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

James LathamAnnouncement

27/11/2014 07:11

RNS Number : 1239Y
Latham(James) PLC
27 November 2014
James Latham plc

("James Latham" or the "Company")
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2014 
Chairman's statement
I am pleased to report good results for the six months to 30 September 2014, in trading conditions which have continued to improve.
Results
The results are better than the same period last year. Revenue for the six months to 30 September 2014 was 89.1m, up 8.4 per cent on 82.2m for the same period last year. The operating profit was 5.4m, 18.8 per cent up on 4.6m last year. Finance Income was 21,000 (2013: 14,000) and Finance Costs were 263,000 (2013: 423,000), reflecting interest on the lower pension scheme deficit. Profit before tax was 5.2m, up 24.7 per cent on last year's 4.2m. Earnings per ordinary share were 20.5p (2013: 16.9p) an increase of 21.3 per cent.
As at 30 September 2014 shareholder funds had increased to 63.3m (2013: 51.5m) with cash and cash equivalents of 12.6m (2013: 5.7m).
Interim dividend
The Board has declared an interim dividend of 3.7p per Ordinary Share (2013: 3.4p), which is covered 5.5 times (2013: 5.0 times). The dividend is payable on 30 January 2015 to ordinary shareholders on the Company's Register at close of business on 9 January 2015. The ex-dividend date will be 8 January 2015.
Six months trading to 30 September 2014
In improving trading conditions, group revenue has grown by 6.9m, as a result of higher sales volumes. This growth was mainly in panel products, although timber also saw good improvement, with increased sales in Accoya and WoodEx, our engineered wood sections.
Trading margins for the six months to 30 September 2014 have improved on the previous year. Overheads have been controlled, although higher selling and distribution costs reflect higher volumes handled and more sales people directed at target markets. Despite our collection of debts having improved, we saw in the first quarter of the year several unexpected bad debts which have contributed to the increase in administrative expenses. This experience was not repeated in the second quarter of the year. We continue to take advantage of cash settlement discounts from suppliers where this represents a good return. 
Pension scheme
The IAS19R valuation shows that the scheme deficit has decreased to 5.47m from 9.28m in March. The triennial actuarial valuation at 30 September 2014 is substantially complete and indications are that the deficit is reduced. This will result in lower deficit recovery payments from 1 April 2015. Both the IAS19R and triennial valuations are very sensitive to small changes in gilt and corporate bond yields.
Current and future trading
The management accounts and information show growing revenue for October and the first half of November, at continually improving margins. We are trading comfortably in line with market expectations. We are progressing with our plans to relocate our two oldest depots. Our wide range of customers is generally busier than this time last year and the Company is in a strong position to meet increasing demand.
Peter Latham
Chairman
27 November 2014.
James Latham plc
Tel: 01442 849 100
Peter Latham, Chairman

David Dunmow, Finance Director



Northland Capital Partners Ltd 
Nomad and Broker
Tel: 020 7382 1100
Matthew Johnson / Edward Hutton

JAMES LATHAM PLC



CONSOLIDATED BALANCE SHEET







At 30 September 2014








As at 30 Sept. 2014 unaudited
As at 30 Sept. 2013 unaudited 
As at 31 March 2014 audited





000
000
000
ASSETS



Non-current assets



Goodwill
237
237 
237 
Intangible assets
104
112
108
Property, plant and equipment
22,056
23,238
22,647
Total non-current assets
22,397
23,587
22,992




Current assets



Inventories
28,639
27,984
27,937
Trade and other receivables
35,617
34,091
32,842
Cash and cash equivalents
12,592
5,672
11,234
Total current assets
76,848
67,747
72,013








Total assets
99,245
91,334
95,005




Current liabilities



Trade and other payables
25,278
22,346
23,191
Current portion of interest bearing loans and borrowings
242
234
238
Current tax payable
1,005
846
1,017
Total current liabilities
26,525
23,426
24,446




Non-current liabilities



Interest bearing loans and borrowings
1,768
2,010
1,890
Retirement and other benefit obligation
5,473
13,695
9,267
Other payables
492
550
520
Deferred tax liabilities
1,649
125
774
Total non-current liabilities
9,382
16,380
12,451








Total liabilities
35,907
39,806
36,897








Net assets
63,338
51,528
58,108




Capital and reserves



Issued capital
5,040
5,040
5,040
Share-based payment reserve
152
135
123
Own shares
(226)
(208)
(175)
Capital reserve
3
3 
3 
Retained earnings
58,369
46,558
53,117




Total equity attributable to owners of the parent company
63,338
51,528
58,108


JAMES LATHAM PLC



CONSOLIDATED INCOME STATEMENT







For the six months to 30 September 2014








Six months to 30 Sept. 2014 unaudited
Six months to 30 Sept. 2013 unaudited
Year to
 31 March 2014 audited





000
000
000




Revenue
89,120
82,210
163,117




Cost of sales (including warehouse costs)
(73,281)
(68,273)
(134,688)




Gross profit
15,839
13,937
28,429




Selling and distribution costs
(7,031)
(6,449)
(12,941)
Administrative expenses
(3,392)
(2,931)
(6,016)
Exceptional adjustment to defined benefit pension cost
-
-
1,797
Other operating income
3
3
6





(10,420)
(9,377)
(17,154)




Operating profit
5,419
4,560
11,275




Finance income
21
14
27
Finance costs
(263)
(423)
(823)




Profit before tax
5,177
4,151
10,479




Tax expense
(1,209)
(886)
(1,888)




Profit after tax attributable to owners of the parent company
3,968
3,265
8,591




Earnings per ordinary share (basic)
20.5p
16.9p
44.3p




Earnings per ordinary share (diluted)
20.3p
16.7p
43.9p








All results relate to continuing operations.





JAMES LATHAM PLC







CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







For the six months to 30 September 2014








Six months to 30 Sept. 2014 unaudited
Six months to 30 Sept. 2013 unaudited
Year to
31 March 2014 audited





000
000
000




Profit after tax
3,968
3,265
8,591
Other Comprehensive income



Actuarial gains on defined benefit pension scheme
3,492
3,004
5,543
Deferred tax relating to components of other comprehensive income
(661)
(890)
(1,508)
Other comprehensive income for the period, net of tax
2,831
2,114
4,035
Total comprehensive income, attributable to owners of the parent company
6,799
5,379
12,626


JAMES LATHAM PLC







CONSOLIDATED CASH FLOW STATEMENT







For the six months to 30 September 2014








Six months to 30 Sept 2014 unaudited
Six months to 30 Sept 2013 unaudited
Year to
31 March 2014 audited





000
000
000
Net cash flow from operating activities



Cash generated from operations
4,211
712
8,036
Interest paid
(24)
(25)
(45)
Income tax paid
(1,007)
(539)
(1,339)
Net cash inflow from operating activities
3,180
148
6,652




Cash flows from investing activities



Interest received and similar income
21
14
27
Purchase of property, plant and equipment
(137)
(1,041)
(1,181)
Net cash outflow from investing activities
(116)
(1,027)
(1,154)




Cash flows before financing activities



Borrowings repaid during the period
(118)
(113)
(229)
Equity dividends paid
(1,549)
(1,372)
(2,031)
Preference dividend paid
(39)
(39)
(79)
Net cash outflow from financing activities
(1,706)
(1,524)
(2,339)




Increase/(decrease) in cash and cash equivalents for the period
1,358
(2,403)
3,159




Cash and cash equivalents at beginning of the period
11,234
8,075
8,075




Cash and cash equivalents at end of the period
12,592
5,672
11,234


JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


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







As at 1 April 2013 (audited)
5,040
91
(218)
3
42,551
47,467
Profit for the period 
-
-
-
-
3,265
3,265
Other comprehensive income:






Actuarial gain on defined pension scheme 
-
-
-
-
3,004
3,004
Deferred tax relating to components of other comprehensive income 
-
-
-
-
(890)
(890)
Total comprehensive income for the year
-
-
-
-
5,379
5,379
Transaction with owners:






Dividends
-
-
-
-
(1,372)
(1,372)
Change in investment in ESOP shares
-
-
10
-
-
10
Share-based payment expense
-
44
-
-
-
44
Total transactions with owners
-
44
10
-
(1,372)
(1,318)
Balance at 30 September 2013 (unaudited)
5,040
135
(208)
3
46,558
51,528
Profit for the period 
-
-
-
-
5,326
5,326
Other comprehensive income:






Actuarial gain on defined pension scheme 
-
-
-
-
2,539
2,539
Deferred tax relating to components of other comprehensive income 
- 
-
-
-
(618)
(618)
Total comprehensive income for the period
-
-
-
-
7,247
7,247
Transactions with owners:






Dividends
-
-
-
-
(659)
(659)
Write down on conversions of ESOP shares
-
-
77
-
(77)
-
Exercise of options
-
(48)
-
-
48
-
Change in investment in ESOP shares
-
-
(44)
-
-
(44)
Share-based payment expense
-
36
-
-
-
36
Total transactions with owners
-
(12)
33
-
(688)
(667)
Balance at 31 March 2014 (audited)
5,040
123
(175)
3
53,117
58,108
Profit for the period
-
-
-
-
3,968
3,968
Other comprehensive income:






Actuarial gain on defined benefit pension scheme
-
-
-
-
3,492
3,492
Deferred tax relating to components of other comprehensive income
-
-
-
-
(661)
(661)
Total comprehensive income for the period
-
-
-
-
6,799
6,799
Transactions with owners:






Dividends
-
-
-
-
(1,549)
(1,549)
Write down on conversions of ESOP shares
-
-
2
-
(2)
-
Exercise of options
-
(4)
-
-
4
-
Change in investment in ESOP shares
-
-
(53)
-
-
(53)
Share-based payment expense
-
33
-
-
-
33
Total transactions with owners
-
29
(51)
-
(1,547)
(1,569)
Balance at 30 September 2014 (unaudited)
5,040
152
(226)
3
58,369
63,338


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 2015 and on the basis of the accounting policies to be used in those financial statements. The figures for the year ended 31 March 2014 are extracted from the statutory accounts of the group for that period.

2. The directors propose an interim dividend of 3.7p per ordinary share which will absorb 770,000 (2014: 3.4p absorbing 660,000), payable on 30 January 2015 to shareholders on the Register at the close of business on 9 January 2015. The ex-dividend date is 8 January 2015.

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 2014 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 2014 unaudited
Six months to 30 Sept 2013 unaudited
Year to 31 March 2014 audited

000
000
000




Net profit attributable to ordinary shareholders
3,968
3,265
8,591





Number '000
Number '000
Number '000
Weighted average share capital
19,393
19,376
19,385
Add: diluted effect of share capital options issued
196
179
182
Weighted average share capital for diluted earnings per ordinary share calculation
19,589
19,555
19,567






5. Net cash flow from operating activities


Six months to 30 Sept 2014 unaudited
Six months to 30 Sept 2013 unaudited
Year to 31 March 2014 audited
Profit before tax
5,177
4,151
10,479
Adjustment for finance income and expenditure
242
409
796
Depreciation and impairment
729
768
1,503
Loss on disposal of property, plant and equipment
3
3
3
Increase in inventories
(702)
(1,562)
(1,715)
Increase in receivables
(2,775)
(5,414)
(3,965)
Increase in payables
2,059
2,756
3,571
Own shares non cash amounts
33
10
(34)
Retirement benefits non cash amounts
(502)
(453)
(2,682)
Share-based payments non cash amounts
(53)
44
80
Cash generated from operations
4,211
712
8,036

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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