REG - John Lewis Of Hunger - Half-year Report
28/03/2022 07:00
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RNS Number : 1411G John Lewis Of Hungerford PLC 28 March 2022
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
28 March 2022
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
2021
Overview
The Company is pleased to report that the first half sales to 31 December 2021
are the highest in our history, at £4.6 million (2020: £3.3 million), with
the current full year total of despatched sales and confirmed forward orders
standing at £8.5 million. After 38 weeks of trading, our future orders,
combined with the confirmed order book above, would indicate a full year
turnover, in excess of £10 million for the first time in our history. Given
the uncertain climate in which we are operating, the Board have modelled a
range of scenarios for the financial out-turn in the current year, and our
central scenario would deliver a profit which is materially ahead of the prior
year.
Sales for the six months to 31 December 2021 stood at £4,561k (2020:
£3,326k) and the loss before tax for the period is £81k (2020: loss before
tax £213k), with an improved cash position of £824k (2020: £504k).
The Company has taken steps to put in place important building blocks over the
last two years, including significant investment in our Digital Strategy, the
Novuna (formerly known as Hitachi) Finance - customer financing facility,
together with the addition of key heads, to improve productivity around the
business.
These initiatives have delivered a structural change in our model, with now
sustained levels of consumer interest, as a result of our improved visibility
online, which has reduced the dependency on local footfall in our territories.
The investment in heads required to support this increase in new business span
across front-end sales support, additional production heads and enhanced
installation management, to ensure the customer experience remains a priority
as we grow and scale the business.
The cost of the additional heads offset by the non-recurring government
support during the pandemic, reflect the movement on the administration costs.
The year-on-year movement on selling and distribution spend demonstrates costs
related to increased sales including logistics, together with a return to
pre-pandemic levels of marketing spend, delivering around 30% more new
business into the Company, which has greatly contributed to the sales we
report today. Both areas of spend play an important part in supporting our
teams through the growth we are seeing in all areas of the Company.
With the majority of roles required now recruited, we are confident that there
will be a minimal need to add additional heads moving forward into the next
financial year FY23, as we capitalise on the strength of our brand positioning
during our 50(th) Birthday year.
Our investments in the core building blocks, including the Digital Strategy,
the Consumer Finance and the headcount required to ensure continuous
improvements to our sales conversion are now bearing fruit, and we are pleased
with the robust future order book as we near the end of the financial year.
Globally disrupted supply chains continue to have an impact on our purchasing
activities, with our UK suppliers bearing additional costs to manage their
businesses. We have passed on price increases of 8% to our customers in this
financial year FY22 and anticipate further inflationary pressures
necessitating another increase as we begin our new financial year FY23 on 1
July 2022.
Current Trading and Outlook
As stated above our despatched sales and confirmed forward orders (which we
consider to be the best measure of current trading) for the first 38 weeks of
trading of the current financial year stood at £8.5 million (2021: £6.5
million). Future orders against which a first stage deposit has been taken are
substantially higher than the prior year, which we expect will deliver in
excess of £10 million+ full year revenue performance. Our central scenario as
stated above, would deliver a profit materially ahead of the prior year,
together with a forward order book which is a substantially higher than the
prior year.
Given the current levels of market fluctuations impacted by the unfolding
global uncertainties, the Board remains cautious regarding any significant
disruption to our production and logistics capabilities. The Company remains
confident that the resilience in the order book would mean that any in-year
disruption for this financial year FY22, would move a portion of the profits
into the next financial year FY23 reporting period.
Kiran Noonan
Chief Executive Officer and Acting Chairman
28 March 2022
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 / George Payne (Corporate Finance)
Amrit Nahal (Sales and Corporate Broking)
INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Audited
Unaudited 6 months ended Year ended
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
Revenue 4,561 3,326 7,877
Cost of sales (2,530) (1,807) (4,165)
Gross profit 2,031 1,519 3,712
Selling and distribution costs (245) (146) (409)
Administration expenses:
Other (1,758) (1,469) (3,160)
Other operating income 3 - 165
Total (1,755) (1,469) (2,995)
Profit/(Loss) from operations 31 (96) 307
Finance expenses (112) (117) (227)
(Loss)/Profit before tax (81) (213) 81
Taxation - - 125
(Loss) after taxation (81) (213) 205
(Loss)/Earnings per share
Basic (0.04)p (0.11)p 0.11p
Fully diluted (0.04)p (0.11)p 0.10p
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Audited
Unaudited 6 months ended Year ended
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
(Loss)/Profit for the period (81) (213) 205
Deferred tax on revaluation of freehold land and buildings - - (43)
Total Comprehensive (Loss)/Income (81) (213) 163
BALANCE SHEET
AS AT 31 DECEMBER 2021 Audited
Unaudited As at As at
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
Non-Current Assets
Intangible assets 124 140 140
Tangible assets 3,811 4,030 4,001
Trade and other receivables 32 43 32
3,966 4,213 4,173
Current assets
Inventories 167 174 193
Trade and other receivables 1,140 570 869
Deferred Tax asset 82 - 82
Cash and cash equivalents 824 507 1,302
2,214 1,251 2,446
Current liabilities (3,070) (2,571) (3,291)
Net current liabilities (856) (1,320) (845)
Total assets less current
liabilities 3,110 2,894 3,329
Non-current liabilities
Borrowings (1,127) (1,147) (1,137)
Lease Liabilities (1,208) (1,309) (1,336)
Provisions for liabilities
and charges (53) (56) (53)
Net Assets 722 381 803
Equity
Share capital 194 187 194
Other reserves 1 1 1
Share premium account 1,222 1,188 1,222
Revaluation Reserve 518 561 518
Retained Earnings (1,214) (1,556) (1,133)
Total Equity 722 381 803
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Share Share Other Revaluation Retained
Capital Premium Reserves Reserves Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
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
Profit for the period - - - - 418 418
Share issue 7 34 - - - 42
Deferred tax on Revaluation of freeholds - - - (43) - (43)
Share based payments - - - - 4 4
At 30 June 2021 (Audited) 194 1,222 1 518 (1,264) 803
Loss for the period - - - - (81) (81)
At 31 December 2021 (Unaudited) 194 1,222 1 518 (1,345) 722
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Unaudited 6 months ended Audited
Year ended
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
Profit/(Loss) from operations 31 (96) 432
Depreciation, impairment and amortisation 239 239 478
Share based payments - - 4
Decrease/(Increase) in inventories 26 (21) (41)
(Increase) in receivables (271) (28) (315)
(Decrease)/Increase in payables (506) (22) 598
Increase in Customer Deposits 298 254 363
Loss on disposal of property plant and equipment 0 1 3
Increase in provisions - - (34)
Tax (credit) on operations - - (125)
Net cash from operating activities (183) 328 1,364
Cash flows from financing activities (263) (361) (575)
Cash flows from investing activities (32) (19) (46)
(478) (52) 743
Net (decrease) / increase in cash and cash equivalents
Net cash and cash equivalents at the start of the period 1,302 559 559
Net cash and cash equivalents at the end of the period 824 507 1,302
NOTES:
1. This interim financial statement has 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 2021. The Company does not
anticipate any change in these accounting policies for the year ending 30 June
2022. As permitted, this interim report has 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
2021, available from www.john-lewis.co.uk and remain unchanged.
2. (Loss) / Earnings per share
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
2021 2020 2021
(Loss) / Profit attributable to ordinary shareholders (£'000) (81) (213) 205
Weighted average number of shares in issue 193,945,519 186,745,519 189,388,807
Shares used to calculate diluted earnings per share 193,945,519 186,745,519 206,867,673
Basic(loss) / earnings per ordinary share (pence) (0.04)p (0.11)p 0.11p
Diluted (loss) / earnings per ordinary share (pence) (0.04)p (0.11)p 0.10p
3. Availability of the 2021 Interim accounts
Copies of the interim accounts for the six months ended 31 December 2021 will
be available to shareholders on the Company's website - www.john-lewis.co.uk
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