REG - John Lewis Of Hunger - Half-year Report

John Lewis of HungerfordAnnouncement

18/03/2021 07:05

RNS Number : 6351S
  
John Lewis Of Hungerford PLC
  
18 March 2021
  
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse (Amendment) (EU EXIT) Regulations 2019/310.
18 March 2021
John Lewis of Hungerford plc
(the "Company")
Half-year Report
 
John Lewis of Hungerford Plc (AIM: JLH), the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, is pleased to announce its unaudited interim results for the six months ended 31 December 2020.
Overview
Sales for the six months to 31 December 2020 were £3,326k (2019: £3,345k) and the loss before tax for the period was £213k (2019: loss before tax £398k). The improved position is due in part to the structural costs savings made last year and a portion can be attributed to government support received during the pandemic.
During the first six months of the financial year, our four London showrooms have been pushing forward at pace and have contributed almost half of the income, with customers keen to complete their building works and home refurbishments, which had already been delayed for many months. Our other seven showrooms are experiencing reduced availability of trades people, which is impacting the speed of recovery outside London, although customers continue to place deposits to secure production slots, with marginally more uncertainty around installation timing.
A significant step change for the business with regards to its digital footprint has contributed greatly to the year-to-date trading pattern. The investment in digital campaigns across all of our social media, together with our improved website, has led to record levels of customer engagement and progress into orders. The launch of our CRM system has provided improved data on our marketing programme and ensured we are focused on spend that enhances our brand positioning.
Another key change in our operating model during our first six months is the launch in earnest of our new finance offering in conjunction with Hitachi Capital UK. This has allowed more customers to work with our team and provided the Company with the opportunity to reach new customers.
 
Current Trading and Outlook
Our despatched sales and forward orders (which we consider to be the best measure of current trading) for the first 35 weeks of trading of the current financial year stood at £6.2 million (2020: £5.7 million). Future orders against which a first stage deposit has been taken stood at £2.1 million (2020: £0.7 million), of which £1.5 million is currently scheduled for completion by the 30 June 2021 year end (2020: £0.5 million). Therefore, the total of all despatched sales and forward orders is £8.3 million, which is 30% ahead of the corresponding period in the previous year, which was prior to the first lockdown beginning on 23 March 2020. Quotation activity within the business continues to be substantially up on the previous year which reflects a sustained consumer interest in home improvements.
The Government's road map out of lockdown currently states that our showrooms can re-open on 12 April 2021. The Board are cautiously optimistic for an improved performance over recent years, however, we remain beholden to the prevailing market conditions and we are prepared for further disruption from the pandemic, together with building delays arising from the succession of lockdowns - all of which could impact our results in the current year. The work done to move the business online in the event of extensions to local lockdowns, however, should support customers to continue their buying journey with our design team and minimise any substantive impact on our order book. The lockdown since the new year into 2021 has seen sustained high levels of interest in the home improvement sector and our forward order book demonstrates a strong level of conversion into orders. 
Given the current levels of uncertainty, the Board has considered a number of scenarios in modelling the financial out-turn for the current financial year.   Our central scenario assumes no further delays to the proposed Government Roadmap and that we see the showrooms re-open fully on the currently scheduled date of 12 April 2021. Our central scenario reflects the strength of current trading and projects a profitable second half of the year. Under this scenario we also expect to enter the new financial year to June 2022 with an order book which will be higher than in recent years.
 
 
Kiran Noonan
Chief Executive Officer and Acting Chairman
18 March 2021
 
Enquiries:
John Lewis of Hungerford plc                                                                                                       01235 774300
Kiran Noonan - Chief Executive Officer and Acting Chairman
 
Allenby Capital Limited (Nominated Adviser and Broker)                                                  020 3328 5656
David Worlidge/Nick Naylor




 
 
 



INCOME STATEMENT




















FOR THE SIX MONTHS ENDED 31 December 2020






















































Audited








Unaudited 6 months ended






 Year ended








31 December


31 December






30 June








2020


2019






2020






























£'000


£'000






£'000


























Revenue


3,326 


3,345 






5,553 


























Cost of sales


(1,807)


(1,768)






(3,004)


























Gross profit


1,519 


1,577 






2,549 


























Selling and distribution costs


(146)


(266)






(413)


























Administration expenses:




















  Other


(1,469)


(1,631)






(3,081)




 Other operating income


  -


  -






210 




Total


(1,469)


(1,631)






(2,871)


























(Loss) from operations


(96)


(320)






(735)


























Finance expenses


(117)


(78)






(151)


























(Loss) before tax


(213)


(398)






(886)


























Taxation


  -


  -






95 


























(Loss) after taxation


(213)


(398)






(791)


























(Loss) per share




















Basic


(0.11)p


(0.21)p






(0.42)p




Fully diluted


(0.11)p


(0.21)p






(0.42)p



 




 
 



STATEMENT OF COMPREHENSIVE INCOME 
















FOR THE SIX MONTHS ENDED 31 December 2020


















































Audited








Unaudited 6 months ended






 Year ended








31 December


31 December






30 June








2020


2019






2020






























£'000


£'000






£'000


























(Loss) for the period


(213)


(398)






(791)


























Revaluation of freehold land and buildings


  -


  -






692 




Deferred tax on revaluation of freehold land and buildings


  -


  -






(132)


























Total Comprehensive Income


(213)


(398)






(230)





























 



BALANCE SHEET




















AS AT 31 DECEMBER 2020














Audited








Unaudited
 As at






 As at








31 December


31 December






30 June








2020


2019






2020




















































£'000


£'000






£'000




Non-Current Assets




















Intangible assets


140 


166 






157 




Tangible assets


4,030 


4,491 






4,235 




Trade and other receivables


43 


43 






43 








4,213 


4,700 






4,435 


























Current assets




















Inventories


174 


144 






153 




Trade and other receivables


570 


374 






543 




Cash and cash equivalents


507 


(114)






559 








1,251 


404 






1,254 
















































Current liabilities


(2,571)


(1,606)






(2,450)


























Net current liabilities


(1,320)


(1,202)






(1,196)


























Total assets less current




















liabilities


2,894 


3,498 






3,239 
















































Non-current liabilities




















Borrowings


(1,147)


(437)






(1,156)




Lease Liabilities


(1,309)


(1,835)






(1,432)




Provisions for liabilities




















and charges


(56)


(112)






(56)


























Net Assets


381 


1,114 






595 
















































Equity




















Share capital


187 


187 






187 




Other reserves


1 


1 






1 




Share premium account


1,188 


1,188 






1,188 




Revaluation Reserve


561 


692 






561 




Retained Earnings


(1,556)


(954)






(1,342)


























Total Equity


381 


1,114 






595 

























 
 



STATEMENT OF CHANGES IN EQUITY


 


 


 


 


 




FOR THE SIX MONTHS ENDED 31 DECEMBER 2020


 


 


 


 




 


 


 


 


 


 


 




 


Share


Share


Other


Revaluation


Retained


 




 


Capital


Premium


Reserves


Reserves


Earnings


Total




 


 


 


 


 


 


 




 


£'000


£'000


£'000


£'000


£'000


£'000




 


 


 


 


 


 


 




At 30 June 2019 (Audited) Restated


187


1,188


1


  -


(556)


820




Loss for the period


  -


  -


  -


  -


(398)


(398)




Revaluation of freeholds


  -


  -


  -


692


  -


692




At 31 December 2019 (Unaudited)


187


1,188


1


692


(954)


1,114




Loss for the period


  -


  -


  -


  -


(525)


(525)




Share based payments


  -


  -


  -


  -


5


5




Deferred tax on Revaluation of freeholds


  -


  -


  -


(132)


  -


(132)




At 30 June 2020 (Audited)


187


1,188


1


560


(1,474)


594




Loss for the period


  -


  -


  -


  -


(213)


(213)




At 31 December 2020 (Unaudited)


187


1,188


1


560


(1,687)


381



 
 




 



STATEMENT OF CASH FLOWS




















FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
















































































Audited








Unaudited 6 months ended






 Year ended








31 December


31 December






30 June








2020


2019






2020






























£'000


£'000






£'000


























(Loss) from operations


(96)


(320)






(641)


























Depreciation, impairment and amortisation


239 


288 






566 




Share based payments


  -


  -






5 




(Increase) in inventories


(21)


(0)






(9)




(Increase) / Decrease in receivables


(28)


363 






157 




(Decrease) in payables


(22)


(505)






(96)




Increase / (Decrease) in Customer Deposits


254 


(80)






212 




Loss / (Profit) on disposal of property plant and equipment


1 


(1)






(1)




Increase in provisions


  -


7 






12 




Tax (credit) / charge on operations


  -


  -






(95)


























Net cash from operating activities


328 


(248)






111 


























Cash flows from financing activities


(361)


(140)






188 


























Cash flows from investing activities


(19)


(13)






(27)
















































Net (decrease) / increase in cash and cash equivalents


(52)


(401)






272 




Net cash and cash equivalents at the start of the period


559 


287 






287 




Net cash and cash equivalents at the end of the period


507 


(114)






559 



 




 



NOTES: 


















































1. These interim financial statements have been prepared on the basis of accounting policies adopted by the Company and set out in the annual report and accounts for the period ended 30 June 2020. All accounting policies are expected to remain unchanged for the year ending 30 June 2021.  As permitted, these interim financial statements have been prepared in accordance with the AIM Rules and not in accordance with IAS 34 "Interim financial reporting".  The principal risks and uncertainties facing the Company are disclosed in the Company's financial statements for the period ended 30 June 2020, available from www.john-lewis.co.uk. 




2. Basic and fully diluted loss per ordinary share is calculated as follows:










































6 months


6 months


Year
















ended


ended


ended
















31 December


31 December


30 June
















2020


2019


2020






























Profit / (loss) attributable to ordinary shareholders (£'000)


(213)


(398)


(791)




Weighted average number of shares in issue










186,745,519


186,745,519


186,745,519




Shares used to calculate diluted earnings per share


186,745,519


186,745,519


186,745,519






























Basic loss per ordinary share (pence)










(0.11)p


(0.21)p


(0.42)p




Diluted loss per ordinary share (pence)










(0.11)p


(0.21)p


(0.42)p










At 31 December 2020 the basic and diluted loss per share is the same, as the vesting of share option awards would reduce the loss per share and is, therefore, anti-dilutive.










3.  Copies of the 2020 interim accounts will be available to shareholders on the Company's website www.john-lewis.co.uk.



















 
 
 

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