TIDMJLH

RNS Number : 4571J

John Lewis Of Hungerford PLC

13 December 2022

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

13 December 2022

JOHN LEWIS OF HUNGERFORD PLC

FINAL RESULTS

John Lewis of Hungerford plc ("John Lewis of Hungerford" or the "Company"), the specialist kitchen manufacturer and retailer, announces its final results for the year ended 30 June 2022.

Chief Executive's Business Review

We are pleased to report that John Lewis of Hungerford achieved sales for the year ended 30 June 2022 of GBP10.3 million (2021: GBP7.9 million), an increase of 30.9 per cent. The Company celebrated its 50th Anniversary in the Summer of 2022, and in this milestone year, has achieved sales in excess of GBP10 million for the first time. Profit Before Tax and non-recurring costs* was GBP166k (2021: Profit Before Tax GBP80k). Underlying EBITDA* (pre IFRS 16) was GBP500k (2021: EBITDA GBP424k).

Sales of GBP10.3 million do not fully reflect the strength of the trading performance of the Company throughout the reported year. The orders secured by our 12 stores were GBP12.3 million (FY21: GBP9.3 million). The final quarter of the year was impacted by disruption from Covid-19 within the factory in Wantage, with the highest level of interruption to production throughout the pandemic and a total of 81-man days lost. This included periods where sections of the factory had to close completely. Without this disruption, a still higher proportion of the GBP12.3 million orders would have been completed before 30 June 2022, and recognised as sales in the year, with the Gross Margin on these sales flowing through to profit. However, this disruption to the final quarter of FY22 has impacted positively the start of our new financial year to 30 June 2023, with a significantly stronger order book secured, of GBP5.3 million compared to GBP3.2 million at the same point last year.

Gross Margin for the year declined by -1.2% points in the year to 45.9%. The Company experienced some extreme increases in raw material prices in the year, with some increases more than 100%. The Company took action to pass these cost increases on, by raising the retail prices. However, there is a time lag between quoted business and completing the delivered sale and installation, which on average is 2-3 months later, whereby the impact of the price increases will not fully be seen in the year we report today. We are now seeing welcome signs of some level of stabilisation for raw material prices.

The year finished with a positive gross cash position of GBP1,473k. The Company has total loans of GBP1,116k, largely secured on its freehold properties. Net cash, excluding IFRS 16 lease liabilities, was therefore GBP357k (2021: net cash GBP165k). The Company was grateful for the Government support during the pandemic years FY20/FY21, which allowed for delayed phasing of VAT and PAYE payments. All of the agreed deferred payments were made promptly during the year ended 30 June 2022 and the Company is fully up to date, with no further outstanding deferred payments.

The Company owns the freeholds of its factory in Wantage, and its showroom in Hungerford. These freeholds have been revalued as at 30 June 2022, with the total valuation increased by GBP584k to GBP2,431k. The revaluation is reflected in the Accounts to 30 June 2022 as a movement in the revaluation reserve. The Company's Net Assets as at 30 June 2022 were GBP1.4 million (2021: GBP0.8 million).

The costs have been commensurate with the business reporting GBP10.3 million of turnover, combined with deposits secured against a further GBP2 million of sales. The Board are confident that developing the infrastructure throughout the FY22 year has secured a strong foundation for continued growth over the forthcoming period, in a structurally improved operating model, which was able to secure GBP12.3 million of orders within FY22.

* PBT before one-off, non-recurring costs of GBP166k /EBITDA of GBP500k is after adjusting for GBP152k of one-off non-recurring costs which occurred in the year to June 2022, and which are not expected to be repeated going forward. These non-recurring costs are related to project and one-off restructuring costs. Reported PBT for the year ended 30 June 2022 was GBP14k.

Marketing

The Company has continued to develop its digital capabilities, working with expert partners in the field. Fueled by compelling new photography from our successfully completed projects, the business has created a convincing portfolio to demonstrate its credentials to our discerning customer.

The substantial increase in orders secured has demonstrated the success of being selective in the choices of our marketing channels. From data driven digital campaigns to enhancing our presence in the social media arena, with an emphasis on Instagram, the Company continues to work closely with our PR advisory team, to secure the right traffic to our website, to convert into successful client relationships. With a focused approach on enhancing the customer journey through our website, we are seeing improvements in the level of appointments coming into the business.

The marketing of our 50th Birthday commenced in the Summer of 2022 and has seen the launch of our new Brochure, which has been extremely well received. It is a ground-breaking piece of work, providing both inspiration and learning for our customer, to support our dialogue during the sale. This has helped our customers to appreciate the difference in the unique customer experience offered by the John Lewis of Hungerford team. Our 50th Birthday in the summer coincided with the Jubilee celebrations for Her Late Majesty Queen Elizabeth II. We were given the opportunity to feature in the widely distributed official publication for the Platinum Jubilee, celebrating the Best of British Manufacturing. We were delighted have been invited to be a part of this highly respected publication and have seen benefits from the high value clientele it has attracted into the Company.

Ensuring we have been able to continue our work with professional intermediaries remains core to our success in attracting larger, multi-room projects. Whole-home renovations with a considerably higher spend are a more frequent occurrence, as our customers look to furnish their home with one, high-end, luxury cabinet maker. Working closely with their architect, developer or interior designer, has given the Company the opportunity to partner with some exciting new professionals in the home renovation space.

The finance proposition available to our customers through Novuna (formerly Hitachi) Consumer Finance has provided our customer with options to spread the cost of their new Kitchen. This has attracted new customers to the Company, now able to afford to buy their dream kitchen.

The impact of these initiatives has led to a record number of kitchens being sold in the year, with a shift towards more traditional options in cabinetry choices, reflecting a return to classic styles, which truly stand the test of time. Customers continue to use the versatile cabinetry options available through our bedrooms business to adapt their needs around the home.

Operations

The acquisition of our new storage facility on the Grove Business Park in Wantage has been integral to facilitating the growth we report today. With the increased throughput in our production facility, it has been vital to work with our highly committed and effective workforce to improve the operating model and make efficiency gains, as we plan for continued growth.

A review to introduce shift working and additional resource has been undertaken, to allow the Board to support the business in developing the right model, to ensure we continue to deliver a product with a consistently high standard of finish, for which our Brand is recognised. Challenges in the supply chain have led to the ongoing management of delayed product, mostly managed by procuring our white goods months ahead of any planned delivery schedule. As a result, we have been able to continually offer a competitive lead time, which has stood us in good stead over the period and continues to do so.

Raw materials have seen significant price increases, some in excess of 100%; as mentioned, we are now seeing signs of some stabilisation in this area, however this has undoubtedly impacted our margin for the year.

Work on our MRP system continues, to allow the business the visibility on improved capacity planning and also all key margin drivers within our supply chain. This work has commenced, with the system improvements due to be live later in our current year.

With increased demand, small improvements will produce incremental gains in our margin, with our new Production Manager working hard to lead the team in this regard.

To ensure our people are able to work as effectively as possible, we continue to put the welfare of our employees at the heart of our business. The introduction of a We Care Policy, which provides exceptional health benefits and support, together with more general advice on wellbeing and mental health services, ensures that our people feel looked after, during these stressful and turbulent economic times.

Trading Outlook

As stated earlier, we entered the new financial year with a robust order book, inclusive of the deferred orders from FY22. As a result, the level of orders confirmed in the first 23 weeks are ahead of the prior year. Dispatched sales, forward committed orders and future orders against which a first stage deposit has been taken, stood at GBP8.6 million (2021: GBP7.4 million). New business has remained consistent and with improvements driven by the digital marketing strategy, the quality of quoted business is strong and we remain confident of our ability to continue to convert at a high level moving forward.

Each carefully considered building block in our FY23 plan has been evaluated for its impact on our profits for this current year, as we continue to strengthen our capacity and our infrastructure to respond to sustainably higher demand, confident that our operating model can accommodate the growth we anticipate over the coming period. Our business has proved its resilience over the last 2 years and given the inherent expertise within the Company, we are well positioned to maintain our trend of market share gains.

Whilst we believe that the demand is in line with our plans for growth in FY23, the uncertainty in the financial markets has created a degree of hesitancy for customers to complete on their orders. The Board continues to track the economic indicators, together with the supply chain challenges and the ongoing impact on pricing. There are a range of plans prepared to respond appropriately to changing market conditions, based on whether the Board considers the external changes to be for the short or long term.

The unprecedented growth experienced in the year that we are reporting today, is a milestone for the Company in its 50th Birthday year. It has been both demanding and exciting, for our teams across the business. We thank them for their hard work and resilience, to ensure that we have been able to capitalise on this demand to the benefit of all of our stakeholders, as we continue to build a Company with increased capacity and capability over the coming period.

On behalf of the Board, I would like to thank our Employees, our Shareholders and our Supplier Partners, for their ongoing support and counsel throughout the period.

As we move through FY23, we continue to celebrate 50 years of John Lewis of Hungerford, with confidence that the Company can achieve sustained profitability.

Kiran Noonan

Chief Executive Officer

12 December 2022

Enquiries:

John Lewis of Hungerford plc 01235 774300

Kiran Noonan - Chief Executive Officer / Acting Chairman

   Allenby Capital Limited (Nominated Adviser and Broker)   020 3328 5656 

David Worlidge / Nick Naylor / George Payne (Corporate Finance)

Matt Butlin (Sales and Corporate Broking)

 
 Income Statement for the year 
  ended 30 June 2022 
 
 
                                                     2022          2021 
 
                                      Notes           GBP           GBP 
 
 Revenue                                       10,325,129     7,877,130 
 
 Cost of sales                                (5,580,045)   (4,165,462) 
                                             ------------  ------------ 
 
 Gross profit                                   4,745,084     3,711,668 
 
 Selling and distribution 
  costs                                         (545,813)     (408,863) 
 
 Administrative 
  expenses                                    (3,968,667)   (3,160,325) 
 Other operating 
  income                                            2,520       165,012 
                                             ------------  ------------ 
 
 Total                                        (3,966,147)   (2,995,313) 
 
 
 Profit from operations               2           233,124       307,492 
 
 
 Finance income                                        59           297 
 
 Finance expenses                               (219,624)     (227,255) 
                                             ------------  ------------ 
 
 Profit before 
  tax                                              13,559        80,534 
 
 
 Tax Credit                           3                 -       124,549 
                                             ------------  ------------ 
 
 
 Profit for 
  the year                                         13,559       205,083 
                                             ============  ============ 
 
 Earnings per 
  share                               4 
 Basic                                              0.01p         0.11p 
 Fully diluted                                      0.01p         0.10p 
 
 
 
 
 Statement of Financial Position 
  as at 30 June 2022 
                                                    30 June       30 June 
                                                       2022          2021 
 
                                        Notes           GBP           GBP 
 
 Non-current assets 
 Intangible assets                                  148,147       140,470 
 Property, plant and equipment          5         3,125,339     2,629,053 
 Right of use assets                              1,579,524     1,372,434 
 Trade and other receivables                         31,500        31,500 
                                               ------------  ------------ 
                                                  4,884,510     4,173,457 
 Current assets 
 Inventories                                        251,580       193,133 
 Trade and other receivables                      1,864,437       868,878 
 Deferred tax asset                                  82,000        82,000 
 Cash and cash equivalents                        1,472,771     1,301,612 
                                               ------------  ------------ 
                                                  3,670,788     2,445,623 
 
 Total assets                                     8,555,298     6,619,080 
                                               ------------  ------------ 
 
 Current liabilities 
 Trade and other payables                       (2,429,751)   (2,052,345) 
 Customer deposits                              (1,734,596)     (944,000) 
 Lease liabilities                                (279,798)     (264,168) 
 Provisions                             7          (23,423)      (29,998) 
                                                (4,467,568)   (3,290,511) 
 
 Non-current liabilities 
 Borrowings                             6       (1,115,761)   (1,137,146) 
 Lease liabilities                              (1,518,875)   (1,335,874) 
 Provisions                             7          (52,632)      (52,632) 
                                               ------------  ------------ 
                                                (2,687,268)   (2,525,652) 
 
 Total liabilities                              (7,154,836)   (5,816,163) 
                                               ------------  ------------ 
 
 Net assets                                       1,400,462       802,917 
                                               ============  ============ 
 
 Equity 
 Share Capital                                      193,945       193,945 
 Share Premium                                    1,222,433     1,222,433 
 Other Reserves                                       1,421         1,421 
 Revaluation reserve                              1,102,343       518,357 
 Retained Earnings                              (1,119,680)   (1,133,239) 
                                               ------------  ------------ 
 
 
 Total equity                                     1,400,462       802,917 
                                               ============  ============ 
 

Statement of Changes in Equity for the year ended 30 June 2022

 
                     Share       Share      Other   Revaluation      Retained 
                   Capital     Premium   Reserves       Reserve      Earnings       Total 
 
                       GBP         GBP        GBP           GBP           GBP         GBP 
 ---------------  --------  ----------  ---------  ------------  ------------  ---------- 
 At 30 June 
  2020             186,745   1,188,021      1,421       560,906   (1,342,373)     594,720 
 Profit 
  for the 
  year                   -           -          -             -       205,083     205,083 
 Share issue         7,200      34,412          -             -             -      41,612 
 Revaluation 
 of freeholds            -           -          -             -             -           - 
 Deferred 
 tax on 
 Revaluation 
 of freeholds            -           -          -      (42,549)             -    (42,549) 
 Share based 
  payments               -           -          -             -         4,051       4,051 
----------------  --------  ----------  ---------  ------------  ------------  ---------- 
 At 30 June 
  2021             193,945   1,222,433      1,421       518,357   (1,133,239)     802,917 
 Profit 
  for the 
  year                   -           -          -             -        13,559      13,559 
 Share issue             -           -          -             -             -           - 
 Revaluation 
 of freeholds            -           -          -       583,986             -     583,986 
 Deferred 
 tax on 
 Revaluation 
 of freeholds            -           -          -             -             -           - 
 Share based 
  payments               -           -          -             -             -           - 
----------------  -------- 
 At 30 
  June 2022        193,945   1,222,433      1,421     1,102,343   (1,119,680)   1,400,462 
----------------  --------  ----------  ---------  ------------  ------------  ---------- 
 

Statement of Cash Flows for the year ended 30 June 2022

 
                                            2022        2021 
 
                                             GBP         GBP 
 Cash flows from operating 
  activities 
 Profit from operations 
  after tax                              233,124     432,041 
 Amortisation of intangible 
  assets                                  33,104      32,970 
 Depreciation and impairment 
  of property, plant and 
  equipment                              174,338     188,403 
 Depreciation of right 
  of use assets                          258,731     256,990 
 Share based payments                          -       4,051 
 Loss on disposal of property, 
  plant and equipment                      2,160       3,237 
 (Increase) in inventories              (58,447)    (40,603) 
 (Increase) in receivables             (995,559)   (315,102) 
 Increase in payables                    377,406     598,114 
 Increase in Customer 
  Deposits                               790,596     362,942 
 (Decrease) in provisions                (6,575)    (34,423) 
                                      ----------  ---------- 
 Cash generated from 
  operations                             808,878   1,488,620 
 Tax (Credit) on Operations                    -   (124,549) 
 Net cash from operating 
  activities                             808,878   1,364,071 
                                      ----------  ---------- 
 
 Cash flows from investing 
  activities 
 Purchase of intangible 
  assets                                (40,781)    (16,250) 
 Purchase of property, 
  plant and equipment                   (92,407)    (27,317) 
 Net proceeds from sale 
  of property, plant and 
  equipment                                    -     (2,487) 
 Interest received                            59         297 
 Net cash used in investing 
  activities                           (133,129)    (45,757) 
                                      ----------  ---------- 
 
 Cash flows from financing 
  activities 
 Interest 
  paid                                 (126,769)   (125,970) 
 Allotment 
  of shares                                    -      41,608 
 Repayment of borrowings 
  - finance leases                      (21,385)    (18,887) 
 Repayment of borrowings 
  - bank loans                                 -   (111,701) 
 Repayment of IFRS 16 
  lease liabilities                    (356,436)   (360,517) 
 Net cash used in financing 
  activities                           (504,590)   (575,467) 
                                      ----------  ---------- 
 
 
 Net increase in cash 
  and cash equivalents                   171,159     742,847 
                                      ----------  ---------- 
 Net cash and cash equivalents 
  at the start of the period           1,301,612     558,765 
 Net cash and cash equivalents 
  at the end of the year               1,472,771   1,301,612 
                                      ==========  ========== 
 
 
 Net cash and cash equivalents 
  comprise: 
 Cash at bank and in hand              1,472,771   1,301,612 
 Bank overdrafts                               -           - 
                                       1,472,771   1,301,612 
                                      ==========  ========== 
 

The table below sets out an analysis of net debt and the movements in net debt for each of the periods presented.

 
 Reconciliation 
  of Net debt 
 
                           Liabilities from financing                 Other 
                                    activities                       assets 
                                          Lease 
                      Borrowings    liabilities   Sub-total   Cash balances 
 Net debt as at 
  1 July 2020          1,267,734      1,674,316   2,942,050         558,765 
 Cash Flows            (130,588)      (239,363)   (369,951)         742,847 
 New leases                    -        165,089     165,089               - 
 Net debt as at 
  30 June 2021         1,137,146      1,600,042   2,737,188       1,301,612 
                     -----------  -------------  ----------  -------------- 
 Cash Flows             (21,385)        198,631     177,246         171,159 
 Net debt as at 
  30 June 2022         1,115,761      1,798,673   2,914,434       1,472,771 
                     ===========  =============  ==========  ============== 
 
 
Notes to the Financial Statements 
 
   1.     General information 

While the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Group will publish full financial statements that comply with IFRSs which will shortly be available on its website and are to be posted to shareholders shortly.

The financial information set out in the announcement does not constitute the Company's statutory accounts for the years ended 30 June 2022 or 2021. The financial information for the year ended 30 June 2021 is derived from the statutory accounts for that year, which were prepared under IFRSs, and which have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditors drew attention by way of emphasis.

The financial information for the year ended 30 June 2022 is derived from the audited statutory accounts for the year ended 30 June 2022 on which the auditors have given an unqualified report, that did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The statutory accounts will be delivered to the Registrar of Companies following the Company's annual general meeting.

Going concern

 
The financial statements are prepared on a going concern basis, which the directors believe to be appropriate 
 for the following reasons: 
The results show that the Company made a profit before tax and one-off, non-recurring expenditure, of GBP166k 
 and a reported profit of GBP14k (2021: profit before tax of GBP80k) and had net current liabilities of GBP895k 
 (2021: GBP844k) as at 30 June 2022. The one-off non-recurring costs were related to project and restructuring 
 costs. 
The year finished with a positive gross cash position of GBP1,473k. The Company has total loans of GBP1,116k, 
 largely secured on its freehold properties. Net cash, excluding IFRS 16 lease liabilities, was therefore GBP357k 
 (2021: net cash GBP165k). Customer deposits are GBP790k higher than last year, reflecting the strength of the 
 order book at year end. 
The Company owns the Freeholds of its factory in Wantage, and also its showroom in Hungerford. These Freeholds 
 have been revalued as at June 2022, with the total valuation increased by GBP584k to GBP2,431k. The revaluation 
 is reflected in the Accounts to 30 June 2022 as a movement in the revaluation reserve. The Company's closing 
 Net Assets were GBP1.4 million (2021: GBP0.8 million). 
The Directors have had preliminary contact with lenders to re-finance the loan, based on our return to profitability, 
 asset backing and stronger cash generation. It is the intention of the Directors to refinance the loan within 
 the new financial year to 30 June 2023. 
The Trading Outlook within the Chief Executive's Business review shows that we entered the new financial year 
 with a robust order book, inclusive of the deferred orders from FY22. As a result, the level of orders confirmed 
 in the first 21 weeks are ahead of the prior year. Dispatched sales, forward committed orders and future orders 
 against which a first stage deposit has been taken, stood at GBP8.6 million (2021: GBP7.4 million). New business 
 has remained consistent and with improvements driven by the digital marketing strategy, the quality of quoted 
 business is strong and we remain confident of our ability to continue to convert at a high level moving forward. 
Each carefully considered building block in our FY23 plan has been evaluated for its impact on our profits for 
 this current year, as we continue to strengthen our capacity and our infrastructure to respond to sustainably 
 higher demand, confident that our operating model can accommodate the growth we anticipate over the coming period. 
Cash flows have been prepared for a period of at least twelve months from the date of signing these financial 
 statements. For additional prudence, the Directors have modelled a severe, but plausible, sensitivity up to a 
 15% reduction in sales against this plan and for a period of twelve months from the date of signing, to be assured 
 that the Company can withstand any economic instability and the insecurity around energy markets arising from 
 the current war in Ukraine. 
As the Company operates a made-to-order, negative working capital model, it is reliant on the cash flows from 
 customer deposits and completion of sales to be able to meet its liabilities as they fall due. The Directors 
 have considered all of the factors noted above, including the strength in the Company's current trading and forward 
 order book, together with the high levels of quoted business moving forwards and are confident that the Company 
 has adequate resources to continue to meet all liabilities, as and when they fall due, for the foreseeable future 
 and, at least for the period of twelve months from the date of approval of these financial statements. 
 
 
 
       PROFIT FROM OPERATIONS 
  2 
 
 
                                                   2022        2021 
 
                                                    GBP         GBP 
 Profit from operations 
  is stated after charging: 
 
 Auditors remuneration 
  - Company audit                                26,900      26,900 
 Auditors remuneration 
  - taxation services                             3,600       3,600 
 Amortisation of intangible 
  fixed assets                                   33,104      32,970 
 Depreciation of owned property 
  plant and equipment                           161,895     175,959 
 Depreciation of plant and equipment 
  held 
  on finance leases                              12,444      12,444 
 Depreciation of 
  Right of Use Assets                           258,731     256,990 
 Government 
  Grant - CJRS 
 - Direct Factory 
  Labour                                              -    (20,571) 
 - Other 
 Salaries                                             -    (62,564) 
 Other Operating Income - 'Government 
  Grant for Retail Businesses'                        -   (165,012) 
 Profit / (Loss) on disposal of 
  property, plant and equipment                 (2,160)       3,237 
 Operating lease 
  rentals 
 - Plant and 
  machinery                                      11,894      11,610 
 Cost of inventories recognised 
  as an expense                               3,706,358   2,806,385 
 
 
 
                                               TAX ON PROFIT FROM OPERATIONS 
  3 
                                                                                        2022        2021 
 
                                                                                         GBP         GBP 
 
 Current period 
  taxation 
 
 UK Corporation tax charge for 
  the period                                                                               -           - 
 
 Total current 
  tax                                                                                      -           - 
 Origination and reversal of temporary 
  timing differences                                                                       -           - 
 Current year deferred tax asset recognised 
  / (not recognised)                                                                       -           - 
 Reversal of previously recognised 
  Deferred Tax asset                                                                       -      82,000 
 Deferred tax credit on losses                                                             -           - 
 Adjustment in respect of previous years                                                   -           - 
  Research and Development tax credit 
 Changes in tax rates being 6% impact 
  on the deferred tax asset/liabilities 
  recognised on losses/revaluations in 
  prior year                                                                               -      42,549 
                                                                                           -     124,549 
                                                                                    ========  ========== 
 
 
 The tax assessed for the period differs from the standard rate 
  of corporation tax in the UK. The differences are explained 
  below: 
 
                                                                                        2022        2021 
 
                                                                                         GBP         GBP 
 Profit on ordinary activities 
  before tax                                                                          13,559      80,534 
                                                                                    --------  ---------- 
 
 Profit on ordinary activities multiplied 
  by standard rate of corporation tax 
  in the UK of 19%                                                                     2,576      15,301 
 Effect of: 
 Expenses not deductible for tax purposes                                                  -           - 
 Depreciation on assets not qualifying 
  for tax allowances                                                                       -       2,197 
 Other permanent differences                                                         (2,576)      32,992 
 Adjustment in respect of previous years                                                   -           - 
  Research and Development tax credit 
 Prior year adjustment on IFRS16 
  adoption                                                                                 -           - 
 Effect of change in local corporation 
  tax rate                                                                                 -   (104,867) 
 Deferred tax asset 
  not recognised                                                                           -    (27,623) 
 Deferred tax credit on losses                                                             -           - 
 Change of tax rate for DT Asset on 
  Revaluation reserve recognised in OCI                                                    -    (42,549) 
 
 Total tax credit / (charge) 
  in income statement                                                                      -     124,549 
                                                                                    ========  ========== 
 
 The main rate of corporation tax will rise from 19% to 25% from 
  1 April 2023. On this basis deferred tax is provided at the 
  future rate of 25%. 
 
 
 
    EARNINGS PER SHARE 
 4 
 
 
                                                   2022             2021 
 
 Earnings per ordinary 
  share is calculated as 
 follows: 
 
 Basic 
 Profit attributable to 
  ordinary shareholders 
  (GBP)                                          13,559          205,083 
 Weighted average number 
  of ordinary 
 shares 
  in issue                                  193,945,190      189,388,807 
 Earnings per 
  ordinary share                                 0.01 p           0.11 p 
                                        ---------------  --------------- 
 
 Fully 
  diluted 
 Profit attributable to 
  ordinary shareholders 
  (GBP)                                          13,559          205,083 
 Weighted average number 
  of ordinary 
 shares 
  in issue                                  193,945,190      189,388,807 
 Weighted average number 
  of ordinary 
 shares 
  under option                               17,478,866       17,478,866 
 Earnings per 
  ordinary share                                 0.01 p           0.10 p 
                                        ===============  =============== 
 
 
 Basic earnings per share amounts are calculated by dividing 
  the profit for the year attributable to ordinary equity 
  holders of the Company by the weighted average number of 
  Ordinary shares outstanding during the year. 
 
  Diluted earnings per share is calculated by dividing the 
  profit attributable to ordinary equity holders of the Company 
  by the weighted average number of Ordinary shares outstanding 
  during the year plus the weighted average number of Ordinary 
  shares that would have been issued on the conversion of 
  all dilutive potential Ordinary shares into Ordinary shares. 
 
 
                PROPERTY, PLANT AND EQUIPMENT 
  5 
                                                                                              Office 
                                                                    Showroom     Plant &   fixtures, 
                                                       Freehold      display   machinery    fittings 
                                                       land and       & shop   and loose        & IT 
                                                      buildings     fittings       tools   equipment       Total 
 
 Cost or Revaluation                                        GBP          GBP         GBP         GBP         GBP 
 At 1 July 2020                                       2,685,886    2,236,772     563,899     307,266   5,793,823 
 Additions                                                    -        8,644         703      17,970      27,317 
 Disposals                                                    -      (4,147)    (33,974)     (1,104)    (39,225) 
 Utilise Oxford 
  Dilapidations                                         (3,423)            -           -           -     (3,423) 
 Revaluation                                                  -            -           -           -           - 
 
 At 30 June 2021                                      2,682,463    2,241,269     530,628     324,132   5,778,492 
                                                     ----------  -----------  ----------  ----------  ---------- 
 
 Additions                                                    -       35,507      17,873      39,027      92,407 
 Disposals                                                    -      (8,005)     (2,916)           -    (10,921) 
 Utilise Oxford 
  Dilapidations                                         (2,679)            -           -           -     (2,679) 
 Revaluation                                            834,888            -           -           -     834,888 
 
 At 30 June 
  2022                                                3,514,672    2,268,771     545,585     363,159   6,692,187 
                                                     ----------  -----------  ----------  ----------  ---------- 
 
 Depreciation and 
  impairment 
 At 1 July 2020                                         789,682    1,639,632     327,942     245,692   3,002,948 
 Charge for 
  the 
 year                                                    23,273       97,239      46,529      20,506     187,547 
 Revaluation                                                  -            -           -           -           - 
 Disposals                                              (2,567)        (472)    (36,913)     (1,104)    (41,056) 
 
 At 30 June 2021                                        810,388    1,736,399     337,558     265,094   3,149,439 
                                                     ----------  -----------  ----------  ----------  ---------- 
 Charge for 
  the 
 year                                                    23,273       83,266      43,031      24,769     174,339 
 Revaluation                                            250,902            -           -           -     250,902 
 Disposals                                              (1,342)      (6,055)       (435)           -     (7,832) 
 At 30 June 
  2022                                                1,083,221    1,813,610     380,154     289,863   3,566,848 
                                                     ----------  -----------  ----------  ----------  ---------- 
                                                                                                   - 
 Net book value 
 At 30 June 
  2022                                                2,431,451      455,161     165,431      73,296   3,125,339 
                                                     ==========  ===========  ==========  ==========  ========== 
 
 At 30 June 2021                                      1,872,075      504,870     193,070      59,038   2,629,053 
                                                     ==========  ===========  ==========  ==========  ========== 
 
 The freehold land element of freehold land and buildings 
  which was not depreciated was GBP503,624 (2021 - GBP503,624). 
  The net book value of items held under finance leases was 
  GBP81,068 (30 June 2021: GBP93,512). The depreciation charge 
  for items held under finance leases is shown in note 4 of 
  the financial statements. 
 Land and buildings classified as property, plant and equipment 
  were valued as at 30 June 2022 using the market approach 
  carried out by external independent qualified valuers. 
 The valuation techniques are consistent with the principles 
  in IFRS 13 and the fair value measurement of each property 
  has been classified as Level 2 in the fair value hierarchy. 
  There were no changes to the valuation techniques during 
  the period. The fair value measurement is based on the above 
  items' highest and best use, which does not differ from their 
  actual use. Had the revalued properties been measured on 
  a historical cost basis, their net book value would have 
  been 2022: GBP1,165,527 (2021: GBP1,190,549). The revaluation 
  surplus (gross of tax) amounted to GBP1,276,463 (2021: GBP692,477). 
                BORROWINGS 
  6 
 
                                                                                    2022                      2021 
                                                                                     GBP                       GBP 
 
 Loans                                                                         1,079,000                 1,079,000 
 Finance lease 
  liabilities                                                                     36,761                    58,146 
                                                                              ----------              ------------ 
                                                                               1,115,761                 1,137,146 
                                                                              ==========              ============ 
 
 Presented in the 
  balance sheet as: 
 Lease liabilities 
  - current                                                                      279,798                   264,168 
 Borrowings - 
  current                                                                              -                         - 
 Borrowings - 
  non-current                                                                  1,115,761                 1,137,146 
                                                                              ----------              ------------ 
                                                                               1,395,559                 1,401,314 
                                                                              ==========              ============ 
 
 (a) Bank & other 
  borrowings 
 Analysis of bank 
  loan repayments: 
 In one year 
  or less                                                                              -                         - 
 In more than one 
  year but not 
 more than 
  two years                                                                            -                         - 
 In more than two 
  years but not 
 more than 
  five years                                                                           -                         - 
 In more than 
  five years                                                                   1,079,000                 1,079,000 
                                                                               1,079,000                 1,079,000 
                                                                              ==========              ============ 
 
 The loan is secured by a legal charge over the Company's freehold 
  properties at Park Street, Hungerford, Berkshire and Grove 
  Business Park, Downsview Road, Wantage, Oxfordshire. The interest 
  only loan facility has an interest rate of 10.55% above base 
  rate with a minimum rate of 10.8% per annum, payable monthly 
  on drawn down funds. In case of default, an additional 7.2% 
  interest would be payable under the loan. 
                                                                        2022                                2021 
                                                                         GBP                                 GBP 
 (b) Finance lease 
  liabilities 
 Gross nance lease liabilities 
  - 
  minimum lease payments: 
 In one year 
  or less                                                             23,883                              21,385 
 Between one and five years                                           12,878                              36,761 
 More than five years                                                      -                                   - 
                                                                      36,761                              58,146 
                                                                  ----------              ---------------------- 
 Future finance charges 
  on finance lease liabilities                                       (2,966)                             (8,065) 
 Present value of finance 
  lease liabilities                                                   33,795                              50,081 
                                                                  ==========              ====================== 
 
 Future finance charges on finance lease liabilities are analysed 
  as follows: 
                                                                        2022                                2021 
                                                                         GBP                                 GBP 
 In one year or less                                                 (2,601)                             (5,099) 
 Between one and five years                                            (365)                             (2,966) 
                                                                     (2,966)                             (8,065) 
                                                                  ==========              ====================== 
 Finance lease liabilities are effectively secured as the 
  rights to the leased asset revert to the lessor in the event 
  of default. 
                PROVISIONS 
 
 
 
 
 
   7 
 
 
 
                                                       Warranty   Dilapidations                    Total 
                                                      provision       provision 
                                                                            GBP                      GBP 
 At 1 July 
  2020                                                   57,575          59,478                  117,053 
 Arising during the 
  year                                                        -               -                        - 
 Utilised during the 
  year                                                 (31,000)         (3,423)                 (34,423) 
 At 30 June 2021                                         26,575          56,055                   82,630 
                                                    -----------  --------------  ----------  ----------- 
 Arising during the 
  period                                                  5,000               -                    5,000 
 Utilised during the 
  period                                               (11,575)               -                 (11,575) 
 At 30 June 2022                                         20,000          56,055                   76,055 
                                                    ===========  ==============  ==========  =========== 
 
                                                                           2022                     2021 
                                                                            GBP                      GBP 
 Current                                                                 23,423                   29,998 
 Non-Current                                                             52,632                   52,632 
                                                                         76,055                   82,630 
                                                                 ==============              =========== 
 
 
 Warranty provision 
 The Company makes provision for potential future warranty 
  claims on kitchens & bedrooms sold. This provision is reviewed 
  and adjusted annually based on the levels of turnover achieved 
  and the claims recorded in the same period. 
 Dilapidations provision 
 The Company makes such provision for dilapidations relating 
  to its leasehold showroom estate as it considers necessary 
  based on the length of the remaining term for each showroom 
  & the future plans for each showroom. Based on this, experience 
  of exiting previous showrooms and industry averages, Management 
  have estimated that a provision of GBP5 per square foot will 
  give a reasonable estimate of any futures costs. On exit 
  from a showroom, once the costs have been finalised and the 
  showroom exited, the provision would be released. 
                SHARE BASED PAYMENTS 
  8 
                                                                           2022                        2021 
 
                                                                            GBP                         GBP 
 Share based payments 
  expense                                                                     -                       4,051 
                                                                 --------------  ----------  -------------- 
 
 The charge relates entirely to equity-settled share based 
  payment transactions. 
 
 On 25 March 2019 the Company granted options over 26,215,931 
  ordinary shares of 0.1 pence each in the Company ("Ordinary 
  Shares") at an exercise price of 1 pence per Ordinary Share 
  to all employees and Directors of the Company under the Company's 
  Unapproved and EMI Share Option Plan ("Option Plan"). 
 
  Performance conditions apply to the vesting of options under 
  the Option Plan that are linked to the Company's future profit 
  and share price performance. In addition, the Option Plan 
  includes a hurdle criteria which stipulates that no Ordinary 
  Shares under the share price performance criteria will vest 
  until the share price of an Ordinary Share reaches 3 pence. 
 
  The Option Plan was approved by shareholders at the 2018 
  Annual General Meeting and the principal terms of the Option 
  Plan were summarised in Appendix 1 to the 2018 Notice of AGM 
  available on the Company's website www.john-lewis.co.uk . 
 The Option Plan was approved by shareholders at the Company's 
  Annual General Meeting on 11 December 2018 . The Company has 
  calculated charges for the share option awards using Monte 
  Carlo and Binomial models. Volatility and risk free rates 
  have been calculated for each share option award based on 
  expected volatility over the vesting period and current risk 
  free rates at the time of each award. Volatility assumptions 
  are based on historic volatility for the Company's share price 
  over 4 years. Assumptions for future profitability have been 
  based on management estimates. 
 The performance conditions attached to the share options are 
  as follows: 
              AIM listed share price (per Ordinary                       Percentage of the Award 
                             Share)                                             which vests 
                                                                 --------------------------------------- 
                           > GBP0.03                                              9.375% 
                           > GBP0.04                                              9.375% 
                           > GBP0.05                                              9.375% 
                           > GBP0.06                                              9.375% 
                           > GBP0.07                                              9.375% 
                           > GBP0.08                                              9.375% 
                           > GBP0.09                                              9.375% 
                           > GBP0.10                                              9.375% 
---------------------------------------------------------------  --------------------------------------- 
 
 If the AIM listed share price has reached GBP0.03 or higher 
-------------------------------------------------------------------------------------------------------- 
               Profit before Tax (in any 12-month                        Percentage of the Award 
                  statutory accounting period)                                  which vests 
---------------------------------------------------------------  --------------------------------------- 
                           > GBP200k                                              5.00% 
                           > GBP400k                                              5.00% 
                           > GBP500k                                              5.00% 
                           > GBP600k                                              5.00% 
                           > GBP700k                                              5.00% 
---------------------------------------------------------------  --------------------------------------- 
 
 Assumptions used in the valuation of share option awards 
  during the year were as follows: 
 
                                                                                                   IFRS2 
                        Share price                                                           fair value 
                         at date of                        Risk                      Option    per share 
     Award         award / exercise       Expected         free        Expected     life in       option 
      date            price (pence)     volatility         rate       dividends       years      (pence) 
 
 25 March                                                                                          0.125 
  2019                0.6 / 1.0                50%        1.02%               -          10      - 0.229 
 
 
 Share and share option awards outstanding 
 The share options awarded during the year under the Option 
  Plan were as follows: 
         Scheme       Exercise             B / Fwd       Number          Number      Number      C / Fwd 
            and          price              1 July      granted       forfeited   exercised      30 June 
           date                               2021                                                  2022 
       of award 
                 -------------  ------------------  -----------  --------------  ---------- 
 
 Option 
  Plan 
  25 March 
  2019 
  Vesting 
  date is 
  variable 
  but no 
  less then 
  2 years            1 pence            17,112,673            -       3,529,768           -   13,582,905 
----------------  ------------  ---  -------------  -----------  --------------  ----------  ----------- 
 
 
 
 
        RELATED PARTY TRANSACTIONS 
   9 
 
 
 Ultimate Controlling 
  Party 
 Shareholders with a substantial interest in the Company 
  are outlined on over 3% of the current share capital are 
  outlined on page 12 of the financial statements. 
 Transactions 
 During the year the Company entered into transactions, 
  in the ordinary course of business, with other related 
  parties. The transactions with Directors of the Company 
  are disclosed in notes 5 and 24 of the financial statements. 
  Transactions with key management personnel (comprising 
  the Directors and key members of management) are disclosed 
  below: 
 Transaction with Directors 
 On 30 December 2021 Alan Charlton purchased 2,500,000 
  shares on the open market. 
 Compensation of key management 
  personnel (including Directors) 
 
                                                        2022        2021 
 
                                                         GBP         GBP 
 Short term employee 
  benefits                                           202,236     167,350 
 Share-based payments                                      -       4,051 
                                                     202,236     171,401 
                                                  ==========  ========== 
 
 
          PUBLICATION OF ACCOUNTS AND ANNUAL GENERAL MEETING 
  10 
           The Annual Report and Accounts for the year ended 30 June 
           2022 will be sent to shareholders shortly and will be 
           made available on the Company's website. The Annual General 
           Meeting of the Company will take place at the offices 
           of John Lewis of Hungerford plc, Grove Business Park, 
           Downsview Road, Wantage, Oxfordshire OX12 9FA at 2.00pm 
           on Wednesday 18 January 2023. 
 

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