TIDMALY
RNS Number : 9013J
Ashley (Laura) Hldgs PLC
10 April 2015
10 April 2015
LAURA ASHLEY HOLDINGS plc
("the Group")
Laura Ashley Holdings plc announces its results for the 53 weeks
to 31 January 2015.
Summary
-- Profit before taxation up 14.6% to GBP23.5m (2014: GBP20.5m).
-- Total Group sales up 3.1% to GBP303.6m, 53 weeks (2014: GBP294.5m, 52 weeks).
-- Full year retail Like-for-Like sales up 1.3%.
-- 2(nd) half Like-for-Like sales up 1.5%.
-- Online growth of 8.6%.
-- EPS up 16.7% to 2.51p (2014: 2.15p).
-- Strong Balance Sheet with GBP27.8m cash at the year end.
-- Final dividend proposed of 1.0p per share making a total
dividend of 2.0p per share for the year (2014: Total dividend 3.5p
per share).
-- Current trading shows Like-for-Like sales growth of 3.0%.
Commenting on the results, Tan Sri Dr. K P Khoo, Chairman,
said:
Set against the ongoing challenges of a competitive retail
sector, I am pleased to report year on year increases of 3.1% in
sales and 14.6% in profit before taxation. I am particularly
pleased with our strong online growth and the enhancements made to
our digital platform. This gives us the ability to showcase our
distinctive products and bring our iconic British brand to a
broader, worldwide consumer base. I am also very proud that over
35% of all retail Home sales come from products manufactured in the
UK.
We are committed to developing and growing the international
franchise, licensing and online business as well as focussing on
giving a high quality, multi-channel experience to our domestic and
international customers.
We are optimistic that the growth of recent years will continue
as we develop, grow and improve our product ranges and optimise our
business model. The strength and appeal of our Brand, allied to the
enduring loyalty of our many worldwide customers, gives us
confidence for future growth.
Enquiries:
Laura Ashley Holdings plc KC Ng
CEO
Seán Anglim CFO / Joint COO 020 7880 5100
Media Enquiries
Brunswick
Anita Scott
Helen Smith 020 7404 5959
Corporate Broker
Cantor Fitzgerald Europe
Richard Redmayne
Mark Percy 020 7894 7000
Overview
For the 53 weeks to 31 January 2015, profit before taxation
including exceptional items was up 14.6% to GBP23.5 million (2014:
GBP20.5 million). Profit before taxation excluding exceptional
items was up 18.7% to GBP22.9 million (2014: GBP19.3 million).
During the 53 week period (last year : 52 weeks), total Group
sales grew by GBP9.1 million (3.1%) to GBP303.6 million compared to
the previous year of GBP294.5 million. Full year retail
Like-for-Like sales were up by 1.3% on 2014. Like-for-Like
performance was up 1.2% in the first half and up 1.5% in the second
half.
Retail space fell by 25,000 square feet (3.2%), as the UK store
portfolio decreased by 4 stores, from 209 to 205.
Gross margin rate was flat year on year and operating expenses
fell by 0.8% to GBP105.3 million, (2014: GBP106.1 million).
Cash Flow and Balance Sheet
Cash generated from operations in the year was GBP23.8 million
(2014: GBP16.8 million). A net increase in cash balances over the
year of GBP3.7 million was recorded with the Group holding GBP27.8
million in cash at the year-end (2014: GBP24.1 million). Dividends
of GBP21.8 million were paid during the year.
Dividend
The Board has recommended a final dividend of 1.0 pence per
share. When taken with the interim dividend of 1.0 pence per share
paid on 1 October 2014, the total dividend for the year is 2.0
pence per share (2014: Total dividend of 3.5 pence per share). This
dividend will be proposed at the forthcoming AGM and, subject to
shareholders' approval, will be paid on 3 July 2015 to all
shareholders on the Register at close of business on 12 June 2015.
The ex dividend date will be 11 June 2015.
The Board will continue to review dividend payments on the basis
of annual profitability, the economic climate and the needs of the
business.
UK Retail
As at 31 January 2015, the property portfolio in the UK
comprised 205 stores (2014: 209). We have five store types: 125
Mixed Product stores (selling all product categories), 49 Home
stores (selling Home products only), 26 Home concession stores, 4
Gifts & Accessories stores and 1 Clearance outlet.
During the year ended 31 January 2015, we opened 3 new stores
and closed 7 stores. As a result, total selling space fell by 3.2%
to 761,000 square feet.
With growth of 8.6% over last year, our E-Commerce channel
played a key part in our multi-channel retail strategy. 17.8% of
total UK retail sales (16.0% of total Group sales) were generated
through our digital platforms. Laura Ashley now operates a fully
translated French site and also delivers its full product range to
Germany, Austria, Italy and Switzerland, in addition to the UK. A
fully translated German site will be launched later this year.
Our Interior Design Service has continued to evolve, improve and
differentiate us from the rest of the High Street. Turnover
generated by Interior Design has grown by 10% over last year.
Product
The UK business is split into four main categories. For the
financial year ended 31 January 2015, the relative split of UK
sales is as follows: Furniture 30%, Home Accessories 30%,
Decorating 23% and Fashion 17%.
Over 35% of our home furnishings sales are from products
manufactured in the UK.
Furniture
The Furniture product category includes upholstered and cabinet
furniture, beds and mirrors.
Total Furniture sales decreased by 0.3% (LFL +0.5%) for the year
ended 31 January 2015.
This category's performance was encouraging in an increasingly
competitive market. We have seen particular success in bedroom
furniture, mattresses and with our newer, wooden furniture ranges.
The quality, design and diversity of our ranges differentiate us
from the competition in this category. All of our bespoke
upholstered furniture is manufactured in the UK to the highest
standards for both our domestic and commercial customers.
Home Accessories
During the year ended 31 January 2015, sales of Home Accessories
increased by 3.5% (LFL +4.8%).
Continued growth in this category has been based on ever
improving and broader product ranges. From classic to contemporary
styles, our bed linen, lighting ranges, gift items and soft
furnishings have continued to enhance our overall Home offering. We
aim to maintain growth in this category with particular emphasis on
our new kitchen ranges and our expanded seasonal offering.
Decorating
This category includes curtains, blinds, fabric, paint,
decorative accessories and wall coverings.
During the year ended 31 January 2015, Decorating sales fell by
1.5% (LFL -0.9%).
The Laura Ashley handwriting is defined by both the rich
heritage and design led nature of our decorating product. The brand
is synonymous with its printed fabric and wallpaper ranges, which
underpin and inspire the Home Collections. All of our bespoke
curtains, wallpaper and paint are manufactured in our own factory
in the UK. This is a source of great pride to us.
Fashion
For the year ended 31 January 2015, UK retail Fashion sales
decreased by 2.8% (LFL -0.1%).
Our fashion product continues to receive very positive feedback
from our customers despite its flat, year-on-year performance. We
are continuing to review quality, price, style and fit, and are
encouraged by responses to our collections due to be in store later
this year.
International Operations
Generating 10.3% of total Group revenue, our international
Franchising operations are a very important part of our business
and, as at 31 January 2015, there were 303 (2014: 286) franchised
stores in 30 territories worldwide. Further franchise agreements
are expected to be signed later this year.
In spite of overall store growth, franchise revenues fell by
1.5% to GBP27.8 million over the year. This was largely due to a
weaker Japanese economy and the challenges facing some mainland
European economies.
Licensing income increased by 3.0% to GBP3.4 million reflecting
good levels of organic growth amongst a stable Licensee base.
Several new License agreements are expected to be approved during
the current year.
Exceptional Items.
A net gain of GBP0.6 million was recorded in the year. This
primarily reflects the gain on disposal of a freehold property.
Hotels
Turnover from the Manor hotel grew by 37% to GBP1.9 million
during the year.
A second Laura Ashley branded hotel, The Belsfield, was opened
during the year under license. Located on the shores of Lake
Windermere, this stunning retreat has been well received by both
customers and media alike.
Current Trading and Outlook
In the first two months of the current financial year, we have
achieved Like-for-Like sales growth of 3.0%. Whilst the consumer
markets in which the Group operates face a number of challenges, we
are encouraged by this growth and believe that we can maintain this
for the foreseeable future.
Acknowledgements
The success of the Group is due, in no small part, to the hard
work and commitment of the staff, management and my fellow Board
members. For this, I wish to convey my thanks and appreciation.
I would like to thank our customers, shareholders, suppliers and
bankers for their continued support and loyalty to the Group
Group Statement of Comprehensive Income
For the financial year ended 31 January
2015
2015 2014
Notes GBPm GBPm
-------------------------------------------------- ------ -------- -----------------
Revenue 5 303.6 294.5
Cost of sales (174.5) (169.3)
-------------------------------------------------- ------ -------- -----------------
Gross profit 129.1 125.2
Operating expenses (105.3) (106.1)
-------------------------------------------------- ------ -------- -----------------
Profit from operations 23.8 19.1
Share of operating (loss)/ profit of
associate (0.5) 0.5
Dividend received - 0.1
Finance income - 0.2
Finance costs (0.4) (0.6)
-------------------------------------------------- ------ -------- -----------------
Profit before taxation and exceptional
items 22.9 19.3
Exceptional items 0.6 1.2
-------------------------------------------------- ------ -------- -----------------
Profit before taxation 23.5 20.5
Taxation 6 (5.2) (4.8)
-------------------------------------------------- ------ -------- -----------------
Profit for the financial year* 18.3 15.7
Other comprehensive income:
Actuarial (loss)/ gain on defined benefit
pension schemes (9.4) 1.9
Deferred tax effect 2.0 (0.4)
-------------------------------------------------- ------ -------- -----------------
Total that will not be subsequently reclassified
to profit and loss (7.4) 1.5
-------------------------------------------------- ------ -------- -----------------
Exchange differences on translation of
investments 2.3 (0.2)
Other reserve movements (3.4) (0.7)
Available-for-sale investment transferred
to income statement - (1.8)
-------------------------------------------------- ------ -------- -----------------
Total that may be subsequently reclassified
to profit and loss (1.1) (2.7)
-------------------------------------------------- ------ -------- -----------------
Other comprehensive expense for the year
net of taxation (8.5) (1.2)
-------------------------------------------------- ------ -------- -----------------
Total comprehensive income for the year 9.8 14.5
-------------------------------------------------- ------ -------- -----------------
*Earnings per share - basic and diluted
- calculated based on profit for the
financial year 2 2.51p 2.15p
Adjusted earnings per share (excluding
exceptional items) 2 2.43p 1.99p
Group Balance Sheet
As at 31 January 2015
Group
------------------------------
2015 2014
Notes GBPm GBPm
---------------------------------- ------ --------------- -------------
Non-current assets
--------------- -------------
Intangible assets 2.0 2.4
Property, plant and equipment 21.2 23.3
Deferred tax assets 3.6 1.9
Investment in associate 3.7 4.4
Investment in subsidiaries - -
30.5 32.0
Current assets
--------------- -------------
Inventories 51.0 52.3
Trade and other receivables 22.1 32.2
Cash and cash equivalents 4 27.8 24.1
--------------- -------------
100.9 108.6
---------------------------------- ------ --------------- -------------
Total assets 131.4 140.6
---------------------------------- ------ --------------- -------------
Current liabilities
Current tax liabilities 2.1 2.1
Trade and other payables 66.7 79.9
--------------- -------------
68.8 82.0
Non-current liabilities
--------------- -------------
Retirement benefit liabilities 17.8 8.8
Deferred tax liabilities 0.2 0.3
Provisions and other liabilities 0.7 0.9
--------------- -------------
18.7 10.0
---------------------------------- ------ --------------- -------------
Total liabilities 87.5 92.0
---------------------------------- ------ --------------- -------------
Net assets 43.9 48.6
---------------------------------- ------ --------------- -------------
Equity
Share capital 37.3 37.3
Share premium 86.4 86.4
Own shares (0.8) (0.8)
Retained earnings (79.0) (74.3)
---------------------------------- ------ --------------- -------------
Total equity 43.9 48.6
---------------------------------- ------ --------------- -------------
Group Statement of Changes in Shareholder's Equity
As at 31 January 2015
Share Share Retained Total
Capital Premium Own Shares Earnings Equity
GBPm GBPm GBPm GBPm GBPm
------------------------------ -------- -------- ------------ ---------- -------
Balance as at 26 January 2013 37.3 86.4 (0.8) (63.4) 59.5
Profit for the financial year - - - - 15.7 15.7
Dividends paid - - - (25.4) (25.4)
Other comprehensive expense - - - (1.2) (1.2)
------------------------------ -------- -------- ------------ ---------- -------
Balance as at 25 January 2014 37.3 86.4 (0.8) (74.3) 48.6
Profit for the financial year - - - 18.3 18.3
Dividends paid - - - (14.5) (14.5)
Other comprehensive expense - - - (8.5) (8.5)
------------------------------ -------- -------- ------------ ---------- -------
Balance as at 31 January 2015 37.3 86.4 (0.8) (79.0) 43.9
------------------------------ -------- -------- ------------ ---------- -------
Group Statement of Cash Flow
For the financial year ended 31 January 2015
Group
--------------
2015 2014
Note GBPm GBPm
Operating activities
------ ------
Net cash inflow generated from operations 3 23.8 16.8
Corporation tax paid (5.2) (5.4)
Dividends paid (21.8) (18.1)
Dividends received 0.1 0.3
Finance income - 0.2
Finance costs (0.4) (0.6)
------ ------
(3.5) (6.8)
Investing activities
------ ------
Purchase of property, plant and equipment (1.8) (3.2)
Purchase of intangible assets (0.2) (0.5)
Sale of investment in shares 8.0 -
Sale of property, plant and equipment 1.2 -
------ ------
7.2 (3.7)
------------------------------------------ ---- ------ ------
Net increase/(decrease) in cash and
cash equivalents 3.7 (10.5)
------------------------------------------ ---- ------ ------
1 Basis of Preparation
Consolidated financial statements and accounting policies
The preliminary announcement for the year ended 31 January 2015
has been prepared in accordance with International Accounting
Standards ("IAS") and International Financial Reporting Standards
("IFRS") as adopted by the European Union.
These consolidated financial statements have been prepared using
the historical cost convention, modified for certain items carried
at fair value, as stated in the accounting policies. Details of the
accounting policies applied are those set out in Laura Ashley
Holdings Plc's Annual Report 2015.
The annual financial information presented in this announcement
for the year ended 31 January 2015 is based on, and is consistent
with, that in the audited financial statements of Laura Ashley
Holdings Plc and its subsidiaries ("the Group") for the year ended
31 January 2015, and those financial statements will be delivered
to the Registrar of Companies following the Company's Annual
General Meeting. The auditor's report on those financial statements
is unqualified and does not contain any statement under Section
498(2) or (3) of the Companies Act 2006.
Statutory Accounts
Information in this preliminary announcement does not constitute
statutory accounts of the Group within the meaning of Section 434
of the Companies Act 2006. Statutory accounts for the year ended 25
January 2014 have been filed with the Registrar of Companies. The
auditor's report on these accounts was unqualified and did not
contain any statement under Section 498 of the Companies Act
2006.
The Group's Annual Report for the year ended 31 January 2015
will be made available in due course and can be viewed and
downloaded from the Group's website at www.lauraashley.com. The
Annual Report will be circulated in late April 2015 to those
shareholders who have elected to receive a copy in printed
form.
2 Earnings per Share
Earnings per share is calculated by dividing the profit for the financial year by the weighted
average number of ordinary shares during the year (excluding treasury shares of 18,272,500).
2015 2014
------------------------------------------------------------ ---------- ------------------- --------------------
Profit for the financial year (GBPm) 18.3 15.7
Exceptional gain (GBPm) 0.6 1.2
Weighted average number of ordinary shares ('000) - basic and diluted 727,763 727,763
Earnings per share 2.51p 2.15p
Adjusted earnings per share (excluding exceptional items) 2.43p 1.99p
------------------------------------------------------------------------- ------------------- --------------------
3 Reconciliation of Profit from Operations to Net Cash Inflow from Operations
2015 2014
GBPm GBPm
------------------------------------------------------------ ---------- ------------------- --------------------
Profit from operations 23.8 19.1
Exceptional gain/ (loss) 0.6 (2.0)
Exchange losses - 1.1
Amortisation charge 0.6 0.4
Depreciation charge 2.9 3.2
(Profit)/loss on disposal of property, plant and equipment (0.5) 0.3
Exchange movement on property, plant and equipment 0.1 -
Decrease/(increase) in inventories 1.3 (4.9)
Decrease/(increase) in receivables 2.1 (1.6)
(Decrease)/increase in payables (5.9) 1.0
Movement in provisions (1.2) 0.2
Net cash inflow from operations 23.8 16.8
------------------------------------------------------------- ---------- ------------------- --------------------
4 Analysis of Net Funds
At 25 Jan Cash At 31 Jan
2014 Flow 2015
GBPm GBPm GBPm
------------------------------------------------------------ ---------- ------------------- --------------------
Cash and cash equivalents 24.1 3.7 27.8
------------------------------------------------------------- ---------- ------------------- --------------------
5 Segmental Analysis
---------------------Retail------------------
E-Commerce Total Total
Stores & Mail Order Hotel Retail Non-Retail Total
2015 GBPm GBPm GBPm GBPm GBPm GBPm
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Revenue 220.6 48.5 1.9 271.0 32.6 303.6
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Contribution 19.6 9.6 (0.4) 28.8 13.4 42.2
Share of loss of
associate - (0.5) (0.5)
Indirect overhead
costs (18.4) - (18.4)
Finance costs (0.4) - (0.4)
Exceptional items 0.6 - 0.6
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Profit before taxation 10.6 12.9 23.5
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
---------------------Retail------------------
E-Commerce Total Total
Stores & Mail Order Hotel Retail Non-Retail Total
2014 GBPm GBPm GBPm GBPm GBPm
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Revenue 215.6 44.7 1.4 261.7 32.8 294.5
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Contribution 16.3 8.8 (0.5) 24.6 14.7 39.3
Share of profit
of associate - 0.5 0.5
Dividend income - 0.1 0.1
Indirect overhead
costs (20.2) - (20.2)
Finance income 0.2 - 0.2
Finance costs (0.6) - (0.6)
Exceptional items 1.2 - 1.2
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
Profit before taxation 5.2 15.3 20.5
----------------------- ------------ ---------------------- ----------- ------ ---------- ------
The reported segments are consistent with the Group's internal
reporting for performance measurement and resources allocation. The
Group does not allocate indirect overhead costs between its retail
and non-retail segments. As significant elements of the indirect
overhead costs arise from the retail segment, it is decided that
the entire indirect costs are allocated to this segment.
Retail revenue reflects sales through Laura Ashley's Managed
Stores, Mail Order, e-Commerce and Hotel. Non-retail revenue
includes Licensing, Franchising and Manufacturing. Contribution is
stated after deducting direct operating expenses, buying, marketing
and administrative costs.
5 Segmental Analysis (continued)
Non-Current Assets Revenue
2015 2014 2015 2014
GBPm GBPm GBPm GBPm
Destination
UK & Ireland 26.8 27.6 273.9 264.3
Continental Europe - - 3.7 4.0
Other 3.7 4.4 26.0 26.2
-------------------- --------- --------- ----- ------
30.5 32.0 303.6 294.5
-------------------- --------- --------- ----- ------
6. Taxation
The taxation charge for the year comprises taxation for the
Group and the associate entity on current and prior years' taxable
profits.
The effective tax rate for the current year is higher than the
rate of UK Corporation tax primarily due to the decrease in the
Group's overall deferred tax asset due to the reduction in the UK
tax rate and non-relievable losses arising in Japan.
In the previous year, the effective tax rate was lower than the
rate of UK Corporation tax mainly due to capital gains being
covered by capital losses in the Group, which eliminate the impact
of excess depreciation over capital allowances, the decrease in the
Group's overall deferred tax asset due to the reduction in the UK
tax rate and the higher rate in Japan.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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