Mexico, the Giant Flagship Store, Düsseldorf (one of the world's largest manufacturers of high-end bicycles) and the new headquarters of Deloitte in Milan (a NZEB - "Nearly Zero Energy Building"), helped by our flooring rated with both LEED "Platinum" status and WELL "Gold" certified. While both four-letter acronyms have similar requirements and standards, the two certifications are very different. WELL Certification focuses on people's health and wellness, while LEED is a certification that focuses on environmental impact and sustainability.
In the UK demand has been slightly less buoyant. Our UK business is far more
focused on commercial flooring and repair, renewal and refurbishment and
consequently less exposed to consumer spending. Nevertheless, there are
budgetary constraints on renewal spending. Indeed, the Chairman's report of
September 2016 noted UK government spending restrictions on refurbishment in
the education sector and this continues to be case.
We welcome the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) and note that we already trade with 10 of the 11 countries
that now have a free trade agreement with the UK.
Overall overseas turnover is 60-65% of total turnover and growing. With
greater availability of global shipping, a strong balance sheet and a proven
business model, we are confident in the prospects of the year ahead and
progress across the Group.
Anthony Wild
Chairman
CHIEF EXECUTIVE'S REVIEW
Our business is, in essence, really simple. We create a floorcovering fit for
purpose, we manufacture in volume and efficiently, we present the product to
wholesalers, architects and end-users then sell the product, collect payment,
make a profit and repeat the process.
It has been a record year for sales for the Group but the year had its
challenges, disappointments and successes and overall must be considered as
satisfactory. We have supplied flooring from the Van der Valk Hotel in Sneek,
Netherlands to the Hospital de Bosa in Bogota, Colombia whilst supplying
innumerable small projects in schools, offices, cafes, care homes, ships and
hospitals across the world. Our own distribution teams and those of our very
many stockists are despatching constantly and it is our delivery, availability
and quality that keeps this show on the road. Our sales tomorrow are the
orders we receive today as we are not in the "make to order" sector. Our sales
are what we have in the warehouse.
Sustainability and environmental consideration have been a key part of buying
decisions for many end users for very many years and increasingly part of
listed company accounts. I echo the Chairman's comment to look at the audited
sustainability report that is in its 18(th) annual version. We are proud of
our record in this area and the annual accounts will have fuller details
including the ubiquitous SECR (streamlined energy and carbon reporting) and
the Companies (Strategic Report) (Climate-related Financial Disclosure)
Regulations 2022 statements which are often referred to as the very similar
"TCFD" (task force on climate related change financial disclosures). The ESG
element of our business is a part of the presentation to end users and their
purchase decision process whether it is Wendy's Restaurants, Ontario or the
new Louis Vuitton's headquarters just steps away from La Samaritaine in Paris.
Environment and sustainability are as much about marginal gains with each 1%
adding to the amassed improvements to offset the effects of anthropogenic
climate change. Sustainable manufacturing has, to us, always been important
and we look to minimise use of scarce resources, recycle and recover
materials, and leave as small a footprint by our manufacturing as possible.
Perhaps one point I would make on the subject of social responsibility is that
we are deeply involved in many trade bodies across Europe and in our markets
globally. Rather than hire consultants to represent us we feel that trade
bodies act not only as a representative body for the industry/market that
they characterise, putting forward the collective view and position of its
members, but probably more importantly the members set and raise standards to
promote and improve best practices, whilst highlighting common areas of
concern. The results over time are that end users and consumers gain
confidence in the product. In addition, a trade body can give the 'industry
voice'. Trade associations speak on behalf of their members with the 'industry
voice', especially when communicating with related industries (suppliers,
customers and end-users), governments, agencies, regulators and on occasion
the media.
Objectflor / Karndean and James Halstead France, our European operations
It was a difficult year for our Central European business (based in Cologne)
with sales down 7.9% in the year. Sales in Germany are more exposed to the
retail and domestic market than any other subsidiary. The French market saw a
12.6% increase in sales where the effects from the Ukraine crisis were lower
due to greater government intervention in the cost of living crisis. We moved
to a new warehouse in France during the year, reduced our costs, whilst also
improving our service to customers.
Inflation, uncertainty from the conflict in Ukraine, and some destocking by
customers all played a part in a clearly challenging economic environment.
Given interest rates and construction costs, many new build projects were put
on hold or cancelled. The housing market in Germany has been poor. Even though
demand for accommodation is large the supply has fallen significantly. A 32%
fall in residential housing construction in Germany has driven negative
sentiment which is reported to be at levels last seen after the global
financial crisis.
In France, the sales were raised by particular successes in increasing loose
lay tile products (albeit these tend to be at lower margin than many other
ranges), a 29% increase in own label collections to distributors and growing
success in the healthcare sector. Healthcare was targeted in France last year
by the introduction of dedicated sales representation to this end user segment
and the success against economic conditions was clearly the result of taking
increased market share in this area.
Margins remained suppressed during the year, driven by the overhang of cost
surcharges and price increases in the stock value. There have been
improvements in the latter half of the year as stock is replenished and sea
freight surcharges have reduced.
Stocks within Objectflor have been reduced by 25.2% which resulted from a
combination of reduction from last year's strategic increases and also a
reaction to the lower sales in the year. The management team have placed focus
on costs to mitigate the drop off in sales and profitability. Just one example
was that Objectflor withdrew from major exhibitions along with many other
flooring manufacturers which did the same, reflecting the negative sentiment
of the industry against market conditions. The headcount was reduced as staff
leaving were not replaced on sales-facing roles.
The business remains very profitable and the re-launch of the Expona Domestic
luxury vinyl tile collection in January 2023 was very successful. The business
supplied new flooring to the Ford factory in Cologne.
Polyflor APAC - encompassing Australia, New Zealand and Asia
Our APAC region is made up of four distinct areas including Australia, New
Zealand, North Asia and Southeast Asia. To give a better strategic focus in
the region a new reporting structure has been established to oversee the
region as a whole. These changes are aimed at enhancing collaboration,
aligning strategies and ensuring efficient decision making across the region
creating a stronger network, promoting regional initiatives and leveraging
resources effectively.
One immediate example of this is the implementation of a new ERP system. Our
Malaysian business was the first to move over to this software during 2022,
led by the Australian team who then supported New Zealand in their switch at
the start of 2023. Australia successfully went live on the same system on 1
July 2023 and whilst all separate reporting entities, now have a common system
where shared resources can be utilised.
Sales in the region were affected by international shipping delays that
depleted stock holdings and the cost of shipping affected margins.
Looking individually at each of these regions, we have seen Australia grow
gross sales by a further 3.8% to a record level, an excellent achievement. The
increase this year has been driven largely through price increases with
volumes 4.5% down in the year.
Despite price increases, margins are down on last year with the sales growth
for the period coming from more commercial flooring than domestic, adversely
affecting the product mix in terms of margin. Stocks, including goods in
transit, are 13% down on the previous years.
New Zealand saw another solid year. Sales were ahead by 20% but the ongoing
high freight and product cost affected margins. During the early part of the
year we experienced significant shipping delays which gradually eased from
January 2023 onwards. Stock levels were reduced 17%. There remains traffic
congestion locally holding up shipments. There were some one-off costs in the
year, such as the ERP implementation noted above, but overall profitability
remained level despite this.
Our Malaysian business which services the Southeast Asia region has gone from
strength to strength increasing sales by 78%. We are starting to see the
benefits of our investment in salespeople across the region as more projects
are secured, although Malaysia remains the biggest market. Sales into
Singapore were boosted by obtaining SGBC (Singapore Green Building Council)
certification which helped sales of Polyflor products into the government
sector.
All sales to date in this region are from products manufactured in our UK
factories, however, now we have established ourselves in the market, we will
look to introduce a small range of luxury vinyl tile products during the next
financial year, sourced regionally. Interest has been positive.
Unfortunately, our North Asia sales continue to underperform. Extended Covid
shutdowns in China, lack of projects, surplus capacity from competing Chinese
factories and delays in manufacturing and shipping our product have all
contributed. None of the countries covered by this area showed any growth.
Following a review of the North-Asia region at the end of the year, a change
in management has occurred and with all travel restrictions now over, our APAC
management will take a more strategic view of the whole region and focus
resources to best achieve growth. There will not be an immediate turn around
given the nature of the business, but we believe it will succeed.
Polyflor and Riverside Flooring, based in UK
Undoubtedly, it was overall a commendable year at our UK manufacturing sites.
These businesses supply not only the UK, where turnover was 4.2% ahead of last
year, but also our overseas subsidiaries and direct export customers. Profits
were also ahead of the prior year despite the challenges of increased input
cost, massive energy cost increases and industrial action by part of the
workforce in Radcliffe.
Riverside output and sales increased with a near 14% increase in turnover. In
the UK the increase was 10%, sales to our own overseas subsidiaries were down
10% but sales to the rest of the world increased by 36%.
Export demand was restricted for the early part of the year by availability of
timely shipping though this was greatly improved by the year end. It was also
the case that the "bottlenecks" of international transport delayed and
restricted supplies to our overseas subsidiaries; local stock helped to
minimise the effects on sales but opportunities for greater sales were lost.
Significant product launches in the year were undertaken. Camaro (our light
commercial heavy domestic luxury tile range) in September 2022 was relaunched
with new designs and tiles. The market reception was extremely positive.
Expona Commercial (our project focused luxury vinyl tile) was relaunched in
July 2022 was extremely well received. The marketing support for these
launches in terms of sampling, product presenters, and display materials was
impressive, and costly, but will stand the ranges in good stead over the next
2-3 years before we again refresh designs. The Aztech Soccer Arena in Guernsey
was just one project that Expona commercial was used in.
Raw material costs and availability were difficult in the early months of the
year but improved and from January 2023, when combined with sales price
increases, led to improved margins. Energy cost increases were a severe
problem in the first half of the year and though this eased in the second
half, the costs are still very high when compared to prior year comparatives.
In this we are not alone but in the global market place, outside Europe,
energy costs have not been so severe. Inflationary pressures affected all
costs. Wages, services and costs across all areas were challenging. Cost
control was a constant focus for the Group.
Our stock levels were drastically reduced as concerns over energy abated,
indeed the industrial action on part of our plant helped reduce stock levels
more rapidly than we might otherwise has chosen. The stock reduction was
generally very good for cash generation but as a result we have struggled to
supply certain product ranges and have been out of stock in some lines.
Unfulfilled demand to a manufacturer is far from desirable. Shift patterns and
overtime in part helped alleviate some of the difficulties but on several key
ranges stock levels remained persistently low. The export departments ended
the year with outstanding orders that were unfulfilled by production and,
whilst the second half of the year saw much greater ability to get exports to
the end markets, our manufacturing capability lagged. Against the economic
environment, the balance between prudence and increasing manufacturing
headcount was assessed and prudence prevailed.
Polyflor Nordic comprising Polyflor Norway based in Oslo and Polyflor Sweden
based in Gothenburg
After a strong performance in the previous financial period, we saw a flat
year for our Nordic markets with combined sales marginally down by 1.8% in the
year. An increase in costs saw the region fall back in terms of
profitability, but our investment in extra sales personnel across the region,
this year more concentrated on Sweden, should return us to further growth next
year.
Our Norwegian business had some key project success in hospital projects and
introduced a new high-end commercial carpet from Germany.
Whilst the sales have remained flat overall, the mix has improved with an
increase in UK manufactured product which benefits the Group as a whole.
Growth remains the focus in both markets.
As with other markets, overall stocks have been reduced in the region (by
approximately 10%), but with the greater cooperation between the countries, a
more balanced approach should lead to improved delivery times and lower
freight costs as we progress.
Polyflor Canada, based in Toronto
Our Canadian business saw a record year for sales and a significant increase
in net profit against a generally sluggish economy. It was another strong
performance with sales ahead of last year by 30%. We have seen growth in
both LVT volumes (+24%) and UK manufactured product (10%). The Canadian sales
of product supplied by our Teesside plant increased by 30%.
The business supplied flooring to the Huawei Offices in Vancouver and to the
Toronto Dominion Bank, the latter being in Expona commercial luxury vinyl tile
(newly re-launched by Polyflor UK).
As we noted last year, Covid-19 resulted in restricted travel so with a
greater ability to visit distributors and specifiers we have seen an uplift in
trading. There has also been an improvement in the logistic bottlenecks that
hampered previous years helping to ensure product was available for projects.
It was clear that increased interest rates and input costs have noticeably
affected customer confidence and building projects were keenly contested.
Stocks have been reduced by 8.3%, despite the decision to purchase more LVT
direct rather than relying on the UK stock holdings and this strategy will
continue as we see continued growth from our LVT ranges. We continue to invest
in growth in the region with further recruitment in sales personnel planned
for the coming year.
Rest of the World
Our products are sold in many markets across the globe and the preceding
sections cover some of the key markets where we have a local presence and
warehousing. These markets have been long established for the sales of our
flooring and there has also been significant growth in several other markets
when compared to last year. Our products are available and sold across the
globe and we continue to make strides in our export markets. Whilst our
European neighbours have remained subdued with more of an impact from the
Ukraine crisis affecting energy inflation and spending power than other
countries, we have seen good sales growth in the USA (+36%), Latin America
(+31%), the Middle East (+38) and the Mediterranean (+20%).
We are actively looking to increase our presence in both the Middle East and
Latin America by increasing the number of salespeople on the ground.
In India we continue to control costs. This remains a market where freight
costs remain problematical and our focus is now mainly on pharmaceutical and
healthcare sectors. There were projects such as the Serum Institute and the
Hazrat Shahjalal International Airport in Dhaka Bangladesh.
Sustainability, social responsibility and the environment
As highlighted in the Chairman's Statement, we recently published our 18th
sustainability report for the Company. In this we detail the actions and
ambitions that we have taken to addressing environment impact, sustainability
and social responsibility. I would like to note just a few of the many areas
of focus covered by our independently audited sustainability report:
Water usage
Water is a natural resource that must be protected. Manufacturing can result
in a high use of water but at Polyflor we collect rainwater and store it for
use in cooling during the manufacturing process (and have done so for over 50
years). This stored water is returned to storage after use and largely avoids
the use of mains water supply, just 4% of the water that we use comes from the
mains supply. We have expanded collection of rainwater from our factories
guttering to underground storage and this will enable us to further reduce
mains water usage. We have added filtration so that we can use the collected
water for other uses on site such as jet washing.
Waste
I have noted over the years our Recofloor after sale vinyl take back scheme.
However, waste comes in other forms notably packaging. At Polyflor we minimise
waste to landfill and have an onsite waste collection, segregation and
re-purposing team with a dedicated part of the site. Cardboard, wood and
metals are separated for recycling and waste liquids sent for treatment to
extract for alternative uses.
Training for the skill shortage
Fifteen years ago we created the Polyflor Training Academy based on the
Radcliffe site to add to the skills set of our end users (the contract floor
layers). The academy delivers 1-4 day training courses for a nominal charge
with basic skills training to advanced level training. Last year we ran 27
courses in Radcliffe for 275 participants. In addition, the training academy
offers product training to our own employees and undertakes off site
training. This facility has been replicated in our European business with
the Objectflor Campus. The Campus held 17 courses in the last year with around
500 delegates and a further 12 related industry courses with around 400
delegates. Smaller events have taken place in Australia, New Zealand and
Canada. We see this as a key part of our social responsibility to bridge the
skills gap even though these delegates are not directly our customers. Our
stockists should, over time, benefit and do take confidence from these
commitments.
Environmental product declarations (EPD)
With many green labels and accreditations across the globe the proliferation
can be confusing for end consumers. The abundance of "green washing" is known
to many. The Centre for European Standards (CEN) created a European standard
(EN) with the aim of a worldwide standard for environmental performance. The
EPDs that Polyflor has attained are independently verified and are
environmentally assessed based on global warming potential, ozone depletion
potential as well as five other environmental impact indicators. The benefit
is that EPDs support the environmental goals of stakeholders from design stage
to use whether in new build construction or retrofit.
ESG is not supposed to be "boiler plate" nor "tick box" and each element of
our place in our locality, in our wider community and our industry is
important. Each facet is so much more important to the future and needs to be
much broader than one measure or targeting "net zero" at some future point.
Environmental sustainability is not the responsibility of one person or
committee but the work of the whole team across the Group looking at the
different facets and focusing on the components that should each combine for a
more cohesive strategy.
In conclusion
Given the circumstances we can only be pleased with the results for the year.
The hard work, dedication and experience of our subsidiary directors and
management has been a key factor in this achievement.
The recent years since "Brexit" (January 2020) have seen our businesses rise
to the many challenges since that time and it is perhaps worth a glance at our
performance since the 2020 year end. Our sales since then are 27% higher (+49%
in the UK, +10% in Europe, + 22% in Australasia and +42% in the rest of the
world); our profit before tax some 19% higher. Notwithstanding these figures
our progress in global markets has been hampered by many factors however these
are now behind us and though we have inflationary issues and in many markets
spending constraints I and our teams feel confident of the Group's progress in
the global markets. We look ahead with confidence across the business.
Mark Halstead
Chief Executive
Audited Consolidated Income Statement
for the year ended 30 June 2023
Year Year
ended ended
30.06.23 30.06.22
£'000 £'000
Revenue 303,562 291,860
Cost of sales (188,099) (178,355)
Gross profit 115,463 113,505
Selling and distribution costs (53,338) (50,316)
Administration expenses (10,514) (10,931)
Operating profit 51,611 52,258
Finance income 748 42
Finance cost (260) (237)
Profit before income tax 52,099 52,063
Income tax expense (9,695) (11,735)
Profit for the year attributable to equity shareholders 42,404 40,328
Earnings per ordinary share of 5p:
-basic 10.2p 9.7p
-diluted 10.2p 9.7p
All amounts relate to continuing operations.
Audited Consolidated Statement of Comprehensive Income
for the year ended 30 June 2023
Year Year
ended ended
30.06.23 30.06.22
£'000 £'000
Profit for the year 42,404 40,328
Other comprehensive income net of tax:
Items that will not be reclassified subsequently to the income statement:
Remeasurement of the net defined benefit liability
(7,237) 7,090
(7,237) 7,090
Items that could be reclassified subsequently to the income statement if
specific conditions are met
(1,818) 926
Foreign currency translation differences
(135) (111)
Fair value movements on hedging instruments
(1,953) 815
Other comprehensive income for the year (9,190) 7,905
Total comprehensive income for the year 33,214 48,233
Attributable to equity holders of the
company 33,214 48,233
Items in the statement above are disclosed net of tax.
Audited Consolidated Balance Sheet
as at 30 June 2023
As at As at
30.06.23 30.06.22
£'000 £'000
Non-current assets
Intangible assets 3,232 3,232
Property, plant and equipment 35,887 36,671
Right of use assets 7,164 5,634
Retirement benefit obligations - 6,144
Deferred tax 114 234
46,397 51,915
Current assets
Inventories 87,440 112,279
Trade and other receivables 46,979 51,171
Derivative financial instruments 773 2,166
Current tax 699 -
Cash and cash equivalents 63,222 52,144
199,113 217,760
Total assets 245,510 269,675
Current liabilities
Trade and other payables 60,738 84,507
Derivative financial instruments 213 517
Current income tax liabilities 422 2,097
Lease liabilities 2,696 2,166
64,069 89,287
Non-current liabilities
Retirement benefit obligations 1,460 -
Other payables 400 453
Lease liabilities 4,582 3,548
Preference shares 200 200
Deferred tax 585 2,929
7,227 7,130
Total liabilities 71,296 96,417
Net assets 174,214 173,258
Equity
Equity share capital 20,838 20,837
Equity share capital (B shares) 160 160
20,998 20,997
Share premium account 13 -
Currency translation reserve 4,094 5,912
Hedging reserve 806 941
Retained earnings 148,303 145,408
Total equity attributable to shareholders of the parent 174,214 173,258
Audited Consolidated Cash Flow Statement
for the year ended 30 June 2023
Year Year
ended ended
30.06.23 30.06.22
£'000 £'000
Profit for the year attributable to equity shareholders
42,404 40,328
Income tax expense 9,695 11,735
Profit before income tax 52,099 52,063
Finance cost 260 237
Finance income (748) (42)
Operating profit 51,611 52,258
Depreciation of property, plant and equipment
3,461 3,794
Depreciation of right of use assets 3,060 3,139
Profit on sale of plant and equipment (84) (198)
Defined benefit pension scheme service cost 178 500
Defined benefit pension scheme employer contributions paid
(1,942) (1,970)
Change in fair value of financial instruments (776) 703
Share based payments expense 26 6
Decrease/(increase) in inventories 22,966 (50,272)
Decrease/(increase) in trade and other receivables
3,031 (7,451)
(Decrease)/increase in trade and other payables (20,365)
15,905
Cash inflow from operations 61,166 16,414
Taxation paid (11,900) (9,879)
Cash inflow from operating activities 49,266 6,535
Interest received 467 42
Purchase of property, plant and equipment (2,854) (3,248)
Proceeds from disposal of property, plant and equipment 134 280
Cash outflow from investing activities (2,253) (2,926)
Interest paid (36) (20)
Lease interest paid (224) (143)
Lease capital paid (3,015) (3,233)
Equity dividends paid (32,298) (32,298)
Shares issued 14 823
Cash outflow from financing activities (35,559) (34,871)
Net increase/(decrease) in cash and cash equivalents 11,454 (31,262)
Effect of exchange differences on cash and cash equivalents
(376) 145
Cash and cash equivalents at start of year 52,144 83,261
Cash and cash equivalents at end of year 63,222 52,144
NOTES
1. The final dividend of 5.75p per ordinary share will be paid, subject to the
approval of the shareholders, on 15 December 2023 to shareholders on the
register as at 17 November 2023. The annual report and accounts will be
posted to shareholders on 13 October 2023.
2. The financial information in this statement does not represent the statutory
accounts of the Group. Statutory accounts for the year ended 30 June 2022 have
been delivered to the Registrar of Companies, carrying an unqualified audit
report and no statement under section 498 (2) or (3) of the Companies Act
2006.
3. Statutory accounts for the year ended 30 June 2023 have not yet been delivered
to the Registrar of Companies. They will carry an unqualified audit report and
no statement under section 498 (2) or (3) of the Companies Act 2006.
4. Earnings per ordinary share
2023 2022
£'000 £'000
Profit for the year attributable to equity shareholders 42,404 40,328
Weighted average number of shares in issue 416,752,764 416,586,675
Dilution effect of outstanding share options 21,390 201,425
Diluted weighted average number of shares 416,774,154 416,788,100
Basic earnings per ordinary share 10.2p 9.7p
Diluted earnings per ordinary share 10.2p 9.7p
The earnings per 5p ordinary share are attributable to equity shareholders.
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