James Halstead Regulatory News (JHD)

30 Mar 2006 07:01

James Halstead PLC30 March 2006 30 March 2006 JAMES HALSTEAD PLC INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2005 Key Figures James Halstead plc, manufacturer and international distributor of flooring,reports: - Turnover increased to £62.89 million - an increase of 10.7% - Pre-tax profit up to £8.497 million - an increase of 22.6% - Net interim dividend proposed per 5p ordinary share of 4.25p - an increase of 21.4% - Basic earnings per 5p ordinary share increased by 22.1% The Chairman, Mr Geoffrey Halstead, commenting, said: "In challenging markets and notwithstanding energy costs and polymer prices, Iam pleased to report, again, record results and we will pay an increased interimdividend to reflect this. I remain confident of reporting another full year ofprogress." Enquiries: Mark Halstead, Chief Executive Gordon Oliver, Finance Director Telephone : 0161 767 2500 Nick Lyon - Hudson Sandler Telephone : 020 7796 4133 Notes to Editors Accounting standards There are three new Financial Reporting Standards which have an effect on theseinterim accounts. FRS 17 - Retirement Benefits requires the inclusion of a valuefor the defined benefit pension scheme deficit in the balance sheet as aliability. FRS 21 - Events After The Balance Sheet Date means that we no longerinclude an accrual for dividends proposed or show dividends paid on the face ofthe Interim Report. The final changes are for the required elements of FRS 25 -Financial Instruments: Disclosure and Presentation which require us tore-classify the C preference shares as debt rather than non-equity sharecapital. Comparative figures are restated and details are given in note 7. Chairman's Statement The six months to 31 December 2005 showed a healthy growth in turnover to £62.89million, an increase of 10.7%. Reviewing our flooring operations, it is worth noting that we have seen healthydouble digit growth in the United Kingdom, in central Europe and Australasia.The portfolio of products we offer has positioned the Group to service bothday-to-day distribution and to secure significant flooring contracts around theworld. Examples include the Hilla hospital in Baghdad, the Botinskaya Clinic inMoscow, the Centenary Hall at Chelsea FC and the Holby City set for the BBC. Profit before tax has set another record for a six month period being £8.497million (2004: £6.933 million) an increase of 22.6%. The strong sales and profit performance translated well into cash flow. Cashinflow from operations was 47% ahead of the corresponding period for last yearat £14.88 million which gave us the ability to announce a special dividend atthe AGM in December 2005. This dividend amounted to £12.7 million and was paidon 17 February 2006. Earnings Per Share and Dividend (per 5p Share) We sub-divided our ordinary shares of 10p into 5p shares on 27 February 2006 soI shall quote these figures per 5p share. Our basic earnings per share of 11.6p (2004: 9.5p) show an increase of 22.1% andwe propose to increase the interim dividend payable in May 2006 to 4.25p (2004:3.5p) an increase of 21.4% reflecting the improved results and our ability topay based on cash resources. Outlook It has been an outstandingly good half year for our Group and I am confidentthat we will consolidate this progress through to the full year's result. Geoffrey HalsteadChairman30 March 2006 Interim Reportfor the half-year ended 31 December 2005 Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Turnover 62,890 56,806 112,353 Operating profit 7,845 6,305 12,733Interest and other finance costs 652 628 1,038 Group profit on ordinary activities(before taxation) 8,497 6,933 13,771 Taxation (2,630) (2,145) (4,276) Group profit on ordinary activities(after taxation) 5,867 4,788 9,495 Earnings/(loss) per ordinary share of 10p:- basic 23.1p 19.0p (0.6)p- diluted 23.0p 18.9p (0.6)p Note: The company's 10p ordinary shares were sub-divided into two new ordinary shares of 5p each on 27February 2006. The following figures are therefore included for ease of reference: Earnings/(loss) per ordinary share of 5p- basic 11.6p 9.5p (0.3)p- diluted 11.5p 9.5p (0.3)p Details of dividends paid and proposed are given in Note 3. Consolidated Balance SheetAs at 31 December 2005 Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Fixed assetsIntangible assets 3,346 3,574 3,460Tangible assets 19,985 20,853 20,741 23,331 24,427 24,201 Current assetsStocks 18,284 20,269 20,029Debtors 18,750 17,953 18,887Cash at bank, in hand and on 40,236 36,666 31,675short-term deposits 77,270 74,888 70,591Creditors - amounts falling due within one year (34,245) (28,614) (31,140)Net current assets 43,025 46,274 39,451 Total assets less current liabilities 66,356 70,701 63,652 Creditors - amounts falling due after more than one (5,862) (231) (5,934)yearProvisions for liabilities (205) (916) (353) Net assets excluding pension scheme deficit 60,289 69,554 57,365Pension scheme deficit (10,480) (9,163) (9,790) 49,809 60,391 47,575Capital and reservesEquity share capital 2,538 2,531 2,531Non-equity share capital 360 200 360 Called up share capital 2,898 2,731 2,891Share premium account 223 5,597 48Revaluation reserve 3,544 3,544 3,544Capital reserve 2,942 720 2,942Profit and loss account 40,202 47,799 38,150 49,809 60,391 47,575 Consolidated Cash Flow StatementFor the half-year ended 31 December 2005 Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Net cash inflow from operating activities 14,876 10,101 19,866Returns on investments and servicing of finance 474 722 1,274Return of capital - B share dividend - - (9,626)Taxation paid (3,008) (3,507) (5,860)Capital expenditure (641) (3,882) (5,827)Acquisitions and disposals - (1,390) (1,390)Equity dividends paid (3,236) (2,971) (4,743) Cash inflow/(outflow) before financing 8,465 (927) (6,306) Financing:Shares issued 182 396 406(Decrease)/increase in debt (119) - 401 Increase/(decrease) in cash 8,528 (531) (5,499) Reconciliation of net cash flow to movement in netfundsIncrease/(decrease) in cash 8,528 (531) (5,499)Movement in debt 119 - (401) Change in net funds resulting from cash flows 8,647 (531) (5,900)Effect of exchange differences (13) 152 129Creation of C shares - - (5,559) Movement in net funds for the period 8,634 (379) (11,330)Net funds at start of period 25,715 37,045 37,045 Net funds at end of period 34,349 36,666 25,715 Statement of Total Recognised Gains and LossesFor the half-year ended 31 December 2005 Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Profit for the financial period 5,867 4,788 9,495Currency translation differences on foreign 133 556 597currency net investmentsActuarial loss on the pension scheme (1,008) (874) (1,748)Movement on deferred tax asset relating to the 302 262 524pension scheme 5,294 4,732 8,868 Total recognised gains relating to the financialperiodPrior year adjustment (implementation of FRS 17) (9,790) Total recognised losses since the last report (4,496) Reconciliation of Movements in Shareholders' FundsFor the half-year ended 31 December 2005 Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Profit for the financial period 5,867 4,788 9,495Dividends (3,242) (2,977) (14,380) 2,625 1,811 (4,885) Other recognised gains and losses relating to the (573) (56) (627)financial periodCreation of C shares - - (5,559)New share capital subscribed 182 396 406 Net increase/(decrease) in shareholders' funds for 2,234 2,151 (10,665)the financial periodOpening shareholders' funds (originally £57,475,000 47,575 58,240 58,240before prior year adjustment of £9,900,000) Closing shareholders' funds 49,809 60,391 47,575 Equity shareholders' funds 49,449 60,191 47,215Non-equity shareholders' funds 360 200 360 49,809 60,391 47,575 Notes to the Accounts 1. Basis of preparation The interim financial statements, which are unaudited, consolidate the accountsof the holding company and its subsidiaries made up to 31 December 2005, andhave been prepared in accordance with applicable Accounting Standards and, savefor the adoption of FRS 17 - Retirement Benefits, on the basis of accountingpolicies as set out in the annual report and accounts for the year ended 30 June2005. The comparative figures for the six months ended 31 December 2004 and yearended 30 June 2005, have been restated from those previously published toreflect the impact of the adoption of FRS 17 - Retirement Benefits, FRS 21 -Events After The Balance Sheet Date and the required elements of FRS 25 -Financial Instruments : Disclosure and Presentation. 2. Taxation Taxation has been provided at the rate of 31% (2004: 30.9%). 3. Dividends Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Non-equity dividends paid:On 200,000 preference shares at 5.5p per annum 6 6 11On 16,042,530 B shares at 60p per share - - 9,626 6 6 9,637 Equity dividends paid:Final dividend for the year ended 30 June 2004 - 2,971 2,971Interim dividend for the year ended 30 June 2005 - - 1,772Final dividend for the year ended 30 June 2005 3,236 - - 3,236 2,971 4,743 Total dividends paid 3,242 2,977 14,380 Equity dividends proposed at the end of the periodSpecial dividend 12,715 - -Interim dividend 2,158 1,772 -Final dividend - - 3,227 Equity dividends per share, paid and proposed, restated to take account of thetwo-for-one share split which took place on 27 February 2006 are as follows: • 25p special dividend for the year ended 30 June 2006, paid on 17 February 2006• 4.25p interim dividend for the year ended 30 June 2006, payable on 26 May 2006 to those shareholders on the register at the close of business on 28 April 2006• 6.375p final dividend for the year ended 30 June 2005, paid on 5 December 2005• 3.5p interim dividend for the year ended 30 June 2005, paid on 26 May 2005 The single dividend payment of 60p on the B ordinary deferred shares was paid on14 January 2005. The first dividend of 2.4p per share on the non-cumulative C preference shares,which under FRS 25 are now classified as a liability, was paid on 14 January2006. The preference dividend is payable on 30 June and 31 December each year. Thenext preference dividend is payable on 30 June 2006 to those shareholders on theregister at the close of business on 19 May 2006. 4. Calculation of earnings per ordinary share Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restated £'000 £'000 £'000 Profit on ordinary activities after taxation 5,867 4,788 9,495Preference dividend (6) (6) (11)B share dividend - - (9,626) Basic earnings 5,861 4,782 (142)Goodwill amortisation charge 114 100 213Add back B share dividend - - (9,626) Underlying earnings 5,975 4,882 9,697 Weighted average number of 10p ordinary shares in 25,336,037 25,180,052 25,243,966issueWeighted average number of 10p ordinary shares in 25,478,960 25,301,848 25,366,107issue(diluted for the effect of outstanding shareoptions)Underlying earnings per 10p ordinary share 23.6p 19.4p 38.4pBasic earnings per 10p ordinary share 23.1p 19.0p (0.6)pDiluted earnings per 10p ordinary share 23.0p 18.9p (0.6)p The company's 10p ordinary shares were sub-divided into two new ordinary sharesof 5p each on 27 February 2006. The following figures are therefore included for ease of reference: Half-year Half-year Year ended ended ended 31.12.05 31.12.04 30.6.05 as restated as restatedWeighted average number of 5p ordinary shares in 50,672,074 50,360,104 50,487,932issueWeighted average number of 5p ordinary shares in 50,957,920 50,603,696 50,732,214issue (diluted for the effect of outstanding shareoptions)Underlying earnings per 5p ordinary share 11.8p 9.7p 19.2pBasic earnings per 5p ordinary share 11.6p 9.5p (0.3)pDiluted earnings per 5p ordinary share 11.5p 9.5p (0.3)p 5. Statutory accounts The figures for the year ended 30 June 2005 are an abridged statement of theGroup audited accounts for that year adjusted for the effect of the adoption ofFRS 17 - Retirement Benefits, FRS 21 - Events After The Balance Sheet Date andthe required elements of FRS 25 - Financial Instruments: Disclosure andPresentation. The audited accounts, containing an unqualified audit report, havebeen delivered to the Registrar of Companies. 6. Copies of the interim results Copies of the interim results have been sent to shareholders. Further copies canbe obtained from the Company's registered office, Beechfield, Hollinhurst Road,Radcliffe, Manchester M26 1JN. 7. Prior year adjustments Prior year adjustments, relating to the adoption of FRS 17 - RetirementBenefits, FRS 21 - Events After The Balance Sheet Date and the requiredelements of FRS 25 - Financial Instruments : Disclosure and Presentation, havechanged previously reported results as follows: Half-year ended 31.12.04 Year ended 30.6.05 as reported as restated as reported as restated £'000 £'000 £'000 £'000 Group profit on ordinary activities 4,803 4,788 9,525 9,495after taxation (FRS 17) Creditors - amounts falling due within 30,386 28,614 34,367 31,140one year (FRS 21) Creditors - amounts falling due after 231 231 2,597 5,934more than one year (FRS 25) Total recognised gains relating to the 5,359 4,732 10,122 8,868financial period (FRS 17) Opening shareholders' funds (FRS 17 and 63,825 58,240 63,825 58,240FRS 21) Closing shareholders' funds (FRS 17, FRS 67,782 60,391 57,475 47,57521and FRS 25) Profit and loss account (FRS 17 and FRS 55,190 47,799 44,713 38,15021)Net funds (FRS 25) 36,666 36,666 29,052 25,715 This information is provided by RNS The company news service from the London Stock Exchange