REG - Latham(James) PLC - Final Results <Origin Href="QuoteRef">LTHM.L</Origin>

James LathamAnnouncement

22/06/2017 07:05

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 EUset out in the Group accounts for the years ended 31 March 2016 and 31 March 2017.
2. The directors propose a final dividend of 10.85pper 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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