TIDMJLH
RNS Number : 4271X
John Lewis Of Hungerford PLC
06 May 2016
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 29th
February 2016.
Financial performance and cost reduction exercise
Turnover for the first half year, traditionally our weaker
trading period, was marginally ahead of the previous year. This was
however lower than our anticipated sales growth for the period, due
in part to a number of orders linked to related building works
being deferred to the second half. The lower sales growth coupled
with costs associated with gearing the business for future growth,
has contributed to the loss reported today.
Whilst the Board are mindful of the strong order book generated
by the second half deferrals, we also recognise the need to better
align the cost base of the business against underlying activity
levels. Consequently the Board has undertaken a comprehensive
review of the organisational structure with a view to substantially
reducing costs and improving productivity. This review has resulted
in a number of positions being made redundant or roles being
combined. Although this has been a difficult process the Board are
determined to return the business to a position of generating
positive shareholder returns. These changes will achieve an
annualised saving of approximately GBP300k from the beginning the
next financial year. A non-recurring expense of GBP38k relating to
redundancy costs arising out of the review has been recorded in the
first half year.
The operational changes we have made include moving line
responsibility for the installations department to the Head of
Operations. Consequently the role of Installations Director has
been made redundant and as a result, Damian Walters will leave the
business at the end of this financial year. Damian has therefore
stepped down from the Board with immediate effect. The Board would
like to place on record their appreciation for his valuable
contribution to the business since his appointment in 2013 and wish
him well for the future.
In light of underlying activity levels we had expected to
achieve a turnover figure of around GBP4.0 million in the first
half year. Instead turnover was constant at GBP3.6 million due in
part to the second half deferrals referred to above Whilst these
orders contribute to a healthy forward order book of commissioning
deposits at the period end of GBP1.9 million (2015: GBP1.3 million)
they did not have a material effect on financial results for the
first half. The new staff recruited over the last twelve months are
now embedded into the business and have contributed to this forward
order book, combined with a positive return on investment from
showroom refits completed in the last financial year.
Products 2016 2015
-------------- ------- -------
GBP000 GBP000
============== ======= =======
Turnover 3,130 3,104
============== ======= =======
Cost of sales (1,436) (1,307)
-------------- ------- -------
Gross margin 1,694 1,797
============== ======= =======
The results shown above were derived from a comparable showroom
estate year-on-year. The reduction in gross margin reflects
continued deflationary pricing pressure and management continue to
take steps to address this.
Installations 2016 2015
---------------- ------ ------
GBP000 GBP000
================ ====== ======
Turnover 483 444
================ ====== ======
Cost of sales (359) (323)
---------------- ------ ------
Gross margin 124 121
================ ====== ======
Our artisan installation service generally trades in line with
kitchen volume, however improved conversion in the first half this
year saw sales increase by 9% to GBP483,000. We have been careful
to ensure the aforementioned changes in reporting structures within
our installations department will not impact on the customer
experience as we see our ability to control the installation
process as a critical part of protecting our brand.
Investment in the Future
The first half of the year has seen further investment in our
existing showroom estate as we focus on rolling out the new
contemporary Pure and Urban ranges following successful testing in
Fulham and Chiswick. This has led to a comprehensive refit at our
Winchester showroom improving the competiveness of the offering and
generating fresh interest at this location. We do not anticipate
making any material further investment in the remainder of the
financial year.
Cash flow
Cash at bank and in hand at the end of the period was GBP496,000
(2015: GBP863,000) inclusive of customer deposits and advance
payments. Our bank and other loans at the end of the period were
GBP835k repayable within 10 years. Our overdraft facility of
GBP250k remained unused during the period.
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 GBP4.5 million, a 5%
increase over the comparable period last year (2015: GBP4.3
million). However, our statutory revenue recognition policy is to
recognise sales only at the point orders are dispatched.
A further update on trading will be provided in June, following
completion of the third quarter, ending 31(st) May 2016. However,
we expect that reported sales for the third quarter will be around
12.5% higher than the previous year at GBP1.86 million.
Although the second half year is traditionally our stronger
trading period we consider it unlikely that the losses in the first
half will be recovered in full and therefore expect to report a
loss for the full year.
Chairman
As previously announced Malcolm Hepworth has resigned as a
non-executive director due to ill health. The Board wishes Mr
Hepworth well with his continued recovery and wishes to express its
appreciation of his valuable contribution since his appointment in
2006. The Board intends to appoint a new non-executive Chairman of
the Board and the selection process is under way. Pending this
appointment the Board have requested that I fulfil the role of
interim Chairman and I have agreed to do so.
John Lewis
Interim Chairman
Enquiries:
John Lewis of Hungerford plc 01235 774300
Jon Rosby, Managing Director
0117 376
Smith & Williamson Corporate Finance Limited 2213
Martyn Fraser
INCOME STATEMENT
FOR THE SIX MONTHSED
29 FEBRUARY 2016
Audited
Year
Unaudited 6 ended
months ended
29 February 28 February 31 August
2016 2015 2015
GBP'000 GBP'000 GBP'000
Note
Revenue 3,613 3,548 7,799
Cost of sales (1,795) (1,630) (3,744)
Gross profit 1,818 1,918 4,055
Selling and distribution
costs (258) (267) (482)
Administration
expenses:
Share based
payments - - 43
Other (1,930) (1,825) (3,718)
Total (1,930) (1,825) (3,675)
Other non recurring (38) - -
items - restructuring
costs
Loss before share
based payments (408) (174) (145)
--------------------------- ----- ------------ ------------ ----------
Loss from operations (408) (174) (102)
Finance income - 3 2
Finance expenses (22) (33) (54)
Loss before tax (430) (204) (154)
Taxation - - 15
Loss after taxation (430) (204) (139)
============ ============ ==========
Loss per share 2
Basic (0.23)p (0.11)p (0.07)p
Fully diluted (0.23)p (0.11)p (0.07)p
STATEMENT OF COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED
29 FEBRUARY 2016
Audited
Year
Unaudited 6 ended
months ended
29 February 28 February 31 August
2016 2015 2015
GBP'000 GBP'000 GBP'000
Loss for the period (430) (204) (139)
Total Comprehensive
Income (430) (204) (139)
============ ============ ==========
BALANCE SHEET
AS AT 29 FEBRUARY
2016
Unaudited Unaudited Audited
29 February 28 February 31 August
2016 2015 2015
GBP'000 GBP'000 GBP'000
Non-Current Assets
Intangible assets 86 103 92
Tangible assets 2,782 2,629 2,784
Trade and other
receivables 57 57 57
------------ ------------ ------------
2,925 2,789 2,933
------------ ------------ ------------
Current assets
Inventories 195 235 190
Trade and other
receivables 362 367 307
Cash and cash
equivalents 496 863 1,206
------------ ------------ ------------
1,053 1,465 1,703
Current liabilities (1,718) (1,538) (1,906)
Net current liabilities (665) (73) (203)
Total assets
less current
liabilities 2,260 2,716 2,730
Non-current liabilities (746) (779) (786)
Provisions for
liabilities
and charges (16) (31) (16)
Net Assets 1,498 1,906 1,928
============ ============ ============
Equity
Share capital 187 187 187
Other reserves 1 1 1
Share premium
account 1,188 1,188 1,188
Retained Earnings 122 530 552
Total Equity 1,498 1,906 1,928
============ ============ ============
STATEMENT OF CHANGES
IN EQUITY
FOR THE SIX MONTHS ENDED
29 FEBRUARY 2016
Share Share Other Retained
Capital Premium Reserves Earnings Total
-------------------------- -------- -------- ------------ ------------ -----------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 August 2014
(Audited) 187 1,188 1 734 2,110
Loss for the period - - - (204) (204)
-------------------------- -------- -------- ------------ ------------ -----------
At 28 February
2015 (Unaudited) 187 1,188 1 530 1,906
Profit for the
period - - - 65 65
Share based payments - - - (43) (43)
-------------------------- -------- -------- ------------ ------------ -----------
At 31 August 2015
(Audited) 187 1,188 1 552 1,928
Loss for the period - - - (430) (430)
At 29 February
2016 (Unaudited) 187 1,188 1 122 1,498
========================== ======== ======== ============ ============ ===========
STATEMENT OF
CASH FLOWS
FOR THE SIX MONTHS ENDED
28 FEBRUARY 2016
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
GBP'000 GBP'000 GBP'000
Loss from operations (408) (174) (102)
Depreciation
and amortisation 131 164 297
Share based payments - - (43)
Increase in inventories (5) (52) (7)
Increase in receivables (55) (73) (13)
Decrease in payables (176) (361) (41)
Loss / (profit) on disposal
of property plant and equipment 1 (7) 29
Net cash from
operating activities (512) (503) 120
Cash flows from
financing activities (74) (34) (98)
Cash flows from
investing activities (124) (90) (306)
Net decrease
in cash and cash
equivalents (710) (627) (284)
------------ ------------ ----------
Net cash and cash equivalents
at the start of the
year 1,206 1,490 1,490
Net cash and cash equivalents
at the end of the period 496 863 1,206
============ ============ ==========
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 31 August
2015. The Company does not anticipate any change
in these accounting policies for the year ended
31 August 2016. As permitted, this interim report
has been prepared in accordance with the AIM
Rules and not in accordance with IAS 34 "Interim
financial reporting".
2. Basic and fully diluted loss per ordinary
share is calculated as follows:
6 months 6 months Year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
Profit / (loss) attributable
to ordinary shareholders
(GBP'000) (430) (204) (139)
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 earnings per (0.23)
ordinary share (pence) p (0.11)p (0.07)p
Diluted earnings per (0.23)
ordinary share (pence) p (0.11)p (0.07)p
At 29th February 2016 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 2016 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
IR BLGDUSBGBGLU
(END) Dow Jones Newswires
May 06, 2016 02:00 ET (06:00 GMT)
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