Latham Timber Regulatory News (LTHM)

24 Jun 2005 07:00

Latham(James) PLC24 June 2005 James Latham plc Announcement of Preliminary Results for the year ended 31 March 2005 andChairman's Statement Results Turnover for the year, including the new depot at Gateshead, is £108,240,000, an11.0% increase on last year's £97,546,000. Operating profit is £3,597,000 against £2,791,000 last year, an increase of28.9%. Including the profit on the disposal of the Company's Clapton site, the profitbefore tax is £21,832,000 against last year's £3,029,000. Excluding the profiton the disposal, the pre-tax profit is £4,026,000. This is 32.9% higher thanlast year. Profit after tax is £17,502,000 (£2,970,000 excluding the profit on thedisposal) against last year's £2,108,000. Final Dividend The Directors recommend a final dividend of 3.7p per Ordinary Share (20043.125p). This is to be paid on 15 August 2005 to Shareholders on the registerat the close of business on 15 July 2005. The shares will become ex-dividend on13 July 2005. The total dividend per Ordinary Share (including the Special Dividend of 7.5ppaid in January 2005) of 12.7p for the year is covered 6.8 times by earnings.Excluding the Special Dividend and profit on Clapton, the total of 5.2p for theyear is covered 2.8 times by earnings. This compares with a total dividend lastyear of 4.5p which was covered 2.3 times. Previous dividends have beenre-stated to reflect the division of Ordinary Shares from £1.00 to £0.25. The Financial Year 2004/05 The Group has had a better year, particularly in the first half. Lathams Ltd, the panels and timber distributor, enhanced its sales, gross marginand net profit. The diverse customer base was generally busy and some, albeittemporary, price increases helped the margins. The acquisition of the Felling branch of F H Thompson & Sons Ltd was concludedon 31 August 2004 and from that date has traded as James Latham Gateshead. Weexpect it to contribute to Group profits in 2005/06. Nevill Long Ltd, the ceiling, drylining and partitioning systems distributor,produced an excellent increase in net profit. Sales, margins and profit allimproved, and during the year they strengthened their position in themarketplace. The £17,806,000 profit on the sale of the Clapton premises was exceptional andcomes at an opportune time. As previously reported, the defined benefit pensionscheme remains in deficit, and the Group's contributions will need to beincreased soon to eliminate the shortfall over a number of years. To date, £8,500,000 of the proceeds of the disposal have been received withfurther secured payments due in December 2005, 2006 and 2007. Current Financial Year 2005/06 The outcome for 2005/06 is difficult to predict at this early stage in thefinancial year. Our sales in April and May, however, on a like for like basis,are comfortably ahead of last year although competition is intensifying. Some customers are uneasy that declining consumer spending could adverselyaffect their business and we cannot rely on price increases in the current yearto enhance our margins. The Board of Directors The current Chairman, Roger Latham, on reaching retirement age on 16 December2006, will retire on that date. Peter Latham has been appointed Deputy Chairman as from today's date and willsucceed Roger Latham. Pippa Latham will become a Non-Executive Director from 1 September 2005. Roger LathamChairman24.06.05 CONSOLIDATED PROFIT AND LOSS ACCOUNT JAMES LATHAM PLCFor the year ended 31 March 2005 2005 2004 £'000s £'000s Turnover 108,240 97,546 Cost of sales (89,876) (81,427)Gross profit 18,364 16,119 Selling and distribution costs (8,547) (7,701)Administrative expenses (6,402) (5,850)Other operating income 182 223 (14,767) (13,328)Operating Profit 3,597 2,791 Share of operating profit of associated undertaking - 4Profit on disposal of associated undertaking - 18Profit on disposal of fixed asset 17,806 -Interest receivable and similar income 764 444Interest payable and similar charges (335) (228)Profit on ordinary activities before taxation 21,832 3,029Tax on profit on ordinary activities (4,330) (921)Profit on ordinary activities after taxation 17,502 2,108 Dividends (including non-equity dividends) (2,611) (875)Retained profit 14,891 1,233 Earnings per ordinary share 86.6p 10.2pDiluted Earnings per ordinary share 86.6p 10.2pEarnings per ordinary share excluding sale of Clapton 14.4p 10.2p CONSOLIDATED BALANCE SHEET JAMES LATHAM PLCAs at 31 March 2005 2005 2004 (as restated: note 2) £'000s £'000s Fixed assets Intangible fixed assets 740 385Tangible fixed assets 11,823 12,976 12,563 13,361Current assets Stocks - goods for resale 18,645 14,668Debtors amounts falling due within one year 30,269 22,249Debtors: amounts falling due after more than one year 7,753 -Cash at bank and in hand 148 590 56,815 37,507Creditors: amounts falling due within one year (22,364) (19,867)Net current assets 34,451 17,640 Total assets less current liabilities 47,014 31,001Creditors: amounts falling due after more than one year (3,510) (2,707)Provisions for liabilities and charges Deferred taxation (442) -Other provisions (339) (367)Total net assets 42,723 27,927 Represented by:Capital and reserves Called up share capital 6,027 6,027Less investment in own shares (300) (205)Capital reserve 3 3Revaluation reserve 758 149Profit and loss account 36,235 21,953Shareholders' funds 42,723 27,927 Attributable to equity shareholders 41,736 26,940Attributable to non-equity shareholders 987 987 CONSOLIDATED CASH FLOW STATEMENT JAMES LATHAM PLCFor the year ended 31 March 2005 2005 2004 £'000s £'000s Cash flow from operating activities (336) 1,978 Dividend received from associated undertaking - 18Returns on investments and servicing of finance Interest received and similar income 493 444Interest paid (311) (223)Preference dividend paid (79) (79)Net cash inflow from returns on investments and servicing of finance 103 142Taxation (2,020) (624) Capital expenditure and financial investment Purchase of tangible fixed assets (395) -Purchase of tangible fixed assets (1,301) (624)Purchase of own shares (312) (74)Proceeds of sale of own shares 211 1Proceeds of sale of tangible fixed assets 6,613 26Net cash flow from capital expenditure and financial investment 4,816 (671)Acquisition and disposals Proceeds on sale of investment in associated undertaking - 392Equity dividends paid (2,416) (820) Cash inflow before management of liquid resources and financing 147 415Financing Bank loans repaid during year (714) (523) Other creditors - (700) Finance lease capital obtained during the year 66 - Finance lease repayments in the year (26) - Bank loans obtained during the year 1,500 - Net cash inflow/(outflow) from financing 826 (1,223) Increase/(decrease) in cash for the year 973 (808) Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash for the year 973 (808) Cash (inflow)/outflow from financing (826) 1,223 Movement in net debt for the year 147 415 Net debt at 1 April 2004 (4,219) (4,634) Net debt at 31 March 2005 (4,072) (4,219) RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDSFor the year ended 31 March 2005 2005 2004 £'000s £'000s Profit for the financial year 17,502 2,108Change in investment in own shares (95) (205)Dividends (2,611) (975)Net addition to shareholders' funds 14,796 928 Opening shareholders' funds 27,927 26,999 Closing shareholders' funds 42,723 27,927 Notes to the preliminary announcement 1. The financial information in this announcement does not constitutestatutory accounts as defined in section 240 of the companies Act 1985.Statutory accounts for the previous financial year ended 31 March 2004 have beendelivered to the Registrar of Companies. The auditors' report on those accountswas unqualified and did not contain any statement under section 237(2) or (3) ofthe Companies Act 1985. The auditors have indicated that they intend to give anunqualified report, and will not contain any statement under section 237(2) or(3) of the Companies Act 1985, on the statutory accounts for the year ended 31March 2005. Copies of the Company's Report and Accounts will be sent toshareholders shortly and will be available at the registered office of thecompany: Unit 3, Swallow Park, Finway Road, Hemel Hempstead, Herts HP2 7QU. 2. The consolidated accounts include the accounts of the Company and itssubsidiary undertakings and have been prepared using acquisition accountingprinciples. The presentation of the balance sheet has been amended to takeaccount of the adoption of UITF38 on Share Option Schemes, and the prior yearfigures have been amended. 3. The basic earnings per share are calculated on the weighted averagenumber of shares in issue during the year of 20,108,000 (2004: 19,832,000). Thefully diluted earnings per share takes account of the outstanding options whichresults in a weighted average number of shares in issue during the year of20,108,000 (2004: 19,932,000). 4. The directors recommend payment of a final dividend of 3.7p perordinary share (2004: 3.125p). This information is provided by RNS The company news service from the London Stock Exchange