TIDMJLH
RNS Number : 0284F
John Lewis Of Hungerford PLC
17 April 2014
JOHN LEWIS OF HUNGERFORD PLC
("John Lewis of Hungerford" or the "Company")
Interim results
CHAIRMAN'S STATEMENT
This interim statement covers the six month period to 28
February 2014.
Financial performance
It is pleasing to be able to report a modest operating profit of
GBP66,000 for the half year, the second consecutive year in which
we have made a profit in what is traditionally our weaker trading
period (2013: GBP35,000).
Turnover growth to GBP3.6 million (2013: GBP3.1 million)
reflects a strong contribution across the business and has been
generated from a broadly consistent sales mix.
Products 2014 2013
-------------- ------- -------
GBP000 GBP000
============== ======= =======
Turnover 3,123 2,674
============== ======= =======
Cost of sales (1,333) (1,158)
-------------- ------- -------
Gross margin 1,790 1,516
============== ======= =======
The results shown above were derived from a comparable estate
year-on-year. Our flagship showroom in Hungerford performed
particularly strongly following its refurbishment during the last
financial year and similarly the newly refurbished Fulham showroom
traded ahead of budget. This reinforces our strategy of balancing
new openings with investment in the refurbishment of existing
showrooms. Our new bedroom collection contributed sales of
GBP105,000 during the period (2013: GBPnil) and continues to trade
ahead of our expectations as we roll this out in a controlled
manner. The collection is now displayed in Fulham in addition to
the dedicated Wantage showroom. It is our intention to create
further bedroom display areas as space allows over time.
Installations 2014 2013
-------------- ------ ------
GBP000 GBP000
============== ====== ======
Turnover 450 394
============== ====== ======
Cost of sales (322) (278)
-------------- ------ ------
Gross margin 128 116
============== ====== ======
Our artisan installation service continues to trade strongly. As
well as making a valuable financial contribution the service plays
an important role in enhancing the overall customer experience of
our brand through enabling us control the quality of the
installation. The fluctuation in gross margin is driven in part by
the size mix of installations undertaken during the period.
Cash flow
Cash at bank and in hand at the end of the period was GBP720,000
(2013 GBP749,000) inclusive of customer deposits and advance
payments. Our bank loans at the end of the period were GBP536,000
repayable over 10 years. Refurbishment of the new showroom at
Chiswick will be funded through additional facilities provided by
Barclays who remain supportive of our growth strategy.
Current trading
We believe the best measure of current trading to be the
aggregate of our dispatched sales and the forward order book, being
committed orders for which deposits have been taken. At the end of
the period the aggregate of these stood at GBP4.3 million an
increase of 18% over the comparable period last year. However, once
again we reiterate the challenge of extrapolating this into a
meaningful forecast for the full year due to the length of sales
cycle and our exposure to short term changes in consumer
confidence.
New showrooms
Based on our experience with the five showrooms opened since
2008 we are confident that we have a sound model for identifying
locations receptive to our brand. However, given that the
addressable market is relatively localised around each showroom a
key driver of our growth strategy is the selective investment in
opening new locations.
Our previously announced new showroom in Chiswick is due to open
during May 2014. We are pleased to announce today that we have also
secured the lease for a new showroom in Cobham, Surrey, located
within our core South East trading area some 17 miles South West of
London. The showroom is expected to open in July 2014 and is sited
on Cobham high street, which we believe will prove to be an
excellent addition to our estate. Whilst we are always open to new
opportunities, we do not currently anticipate opening further
showrooms beyond these in the remainder of this financial year.
In conjunction with the opening of two new showrooms the Board
has also been conducting a review of trading performance in other
showrooms. As a result the decision has been made to close our last
remaining concession, located within Hoopers department store in
Wilmslow, Cheshire, which has made minimal sales in recent years
and contributed a small loss in the first half year.
Outlook
Seemingly there is a growing sentiment around the improved
prospects for the UK economy which can only help discretionary
spend businesses such as our own. But as I have often said before
we must remain vigilant for signs this might change since it can
have a disproportionate effect on such businesses.
We are fortunate to have a management team with a proven ability
to react quickly to both the opportunities and threats presented by
volatile economic conditions. We therefore face the future with
increasing confidence as we continue with our strategy to become a
GBP10 million turnover business by 2016.
Malcolm Hepworth
Chairman
Enquiries:
Malcolm Hepworth,
Chairman John Lewis of Hungerford plc 01235 774300
Smith & Williamson Corporate
Martyn Fraser Finance Limited 0117 376 2213
PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2014
Audited
Year
Unaudited 6 months ended ended
28 February 28 February 31 August
2014 2013 2013
GBP'000 GBP'000 GBP'000
Note
Turnover 3,573 3,068 6,557
Cost of sales (1,655) (1,436) (3,103)
Gross profit 1,918 1,632 3,454
Selling and distribution
costs (288) (218) (420)
Administration expenses (1,564) (1,379) (2,838)
Operating profit 66 35 196
Interest receivable 1 1 5
Interest payable (17) (18) (33)
Profit on ordinary activities
before taxation 50 18 168
Taxation - - (23)
Profit / (loss) on ordinary
activities after taxation 50 18 145
============ ============ =========
Earnings / (loss) per
share 2
Basic 0.03p 0.01p 0.08p
Fully diluted 0.03p 0.01p 0.08p
BALANCE SHEET
AS AT 28 FEBRUARY 2014
Unaudited Unaudited Audited
28 February 28 February 31 August
2014 2013 2013
GBP'000 GBP'000 GBP'000
Fixed assets
Intangible assets 107 78 105
Tangible assets 2,516 2,313 2,363
----------- ----------- ---------
2,623 2,391 2,468
Current assets
Stocks 214 202 192
Debtors 331 313 294
Cash at bank and in hand 720 749 1,122
----------- ----------- ---------
1,265 1,264 1,608
Creditors: amounts falling
due within one year (1,306) (1,224) (1,523)
Net current assets (41) 40 85
Total assets less current
Liabilities 2,582 2,431 2,553
Creditors: amounts falling
due after more than one
year (494) (536) (515)
Provisions for liabilities
and charges (16) - (16)
Total net assets 2,072 1,895 2,022
----------- ----------- ---------
Capital and Reserves
Called up share capital 187 187 187
Other reserves 1 1 1
Share premium account 1,188 1,188 1,188
Profit and Loss account 696 519 646
Shareholders funds 2,072 1,895 2,022
=========== =========== =========
- all equity interests
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2014
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
28 February 28 February 31 August
2014 2013 2013
GBP'000 GBP'000 GBP'000
Operating profit 66 35 196
Depreciation and amortisation 125 97 207
Share based payments - - -
Iincrease in Stock (22) (35) (25)
Iincrease in Debtors (37) (51) (39)
(Decrease) / increase
in Creditors (217) (147) 152
Loss / (profit) on disposal of tangible fixed assets 9 1 (3)
Net cash (outflow) / inflow
from
----------- ----------- ---------
operating activities (76) (100) 488
Returns on investment
and servicing of finance (16) (17) (28)
Capital expenditure (290) (96) (280)
Financing (20) (18) (38)
(Decrease) / increase
in cash (402) (231) 142
=========== =========== =========
NOTES:
1. The interim accounts, which are unaudited, have been prepared
under the historical cost convention using the accounting policies
set out in the accounts for the year ended 31 August 2013.
2. Basic and fully diluted loss per ordinary share is calculated
as follows:
6 months 6 months Year
ended ended ended
28 February 28 February 31 August
2014 2013 2013
Profit attributable to ordinary
shareholders (GBP'000) 50 18 145
Weighted average number of shares in issue 186,745,519 186,745,519 186,745,519
Dilution due to share options 11,853,752 - 930
----------- ----------- -----------
Shares used to calculate diluted earnings per share 198,599,271 186,745,519 186,746,449
Basic earnings per ordinary share (pence) 0.03 p 0.01 p 0.08 p
Diluted earnings per ordinary share (pence) 0.03 p 0.01 p 0.08 p
3. Copies of the 2014 interim accounts will be available to shareholders
on the Company's website www.john--lewis.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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