TIDMJLH

RNS Number : 1411G

John Lewis Of Hungerford PLC

28 March 2022

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

28 March 2022

John Lewis of Hungerford plc

(the "Company")

Half-year Report

John Lewis of Hungerford Plc (AIM: JLH), the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, is pleased to announce its unaudited interim results for the six months ended 31 December 2021

Overview

The Company is pleased to report that the first half sales to 31 December 2021 are the highest in our history, at GBP4.6 million (2020: GBP3.3 million), with the current full year total of despatched sales and confirmed forward orders standing at GBP8.5 million. After 38 weeks of trading, our future orders, combined with the confirmed order book above, would indicate a full year turnover, in excess of GBP10 million for the first time in our history. Given the uncertain climate in which we are operating, the Board have modelled a range of scenarios for the financial out-turn in the current year, and our central scenario would deliver a profit which is materially ahead of the prior year.

Sales for the six months to 31 December 2021 stood at GBP4,561k (2020: GBP3,326k) and the loss before tax for the period is GBP81k (2020: loss before tax GBP213k), with an improved cash position of GBP824k (2020: GBP504k).

The Company has taken steps to put in place important building blocks over the last two years, including significant investment in our Digital Strategy, the Novuna (formerly known as Hitachi) Finance - customer financing facility, together with the addition of key heads, to improve productivity around the business.

These initiatives have delivered a structural change in our model, with now sustained levels of consumer interest, as a result of our improved visibility online, which has reduced the dependency on local footfall in our territories. The investment in heads required to support this increase in new business span across front-end sales support, additional production heads and enhanced installation management, to ensure the customer experience remains a priority as we grow and scale the business.

The cost of the additional heads offset by the non-recurring government support during the pandemic, reflect the movement on the administration costs. The year-on-year movement on selling and distribution spend demonstrates costs related to increased sales including logistics, together with a return to pre-pandemic levels of marketing spend, delivering around 30% more new business into the Company, which has greatly contributed to the sales we report today. Both areas of spend play an important part in supporting our teams through the growth we are seeing in all areas of the Company.

With the majority of roles required now recruited, we are confident that there will be a minimal need to add additional heads moving forward into the next financial year FY23, as we capitalise on the strength of our brand positioning during our 50(th) Birthday year.

Our investments in the core building blocks, including the Digital Strategy, the Consumer Finance and the headcount required to ensure continuous improvements to our sales conversion are now bearing fruit, and we are pleased with the robust future order book as we near the end of the financial year.

Globally disrupted supply chains continue to have an impact on our purchasing activities, with our UK suppliers bearing additional costs to manage their businesses. We have passed on price increases of 8% to our customers in this financial year FY22 and anticipate further inflationary pressures necessitating another increase as we begin our new financial year FY23 on 1 July 2022.

Current Trading and Outlook

As stated above our despatched sales and confirmed forward orders (which we consider to be the best measure of current trading) for the first 38 weeks of trading of the current financial year stood at GBP8.5 million (2021: GBP6.5 million). Future orders against which a first stage deposit has been taken are substantially higher than the prior year, which we expect will deliver in excess of GBP10 million+ full year revenue performance. Our central scenario as stated above, would deliver a profit materially ahead of the prior year, together with a forward order book which is a substantially higher than the prior year.

Given the current levels of market fluctuations impacted by the unfolding global uncertainties, the Board remains cautious regarding any significant disruption to our production and logistics capabilities. The Company remains confident that the resilience in the order book would mean that any in-year disruption for this financial year FY22, would move a portion of the profits into the next financial year FY23 reporting period.

Kiran Noonan

Chief Executive Officer and Acting Chairman

28 March 2022

Enquiries:

John Lewis of Hungerford plc 01235 774300

Kiran Noonan - Chief Executive Officer and Acting Chairman

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

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

Amrit Nahal (Sales and Corporate Broking)

 
 INCOME STATEMENT 
 FOR THE SIX MONTHSED 31 DECEMBER 
  2021 
 
                                                              Audited 
                                     Unaudited 6 months          Year 
                                            ended               ended 
                                  31 December   31 December   30 June 
                                         2021          2020      2021 
 
                                      GBP'000       GBP'000   GBP'000 
 
 Revenue                                4,561         3,326     7,877 
                                 ------------  ------------  -------- 
 
 Cost of sales                        (2,530)       (1,807)   (4,165) 
 
 Gross profit                           2,031         1,519     3,712 
 
 Selling and distribution 
  costs                                 (245)         (146)     (409) 
 
 Administration expenses: 
  Other                               (1,758)       (1,469)   (3,160) 
   Other operating income                   3             -       165 
                                 ------------  ------------ 
 Total                                (1,755)       (1,469)   (2,995) 
 
 Profit/(Loss) from operations             31          (96)       307 
 
 Finance expenses                       (112)         (117)     (227) 
 
 (Loss)/Profit before tax                (81)         (213)        81 
 
 Taxation                                   -             -       125 
 
 (Loss) after taxation                   (81)         (213)       205 
                                 ============  ============  ======== 
 
 (Loss)/Earnings per share 
 Basic                                (0.04)p       (0.11)p     0.11p 
 Fully diluted                        (0.04)p       (0.11)p     0.10p 
 
 
 
  STATEMENT OF COMPREHENSIVE INCOME 
 FOR THE SIX MONTHSED 31 DECEMBER 
  2021 
 
                                                                  Audited 
                                         Unaudited 6 months          Year 
                                                ended               ended 
                                      31 December   31 December   30 June 
                                             2021          2020      2021 
 
                                          GBP'000       GBP'000   GBP'000 
 
 (Loss)/Profit for the 
  period                                     (81)         (213)       205 
 
 Deferred tax on revaluation 
  of freehold land and buildings                -             -      (43) 
 
 Total Comprehensive (Loss)/Income           (81)         (213)       163 
                                     ============  ============  ======== 
 
 
 
 BALANCE SHEET 
 AS AT 31 DECEMBER 2021                                                           Audited 
                                          Unaudited As at                           As at 
                                       31 December   31 December                  30 June 
                                              2021          2020                     2021 
                                           GBP'000       GBP'000                  GBP'000 
 Non-Current Assets 
 Intangible assets                             124           140                      140 
 Tangible assets                             3,811         4,030                    4,001 
 Trade and other receivables                    32            43                       32 
                                                                  ----------------------- 
                                             3,966         4,213                    4,173 
                                  ----------------  ------------  ----------------------- 
 
 Current assets 
 Inventories                                   167           174                      193 
 Trade and other receivables                 1,140           570                      869 
 Deferred Tax asset                             82             -                       82 
 Cash and cash equivalents                     824           507                    1,302 
                                  ----------------  ------------  ----------------------- 
                                             2,214         1,251                    2,446 
 
 
 Current liabilities                       (3,070)       (2,571)                  (3,291) 
 
 Net current liabilities                     (856)       (1,320)                    (845) 
                                  ----------------  ------------  ----------------------- 
 
 Total assets less current 
 liabilities                                 3,110         2,894                    3,329 
 
 
 Non-current liabilities 
 Borrowings                                (1,127)       (1,147)                  (1,137) 
 Lease Liabilities                         (1,208)       (1,309)                  (1,336) 
 Provisions for liabilities 
 and charges                                  (53)          (56)                     (53) 
 
 Net Assets                                    722           381                      803 
                                  ================  ============  ======================= 
 
 Equity 
 Share capital                                 194           187                      194 
 Other reserves                                  1             1                        1 
 Share premium account                       1,222         1,188                    1,222 
 Revaluation Reserve                           518           561                      518 
 Retained Earnings                         (1,214)       (1,556)                  (1,133) 
 
 Total Equity                                  722           381                      803 
                                  ================  ============  ======================= 
 
 
 
 STATEMENT OF CHANGES IN EQUITY 
 FOR THE SIX MONTHS ENDED 31 DECEMBER 
  2021 
 
                                             Share         Share      Other   Revaluation   Retained 
                                           Capital       Premium   Reserves      Reserves   Earnings     Total 
--------------------------------  ----------------  ------------  ---------  ------------  ---------  -------- 
 
                                           GBP'000       GBP'000    GBP'000       GBP'000    GBP'000   GBP'000 
 
 At 30 June 2020 (Audited)                     187         1,188          1           560    (1,474)       594 
 Loss for the period                             -             -          -             -      (213)     (213) 
 At 31 December 2020 
  (Unaudited)                                  187         1,188          1           560    (1,687)       381 
 Profit for the period                           -             -          -             -        418       418 
 Share issue                                     7            34          -             -          -        42 
 Deferred tax on Revaluation 
  of freeholds                                   -             -          -          (43)          -      (43) 
 Share based payments                            -             -          -             -          4         4 
 At 30 June 2021 (Audited)                     194         1,222          1           518    (1,264)       803 
 Loss for the period                             -             -          -             -       (81)      (81) 
 At 31 December 2021 
  (Unaudited)                                  194         1,222          1           518    (1,345)       722 
                                  ================  ============  =========  ============  =========  ======== 
 
 
 
 
 STATEMENT OF CASH FLOWS 
 FOR THE SIX MONTHS ENDED 31 DECEMBER 
  2021 
 
 
                                                 Unaudited 6 months 
                                                        ended                 Audited 
                                                                           Year ended 
                                              31 December   31 December       30 June 
                                                     2021          2020          2021 
 
                                                  GBP'000       GBP'000       GBP'000 
 
 Profit/(Loss) from operations                         31          (96)           432 
 
 Depreciation, impairment and amortisation            239           239           478 
 Share based payments                                   -             -             4 
 Decrease/(Increase) in inventories                    26          (21)          (41) 
 (Increase) in receivables                          (271)          (28)         (315) 
 (Decrease)/Increase in payables                    (506)          (22)           598 
 Increase in Customer Deposits                        298           254           363 
 Loss on disposal of property plant 
  and equipment                                         0             1             3 
 Increase in provisions                                 -             -          (34) 
 Tax (credit) on operations                             -             -         (125) 
 
 Net cash from operating activities                 (183)           328         1,364 
 
 Cash flows from financing activities               (263)         (361)         (575) 
 
 Cash flows from investing activities                (32)          (19)          (46) 
 
 
 
   Net (decrease) / increase in cash and 
   cash equivalents                                 (478)          (52)           743 
 Net cash and cash equivalents at the 
  start of the period                               1,302           559           559 
 Net cash and cash equivalents at the 
  end of the period                                   824           507         1,302 
                                             ============  ============  ============ 
 
 
 
 
   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 period ended 30 June 2021. The 
  Company does not anticipate any change in these accounting policies 
  for the year ending 30 June 2022. As permitted, this interim report 
  has been prepared in accordance with the AIM Rules and not in accordance 
  with IAS 34 "Interim financial reporting". The principal risks and 
  uncertainties facing the Company are disclosed in the Company's financial 
  statements for the period ended 30 June 2021, available from www.john-lewis.co.uk 
  and remain unchanged. 
 2. (Loss) / Earnings per share 
  Basic and fully diluted loss per ordinary share is calculated as 
  follows: 
 
                                                       6 months       6 months          Year 
                                                          ended          ended         ended 
                                                    31 December    31 December       30 June 
                                                           2021           2020          2021 
 
 (Loss) / Profit attributable to ordinary 
  shareholders (GBP'000)                                   (81)          (213)           205 
 Weighted average number 
  of shares in issue                                193,945,519    186,745,519   189,388,807 
 Shares used to calculate diluted earnings 
  per share                                         193,945,519    186,745,519   206,867,673 
 
 Basic(loss) / earnings per 
  ordinary share (pence)                                (0.04)p        (0.11)p         0.11p 
 Diluted (loss) / earnings 
  per ordinary share (pence)                            (0.04)p        (0.11)p         0.10p 
 
 
 
 3. Availability of the 2021 Interim accounts 
  Copies of the interim accounts for the six months ended 31 December 
  2021 will be available to shareholders on the Company's website - 
  www.john-lewis.co.uk 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR BIGDXGGDDGDU

(END) Dow Jones Newswires

March 28, 2022 02:00 ET (06:00 GMT)

John Lewis Of Hungerford (LSE:JLH)
Historical Stock Chart
From Oct 2022 to Nov 2022 Click Here for more John Lewis Of Hungerford Charts.
John Lewis Of Hungerford (LSE:JLH)
Historical Stock Chart
From Nov 2021 to Nov 2022 Click Here for more John Lewis Of Hungerford Charts.