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

James LathamAnnouncement

26/11/2015 07:11

RNS Number : 9972G
Latham(James) PLC
26 November 2015
James Latham plc
("James Latham" or the "Company")
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015 
Chairman's statement
I am pleased to report good results for the six months to 30 September 2015.
Results
The results are better than the same period last year. Revenue for the six months to 30 September 2015 was 96.2m, up 8.0 per cent on 89.1m for the same period last year. The operating profit was 6.5m, 20.4 per cent up on 5.4m last year. Finance costs were 227,000 (2014: 263,000), reflecting reduced interest charges on the lower pension scheme deficit. Profit before tax was 6.3m, up 21.2 per cent on last year's 5.2m. Earnings per ordinary share were 25.8p (2014: 20.5p) an increase of 25.9 per cent.
As at 30 September 2015 shareholder funds had increased to 67.8m (2014: 63.3m) with cash and cash equivalents of 12.4m (2014: 12.6m).
Interim dividend
The Board has declared an increased interim dividend of 4.0p per Ordinary Share (2014: 3.7p), which is covered 6.5 times (2014: 5.5 times). The dividend is payable on 29 January 2016 to ordinary shareholders on the Company's Register at close of business on 8 January 2016. The ex-dividend date will be 7 January 2016.
Six months trading to 30 September 2015
In trading conditions which have been different for the various markets that we serve, group revenue has grown by 7.1m, as a result of higher sales volumes and product mix, which offset lower prices. This growth was both in panel products and timber, with increased sales in decorative panels, doors, Accoya and WoodEx, our engineered wood sections.
Trading margins for the six months to 30 September 2015 are similar to the previous year, with an improvement in panels and a small decline in timber. Overheads have been controlled, with higher warehouse and distribution costs reflecting higher volumes handled and the extended working day at a number of depots. Bad debts have been significantly lower than previous periods. 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 improved margins. 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. We are close to agreeing heads of terms on the new Yate site and are in negotiations for the new Wigston site.
Future management
From 1 January 2016 I will become non-executive Chairman of James Latham PLC rather than executive Chairman and Nick Latham will take up the majority of my executive duties. I will continue as a director of the Programme for the Endorsement of Forest Certification (PEFC). 
Peter Latham
Chairman
26 November 2015
Enquiries 
James Latham plc
Tel: 01442 849 100
Peter Latham, Chairman

David Dunmow, Finance Director



Northland Capital Partners Limited 
Nominated Adviser and Broker
Tel: 020 7382 1100
Matthew Johnson / Edward Hutton



JAMES LATHAM PLC



CONSOLIDATED INCOME STATEMENT







For the six months to 30 September 2015








Six months to 30 Sept. 2015 unaudited
Six months to 30 Sept. 2014 unaudited
Year to
31 March 2015 audited





000
000
000




Revenue
96,209
89,120
174,855




Cost of sales (including warehouse costs)
(78,975)
(73,281)
(143,978)




Gross profit
17,234
15,839
30,877




Selling and distribution costs
(7,674)
(7,031)
(14,082)
Administrative expenses
(3,102)
(3,392)
(6,237)
Other operating income
3
3
6




Operating profit
6,461
5,419
10,564




Finance income
25
21
46
Finance costs
(227)
(263)
(503)




Profit before tax
6,259
5,177
10,107




Tax expense
(1,257)
(1,209)
(2,285)




Profit after tax attributable to owners of the parent company
5,002
3,968
7,822




Earnings per ordinary share (basic)
25.8p
20.5p
40.3p




Earnings per ordinary share (diluted)
25.5p
20.3p
40.0p








All results relate to continuing operations.





JAMES LATHAM PLC







CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







For the six months to 30 September 2015








Six months to 30 Sept. 2015 unaudited
Six months to 30 Sept. 2014 unaudited
Year to
31 March 2015 audited





000
000
000




Profit after tax
5,002
3,968
7,822
Other Comprehensive income



Actuarial gains/(losses) on defined benefit pension scheme
2,766
3,492
(1,849)
Deferred tax relating to components of other comprehensive income
(491)
(661)
434
Other comprehensive income for the period, net of tax
2,275
2,831
(1,415)
Total comprehensive income, attributable to owners of the parent company
7,277
6,799
6,407


JAMES LATHAM PLC



CONSOLIDATED BALANCE SHEET







At 30 September 2015








As at 30 Sept. 2015 unaudited
As at 30 Sept. 2014 unaudited 
As at 31 March 2015 audited





000
000
000
ASSETS



Non-current assets



Goodwill
237
237 
237 
Intangible assets
97
104
101
Property, plant and equipment
21,477
22,056
21,601
Total non-current assets
21,811
22,397
21,939




Current assets



Inventories
32,419
28,639
31,906
Trade and other receivables
37,612
35,617
34,213
Cash and cash equivalents
12,432
12,592
12,501
Total current assets
82,463
76,848
78,620








Total assets
104,274
99,245
100,559




Current liabilities



Trade and other payables
24,917
25,278
23,893
Current portion of interest bearing loans and borrowings
-
242
907
Current tax payable
1,297
1,005
947
Total current liabilities
26,214
26,525
25,747




Non-current liabilities



Interest bearing loans and borrowings
987
1,768
987
Retirement and other benefit obligation
7,679
5,473
10,430
Other payables
435
492
464
Deferred tax liabilities
1,188
1,649
700
Total non-current liabilities
10,289
9,382
12,581








Total liabilities
36,503
35,907
38,328








Net assets
67,771
63,338
62,231




Capital and reserves



Issued capital
5,040
5,040
5,040
Share-based payment reserve
172
152
143
Own shares
(235)
(226)
(177)
Capital reserve
3
3 
3 
Retained earnings
62,791
58,369
57,222




Total equity attributable to owners of the parent company
67,771
63,338
62,231


JAMES LATHAM PLC







CONSOLIDATED CASH FLOW STATEMENT







For the six months to 30 September 2015








Six months to 30 Sept 2015 unaudited
Six months to 30 Sept 2014 unaudited
Year to
31 March 2015 audited





000
000
000
Net cash flow from operating activities



Cash generated from operations
4,055
4,211
6,218
Interest paid
(25)
(24)
(44)
Income tax paid
(909)
(1,007)
(1,996)
Net cash inflow from operating activities
3,121
3,180
4,178




Cash flows from investing activities



Interest received and similar income
25
21
46
Purchase of property, plant and equipment
(608)
(137)
(383)
Proceeds from sale of property, plant and equipment
46
-
6
Net cash outflow from investing activities
(537)
(116)
(331)




Cash flows before financing activities



Borrowings repaid during the period
(907)
(118)
(234)
Equity dividends paid
(1,707)
(1,549)
(2,267)
Preference dividend paid
(39)
(39)
(79)
Net cash outflow from financing activities
(2,653)
(1,706)
(2,580)




(Decrease)/increase in cash and cash equivalents for the period
(69)
1,358
1,267




Cash and cash equivalents at beginning of the period
12,501
11,234
11,234




Cash and cash equivalents at end of the period
12,432
12,592
12,501


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 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 year
-
-
-
-
6,799
6,799
Transaction 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
Profit for the period 
-
-
-
-
3,854
3,854
Other comprehensive income:






Actuarial loss on defined benefit pension scheme 
-
-
-
-
(5,341)
(5,341)
Deferred tax relating to components of other comprehensive income 
- 
-
-
-
1,095
1,095
Total comprehensive income for the period
-
-
-
-
(392)
(392)
Transactions with owners:






Dividends
-
-
-
-
(718)
(718)
Write down on conversions of ESOP shares
-
-
80
-
(80)
-
Exercise of options
-
(43)
-
-
43
-
Change in investment in ESOP shares
-
-
(31)
-
-
(31)
Share-based payment expense
-
34
-
-
-
34
Total transactions with owners
-
(9)
49
-
(755)
(715)
Balance at 31 March 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
Transactions 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


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 2016 and on the basis of the accounting policies to be used in those financial statements. The figures for the year ended 31 March 2015 are extracted from the statutory accounts of the group for that period.

2. The directors propose an interim dividend of 4.0p per ordinary share which will absorb 780,000 (2015: 3.7p absorbing 720,000), payable on 29 January 2016 to shareholders on the Register at the close of business on 8 January 2016. The ex-dividend date is 7 January 2016.

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 2015 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 2015 unaudited
Six months to 30 Sept 2014 unaudited
Year to 31 March 2015 audited

000
000
000




Net profit attributable to ordinary shareholders
5,002
3,968
7,822





Number '000
Number '000
Number '000
Weighted average share capital
19,399
19,393
19,389
Add: diluted effect of share capital options issued
203
196
169
Weighted average share capital for diluted earnings per ordinary share calculation
19,602
19,589
19,558






5. Net cash flow from operating activities


Six months to 30 Sept 2015 unaudited
Six months to 30 Sept 2014 unaudited
Year to 31 March 2015 audited
Profit before tax
6,259
5,177
10,107
Adjustment for finance income and expenditure
202
242
457
Depreciation and amortisation
728
729
1,435
Loss on disposal of property, plant and equipment
(38)
3
(5)
Increase in inventories
(513)
(702)
(3,969)
Increase in receivables
(3,399)
(2,775)
(1,371)
Increase in payables
993
2,059
647
Own shares non cash amounts
(58)
(53)
(84)
Retirement benefits non cash amounts
(148)
(502)
(1,066)
Share-based payments non cash amounts
29
33
67
Cash generated from operations
4,055
4,211
6,218

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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