TIDMALY
RNS Number : 9509S
Ashley (Laura) Hldgs PLC
23 March 2016
23(rd) March 2016
LAURA ASHLEY HOLDINGS plc
("the Group")
Laura Ashley Holdings plc announces its second interim results
for the 52 weeks to 30 January 2016.
Summary
-- Profit before tax and exceptional items of GBP20.7m (2015: GBP22.9m - 53 week period).
-- Profit after tax and exceptional items of GBP19.4m (2015: GBP23.5m - 53 week period).
-- Like-for-like retail sales up 4.8%.
-- Total Group sales down 4.6% to GBP289.5m (2015: GBP303.6m - 53 week period).
-- Online revenue up 5.3% (Like-for-like up 14.5%).
-- Hotel revenue increased by 29%.
-- GBP17.1m cash balance.
-- Interim dividend of 1.00 pence per share (2015 final dividend: 1.00 pence per share).
Commenting on the results, Tan Sri Dr Khoo Kay Peng, Chairman,
said:
"I am pleased with the performance and the underlying strength
of our core UK business, where healthy like-for-like sales growth,
across all product categories, has been achieved for another year.
We are proud of the performance of our Home Accessories category,
where our focus on innovation, quality and design has contributed
to an 8.7% rise in like-for-like sales.
Our online channel has continued to advance with like-for-like
growth of 14.5%, a reflection of our enhanced digital platform and
improved home delivery service.
We are encouraged by the strong growth achieved by our hotel,
which is now starting to realise its true potential both to the
Brand and the company.
We will continue to work with our overseas partners following a
challenging year for our international business. The acquisition of
our Asian Headquarters in Singapore signals our commitment to the
overseas business channel. Our plans for continued international
growth remain central to our strategy as a worldwide Brand.
We remain optimistic for the future and are confident that the
strength of the Brand and the enduring appeal of our product ranges
mean we are well positioned for continued growth."
Enquiries:
Laura Ashley Holdings plc
Kwan Cheong 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
Marc Milmo
Catherine Leftley 020 7894 7000
Overview
For the 52 weeks to 30 January 2016, total Group sales decreased
by 4.6% to GBP289.5m compared with the 53 week period last year
(2015: GBP303.6m) partly as a result of it being a 52 week period
but also because of continued challenging trading conditions for
our international operations. Like-for-like sales grew by 4.8% over
the same period. e-Commerce sales grew by GBP2.6m (5.3%) to
GBP51.1m (2015: GBP48.5m). Like-for-like e-Commerce sales grew by
14.5%.
Group profit before taxation, excluding exceptional items, fell
by 9.6% to GBP20.7m (2015: GBP22.9m). In the period, the Group
incurred an exceptional charge of GBP1.3m following its licence
partner in Australia being placed into voluntary administration.
Whilst the Group continues to discuss with the administrator the
future of the Australian operations, an exceptional charge has been
taken against the amounts owed to the Group by its licence partner.
Group profit before taxation, including exceptional items, fell by
17.4% to GBP19.4m (2015: GBP23.5m).
Operating expenses fell by 3.1% compared to the same period last
year.
Cash Flow and Balance Sheet
As at 30 January 2016, bank borrowings stood at GBP20.8m and the
cash balance was GBP17.1m. Inventory was in line with requirements.
The bank borrowings reflect the balance of the loan due in respect
of the property in Singapore which was acquired during the year.
The Group funded 35% of the transaction from its own cash
reserves.
Dividend
The Board has approved the payment of a second interim dividend
of 1.00 pence per share (2015 final dividend: 1.00 pence per
share). The second interim dividend will be paid on 8 July 2016 to
all shareholders on the register at the close of business on 17
June 2016. The ex-dividend date will be 16 June 2016.
UK Retail
As at 30 January 2016, the property portfolio in the UK
comprised 193 stores (January 2015: 205). The portfolio is as
follows: 118 Mixed Product stores, 49 Home stores, 24 Home
concession stores, 1 Gifts & Accessories store and 1 Clearance
outlet. During the year, three new stores were opened and fifteen
were closed, reducing total selling space by 3.8% to 732,000 square
feet.
Total UK non like-for-like retail sales decreased by 2.0% to
GBP262.1m (2015: GBP267.4m). This was due to the reduction in store
numbers and one less week's reported trade. Our UK retail business
performed in line with the overall retail market but ahead in some
product categories.
Total e-Commerce sales were up 5.3% on last year (LFL 14.5%) and
now represent 19.5% of total UK Retail sales (2014: 18.0%).
Product
The UK business is split into four main categories. For the 52
weeks ended 30 January 2016, the relative split of UK sales was as
follows: Home Accessories 31%, Furniture 30%, Decorating 22% and
Fashion 17%.
Furniture
The Furniture product category includes upholstered and cabinet
furniture, beds and mirrors.
Furniture sales for the 52 weeks to 30 January 2016 increased by
2.8% over the same period last year with like-for-like sales up
4.8%. The depth of choice within this category has facilitated its
growth, with twenty four wooden furniture ranges, six of which are
new, in a variety of colours and finishes, upholstery which is
available in over one hundred fabrics and an extended range of
beds, mattresses & mirrors. Further product development has
been added to the range in Spring / Summer 2016.
Home Accessories
The Home Accessories product category includes lighting, gifts,
bed linen, rugs, throws, cushions and children's accessories.
Home Accessories sales for the 52 weeks to 30 January 2016
increased by 5.6% over the same period last year, with
like-for-like performance up by 8.7%. This category continues to
grow on the back of innovative product development, range additions
and in particular, seasonal offerings. The quality and variety of
products complement and enhance our decorating themes and are what
sets us apart in this category and enabled us to outperform the
market.
Decorating
This category includes fabric, curtains, wallpaper, paint and
decorative accessories.
Decorating sales for the 52 weeks to 30 January 2016 fell by
1.1%, with like-for-like sales up 1.3%. The continued steady sales
growth of our decorating product category is particularly pleasing
given that it represents the essence of the Brand. A rich and
diverse combination of print, colour, design and texture helps to
both reflect our heritage whilst maintaining a contemporary feel.
Our best performing products in this category were our made to
measure and readymade curtains as well as our extensive paint
collection.
Fashion
This category includes adult fashion, fashion accessories and
perfumery.
Fashion sales for the 52 weeks to 30 January 2016 decreased by
4.0% over the same period last year, with like-for-like sales up
2.6%. We are pleased that we have been able to maintain
like-for-like growth over the whole year in what has been our most
challenging product category. A continued focus on quality, design
and print will ensure that this is maintained. Additionally, we
plan to broaden exposure of our fashion ranges as we forge new
partnerships with other retailers.
Hotel
The hotel has continued to improve steadily with further growth
over the 12 month period of 29%.
International Operations
Contributing 7.7% of total Group revenue, our international
Franchising and Licensing channels are an extremely important and
strategic part of our business. As at 30 January 2016, there were
270 franchised stores (303 as at 31 January 2015) in 29 territories
worldwide.
Franchise and Licensing revenue fell by 28.4% to GBP22.4m (2015:
GBP31.3m) during the 52 weeks to 30 January 2016. As commented upon
at the time of our interim results in September 2015, the primary
reason for this shortfall against last year was the performance of
the Japanese market. Following a rise in local sales tax (GST), a
weak Japanese Yen and a subdued domestic economy, demand in the 26
week period to 1 August 2015 was weak and, unfortunately, this slow
down continued. Further, continued political instability and
economic difficulties in other territories have also contributed to
a weak performance.
We will continue to work closely with our partners and remain
confident that these challenges will be overcome. Work continues on
establishing the Brand in new territories.
The acquisition of the Group's Asian head office in Singapore
will help lead our Brand expansion into the Asian territories.
Change of Accounting Reference date
As announced in September 2015, the Group has changed its
accounting reference date from the end of January to the end of
June. The Group will, therefore, announce its audited results for
the 17 month period to 30 June 2016 by the end of August 2016.
Current Trading and Outlook
Trading for the seven weeks to 20 March is down 0.4% on a
like-for-like basis.
Responsibility Statement
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- The interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the second
six months of the financial period and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remainder of the period;
and
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:00 ET (07:00 GMT)
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the second six
months of the current financial period and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last Annual Report that could do so.
By order of the Board
Seán Anglim
Chief Financial Officer
Condensed Group Statement of Comprehensive Income
For the 52 weeks ended 30 January 2016
52 weeks 53 weeks
to to
30 January 31 January
2016 2015
(unaudited) (audited)
Note GBPm GBPm
Revenue 2 289.5 303.6
Cost of sales (164.7) (174.5)
----------------------------------------- ----- ------------- ------------
Gross profit 124.8 129.1
Operating expenses (102.0) (105.3)
----------------------------------------- ----- ------------- ------------
Profit from operations 22.8 23.8
Share of operating loss of associate (1.3) (0.5)
Finance costs (0.8) (0.4)
----------------------------------------- ----- ------------- ------------
Profit before taxation excluding
exceptional items 20.7 22.9
Exceptional items (1.3) 0.6
----------------------------------------- ----- ------------- ------------
Profit before taxation 19.4 23.5
Taxation (4.1) (5.2)
----------------------------------------- ----- ------------- ------------
Profit for the financial period* 15.3 18.3
Other comprehensive income:
Actuarial gain/(loss) on defined
benefit pension scheme 2.4 (9.4)
Deferred tax effect (0.5) 2.0
----------------------------------------- ----- ------------- ------------
Total that will not be subsequently
reclassified to profit and loss 1.9 (7.4)
----------------------------------------- ----- ------------- ------------
Exchange differences on translation
of investments (0.4) 2.3
Other reserve movements (1.0) (3.4)
Total that may be subsequently
reclassified to profit and loss (1.4) (1.1)
----------------------------------------- ----- ------------- ------------
Other comprehensive profit/(loss)
for the period net of tax 0.5 (8.5)
----------------------------------------- ----- ------------- ------------
Total comprehensive income for
the period 15.8 9.8
----------------------------------------- ----- ------------- ------------
*Earnings per share - basic
and diluted 2.10p 2.51p
calculated based on profit for
the financial period
----------------------------------------- ----- ------------- ------------
The Group's results shown above are derived entirely from
continuing operations.
Condensed Group Balance Sheet
As at 30 January 2016
At 30 January At 31 January
2016 2015
(unaudited) (audited)
GBPm GBPm
Non-current assets
-------------- --------------
Intangibles 2.3 2.0
Property, plant and equipment 55.2 21.2
Deferred tax asset 3.0 3.6
Investment in associate 2.6 3.7
-------------- --------------
63.1 30.5
Current assets
-------------- --------------
Inventories 50.5 51.0
Trade and other receivables 18.2 22.1
Cash and cash equivalents 17.1 27.8
-------------- --------------
85.8 100.9
----------------------------------- -------------- --- --- --------------
Total assets 148.9 131.4
----------------------------------- -------------- --- --- --------------
Current liabilities
-------------- --------------
Current tax liabilities 1.8 2.1
Trade and other payables 65.0 66.7
Short-term borrowings 1.1 -
-------------- --------------
67.9 68.8
Non-current liabilities
-------------- --------------
Retirement benefit liabilities 15.0 17.8
Deferred tax liabilities 0.2 0.2
Long-term borrowings 19.7 -
Provisions and other liabilities 0.9 0.7
-------------- --------------
35.8 18.7
----------------------------------- -------------- --- --- --------------
Total liabilities 103.7 87.5
----------------------------------- -------------- --- --- --------------
Net assets 45.2 43.9
----------------------------------- -------------- --- --- --------------
Equity
Share capital 37.3 37.3
Share premium 86.4 86.4
Own shares (0.8) (0.8)
Retained earnings (77.7) (79.0)
----------------------------------- -------------- --- --- --------------
Total equity 45.2 43.9
----------------------------------- -------------- --- --- --------------
Condensed Group Statement of Changes in Shareholders' Equity
As at 30 January 2016
Share Share Own Retained Total
capital premium shares earnings equity
GBPm GBPm GBPm GBPm GBPm
------------------------------- --------- --------- -------- ---------- --------
Balance as at 25 January
2014 37.3 86.4 (0.8) (74.3) 48.6
Profit for the 53 weeks ended
31 January 2015 - - - 18.3 18.3
Dividend paid - - - (14.5) (14.5)
Other comprehensive loss - - - (8.5) (8.5)
------------------------------- --------- --------- -------- ---------- --------
Balance as at 31 January
2015 37.3 86.4 (0.8) (79.0) 43.9
Profit for the 52 weeks ended
30 January 2016 - - - 15.3 15.3
Dividend paid - - - (14.5) (14.5)
Other comprehensive income - - - 0.5 0.5
------------------------------- --------- --------- -------- ---------- --------
Balance as at 30 January
2016 37.3 86.4 (0.8) (77.7) 45.2
------------------------------- --------- --------- -------- ---------- --------
Condensed Group Cash Flow Statement
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:00 ET (07:00 GMT)
For the 52 weeks ended 30 January 2016
52 weeks 53 weeks
to to
30 January 31 January
2016 2015
(unaudited) (audited)
Note GBPm GBPm
Operating activities
------------- ---------------
Net cash inflow from operations 5 25.1 23.8
Corporation tax paid (4.4) (5.2)
Dividend paid (14.5) (21.8)
Dividend received - 0.1
Finance cost (0.5) (0.4)
------------- ---------------
5.7 (3.5)
Investing activities
------------- ---------------
Purchase of intangible
assets (1.0) (0.2)
Purchase of property, plant
and equipment (35.9) (1.8)
Sale of investment in shares - 8.0
Sale of property, plant
and equipment - 1.2
(36.9) 7.2
Financing activities
------------- ---------------
Bank loan received 21.3 -
Repayment of bank loan (0.5) -
Interest expense (0.3) -
-------------
20.5 -
Net (decrease)/increase
in cash and cash equivalents (10.7) 3.7
--------------------------------- ----- ------------- --- --- ---------------
Reconciliation of Net Cash Flow to movement in Net Funds
for the 52 weeks ended 30 January 2016
52 weeks 53 weeks
to to
30 January 31 January
2016 2015
(unaudited) (audited)
GBPm GBPm
----------------------------- -------------- --- --- -------------
Net (decrease)/increase in
cash and cash equivalents (10.7) 3.7
Net funds at the beginning
of the period 27.8 24.1
------------------------------ ------------------ --- -----------------
Net funds at the end of the
period 17.1 27.8
------------------------------ ------------------ --- -----------------
Notes
1 Basis of preparation
This condensed set of financial statements has been prepared in
accordance with the requirements of IAS 34 'Interim Financial
Reporting' as adopted by the European Union ('EU').
As required by the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority and other than described below, this
condensed set of financial statements has been prepared by applying
the accounting policies and presentation that were applied in the
preparation of the Company's published financial statements for the
financial year ended 31 January 2015, which were prepared in
accordance with International Financial Reporting Standards as
adopted by the EU.
No new or amended financial accounting standards have been
adopted in these financial statements.
The statutory audited accounts for the year ended 31 January
2015 have been delivered to the Registrar of Companies in England
and Wales. The Auditor's report on these accounts was unqualified
and did not contain statements under Section 498 of the Companies
Act 2006.
These twelve months condensed financial statements are
unaudited, not reviewed in accordance with 'International Standard
on Review Engagements (UK and Ireland) 2410' and do not constitute
statutory accounts within the meaning of Section 434(3) of the
Companies Act 2006.
2 Segmental analysis
52 weeks 53 weeks
to to
30 January 31 January
2016 2015
(unaudited) (audited)
GBPm GBPm
----------------------------- -------------- ------- ------------
Revenue
Retail:
------------- -------
Stores 212.2 220.6
e-Commerce & Mail Order 51.1 48.5
Hotel 2.5 1.9
------------- -------
Total Retail 265.8 271.0
Non-Retail 23.7 32.6
------------------------------ ------------- -------
Total Revenue 289.5 303.6
------------------------------ ------------- -------
Retail
Contribution:
------------- -------
Stores 19.7 19.6
e-Commerce & Mail Order 11.9 9.6
Hotel (0.3) (0.4)
------------- -------
Total contribution 31.3 28.8
Indirect overhead costs (18.5) (18.4)
Finance costs (0.8) (0.4)
Exceptional costs (1.3) 0.6
------------------------------ ------------- -------
Profit before taxation 10.7 10.6
------------------------------ ------------- -------
Non-Retail
Contribution 10.0 13.4
Share of associate loss (1.3) (0.5)
Profit before taxation 8.7 12.9
------------------------------ ------------- -------
Total Retail and Non-Retail
Contribution 41.3 42.2
Indirect overhead costs (18.5) (18.4)
Share of associated loss (1.3) (0.5)
Finance costs (0.8) (0.4)
Exceptional items (1.3) 0.6
------------------------------ ------------- -------
Profit before taxation 19.4 23.5
------------------------------ ------------- -------
2 Segmental analysis (continued)
52 weeks 53 weeks
to to
30 January 31 January
2016 2015
(unaudited) (audited)
GBPm GBPm
-------------------------- ------------- --- ------------
Non-Current Assets
Destination
UK, Ireland & France 60.5 26.8
Rest of the World 2.6 3.7
-------------------------- ------------- --- ------------
Total Non-Current Assets 63.1 30.5
-------------------------- ------------- --- ------------
Revenue
Destination
UK, Ireland & France 268.9 273.9
Continental Europe 2.8 3.7
Rest of World 17.8 26.0
Total Revenue 289.5 303.6
-------------------------- ------------- --- ------------
The reported segments are consistent with the Group's internal
reporting for performance measurement and resource allocation. The
Group does not allocate indirect overhead costs between its retail
and non-retail segments. As significant elements of the indirect
overhead costs, being head office expenditure, 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.
3 Taxation
Taxation has been calculated by applying the forecast full year
effective rate of tax in the individual fiscal territories to the
results for this period.
4 Earnings per share
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 03:00 ET (07:00 GMT)
Ashley (laura) (LSE:ALY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ashley (laura) (LSE:ALY)
Historical Stock Chart
From Apr 2023 to Apr 2024
