James Halstead Regulatory News (JHD)

30 Mar 2005 07:00

James Halstead PLC30 March 2005 30 March 2005 JAMES HALSTEAD PLC INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2004 Key Figures James Halstead plc, manufacturer and international distributor of flooring: - Pre-tax profit up to £6.954 million - an increase of 6.5% - Net dividend per ordinary share up to 7.0p - an increase of 16.7% - Earnings per ordinary share up to 19.4p - an increase of 4.3% The Chairman, Mr Geoffrey Halstead, commenting, said: "Once again we have made good progress and with our strong financial resourceswe look forward to the full year with confidence." Enquiries: Mark Halstead, Chief Executive Gordon Oliver, Finance Director Telephone : 0161 767 2500 Nick Lyon - gcg hudson sandler Telephone : 020 7796 4133 Chairman's Statement It is my pleasure to present these figures which are the best interim results wehave reported. Turnover at £56.8 million is 6.6% ahead of the corresponding period last yearand the pre-tax profit of £6.95 million is 6.5% ahead. Given the inclusion in the corresponding half year of royalty income from theBelstaff brand (sold June 2004) of £450,065, the increase is commendable. Theturnover growth is related to our flooring activities with the UK and Europereporting positive growth, the latter some 15% ahead of last year. In addition, the acquisition in October 2004 of Falck Design (based in Sweden)by the Group has already had a beneficial effect. Phoenix Distribution has suffered a sales decline, in part due to adversesentiment following our sale of Belstaff, but largely because of a depressedmarket, evidenced by falling new motorcycle registrations. This isdisappointing but was anticipated, to a degree, in our budgeting process andsome restructuring has taken place. Nevertheless, Phoenix represents only 7% ofgroup turnover and still makes a positive contribution to our results. Earnings Per Share and Dividend Earnings per share of 19.4p (2003 : 18.6p) show an increase of 4.3% reflectingthe profits growth and the slightly higher effective tax rate which is a resultof higher overseas rates of tax than the standard UK 30%. We are increasing the interim dividend to 7.0p (2003 : 6.0p) which is anincrease of 16.7%. This increase reflects our ability to pay based on cashresources and a view that our historic interim payment to final payment ratio of1:2, should, perhaps, be less biased towards the final dividend. Outlook It has been a good half year and our flooring companies have traded well despitethe ongoing challenge caused by raw material price increases. Overall, we lookforward to consolidating the progress made to date through to the full yearresult. Geoffrey HalsteadChairman30 March 2005 Interim Reportfor the half-year ended 31 December 2004 Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Turnover 56,806 53,301 104,703 Operating profit 6,225 6,239 13,150Exceptional item - - 10,396Net interest receivable 729 289 549 Group profit on ordinary activities(before taxation) 6,954 6,528 24,095Taxation (2,151) (1,958) (5,938) Group profit on ordinary activities(after taxation) 4,803 4,570 18,157 Dividends:Preference (5.5%) - non-equity (6) (6) (11)Ordinary - equity (1,792) (1,523) (4,476) Retained profit 3,005 3,041 13,670 Earnings per ordinary share of 10p:- headline 19.4p 18.6p 38.5p- basic 19.1p 18.2p 72.2p- diluted 19.0p 18.1p 71.7p Net dividends per ordinary share 7.0p 6.0p 17.75p Consolidated Balance SheetAs at 31 December 2004 Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Fixed assetsIntangible assets 3,574 2,650 2,564Tangible assets 20,853 19,485 18,308 24,427 22,135 20,872 Current assetsStocks 20,269 20,795 21,930Debtors 17,953 17,217 18,533Cash at bank, in hand and on 36,666 22,190 37,045 short-term deposits 74,888 60,202 77,508Creditors - amounts falling due within one year (30,386) (26,944) (33,302)Net current assets 44,502 33,258 44,206 Total assets less current liabilities 68,929 55,393 65,078 Creditors - amounts falling due after more than one (231) (207) (213)yearProvisions for liabilities and charges (916) (1,662) (1,040) 67,782 53,524 63,825 Capital and reservesEquity share capital 2,531 2,507 2,511Non-equity share capital 200 200 200 Called up share capital 2,731 2,707 2,711Share premium account 5,597 5,153 5,221Revaluation reserve 3,544 3,544 3,544Capital reserve 720 720 720Profit and loss account 55,190 41,400 51,629 67,782 53,524 63,825 Consolidated Cash Flow StatementFor the half-year ended 31 December 2004 Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Net cash inflow from operating activities 10,101 9,207 17,383Returns on investments and servicing of finance 722 287 616Taxation (3,507) (1,998) (4,262)Capital expenditure (3,882) (636) (1,346)Acquisitions and disposals (1,390) - 10,828Equity dividends paid (2,971) (2,507) (4,014) Cash (outflow)/inflow before financing (927) 4,353 19,205Financing:Purchase of own shares - (1,882) (1,883)Shares issued 396 739 811 (Decrease)/increase in cash (531) 3,210 18,133 Reconciliation of net cash flow to movement in netfunds(Decrease)/increase in cash (531) 3,210 18,133 Change in net funds resulting from cash flows (531) 3,210 18,133Effect of exchange differences 152 24 (44) Movement in net funds for the period (379) 3,234 18,089Net funds at 30 June 2004 37,045 18,956 18,956 Net funds at 31 December 2004 36,666 22,190 37,045 Statement of Total Recognised Gains and LossesFor the half-year ended 31 December 2004 Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Profit for the financial period 4,803 4,570 18,157Currency translation differences on foreign 556 175 (224)currency net investments 5,359 4,745 17,933 Total recognised gains relating to the financialperiod Reconciliation of Movements in Shareholders' FundsFor the half-year ended 31 December 2004 Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Profit for the financial period 4,803 4,570 18,157Dividends (1,798) (1,529) (4,487) 3,005 3,041 13,670 Other recognised gains and losses relating to the 556 175 (224)financial periodPurchase of own shares - (1,882) (1,883)New share capital subscribed 396 739 811 Net increase in shareholders' funds for the 3,957 2,073 12,374financial periodOpening shareholders' funds 63,825 51,451 51,451 Closing shareholders' funds 67,782 53,524 63,825 Equity shareholders' funds 67,582 53,324 63,625Non-equity shareholders' funds 200 200 200 67,782 53,524 63,825 Notes to the Accounts 1. Basis of preparation The interim financial statements, which are unaudited, have been prepared on thebasis of accounting policies as set out in the annual report and accounts forthe year ended 30 June 2004. 2. Taxation Taxation has been provided at the rate of 30.9% (2003: 30.0%). 3. Dividends The interim dividend is payable on 26 May 2005 to those shareholders on theregister at the close of business on 29 April 2005. The preference dividend,which was paid on 31 December 2004, is in respect of 5.5% cumulative preferenceshares. The next preference dividend is payable on 30 June 2005 to thosepreference shareholders on the register at the close of business on 20 May 2005. 4. Calculation of earnings per ordinary share Half-year Half-year Year ended ended ended 31.12.04 31.12.03 30.6.04 £'000 £'000 £'000 Profit on ordinary activities after taxation 4,803 4,570 18,157Preference dividend (6) (6) (11) Basic earnings 4,797 4,564 18,146Goodwill amortisation charge 100 86 173Exceptional item - - (8,637) Headline earnings 4,897 4,650 9,682 Weighted average number of ordinary shares in issue 25,180,052 25,048,866 25,137,174Weighted average number of ordinary shares in issue 25,301,848 25,191,875 25,293,497 (diluted for the effect of outstanding shareoptions)Headline earnings per ordinary share 19.4p 18.6p 38.5pBasic earnings per ordinary share 19.1p 18.2p 72.2pDiluted earnings per ordinary share 19.0p 18.1p 71.7p 5. Statutory accounts The figures for the year ended 30 June 2004 are an abridged statement of thegroup audited accounts for that year. The audited accounts, containing anunqualified audit report, have been delivered to the Registrar of Companies. 6. Copies of the interim results Copies of the interim results have been sent to shareholders. Further copiescan be obtained from the company's registered office, Beechfield, HollinhurstRoad, Radcliffe, Manchester M26 1JN. This information is provided by RNS The company news service from the London Stock Exchange