REG - John Lewis Of Hunger - Half-year Report
30/03/2023 07:00
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RNS Number : 6894U John Lewis Of Hungerford PLC 30 March 2023
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
30 March 2023
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
2022.
Overview
The Company is pleased to report that the revenue for the half year to 31
December 2022 of £5.4 million (2021: £4.6 million) reflected an improvement
of 18% over the corresponding period in 2021 and a 60% growth over the
pre-pandemic half year period to 31 December 2019. The total of dispatched
sales and confirmed forward orders for the first 38 weeks of trading in the
current financial year stands at £9.2 million (2022: £8.5 million).
The underlying adjusted loss before tax* for the half year to 31 December
2022, was £105k (2021: Loss before tax £81k). In the 2022 calendar year,
the Company experienced substantial and sudden increases in costs of some key
raw materials. The Company took swift action to raise prices on all new orders
from the start of the 2022/23 financial year in order to offset cost
increases.
However, it should be noted that the average lead time between taking an order
and completing the installation and recognising the sale is six months. The
sales recognised in the first half of the current financial year were
predominantly at the previous retail prices before any price increase had been
applied, and consequently the gross margin was lower at 42% (FY2021/22: 45%).
The Board expects that the gross margin in the second half of the current
financial year will benefit from these price increases, which customers have
accepted as necessary and market standard increases, and be closer to its
historic run rate. The Board also notes that the significant cost pressures
suffered in 2022 are easing, as the current year progresses, with the
management team focused on increasing the gross margin through improved
purchasing and improving operational efficiencies.
The movement in administration costs is split between additional
infrastructure costs in the support functions which have been strengthened to
enable the front-line team to focus on conversion; and delivering an
unrivalled customer experience. The high levels of quoted business throughout
the first half of the financial year demonstrate the brand continuing to build
on its digital reach and share of voice in all online platforms. Investment to
optimise the website experience for mobile devices has been instrumental in
the increase in enquiries into the business. Additional investments in the
Company's production capacity, through the recruitment and development of a
larger team, will allow the Company to capitalise on a traditionally busier
second half year.
*Loss before tax and non-recurring costs of £105k is after adjusting for
£69k of one-off, non-recurring costs which occurred in the half year to 31
December 2022, which are not expected to be repeated going forward. These
non-recurring costs are related to project and one-off restructuring costs.
Reported unaudited loss before tax for the half year to 31 December 2022 was
£174k.
Outlook
As stated above, the dispatched sales and confirmed orders (which the Board
believes to be the best measure of trading) for the first 38 weeks of trading
of the current financial year stood at £9.2 million (2022: £8.5 million).
Future orders, against which a first stage deposit has been taken, are
tracking the prior year and the Board's central scenario is to deliver a c£12
million full year revenue performance, which the Board believes would result
in the profit before tax and non-recurring costs being ahead of the prior
year.
Kiran Noonan
Chief Executive Officer and Acting Chairman
29 March 2023
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)
Matt Butlin / Amrit Nahal (Sales and Corporate Broking)
INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Audited
Unaudited 6 months ended Year ended
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
Revenue 5,374 4,561 10,325
Cost of sales (3,102) (2,530) (5,580)
Gross profit 2,272 2,031 4,745
Selling and distribution costs (223) (245) (546)
Administration expenses:
Other (2,099) (1,758) (3,968)
Other operating income - 3 2
Total (2,099) (1,755) (3,966)
(Loss)/Profit from operations (50) 31 233
Finance expenses (124) (112) (219)
(Loss)/Profit before tax (174) (81) 14
Taxation - - -
(Loss)/Profit after taxation (174) (81) 14
(Loss)/Earnings per share
Basic (0.09)p (0.04)p 0.01p
Fully diluted (0.08)p (0.04)p 0.01p
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Audited
Unaudited 6 months ended Year ended
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
(Loss)/Profit for the period (174) (81) 14
Revaluation of freehold land and buildings - - 584
Total Comprehensive (Loss)/Income (174) (81) 598
BALANCE SHEET
AS AT 31 DECEMBER 2022
Unaudited Audited
As at As at
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
Non-Current Assets
Intangible assets 128 124 148
Tangible assets 4,547 3,811 4,705
Trade and other receivables 32 32 32
4,707 3,966 4,885
Current assets
Inventories 234 167 252
Trade and other receivables 1,712 1,140 1,864
Deferred Tax asset 82 82 82
Cash and cash equivalents 680 824 1,473
2,708 2,214 3,671
Current liabilities (3,639) (3,070) (4,484)
Net current liabilities (931) (856) (813)
Total assets less current
liabilities 3,776 3,110 4,072
Non-current liabilities
Borrowings (1,102) (1,127) (1,116)
Lease Liabilities (1,401) (1,208) (1,503)
Provisions for liabilities
and charges (47) (53) (53)
Net Assets 1,226 722 1,400
Equity
Share capital 194 194 194
Other reserves 1 1 1
Share premium account 1,222 1,222 1,222
Revaluation Reserve 1,102 518 1,102
Retained Earnings (1,293) (1,214) (1,119)
Total Equity 1,226 722 1,400
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Share Share Other Revaluation Retained
Capital Premium Reserves Reserves Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2021 (Audited) 194 1,222 1 518 (1,132) 803
Loss for the period - - - - (81) (81)
At 31 December 2021 (Unaudited) 194 1,222 1 518 (1,213) 722
Profit for the period - - - - 94 94
Share issue - - - - - -
Revaluation of freeholds - - - 584 - 584
Deferred tax on Revaluation of freeholds - - - - - -
Share based payments - - - - - -
At 30 June 2022 (Audited) 194 1,222 1 1,102 (1,119) 1,400
Loss for the period - - - - (174) (174)
At 31 December 2022 (Unaudited) 194 1,222 1 1,102 (1,293) 1,226
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Unaudited 6 months ended Audited
Year ended
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
(Loss)/Profit from operations (51) 31 233
Depreciation, impairment, and amortisation 259 239 466
Decrease/(Increase) in inventories - 26 (58)
Decrease/(Increase) in receivables 170 (271) (995)
(Decrease)/Increase in payables (331) (506) 377
(Decrease)/Increase in Customer Deposits (475) 298 791
Loss/(Profit) on disposal of property plant and equipment (8) 0 2
Decrease in provisions - - (6)
Net cash from operating activities (436) (183) 809
Cash flows from financing activities (284) (263) (505)
Cash flows from investing activities (73) (32) (133)
(793) (478) 171
Net (decrease)/increase in cash and cash equivalents
Net cash and cash equivalents at the start of the period 1,473 1,302 1,302
Net cash and cash equivalents at the end of the period 680 824 1,473
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 year ended 30 June 2022. The Company does not
anticipate any change in these accounting policies for the year ending 30 June
2023. 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 year ended 30 June
2022, 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
2022 2021 2022
(Loss/Profit attributable to ordinary shareholders (£'000) (174) (81) 14
Weighted average number of shares in issue 193,945,519 193,945,519 193,945,519
Shares used to calculate diluted earnings per share 211,424,385 193,945,519 211,424,385
Basic(loss)/earnings per ordinary share (pence) (0.09)p (0.04)p 0.01p
Diluted (loss)/earnings per ordinary share (pence) (0.08)p (0.04)p 0.01p
3. Availability of the 2022 Interim accounts
Copies of the interim accounts for the six months ended 31 December 2022 will
be available to shareholders on the Company's website - www.john-lewis.co.uk
(http://www.john-lewis.co.uk)
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