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

James LathamAnnouncement

16/07/2015 12:21

RNS Number : 0235R
Latham(James) PLC
24 June 2015
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 2015. 
Group revenue for the financial year to 31 March 2015 was 174.9m, 7.2% up on last year's 163.1m. The operating profit was 10.6m, up 1.1m from 9.5m, which together with pre-tax profit, post-tax profit and earnings per share shown below is adjusted to exclude 1.8m of exceptional gains relating to the pension scheme, last year. The higher volume traded this year has increased costs, notably in distribution.
Finance income was 46,000 against 27,000 last year. Finance costs, which are principally interest on the pension scheme deficit as calculated under IAS19 (revised) were 503,000 against 823,000 last year
Pre-tax profit was 10.1m, up 1.4m from an adjusted profit of 8.7m last year. The tax charge represents a rate of 22.6% up from last year's 18.0% which benefited from a credit due to a reduction in rates of tax used in deferred tax calculations. Post- tax profit for the year is 7.8m, up from last year's adjusted figure of 6.8m.
Earnings per share were 40.3p compared to last year's adjusted 36.9p.
Net assets (total equity) were 62.2m compared to 58.1m last year
At the year end the group's cash reserves stood at 12.5m compared to 11.2m last year. 
Final dividend
The directors recommend a final dividend of 8.8p per ordinary share (2014 8.0p). The final dividend will be paid on 28 August 2015 to shareholders on the register at the close of business on 7 August 2015. The shares will become ex-dividend on 6 August 2015.
The total dividend per ordinary share of 12.5p for the year is covered 3.2 times by earnings (2014: 3.2 times).
Financial year 2014/15
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 increased volumes both in ex-warehouse and direct business. Year on year growth was slightly lower in the second half year, because 2013/14 had been a very strong final quarter. Both panels and timber grew revenues throughout the year. The gross margin per cent, before warehouse costs, increased by 0.4 percentage points, due to a better product mix.
Timber and panel prices remained steady throughout the year. Focus panel products including Melamine Panels and Door Blanks, continued to show good growth. Accoya modified wood and WoodEx, our brand of engineered timber for the joinery sector, were particularly successful this year. 
Overheads have been controlled, and are within our budget forecast, but higher than last year's due to the extra volumes, smaller order size and later order times for next day delivery. Staff numbers have increased during the year, with sales staff recruited in areas of the business where we see opportunities. Bad debts were low overall for the year, despite the relatively high level seen in the first quarter of the financial year. 
Pension Scheme
The Company and the Trustees of the James Latham plc Pension and Assurance Scheme have approved the triennial valuation dated 31 March 2014 with the scheme Actuary. This valuation shows a shortfall of assets of 1,546,000 compared to a shortfall of 9,030,000 in the previous valuation dated 31 March 2011. The Company has agreed a recovery plan over two years with the Trustees, and will continue its previous recovery plan, paying 1,155,000 in the year to 31 March 2015 and then 420,000 in the year to 31 March 2016.
At 31 March 2015 the deficit of the defined benefit scheme under IAS19 (revised) was 10.4m up 1.1m compared with 9.3m last year. This increase is the result of the fall in the corporate bond yield used to calculate the present value of the scheme's liabilities and reflects the volatility of the accounting for this scheme. 
Current financial year 2015/16
This year so far revenues are 7% higher for April and May than the corresponding period last year, both in panels and timber. The gross margin is also higher. It is a steady start to the year and generally customers are busier than they were for the final quarter of last year.
The panels market remains particularly competitive, although we are seeing encouraging growth in the newer decorative products we have introduced. 
Development strategy
The directors continue to identify opportunities for growth and to introduce and promote new products. Investment in the business continues and plans are being drawn up to upgrade our two older sites at Yate and Wigston over the next two to three years, to emulate the success that investment in new facilities has delivered elsewhere.
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
23 June 2015.


JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 March 2015

Audited
Audited
Year to 31 March 2015
Yearto31March2014

000
000


Revenue
174,855
163,117


Cost of sales (including warehouse costs)
(143,978)
(134,688)



Gross profit
30,877
28,429



Selling and distribution costs
(14,082)
(12,941)
Administrative expenses
(6,237)
(6,016)
Exceptional adjustment to defined benefit pension cost
-
1,797
Other operating income
6
6
Operating Profit
10,564
11,275


Finance income
46
27
Finance costs
(503)
(823)
Profit before tax
10,107
10,479
Tax expense
(2,285)
(1,888)
Profit after tax attributable to owners of the parent company
7,822
8,591
Earnings per ordinary share (basic)
40.3p
44.3p
Earnings per ordinary share (diluted)
40.0p
43.9p
Earnings per ordinary share (basic, excluding exceptional adjustment net of tax)
40.3p
36.9p
Earnings per ordinary share (diluted, excluding exceptional adjustment net of tax)
40.0p
36.6p
All results relate to continuing operations


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year to 31 March 2015

Audited
Audited

Yearto31March2015
Yearto31March2014

000
000
Profit after tax
7,822
8,591



Other comprehensive income


Actuarial (loss)/gain on defined benefit pension scheme
(1,849)
5,543
Deferred tax relating to components of other comprehensive income
434
(1,508)
Other comprehensive income for the year, net of tax
(1,415)
4,035
Total comprehensive income attributable to owners of the parent company
6,407
12,626


JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 31 March 2015

Audited
Audited

As at 31 March 2015
As at 31 March 2014
000
000
Assets


Non-current assets


Goodwill
237
237
Other intangible assets
101
108
Property, plant and equipment
21,601
22,647
Total non-current assets
21,939
22,992


Current assets 


Inventories
31,906
27,937
Trade and other receivables
34,213
32,842
Cash and cash equivalents
12,501
11,234
Total current assets
78,620
72,013
Total assets
100,559
95,005
Current liabilities


Trade and other payables
23,893
23,191
Interest bearing loans and borrowings
907
238
Tax payable
947
1,017
Total current liabilities
25,747
24,446



Non-current liabilities


Interest bearing loans and borrowings
987
1,890
Retirement and other benefit obligation
10,430
9,267
Other payables
464
520
Deferred tax liabilities
700
774
Total non-current liabilities
12,581
12,451
Total liabilities
38,328
36,897



Net assets
62,231
58,108



Capital and reserves


Issued capital
5,040
5,040
Share-based payment reserve
143
123
Own shares
(177)
(175)
Capital reserve
3
3
Retained earnings
57,222
53,117
Total equity attributable to equity shareholders of the parent company
62,231
58,108


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 2013 - audited
5,040
91
(218)
3
42,551
47,467
Profit for the year
-
-
-
-
8,591
8,591
Other comprehensive income:






Actuarial gain on defined benefit pension scheme
-
-
-
-
5,543
5,543
Deferred tax relating to components of other comprehensive income
-
-
-
-
(1,508)
(1,508)
Total comprehensive income for the year
-
-
-
-
12,626
12,626
Transactions with owners:






Dividends
-
-
-
-
(2,031)
(2,031)
Write down on conversion of ESOP shares
-
-
77
-
(77)
-
Exercise of options
-
(48)
-
-
48
-
Change in investment in ESOP shares
-
-
(34)
-
-
(34)
Share-based payment expense
-
80
-
-
-
80
Total transactions with owners
-
32
43
-
(2,060)
(1,985)
Balance at 31 March 2014 - audited
5,040
123
(175)
3
53,117
58,108
Profit for the year
-
-
-
-
7,822
7,822
Other comprehensive income:






Actuarial loss on defined benefit pension scheme
-
-
-
-
(1,849)
(1,849)
Deferred tax relating to components of other comprehensive income
-
-
-
-
434
434
Total comprehensive income for the year
-
-
-
-
6,407
6,407
Transactions with owners:






Dividends
-
-
-
-
(2,267)
(2,267)
Exercise of options
-
(47)
-
-
47
-
Write down on conversion of ESOP shares
-
-
82
-
(82)
-
Change in investment in ESOP shares
-
-
(84)
-
-
(84)
Share-based payment expense
-
67
-
-
-
67
Total transactions with owners
-
20
(2)
-
(2,302)
(2,284)
Balance at 31 March 2015 - audited
5,040
143
(177)
3
57,222
62,231


JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2015

Audited
Audited

Year to 31 March 2015
Yearto31March2014

000
000
Net cash flow from operating activities


Cash generated from operations
6,218
8,036
Interest paid
(44)
(45)
Income tax paid
(1,996)
(1,339)
Net cash inflow from operating activities
4,178
6,652


Cash flows from investing activities


Interest received and similar income
46
27
Purchase of property, plant and equipment
(383)
(1,181)
Proceeds from sale of property, plant and equipment
6
-
Net cash outflow from investing activities
(331)
(1,154)


Cash flows from financing activities


Borrowings repaid during the year
(234)
(229)
Equity dividends paid
(2,267)
(2,031)
Preference dividend paid
(79)
(79)
Net cash outflow from financing activities
(2,580)
(2,339)
Increase in cash and cash equivalents for the year
1,267
3,159
Cash and cash equivalents at beginning of the year
11,234
8,075
Cash and cash equivalents at end of the year
12,501
11,234

JAMES LATHAM PLC
Notes to the audited preliminary financial information
1. The results presented in this report are audited and they have 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 2014 and 31 March 2015.
2. The directors propose a final dividend of 8.8p per ordinary share, which will absorb 1,711,000 (2014: 8.0p absorbing 1,555,000), payable on 28 August 2015 to shareholders on the Register at the close of business on 7 August 2015. The ex-dividend date is 6 August 2015.
3. The figures for the year ended 31 March 2015 have been extracted from the audited statutory accounts for that year, which have yet to be delivered to the Registrar of Companies. The financial information set out has 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 and 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 2015 will be delivered to the Registrar of Companies and sent to Shareholders shortly. 
The audit report on these financial statements is unqualified and does not contain any statement under Section 498(2) or (3) of the Companies Act 2006, on the statutory financial statements for the year ended 31 March 2015. 
Statutory accounts for the year ended 31 March 2014 have been filed with the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498(2) and (3) of the Companies Act 2006. 
4. This announcement was approved and authorised for issue by the Board of Directors on 23 June 2015.
5. Net cash flow from operating activities


Year to 31 March 2015 audited
Year to 31 March 2014 audited




Profit before tax

10,107
10,479
Adjustment for finance income and expense

457
796
Depreciation and impairment

1,435
1,503
(Profit)/loss on disposal of property, plant and equipment

(5)
3
Increase in inventories

(3,969)
(1,715)
Increase in receivables

(1,371)
(3,965)
Increase in payables

647
3,571
Retirement benefits non cash amounts

(1,066)
(2,682)
Share-based payments non cash amounts

67
80
Own shares non cash amounts

(84)
(34)
Cash generated from operations

6,218
8,036




6. The Annual General Meeting of James Latham plc will be held at Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU on 26 August 2015 at 12.30pm.
The Annual Report and Accounts for the year ended 31 March 2015 will be sent to all shareholders in due course. The Annual Report and Accounts may also be viewed in due course on James Latham plc's website at www.lathams.co.uk

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