REG - Latham(James) PLC - Half-year Report <Origin Href="QuoteRef">LTHM.L</Origin>

James LathamAnnouncement

24/11/2016 07:11

RNS Number : 9933P
Latham(James) PLC
24 November 2016
James Latham plc 
("James Latham" or "the Company")
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2016 
Chairman's statement
I am pleased to report good results for the six months to 30 September 2016. 
Results
The results are better than the same period last year. Revenue for the six months to 30 September 2016 was 100.3m, up 4.2 per cent on 96.2m for the same period last year. The operating profit was 7.8m, 21.3 per cent up on 6.5m last year. Profit before tax was 7.7m, up 22.4 per cent on last year's 6.3m. Earnings per ordinary share were 31.2p (2015: 25.8p) an increase of 20.9 per cent.
As at 30 September 2016 net assets had reduced to 64.5m (2015: 67.8m) with cash and cash equivalents of 16.1m (2015: 12.4m). The actuarial calculation of the pension deficit is very sensitive to changes in the discount rate, and due to the fall in corporate bond yields, the pension deficit is calculated as increasing from 7.7m to 23.2m. However the scheme investments have grown faster than the scheme assumptions.
Interim dividend
The Board has declared an increased interim dividend of 4.5p per Ordinary Share (2015: 4.0p), which is covered 6.9 times (2015: 6.5 times). The dividend is payable on 27 January 2017 to ordinary shareholders on the Company's Register at close of business on 6 January 2017. The ex-dividend date will be 5 January 2017.
Six months trading to 30 September 2016
In trading conditions which have been different for the various markets that we serve, group revenue has grown by 4.1m as a result of higher prices of imported goods resulting from the fall in the value of sterling with small gains from sales volumes and product mix. 
Trading margins for the six months to 30 September 2016 are higher than for the previous year. Overheads have been well controlled. Bad debts have remained lower than expected. We continue to take advantage of cash settlement discounts from suppliers where this represents a good return. 
Current and future trading
Management information shows growing revenue for October and the first half of November, at slightly lower margins. The weakness of sterling, whilst increasing prices, could put pressure on margins in the coming months. Market conditions continue to be difficult in some areas, while improving in others. We are in a good position with our wide range of customers and we are trading comfortably in line with market expectations. We are progressing with our plans to relocate our two oldest depots. Construction work has started on the new Yate site and terms have been agreed for the new Wigston site, subject to planning.
Peter Latham
Chairman
23 November 2016
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
Enquiries
James Latham plc
Tel: 01442 849 100
David Dunmow, Finance Director



Northland Capital Partners Limited 
Nominated Adviser and Broker
Tel: 0203 861 6625
Matthew Johnson / Edward Hutton

JAMES LATHAM PLC



CONSOLIDATED INCOME STATEMENT







For the six months to 30 September 2016








Six months to 30 Sept. 2016 unaudited
Six months to 30 Sept. 2015 unaudited
Year to 31 March 2016 audited





000
000
000




Revenue
100,334
96,209
185,929




Cost of sales (including warehouse costs)
(81,582)
(78,975)
(151,389)




Gross profit
18,752
17,234
34,540




Selling and distribution costs
(7,889)
(7,674)
(15,129)
Administrative expenses
(3,027)
(3,099)
(6,170)




Operating profit
7,836
6,461
13,241




Finance income
33
25
56
Finance costs
(209)
(227)
(421)




Profit before tax
7,660
6,259
12,876




Tax expense
(1,545)
(1,257)
(2,410)




Profit after tax attributable to owners of the parent company
6,115
5,002
10,466




Earnings per ordinary share (basic)
31.2p
25.8p
53.7p




Earnings per ordinary share (diluted)
31.1p
25.5p
53.5p








All results relate to continuing operations.





JAMES LATHAM PLC







CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







For the six months to 30 September 2016








Six months to 30 Sept. 2016 unaudited
Six months to 30 Sept. 2015 unaudited
Year to 31 March 2016 audited





000
000
000




Profit after tax
6,115
5,002
10,466
Other Comprehensive income



Actuarial (losses)/gains on defined benefit pension scheme
(13,313)
2,766
825
Deferred tax relating to components of other comprehensive income
2,396
(491)
(219)
Other comprehensive income for the period, net of tax
(10,917)
2,275
606
Total comprehensive income, attributable to owners of the parent company
(4,802)
7,277
11,072


JAMES LATHAM PLC



CONSOLIDATED BALANCE SHEET







At 30 September 2016








As at 30 Sept. 2016 unaudited
As at 30 Sept. 2015 unaudited 
As at 31 March 2016 audited





000
000
000
ASSETS



Non-current assets



Goodwill
237
237
237 
Intangible assets
89
97
93
Property, plant and equipment
25,315
21,477
22,111
Deferred tax asset
4,245
1,773
1,802
Total non-current assets
29,886
23,584
24,243




Current assets



Inventories
35,065
32,419
33,403
Trade and other receivables
38,003
37,612
35,288
Cash and cash equivalents
16,102
12,432
16,832
Total current assets
89,170
82,463
85,523








Total assets
119,056
106,047
109,766




Current liabilities



Trade and other payables
25,730
24,917
23,471
Current tax payable
1,590
1,297
1,376
Total current liabilities
27,320
26,214
24,847




Non-current liabilities



Interest bearing loans and borrowings
987
987
987
Retirement and other benefit obligation
23,208
7,679
9,657
Other payables
377
435
406
Deferred tax liabilities
2,686
2,961
2,686
Total non-current liabilities
27,258
12,062
13,736








Total liabilities
54,578
38,276
38,583








Net assets
64,478
67,771
71,183




Capital and reserves



Issued capital
5,040
5,040
5,040
Share-based payment reserve
70
172
56
Own shares
(344)
(235)
(441)
Capital reserve
3
3
3 
Retained earnings
59,709
62,791
66,525




Total equity attributable to owners of the parent company
64,478
67,771
71,183


JAMES LATHAM PLC







CONSOLIDATED CASH FLOW STATEMENT







For the six months to 30 September 2016








Six months to 30 Sept 2016 unaudited
Six months to 30 Sept 2015 unaudited
Year to 31 March 2016 audited





000
000
000
Net cash flow from operating activities



Cash generated from operations
6,665
4,055
11,704
Interest paid
(2)
(25)
(23)
Income tax paid
(1,376)
(909)
(2,016)
Net cash inflow from operating activities
5,287
3,121
9,665




Cash flows from investing activities



Interest received and similar income
33
25
56
Purchase of property, plant and equipment
(4,035)
(608)
(2,056)
Proceeds from sale of property, plant and equipment
41
46
136
Net cash outflow from investing activities
(3,961)
(537)
(1,864)




Cash flows before financing activities



Borrowings repaid during the period
-
(907)
(907)
Equity dividends paid
(2,017)
(1,707)
(2,484)
Preference dividend paid
(39)
(39)
(79)
Net cash outflow from financing activities
(2,056)
(2,653)
(3,470)




(Decrease)/increase in cash and cash equivalents for the period
(730)
(69)
4,331




Cash and cash equivalents at beginning of the period
16,832
12,501
12,501




Cash and cash equivalents at end of the period
16,102
12,432
16,832


JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 Attributable to owners of the parent company

Issued capital 000
Share-based payment reserve 000
Own shares 000
Capital reserve 000
Retained earnings 000
Total equity 000







As at 1 April 2015 (audited)
5,040
143
(177)
3
57,222
62,231
Profit for the period 
-
-
-
-
5,002
5,002
Other comprehensive income:






Actuarial gain on defined benefit pension scheme 
-
-
-
-
2,766
2,766
Deferred tax relating to components of other comprehensive income 
-
-
-
-
(491)
(491)
Total comprehensive income for the period
-
-
-
-
7,277
7,277
Transaction with owners:






Dividends
-
-
-
-
(1,707)
(1,707)
Write down on conversions of ESOP shares
-
-
1
-
(1)
-
Change in investment in ESOP shares
-
-
(59)
-
-
(59)
Share-based payment expense
-
29
-
-
-
29
Total transactions with owners
-
29
(58)
-
(1,708)
(1,737)
Balance at 30 September 2015 (unaudited)
5,040
172
(235)
3
62,791
67,771
Profit for the period 
-
-
-
-
5,464
5,464
Other comprehensive income:






Actuarial loss on defined benefit pension scheme 
-
-
-
-
(1,941)
(1,941)
Deferred tax relating to components of other comprehensive income 
- 
-
-
-
272
272
Total comprehensive income for the period
-
-
-
-
3,795
3,795
Transactions with owners:






Dividends
-
-
-
-
(777)
(777)
Transfer of treasury shares
-
-
(1,385)
-
1,385
-
Write down on conversions of ESOP shares
-
-
818
-
(818)
-
Conversion of ESOP shares
-
-
507
-
-
507
Exercise of options
-
(149)
-
-
149
-
Change in investment in ESOP shares
-
-
(146)
-
-
(146)
Share-based payment expense
-
33
-
-
-
33
Total transactions with owners
-
(116)
(206)
-
(61)
(383)
Balance at 31 March 2016 (audited)
5,040
56
(441)
3
66,525
71,183
Profit for the period
-
-
-
-
6,115
6,115
Other comprehensive income:






Actuarial loss on defined benefit pension scheme
-
-
-
-
(13,313)
(13,313)
Deferred tax relating to components of other comprehensive income
-
-
-
-
2,396
2,396
Total comprehensive income for the period
-
-
-
-
(4,802)
(4,802)
Transactions with owners:






Dividends
-
-
-
-
(2,017)
(2,017)
Exercise of options
-
(3)
-
-
3
-
Change in investment in ESOP shares
-
-
97
-
-
97
Share-based payment expense
-
17
-
-
-
17
Total transactions with owners
-
14
97
-
(2,014)
(1,903)
Balance at 30 September 2016 (unaudited)
5,040
70
(344)
3
59,709
64,478


JAMES LATHAM PLC

NOTES TO THE HALF YEARLY REPORT


1. The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement of International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the financial statements for the year ending 31 March 2017 and on the basis of the accounting policies to be used in those financial statements. The figures for the year ended 31 March 2016 are extracted from the statutory accounts of the group for that period.

2. The directors propose an interim dividend of 4.5pper ordinary share which will absorb 880,000 (2016: 4.0p absorbing 780,000), payable on 27 January 2017 to shareholders on the Register at the close of business on 6 January 2017. The ex-dividend date is 5 January 2017.

3. This half yearly report does not constitute financial statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2016 were filed with the Registrar of Companies. The audit report on those financial statements was not qualified and did not contain a reference to any matters which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The half yearly report has not been audited by the company's auditor.

4. Earnings per ordinary share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.


Six months to 30 Sept 2016 unaudited
Six months to 30 Sept 2015 unaudited
Year to 31 March 2016 audited

000
000
000




Net profit attributable to ordinary shareholders
6,115
5,002
10,466





Number '000
Number '000
Number '000
Weighted average share capital
19,590
19,399
19,493
Add: diluted effect of share capital options issued
85
203
65
Weighted average share capital for diluted earnings per ordinary share calculation
19,675
19,602
19,558






5. Net cash flow from operating activities


Six months to 30 Sept 2016 unaudited
Six months to 30 Sept 2015 unaudited
Year to 31 March 2016 audited
Profit before tax
7,660
6,259
12,876
Adjustment for finance income and expenditure
176
202
365
Depreciation and amortisation
829
728
1,515
Profit on disposal of property, plant and equipment
(35)
(38)
(97)
Increase in inventories
(1,662)
(513)
(1,497)
Increase in receivables
(2,715)
(3,399)
(1,075)
Increase in payables
2,228
993
(480)
Own shares non cash amounts
97
(58)
302
Retirement benefits non cash amounts
70
(148)
(267)
Share-based payments non cash amounts
17
29
62
Cash generated from operations
6,665
4,055
11,704

6. Copies of this statement will be posted on our website, www.lathams.co.uk. A copy can be emailed or posted upon application to the Company Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road Hemel Hempstead, Herts, HP2 7QU, or by email to plc@lathams.co.uk

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