TIDMLTHM
RNS Number : 9966B
Latham(James) PLC
23 June 2016
James Latham Plc
("James Latham" or the "Group")
Final Results
I am pleased to report very good trading results for the
financial year to 31 March 2016.
Group revenue for the financial year to 31 March 2016 was
GBP185.9m, 6.3% up on last year's GBP174.9m. The operating profit
was GBP13.2m, up GBP2.6m from GBP10.6m.
Finance income was GBP56,000 against GBP46,000 last year.
Finance costs, which are principally interest on the pension scheme
deficit as calculated under IAS19 (revised), were GBP421,000
against GBP503,000 last year.
Pre-tax profit was GBP12.9m, up GBP2.8m from GBP10.1m last year.
Post-tax profit for the year is GBP10.5m, up from last year's
figure of GBP7.8m.
Earnings per share were 53.7p compared to last year's 40.3p.
Net assets (total equity) were GBP71.2m compared to GBP62.2m
last year.
At the year end the Group's cash reserves stood at GBP16.8m
compared to GBP12.5m last year.
Final dividend
The directors recommend a final dividend of 10.3p per ordinary
share (2015 8.8p). The final dividend will be paid on 26 August
2016 to shareholders on the register at the close of business on 5
August 2016. The shares will become ex-dividend on 4 August
2016.
The total dividend per ordinary share of 14.3p for the year is
covered 3.8 times by earnings (2015: 3.2 times).
Financial year 2015/16
The Group's results are based on the trading of Lathams Limited,
a specialist panel and timber distributor. Revenue continued to
grow during the year due to increased volumes both in ex-warehouse
and direct business. Year on year growth slowed in the second half
year. Both panels and timber grew revenues throughout the year. The
gross margin, before warehouse costs, increased by 1.4 percentage
points, due to the higher share taken by our specialist products;
margins remained tight on commodity products.
Timber and panel prices fell slightly during the year, in spite
of the weakness in sterling in the second half. Focus panel
products including melamine panels and door blanks, continued to
show good growth. Our high quality, certified sustainable hardwood
and WoodEx, our brand of engineered timber for the joinery sector,
showed good growth.
Overheads have been controlled, but higher than last year's due
to the extra volumes and longer warehouse hours introduced to meet
customers' demands. Staff numbers have increased during the year,
with more warehouse staff to meet shift patterns and sales staff
recruited in areas of the business where we see opportunities. Bad
debts were low overall for the year.
Pension Scheme
At 31 March 2016 the deficit of the defined benefit scheme under
IAS19 (revised) was GBP9.7m down GBP0.7m compared with GBP10.4m
last year. This reduction is the result of the increase in the
corporate bond yield used to calculate the present value of the
scheme's liabilities, offset by the reduction in the value of
scheme assets and reflects the volatility of the accounting for
this scheme.
Current financial year 2016/17
This year like for like revenues are 4% higher for April and May
than the corresponding period last year, both in panels and timber.
The gross margin is also higher. While this is a steady start to
the year, there are some signs that this growth is slowing and the
fluctuating value of sterling and the uncertain outlook for
business activity caused by the EU referendum, make the immediate
future difficult to predict.
We continue to see encouraging growth in the newer decorative
products we have introduced.
Development strategy
The directors continue to identify opportunities for growth and
to introduce and promote new products; we have increased our
resource focused on obtaining specifications for these. The plans
to upgrade our two older sites at Yate and Wigston have progressed
with site purchase and build contracts approved, subject to
planning, for a new site in Yate which should be completed by the
end of the financial year, and negotiations proceeding for the
relocation of the Wigston site.
The Group is in a strong financial position to take advantage of
opportunities for further business growth, as and when they
arise.
Peter Latham
Chairman
22 June 2016.
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 March 2016
Audited Audited
------------------------------- ------------ ------------
Year to 31 Year to 31
March 2016 March 2015
------------------------------- ------------ ------------
GBP000 GBP000
------------------------------- ------------ ------------
Revenue 185,929 174,855
Cost of sales (including
warehouse costs) (151,389) (143,978)
------------------------------- ------------ ------------
Gross profit 34,540 30,877
Selling and distribution
costs (15,129) (14,082)
Administrative expenses (6,170) (6,231)
Operating Profit 13,241 10,564
Finance income 56 46
Finance costs (421) (503)
------------------------------- ------------ ------------
Profit before tax 12,876 10.107
Tax expense (2,410) (2,285)
------------------------------- ------------ ------------
Profit after tax attributable
to owners of the parent
company 10,466 7,822
=============================== ============ ============
Earnings per ordinary
share (basic) 53.7p 40.3p
=============================== ============ ============
Earnings per ordinary
share (diluted) 53.5p 40.0p
=============================== ============ ============
All results relate to continuing operations
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year to 31 March 2016
Audited Audited
------------------------------------- ---------- ------------
Year to Year to 31
31 March March 2015
2016
------------------------------------- ---------- ------------
GBP000 GBP000
------------------------------------- ---------- ------------
Profit after tax 10,466 7,822
Other comprehensive income
Actuarial gain/(loss) on defined
benefit pension scheme 825 (1,849)
Deferred tax relating to components
of other comprehensive income (219) 434
------------------------------------- ---------- ------------
Other comprehensive income
for the year, net of tax 606 (1,415)
------------------------------------- ---------- ------------
Total comprehensive income
attributable to owners of the
parent company 11,072 6,407
===================================== ========== ============
JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 31 March 2016
Audited Audited
------------------------------- --------------- ---------------
As at 31 March As at 31 March
2016 2015
------------------------------- --------------- ---------------
GBP000 GBP000
------------------------------- --------------- ---------------
Assets
Non-current assets
Goodwill 237 237
Other intangible assets 93 101
Property, plant and equipment 22,111 21,601
Deferred tax asset 1,802 2,259
Total non-current assets 24,243 24,198
Current assets
Inventories 33,403 31,906
Trade and other receivables 35,288 34,213
Cash and cash equivalents 16,832 12,501
Total current assets 85,523 78,620
------------------------------- --------------- ---------------
Total assets 109,766 102,818
------------------------------- --------------- ---------------
Current liabilities
Trade and other payables 23,471 23,893
Interest bearing loans
and borrowings - 907
Tax payable 1,376 947
------------------------------- --------------- ---------------
Total current liabilities 24,847 25,747
Non-current liabilities
Interest bearing loans
and borrowings 987 987
Retirement and other benefit
obligation 9,657 10,430
Other payables 406 464
Deferred tax liabilities 2,686 2,959
------------------------------- --------------- ---------------
Total non-current liabilities 13,736 14,840
------------------------------- ---------------
Total liabilities 38,583 40,587
------------------------------- --------------- ---------------
Net assets 71,183 62,231
=============================== =============== ===============
Capital and reserves
Issued capital 5,040 5,040
Share-based payment reserve 56 143
Own shares (441) (177)
Capital reserve 3 3
Retained earnings 66,525 57,222
------------------------------- --------------- ---------------
Total equity attributable
to equity shareholders
of the parent company 71,183 62,231
=============================== =============== ===============
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent company
Share-based
payment
Issued reserve Own Capital Retained Total
capital shares reserve earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2014 - audited 5,040 123 (175) 3 53,117 58,108
Profit for the
year - - - - 7,822 7,822
Other comprehensive
income:
Actuarial gain
on defined benefit
pension scheme - - - - (1,849) (1,849)
Deferred tax relating
to components
of other comprehensive
income - - - - 434 434
---------- ------------ --------- ---------- ----------- ---------
Total comprehensive
income for the
year - - - - 6,407 6,407
Transactions with
owners:
Dividends - - - - (2,267) (2,267)
Write down on
conversion of
ESOP shares - - 82 - (82) -
Exercise of options - (47) - - 47 -
Change in investment
in ESOP shares - - (84) - - (84)
Share-based payment
expense - 67 - - - 67
---------- ------------ --------- ---------- ----------- ---------
Total transactions
with owners - 20 (2) - (2,302) (2,284)
Balance at 31
March 2015 - audited 5,040 143 (177) 3 57,222 62,231
Profit for the
year - - - - 10,466 10,466
Other comprehensive
income:
Actuarial loss
on defined benefit
pension scheme - - - - 825 825
Deferred tax relating
to components
of other comprehensive
income - - - - (219) (219)
---------- ------------ --------- ---------- ----------- ---------
Total comprehensive
income for the
year - - - - 11,072 11,072
Transactions with
owners:
Dividends - - - - (2,484) (2,484)
Exercise of options - (149) - - 149 -
Transfer of treasury
shares - - (1,385) - 1,385 -
Write down on
conversion of
ESOP shares - - 819 - (819) -
Conversions of
ESOP shares 507 - - 507
Change in investment
in ESOP shares - - (205) - - (205)
Share-based payment
expense - 62 - - - 62
---------- ------------ --------- ---------- ----------- ---------
Total transactions
with owners - (87) (264) - (1,769) (2,120)
Balance at 31
March 2016 - audited 5,040 56 (441) 3 66,525 71,183
========== ============ ========= ========== =========== =========
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2016
Audited Audited
-------------------------------- ----------------- ----------
Year to 31 March Year to
2016 31 March
2015
-------------------------------- ----------------- ----------
GBP000 GBP000
-------------------------------- ----------------- ----------
Net cash flow from operating
activities
Cash generated from operations 11,704 6,218
Interest paid (23) (44)
Income tax paid (2,016) (1,996)
-------------------------------- ----------------- ----------
Net cash inflow from
operating activities 9,665 4,178
-------------------------------- ----------------- ----------
Cash flows from investing
activities
Interest received and
similar income 56 46
Purchase of property,
plant and equipment (2,056) (383)
Proceeds from sale of
property, plant and equipment 136 6
Net cash outflow from
investing activities (1,864) (331)
-------------------------------- ----------------- ----------
Cash flows from financing
activities
Borrowings repaid during
the year (907) (234)
Equity dividends paid (2,484) (2,267)
Preference dividend paid (79) (79)
Net cash outflow from
financing activities (3,470) (2,580)
-------------------------------- ----------------- ----------
Increase in cash and
cash equivalents for
the year 4,331 1,267
================================ ================= ==========
Cash and cash equivalents
at beginning of the year 12,501 11,234
-------------------------------- ----------------- ----------
Cash and cash equivalents
at end of the year 16,832 12,501
================================ ================= ==========
JAMES LATHAM PLC
Notes to the audited preliminary financial information
1. The results presented in this report are audited and they
have been prepared in accordance with the recognition and
measurement principles of International Financial Reporting
Standards ('IFRS) as adopted by the EU set out in the Group
accounts for the years ended 31 March 2015 and 31 March 2016.
2. The directors propose a final dividend of 10.3p per ordinary
share, which will absorb GBP2,019,000 (2015: 8.8p absorbing
GBP1,711,000), payable on 26 August 2016 to shareholders on the
Register at the close of business on 5 August 2016. The ex-dividend
date is 4 August 2016.
3. The figures for the year ended 31 March 2016 have been
extracted from the audited statutory accounts for that year, which
have yet to be delivered to the Registrar of Companies. The
financial information set out has been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the EU and those parts of the Companies Act 2006 that remain
applicable to companies reporting under IFRS and does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006, and does not contain all the information
required to be disclosed in a full set of IFRS financial
statements.
Statutory accounts for the year ended 31 March 2016 will be
delivered to the Registrar of Companies and sent to Shareholders
shortly. The Annual Report and Accounts may also be viewed in due
course on James Latham plc's website at www.lathams.co.uk
The audit report on these financial statements is unqualified
and does not contain any statement under Section 498(2) or (3) of
the Companies Act 2006, on the statutory financial statements for
the year ended 31 March 2016.
Statutory accounts for the year ended 31 March 2015 have been
filed with the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not contain a statement
under section 498(2) and (3) of the Companies Act 2006.
4. This announcement was approved and authorised for issue by
the Board of Directors on 22 June 2016.
5. Net cash flow from operating activities
Year to Year to
31 March 31 March
2016 audited 2015 audited
Profit before tax 12,876 10,107
Adjustment for finance income
and expense 365 457
Depreciation and impairment 1,515 1,435
Profit on disposal of property,
plant and equipment (97) (5)
Increase in inventories (1,497) (3,969)
Increase in receivables (1,075) (1,371)
(Decrease)/increase in payables (480) 647
Retirement benefits non cash
amounts (267) (1,066)
Share-based payments non cash
amounts 62 67
Own shares non cash amounts 302 (84)
-------------- --------------
Cash generated from operations 11,704 6,218
-------------- --------------
6. The Annual General Meeting of James Latham plc will be held
at Gallery Level, Business Design Centre, 52 Upper Street, London,
N1 0QH on 24 August 2016 at 12.30pm.
This information is provided by RNS
The company news service from the London Stock Exchange
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