TIDMLTHM
RNS Number : 7999I
Latham(James) PLC
22 June 2017
James Latham Plc
("James Latham" or the "Group")
Final Results
I am pleased to report good trading results for the financial
year to 31 March 2017.
Group revenue for the financial year to 31 March 2017 was
GBP198.8m, 6.9% up on last year's GBP185.9m. The operating profit
was GBP14.2m, up GBP1.0m from GBP13.2m.
Finance income was GBP56,000 against GBP56,000 last year.
Finance costs, which are principally interest on the pension scheme
deficit as calculated under IAS19 (revised), were GBP408,000
against GBP421,000 last year.
Pre-tax profit was GBP13.8m, up GBP0.9m from GBP12.9m last year.
Post-tax profit for the year is GBP11.0m, up from last year's
figure of GBP10.5m.
Earnings per share were 56.0p compared to last year's 53.7p.
Net assets (total equity) were GBP73.3m compared to GBP71.2m
last year.
At the year end the Group's cash reserves stood at GBP17.2m
compared to GBP16.8m last year.
Final dividend
The directors recommend a final dividend of 10.85p per ordinary
share (2016 10.3p). The final dividend will be paid on 25 August
2017 to shareholders on the register at the close of business on 4
August 2017. The shares will become ex-dividend on 3 August
2017.
The total dividend per ordinary share of 15.35p for the year is
covered 3.6 times by earnings (2016: 3.8 times).
Financial year 2016/17
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 higher prices resulting from the
weakness of sterling against both the dollar and the euro and to
increased volumes ex-warehouse. Year on year increases in both
revenue and volume for the fourth quarter was particularly
encouraging. The gross margin, before warehouse costs, was down by
0.3 percentage points, due to competitive pressures and higher
stock replacement costs.
Panel and Timber prices rose sharply during the year, due to the
weakness in sterling. Focus panel products including melamine
panels and door blanks, continued to show good growth. Our high
quality certified sustainable hardwood for the joinery sector also
showed good growth.
Overheads have been well controlled in spite of higher volumes
through the warehouses and bad debts were low overall for the
year.
Pension Scheme
At 31 March 2017 the deficit of the defined benefit scheme under
IAS19 (revised) was GBP16.6m up GBP6.9m compared with GBP9.7m last
year, but down from GBP23.2m at 30 September 2016. These variations
are the result of the changes in the corporate bond yield used to
calculate the present value of the scheme's liabilities, offset by
the increases in the value of scheme assets, and reflects the
volatility of the accounting for this scheme.
Current financial year 2017/18
This year like for like revenue, both in panels and timber, is
3% higher for April and May than the corresponding period last year
which had two more working days. However the gross margin is still
under pressure.
Development strategy
The directors continue to identify opportunities for growth and
to introduce and promote new products. Construction of the new,
up-graded site for our Yate operation is nearing completion and the
move is planned for July. Negotiations are at an advanced stage for
the construction of a new site for our Wigston unit and relocation
is expected by the end of the financial year.
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
21 June 2017.
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 March 2017
Audited Audited
------------------------------- ------------ ------------
Year to 31 Year to 31
March 2017 March 2016
------------------------------- ------------ ------------
GBP000 GBP000
------------------------------- ------------ ------------
Revenue 198,808 185,929
Cost of sales (including
warehouse costs) (162,709) (151,389)
------------------------------- ------------ ------------
Gross profit 36,099 34,540
Selling and distribution
costs (15,457) (15,129)
Administrative expenses (6,463) (6,170)
Operating Profit 14,179 13,241
Finance income 56 56
Finance costs (408) (421)
------------------------------- ------------ ------------
Profit before tax 13,827 12,876
Tax expense (2,846) (2,410)
------------------------------- ------------ ------------
Profit after tax attributable
to owners of the parent
company 10,981 10,466
=============================== ============ ============
Earnings per ordinary
share (basic) 56.0p 53.7p
=============================== ============ ============
Earnings per ordinary
share (diluted) 55.8p 53.5p
=============================== ============ ============
All results relate to continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year to 31 March 2017
Audited Audited
------------------------------------- -------- ---------
2017 2016
------------------------------------- -------- ---------
GBP000 GBP000
------------------------------------- -------- ---------
Profit after tax attributable
to owners of the parent company 10,981 10,466
Other comprehensive income
Actuarial (loss)/gain on defined
benefit pension scheme (7,543) 825
Deferred tax relating to components
of other comprehensive income 1,362 (219)
------------------------------------- -------- ---------
Other comprehensive income
for the year, net of tax (6,181) 606
------------------------------------- -------- ---------
Total comprehensive income
attributable to owners of the
parent company 4,800 11,072
===================================== ======== =========
JAMES LATHAM PLC COMPANY REGISTRATION NUMBER 65619
CONSOLIDATED BALANCE SHEET
At 31 March 2017
Audited Audited
------------------------------- --------- ---------
2017 2016
------------------------------- --------- ---------
GBP000 GBP000
------------------------------- --------- ---------
Assets
Non-current assets
Goodwill 237 237
Other intangible assets 1 93
Property, plant and equipment 26,312 22,111
Deferred tax asset 2,904 1,802
Total non-current assets 29,454 24,243
Current assets
Inventories 35,508 33,403
Trade and other receivables 40,076 35,288
Cash and cash equivalents 17,246 16,832
Total current assets 92,830 85,523
------------------------------- --------- ---------
Total assets 122,284 109,766
------------------------------- --------- ---------
Current liabilities
Trade and other payables 27,063 23,471
Tax payable 1,517 1,376
------------------------------- --------- ---------
Total current liabilities 28,580 24,847
Non-current liabilities
Interest bearing loans
and borrowings 987 987
Retirement and other benefit
obligation 16,625 9,657
Other payables 349 406
Deferred tax liabilities 2,485 2,686
------------------------------- --------- ---------
Total non-current liabilities 20,446 13,736
------------------------------- ---------
Total liabilities 49,026 38,583
------------------------------- --------- ---------
Net assets 73,258 71,183
=============================== ========= =========
Capital and reserves
Issued capital 5,040 5,040
Share-based payment reserve 108 56
Own shares (291) (441)
Capital reserve 3 3
Retained earnings 68,398 66,525
------------------------------- --------- ---------
Total equity attributable
to equity shareholders
of the parent company 73,258 71,183
=============================== ========= =========
The Company's profit for the year and total comprehensive income
for the year were GBP1,266,000 (2016: loss of GBP551,000)and
GBP1,270,000 (2016: loss of GBP631,000) respectively.
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
2015 - audited 5,040 143 (177) 3 57,222 62,231
Profit for the
year - - - - 10,466 10,466
Other comprehensive
income:
Actuarial gain
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)
Write down on
conversion of
ESOP shares - - 819 - (819) -
Exercise of options - (149) - - 149 -
Transfer of treasury
shares - - (1,385) - 1,385 -
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
Profit for the
year - - - - 10,981 10,981
Other comprehensive
income:
Actuarial loss
on defined benefit
pension scheme - - - - (7,543) (7,543)
Deferred tax relating
to components
of other comprehensive
income - - - - 1,362 1,362
---------- ------------ --------- ---------- ----------- ---------
Total comprehensive
income for the
year - - - - 4,800 4,800
Transactions with
owners:
Dividends - - - - (2,894) (2,894)
Exercise of options - (19) - - 19 -
Write down on
conversion of
ESOP shares - - 52 - (52) -
Change in investment
in ESOP shares - - 98 - - 98
Share-based payment
expense - 71 - - - 71
---------- ------------ --------- ---------- ----------- ---------
Total transactions
with owners - 52 150 - (2,927) (2,725)
Balance at 31
March 2017 - audited 5,040 108 (291) 3 68,398 73,258
========== ============ ========= ========== =========== =========
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2017
Audited Audited
-------------------------------- -------- --------
2017 2016
-------------------------------- -------- --------
GBP000 GBP000
-------------------------------- -------- --------
Net cash flow from operating
activities
Cash generated from operations 11,902 11,704
Interest paid (2) (23)
Income tax paid (2,646) (2,016)
-------------------------------- -------- --------
Net cash inflow from
operating activities 9,254 9,665
-------------------------------- -------- --------
Cash flows from investing
activities
Interest received and
similar income 56 56
Purchase of property,
plant and equipment (6,045) (2,056)
Proceeds from sale of
property, plant and equipment 122 136
Net cash outflow from
investing activities (5,867) (1,864)
-------------------------------- -------- --------
Cash flows from financing
activities
Borrowings repaid during
the year - (907)
Equity dividends paid (2,894) (2,484)
Preference dividend paid (79) (79)
Net cash outflow from
financing activities (2,973) (3,470)
-------------------------------- -------- --------
Increase in cash and
cash equivalents for
the year 414 4,331
================================ ======== ========
Cash and cash equivalents
at beginning of the year 16,832 12,501
-------------------------------- -------- --------
Cash and cash equivalents
at end of the year 17,246 16,832
================================ ======== ========
JAMES LATHAM PLC
Notes to the audited preliminary financial information
1. The financial information presented in this report is audited
and has 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 2016 and 31 March 2017.
2. The directors propose a final dividend of 10.85p per ordinary
share, which will absorb GBP2,127,000 (2016: 10.3p absorbing
GBP2,019,000), payable on 25 August 2017 to shareholders on the
Register at the close of business on 4 August 2017. The ex-dividend
date is 3 August 2017.
The figures for the year ended 31 March 2017 and as at 31 March
2017 have been extracted from the audited statutory accounts for
that year, which have yet to be delivered to the Registrar of
Companies and which have 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. The preliminary
financial information 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 2017 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 the statutory financial statements for the
year ended 31 March 2017 is unqualified and does not include
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying the report and does not contain any
statement under Section 498(2) or (3) of the Companies Act
2006.
Statutory accounts for the year ended 31 March 2016 have been
filed with the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not include reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying the report and did not contain a statement under
section 498(2) and (3) of the Companies Act 2006.
3. This announcement was approved and authorised for issue by
the Board of Directors on 21 June 2017.
4. Net cash flow from operating activities
Year to Year to
31 March 31 March
2017 audited 2016 audited
Profit before tax 13,827 12,876
Adjustment for finance income
and cost 352 365
Depreciation, amortisation
and impairment 1,822 1,515
Profit on disposal of property,
plant and equipment (95) (97)
Write down of intangible asset 86 -
Increase in inventories (2,105) (1,497)
Increase in receivables (4,788) (1,075)
Increase/(decrease) in payables 3,536 (480)
Retirement benefits non cash
amounts (902) (267)
Share-based payments non cash
amounts 71 62
Own shares non cash amounts 98 302
-------------- --------------
Cash generated from operations 11,902 11,704
-------------- --------------
5. The Annual General Meeting of James Latham plc will be held
at Gallery Level, Business Design Centre, 52 Upper Street, London,
N1 0QH on 23 August 2017 at 12.30pm.
This information is provided by RNS
The company news service from the London Stock Exchange
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