REG - Latham(James) PLC - Half-year Report
01/12/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221201:nRSA1626Ia&default-theme=true
RNS Number : 1626I Latham(James) PLC 01 December 2022
James Latham plc
("James Latham" or the "Company")
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Chairman's statement
Unaudited results for the six months trading to 30 September 2022
Revenue for the six months ended 30 September 2022 was £212.8m, up 9.7% on
£193.9m for the same period last year. Cost prices on both timber and
panels have risen at a much slower rate than in the previous financial year
but they are remaining stable and there are currently little signs of price
weakness. I am pleased that volumes have remained at similar levels to the
same period last year, despite the economy being weaker.
Gross profit percentage, which includes warehouse costs, for the six month
period ended 30 September 2022 was 19.4% compared with 26.4% in the
comparative six months. We anticipated that the gross profit percentage
would return to more normal levels, and the percentage achieved is still
higher than the ten year average.
Overheads have been well controlled during the six months, although the
increases in inflation especially around energy and transport costs have
inevitably led to an increase in overheads.
Operating profit was £23.5m, down £10.6m compared with £34.1m profit for
the same period last year. This reduction is a result of the margins
returning to expected levels, but still represents a significant improvement
on historical levels of operating profit as the exceptional trading conditions
start to normalise. Profit before tax was £23.7m compared with £34.0m for
the same period last year. The tax charge of £4.6m represents an effective
rate of 19.5%. Earnings per ordinary share were 95.6p compared with 133.5 p
for the same period last year.
As at 30 September 2022 net assets are £180.5m (2021: £146.4m). Inventory
levels of £74.6m have stabilised with supply issues still requiring us to
hold a higher volume of inventory. Trade and other receivables are also
similar to the start of the financial year with bad debts remaining at a low
figure. Cash and cash equivalents of £36.9m (2021: £24.5m) have been
important to allow us to maintain our investment in working capital especially
the inventory levels. We continue to take advantage of additional early
settlement discount opportunities with our suppliers.
The calculation of the pension deficit remains sensitive to changes in
assumptions, and the increase in corporate bond yields has resulted in a
surplus at 30 September 2022 of £7.3m compared with a deficit of £12,000 in
the same period last year. This is allowing us to undertake a de-risking
exercise to reduce the volatility of this calculation.
Interim dividend
The Board has declared an increased interim dividend of 7.25p per Ordinary
Share (2021: 6.5p). The dividend is payable on 27 January 2023 to ordinary
shareholders on the Company's Register at close of business on 30 December
2022. The ex-dividend date will be 29 December 2022.
Current and future trading
The second half of 2022/23 has started with slightly weaker volumes than the
previous six months to 30 September 2022, with margins also slightly lower
than in the same period. The supply chain has become easier over the past
six months, with fewer extended lead times on our products. Cost prices of
the majority of our products are stable at the moment, but there are still
uncertainties as to the effect of energy costs and other inflationary
pressures on the overheads for our key manufacturers. Recent drops in
container rates have affected the cost prices for products that have been
shipped via container, but these have been artificially high since COVID-19
and we expected them to come down to more normal rates.
There are a few market sectors, such as the merchant sector, that are quieter
at the moment, but many of our other customers have steady order books and
remain busy, but are clearly nervous looking at the macro economic conditions
next year.
I am pleased to report that the Yate extension is now completed, and this
extra capacity will allow us to grow our market share in the South West of the
UK. The board has recently approved a racking investment at IJK in Northern
Ireland, which will enable them to extend their product range and develop
sales. We are continuing to increase the working hours at our depots with
Purfleet becoming the latest site to be working 24/5 from the beginning of
October.
Nick Latham
Chairman
1 December 2022
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended.
For further information please visit www.lathamtimber.co.uk
(http://www.lathamtimber.co.uk) or contact:
James Latham plc Tel: 01442 849 100
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Charlie Bouverat (Corporate Finance) Tel: 0203 470 0470
Abigail Wayne (Corporate Broking)
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the six months to 30 September 2022
Six months to 30 Sept. 2022 unaudited Six months to 30 Sept. 2021 unaudited Year to 31 March 2022 audited
£000 £000 £000
Revenue 212,797 193,937 385,368
Cost of sales (including warehouse costs) (171,443) (142,822) (293,839)
Gross profit 41,354 51,115 91,529
Selling and distribution costs (12,147) (11,058) (22,151)
Administrative expenses (5,680) (5,924) (11,213)
Operating profit 23,527 34,133 58,165
Finance income 231 10 29
Finance costs (98) (112) (242)
Profit before tax 23,660 34,031 57,952
Tax expense (4,606) (7,463) (12,310)
Profit after tax attributable to owners of the parent company 19,054 26,568 45,642
Earnings per ordinary share (basic) 95.6p 133.5p 229.3p
Earnings per ordinary share (diluted) 95.2p 133.0p 228.3p
All results relate to continuing operations.
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months to 30 September 2022
Six months to 30 Sept. 2022 unaudited Six months to 30 Sept. 2021 unaudited Year to 31 March 2022 audited
£000 £000 £000
Profit after tax 19,054 26,568 45,642
Other Comprehensive income
Actuarial gains on defined benefit pension scheme 3,242 1,047 3,625
Deferred tax relating to components of other comprehensive income (1,080) (199) (424)
Foreign translation credit/(charge) 492 8 (29)
Other comprehensive income for the period, net of tax 2,654 856 3,172
Total comprehensive income, attributable to owners of the parent company 21,708 27,424 48,814
JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 30 September 2022
As at 30 Sept. 2022 unaudited As at 30 Sept. 2021 unaudited As at 31 March 2022 audited
£000 £000 £000
ASSETS
Non-current assets
Goodwill 1,363 872 1,372
Intangible assets 1,403 1,570 1,487
Property, plant and equipment 37,278 36,153 36,935
Right-of-use-asset 3,995 3,789 4,154
Retirement benefit surplus 7,318 - 1,119
Deferred tax asset 134 87 154
Total non-current assets 51,491 42,471 45,221
Current assets
Inventories 74,588 69,117 74,230
Trade and other receivables 69,380 68,414 68,332
Cash and cash equivalents 36,939 24,476 37,030
Total current assets 180,907 162,007 179,592
Total assets 232,398 204,478 224,813
Current liabilities
Lease liabilities 1,429 1,243 1,275
Trade and other payables 40,471 45,972 50,876
Current tax payable 268 3,220 400
Total current liabilities 42,168 50,435 52,551
Non-current liabilities
Interest bearing loans and borrowings 592 592 592
Lease liabilities 2,753 2,764 3,133
Retirement and other benefit obligation - 12 -
Deferred tax liabilities 6,369 4,273 4,566
Total non-current liabilities 9,714 7,641 8,291
Total liabilities 51,882 58,076 60,842
Net assets 180,516 146,402 163,971
Capital and reserves
Issued capital 5,040 5,040 5,040
Share-based payment reserve 438 268 387
Own shares (708) (326) (873)
Capital reserve 398 398 398
Retained earnings 175,348 141,022 159,019
Total equity attributable to shareholders of the parent company 180,516 146,402 163,971
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 September 2022
Six months to 30 Sept 2022 unaudited Six months to 30 Sept 2021 unaudited Year to 31 March 2022 audited
£000 £000 £000
Net cash flow from operating activities
Cash generated from operations 11,744 4,620 30,983
Interest paid (26) (27) (59)
Income tax paid (4,043) (2,850) (10,259)
Net cash inflow from operating activities 7,675 1,743 20,665
Cash flows from investing activities
Interest received and similar income 127 10 29
Acquisition of businesses net of cash and cash equivalents acquired - - (2,238)
Purchase of property, plant and equipment (1,782) (2,231) (4,319)
Proceeds from sale of property, plant and equipment 56 42 62
Net cash outflow from investing activities (1,599) (2,179) (6,466)
Cash flows before financing activities
Lease liability payments (787) (622) (1,408)
Equity dividends paid (5,380) (3,084) (4,379)
Cash outflow from financing activities (6,167) (3,706) (5,787)
(Decrease)/increase in cash and cash equivalents for the period (91) (4,142) 8,412
Cash and cash equivalents at beginning of the period 37,030 28,618 28,618
Cash and cash equivalents at end of the period 36,939 24,476 37,030
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 2021 (audited) 5,040 167 (471) 398 113,950 119,084
Profit for the period - - - - 26,568 26,568
Other comprehensive income:
Actuarial gain on defined benefit pension scheme - - - - 1,047 1,047
Deferred tax relating to components of other comprehensive income - - - - (199) (199)
Foreign translation credit - - - - 8 8
Total comprehensive income for the period - - - - 27,424 27,424
Transaction with owners:
Dividends - - - - (3,084) (3,084)
Exercise of options - - (3) - - (3)
Deferred tax on share options - 25 - - - 25
Change in investment in ESOP shares - - 148 - - 148
Share-based payment expense - 76 - - - 76
Total transactions with owners - 101 145 - (3,084) (2,838)
Balance at 30 September 2021 (unaudited) 5,040 268 (326) 398 138,290 143,670
Profit for the period - - - - 19,074 19,074
Other comprehensive income:
Actuarial gain on defined benefit pension scheme - - - - 2,578 2,578
Deferred tax relating to components of other comprehensive income - - - - (225) (225)
Foreign translation charge - - - - (37) (37)
Total comprehensive income for the period - - - - 21,390 21,390
Transactions with owners:
Dividends - - - - (1,295) (1,295)
Exercise of options - (24) 231 - 4 211
Deferred tax on share options - 50 - - - 50
Change in investment in ESOP shares - - (778) - 630 (148)
Share-based payment expense - 93 - - - 93
Total transactions with owners - 119 (547) - (661) (1,089)
Balance at 31 March 2022 (audited) 5,040 387 (873) 398 159,019 163,971
Profit for the period - - - - 19,054 19,054
Other comprehensive income:
Actuarial gain on defined benefit pension scheme - - - - 3,242 3,242
Deferred tax relating to components of other comprehensive income - - - - (1,080) (1,080)
Foreign translation credit - - - - 492 492
Total comprehensive income for the period - - - - 21,708 21,708
Transactions with owners:
Dividends - - - - (5,380) (5,380)
Deferred tax on share options - (37) - - - (37)
Change in investment in ESOP shares - - 166 - - 166
Share-based payment expense - 88 - - - 88
Total transactions with owners - 51 166 - (5,380) (5,163)
Balance at 30 September 2022 (unaudited) 5,040 438 (707) 398 175,347 180,516
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 principles of
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 and on the basis of the accounting policies expected to be
used in the financial statements for the year ending 31 March 2023. The half
yearly report does not include all the disclosures that would be required for
full compliance with IFRS. The figures for the year ended 31 March 2022 are
extracted from the statutory accounts of the group for that period.
2. The directors propose an interim dividend of 7.25p per ordinary share which
will absorb £1,445,000 (2021: 6.5p absorbing £1,293,000), payable on 27
January 2023 to shareholders on the Company's Register at the close of
business on 30 December 2022. The ex-dividend date is 29 December 2022.
3. This half yearly report does not constitute statutory financial accounts
within the meaning of section 434 of the Companies Act 2006. The statutory
accounts for the year ended 31 March 2022 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 to 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 period attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Six months to 30 Sept 2022 unaudited Six months to 30 Sept 2021 unaudited Year to 31 March 2022 audited
£000 £000 £000
Net profit attributable to ordinary shareholders 19,054 26,568 45,642
Number '000 Number '000 Number '000
Weighted average share capital 19,926 19,896 19,905
Add: diluted effect of share capital options issued 95 79 85
Weighted average share capital for diluted earnings per ordinary share 20,021 19,975 19,990
calculation
5. Net cash flow from operating activities
Six months to 30 Sept 2022 unaudited Six months to 30 Sept 2021 unaudited Year to 31 March 2022 audited
£000 £000 £000
Profit before tax 23,660 34,031 57,952
Adjustment for finance income and expenditure (133) 102 213
Depreciation and amortisation 2,091 2,002 4,128
(Profit)/loss on disposal of property, plant and equipment (51) 105 50
Increase in inventories (358) (20,855) (23,990)
Increase in receivables (1,048) (20,585) (18,034)
(Decrease)/increase in payables (9,652) 11,264 13,940
Retirement benefits non cash amounts (2,853) (1,520) (3,445)
Share-based payments non cash amounts 88 76 169
Cash generated from operations 11,744 4,620 30,983
6. Copies of this statement will be posted on our website,
www.lathamtimber.co.uk/investors A copy can be emailed or posted upon
application to the Company Secretary, James Latham plc, Unit C2, Breakspear
Park, Breakspear Way, Hempstead, Herts, HP2 4TZ, or by email to
plc@lathams.co.uk (mailto:plc@lathams.co.uk)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FDUFWSEESEIFRecent news on James Latham
See all newsREG - Latham(James) PLC - PDMR Dealing
AnnouncementREG - Latham(James) PLC - Grant & Exercise of Options
AnnouncementREG - Latham(James) PLC - Trading Statement
AnnouncementREG - Latham(James) PLC - PDMR Dealings
AnnouncementREG - Latham(James) PLC - PDMR Dealings
Announcement