Last checked at 26 Nov 2009 07:50
JAMES LATHAM PLC
HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2009
Chairman's statement
I am pleased to report good results for the six months to 30 September 2009 despite difficult trading conditions in the sector and the UK economy as a whole. This has been achieved in spite of lower returns on the company's cash balance.
Results
Revenue for the six months to 30 September 2009 was £58,203,000 compared with £61,883,000 for the same period last year, representing a 5.9% decrease. The operating profit was £3,352,000, up from £3,167,000 last year. Profit before tax was £3,132,000, down from last year's £3,208,000. Earnings per ordinary share were 11.8p (2008: 7.7p which included a one off charge for the IFRS treatment of Industrial Building Allowances for deferred taxation purposes).
As at 30 September 2009 shareholder funds were £40.8m (30.9.2008: £39.9m) with cash and cash equivalents of £9.6m (30.9.2008: £4.6m).
Interim dividend
The Board has declared an interim dividend of 2.5p per Ordinary Share (2008: 2.0p), which is covered 4.7 times (2008: 3.9 times). The dividend is payable on 22 January 2010 to ordinary shareholders on the Company's Register at close of business on 4 January 2010. The ex-dividend date is 30 December 2009.
Six months trading to 30 September 2009
Group revenue has been improving on a month-by-month basis but was still almost 6% below the same six months last year. Cost prices were generally lower, but there was a marked increase in volumes. On average prices have fallen by 7% since 1 April 2009. Volume in the quarter ended 30 September 2009 was back to the level of September 2008. Sales of panel products, which had been slow for the first four months of 2009, showed a welcome recovery. Revenue from timber remained constant.
Trading margins have continued to improve from the low levels at the start of the year and for the 6 months were ahead of the same period last year. Overheads have been reduced as a result of the company's cost reduction programme and improved efficiency has enabled increasing volumes to be handled.
Pension scheme
The IAS19 valuation shows the scheme deficit increased to £8,514,000 from £5,244,000 in March. The reduction in AA grade bond yield assumptions from 7% to 5.6% has increased the present value of pension scheme liabilities, faster than scheme asset values have improved. This measure is however very volatile.
Current & future trading
The management accounts show a steady improvement in revenue for October and November. Uncertainty still pervades the UK economy. Future levels of activity in many sectors are unclear and this makes it difficult to predict future trading patterns. The level of bad debt has reduced since its peak last winter but there are signs that the number of insolvencies will increase again this winter. The Company's new Scottish branch continues to make steady progress and the move to larger premises at Fareham and Dudley is now contributing positively to the results. There are still plenty of opportunities to grow the business profitably and the company is very well placed to take full advantage of these.
Peter Latham
Chairman
26 November 2009
For Further Enquiries:
| James Latham Plc | |
| Peter Latham, Chairman | Tel: 01442 849 100 |
| David Dunmow, Finance Director | Tel: 01442 849 100 |
| Astaire Securities Plc | |
| Shane Gallwey, Director, Corporate Finance | Tel: 0117 933 0020 |
| JAMES LATHAM PLC | |||
| CONSOLIDATED BALANCE SHEET | |||
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| At 30 September 2009 | |||
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| As at 30 Sept. 2009 unaudited | As at 30 Sept. 2008 unaudited | As at 31 March 2009 audited | |
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| £000 | £000 | £000 |
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 237 | 237 | 237 |
| Intangible assets | 142 | 150 | 146 |
| Property, plant and equipment | 18,515 | 18,290 | 18,496 |
| Total non-current assets | 18,894 | 18,677 | 18,879 |
| Current assets | |||
| Inventories | 17,667 | 19,744 | 16,251 |
| Trade and other receivables | 24,516 | 26,659 | 21,334 |
| Cash and cash equivalents | 9,602 | 4,606 | 10,718 |
| Total current assets | 51,785 | 51,009 | 48,303 |
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| Total assets | 70,679 | 69,686 | 67,182 |
| Current liabilities | |||
| Trade and other payables | 16,594 | 18,591 | 14,914 |
| Current portion of interest bearing loans and borrowings | 21 | 21 | 21 |
| Current tax payable | 826 | - | 265 |
| Total current liabilities | 17,441 | 18,612 | 15,200 |
| Non-current liabilities | |||
| Interest bearing loans and borrowings | 1,009 | 1,030 | 1,020 |
| Retirement and other benefit obligation | 8,514 | 7,447 | 5,244 |
| Other payables | 898 | 639 | 886 |
| Deferred tax liabilities | 2,025 | 2,035 | 2,941 |
| Total non-current liabilities | 12,446 | 11,151 | 10,091 |
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| Total liabilities | 29,887 | 29,763 | 25,291 |
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| Net assets | 40,792 | 39,923 | 41,891 |
| Capital and reserves | |||
| Issued capital | 5,040 | 5,040 | 5,040 |
| Share-based payment reserve | 6 | - | 1 |
| Own shares | (213) | (107) | (139) |
| Capital reserve | 3 | 3 | 3 |
| Retained earnings | 35,956 | 34,987 | 36,986 |
| Total equity attributable to equity shareholders of the parent company | 40,792 | 39,923 | 41,891 |
| JAMES LATHAM PLC | |||
| CONSOLIDATED INCOME STATEMENT | |||
| For the six months to 30 September 2009 | |||
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| Six months to 30 Sept. 2009 unaudited | Six months to 30 Sept. 2008 unaudited | Year to 31 March 2009 audited | |
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| £000 | £000 | £000 |
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| Revenue | 58,203 | 61,883 | 113,904 |
| Cost of sales (including warehouse costs) | (47,750) | (51,634) | (95,759) |
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| Gross profit | 10,453 | 10,249 | 18,145 |
| Selling and distribution costs | (4,587) | (4,870) | (9,507) |
| Administrative expenses | (2,558) | (2,256) | (5,009) |
| Other operating income | 44 | 44 | 183 |
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| (7,101) | (7,082) | (14,333) | |
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| Operating profit | 3,352 | 3,167 | 3,812 |
| Finance income | 231 | 191 | 647 |
| Finance costs | (451) | (150) | (287) |
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| Profit before tax | 3,132 | 3,208 | 4,172 |
| Tax expense | (882) | (1,728) | (1,904) |
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| Profit after tax attributable to equity shareholders of the parent company | 2,250 | 1,480 | 2,268 |
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| Earnings per ordinary share (basic) | 11.8p | 7.7p | 11.8p |
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| Earnings per ordinary share (diluted) | 11.7p | 7.7p | 11.7p |
| All results relate to continuing operations. |
| JAMES LATHAM PLC | |||
| CONSOLIDATED CASH FLOW STATEMENT | |||
| For the six months to 30 September 2009 | |||
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| Six months to 30 Sept. 2009 unaudited | Six months to 30 Sept. 2008 unaudited | Year to 31 March 2009 audited | |
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| £000 | £000 | £000 |
| Net cash flow from operating activities | |||
| Cash generated from operations | 660 | (515) | 4,997 |
| Interest paid | (412) | (92) | (224) |
| Income tax (paid)/received | (277) | (799) | 461 |
| Net cash (outflow)/inflow from operating activities | (29) | (1,406) | 5,234 |
| Cash flows from investing activities | |||
| Interest received and similar income | 236 | 175 | 655 |
| Purchase of property, plant and equipment | (369) | (1,058) | (1,647) |
| Purchase of intangible asset | - | (5) | (4) |
| Proceeds from sale of property, plant and equipment | - | - | 46 |
| Proceeds from prior year sale of property and investment in subsidiary undertaking | - | 500 | 500 |
| Net cash outflow from investing activities | (133) | (388) | (450) |
| Cash flows before financing activities | |||
| Bank loans repaid during the period | - | (357) | (357) |
| Finance leases repaid during the period | (11) | (11) | (21) |
| Equity dividends paid | (813) | (1,179) | (1,562) |
| Preference dividend paid | (39) | (39) | (79) |
| Purchase of own shares | (91) | (150) | (186) |
| Sale of own shares | - | 310 | 313 |
| Purchase of treasury shares | - | (799) | (799) |
| Net cash outflow from financing activities | (954) | (2,225) | (2,691) |
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| (Decrease)/increase in cash and cash equivalents for the period | (1,116) | (4,019) | 2,093 |
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| Cash and cash equivalents at beginning of the period | 10,718 | 8,625 | 8,625 |
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| Cash and cash equivalents at end of the period | 9,602 | 4,606 | 10,718 |
| JAMES LATHAM PLC | |||
| CONSOLIDATED STATEMENT OF RECOGNISED | |||
| INCOME AND EXPENSE | |||
| For the six months to 30 September 2009 | |||
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| Six months to 30 Sept. 2009 unaudited | Six months to 30 Sept. 2008 unaudited | Year to 31 March 2009 audited | |
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| £000 | £000 | £000 |
| Profit after tax | 2,250 | 1,480 | 2,268 |
| Actuarial losses on pension scheme | (3,426) | (2,677) | (312) |
| Deferred tax effect of actuarial losses on pension scheme | 959 | 750 | 87 |
| Deferred tax on share-based payment | - | - | (39) |
| Total income and expense, attributable to equity shareholders of the parent company | (217) | (447) | 2,004 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||
| For the six months to 30 September 2009 | |||
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| Six months to 30 Sept. 2009 unaudited | Six months to 30 Sept. 2008 unaudited | Year to 31 March 2009 audited | |
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| £000 | £000 | £000 |
| Profit attributable to shareholders | (217) | (447) | 2,004 |
| Dividends | (813) | (1,179) | (1,562) |
| (1,030) | (1,626) | 442 | |
| Purchase of treasury shares | - | (799) | (799) |
| Change in investment in own shares | (74) | 322 | 126 |
| Change in Share-based payment reserve | 5 | (95) | 1 |
| Movement in the period | (1,099) | (2,198) | (230) |
| Opening shareholders' funds | 41,891 | 42,121 | 42,121 |
| Closing shareholders' funds | 40,792 | 39,923 | 41,891 |
| JAMES LATHAM PLC | |||
| NOTES TO THE HALF YEARLY REPORT | |||
| 1. The results presented in this report are unaudited and they have been prepared in accordance with the IFRS accounting policies set out in the Group accounts for the year ended 31 March 2009. | |||
| 2. The directors propose an interim dividend of 2.5p per ordinary share which will absorb £478,000 (2008: 2.0p absorbing £385,000), payable on 22 January 2010 to shareholders on the Register at the close of business on 4 January 2010. The ex-dividend date is 30 December 2009. | |||
| 3. This half yearly report does not constitute financial statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2009 were prepared and filed with the Registrar of Companies and received an unqualified audit report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. | |||
| 4. Copies of this statement will be sent to all shareholders and will also be available on written application to the Company Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road Hemel Hempstead, Herts, HP2 7QU. | |||