TIDMLTC
RNS Number : 4757T
Latchways PLC
08 June 2009
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8 June 2009
LATCHWAYS PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2009
Latchways plc is the world leader in the design, manufacture and sale of
engineered fall protection safety systems, which offer continuous protection to
individuals working at height. Latchways' systems are sold globally through a
network of trained installers to a legislation-driven marketplace. These systems
are used to provide worker safety on a diverse range of applications including
commercial rooftops, wind power turbines, electricity transmission towers,
aircraft wings and industrial plants.
Summary
* Record revenues achieved despite impact of global recession
* Strong cash generative track record maintained. Net cash at year end GBP4.8
million (2008: GBP4.5 million)
* Increased investment in sales resources and new products to generate new
business for the future
* Profit before tax and exceptional items reduced by 3% to GBP8.83 million (2008:
GBP9.12 million)
* Exceptional charge of GBP0.5 million (2008: GBP0.5 million) for losses on Euro
currency contracts to 31 March 2009
* Statutory profit before tax reduced by 4% to GBP8.31 million (2008: GBP8.62
million)
* Adjusted Diluted earnings per share down 5% to 54.82 pence (2008: 57.65 pence)
* Statutory Diluted earnings per share down 6% to 51.47 pence (2008:54.51 pence)
* Final dividend increased by 10% to 15.63 pence (2008: 14.21 pence)
* Total dividend for the year 23.44 pence (2008: 21.31 pence), a 10% increase
* Versirail guardrail systems, acquired in April 2008, exceeding expectations
* Launch of Sealed Self Retracting Lifeline range for offshore Oil/Gas market
Commenting on the results, Paul Hearson, Chairman, said
"After an excellent start to the financial year, second half revenues were
affected by the global economic downturn. The global picture for construction
related projects remains weak, and must be expected to remain so for some time.
However, the variety and scale of non-construction related prospects is
encouraging and we are confident that these will generate revenues for the
coming year.
We are debt free, with cash in the bank and strong cash generation. This gives
us the financial strength to steer the business through the current economic
conditions and take advantage of opportunities as they present themselves."
Enquiries:Latchways plcThreadneedle Communications
David Hearson, Chief Executive Graham Herring
Rex Orton, Financial Director Tel: 020 7936
9605
Tel: 01380 732700
8 June 2009
LATCHWAYS PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2009
Chairman's Statement
After an excellent start to the financial year, second half revenues were
affected by the global economic downturn. In particular, UK and North American
markets were affected by funding delays and reduced confidence among our end
customers, resulting in project deferrals and delays in approving capital spend.
Despite the marked deterioration in these markets, Latchways continued to make
progress in many areas, with mainland Europe and some less developed markets
performing well. Our new product ranges have been well received, with our latest
addition, the Versirail guardrail system acquired in April 2008, outperforming
our expectations. As a result, whilst operating profits have reduced 3%, group
revenues improved to record levels for the seventh consecutive year.
Results
Group revenue for the year ended 31 March 2009 was GBP37.0 million (2008:
GBP35.2 million), 5% ahead of last year.
Group profit before exceptional charges and taxation was 3% lower than last year
at GBP8.8 million (2008: GBP9.1 million).
Adjusted (pre-exceptional charge) diluted earnings per share reduced by 5% to
54.82 pence (2008: 57.65 pence). Statutory diluted earnings per share fell 6% to
51.47 pence (2008: 54.51 pence).
Net cash balances at year end were GBP4.8 million (2008: GBP4.5 million).
Exceptional Charge
An exceptional loss of GBP0.5 million (2008: GBP0.5 million) was incurred on
Euro denominated foreign exchange contracts for the year to 31 March 2009. Much
of the group's product sales are denominated in Euros, and forward contracts are
used to fix the profit on these sales. Losses were incurred on these contracts
throughout the year as they matured, together with unrealised losses on
unexpired contracts at the year end. As the group does not apply hedge
accounting the losses have been charged to the income statement.
Dividends
Despite the downturn in some parts of our business, cash flows across all parts
of the group have proven resilient, and we expect this to continue. Cash and
cash equivalents have increased despite the GBP1.7 million acquisition spend in
the year, and we are now completely debt-free. As a result, the board is
recommending a final dividend of 15.63 pence per share, a 10% increase over last
year's 14.21 pence. Taken together with the interim dividend of 7.81 pence, the
total dividend for the year of 23.44 pence per share represents a 10% increase
on 2008.
Our trading environment
Latchways has not been immune to the global economic crisis that has unfolded
over the past year. This has affected some of our market sectors, such as
construction. Other parts of the business have continued to perform well and the
level of opportunities that are presenting themselves is encouraging. The
challenge is to gain sufficient revenues to offset the more recession-affected
parts of the business.
Around a third of Latchways' revenues are directly exposed to the UK commercial
construction market, where the impact of the credit crunch and the recession has
been well documented elsewhere. Latchways has been impacted by this, and we have
seen reductions in revenues in the second half as a result.
We have also seen a marked downturn in the North American business, which is
also driven by the economic climate. The downturn has caused customers to reduce
maintenance budgets and capital spending plans, which has resulted in reduced
business for Latchways. However, this spend is expected to have been delayed
rather than cancelled.
Our primary European markets remain in good health and our customers continue to
report good prospects. Whilst some countries are performing better than others,
we remain cautiously optimistic for this segment for the coming year.
We believe that the relatively modest impact on our business last year of such a
severe economic downturn provides further evidence of the success of our long
term strategy, providing the highest quality fall protection solutions, backed
up by the best customer service, in our marketplace. The regulatory drivers that
underpin the long term demand for our products continue to strengthen, with more
countries embracing and enforcing fall protection legislation. The imperative is
for Latchways to maintain its position at the forefront of the industry.
The global recession has resulted in significant falls in the price of
commodities, specifically in our case stainless steel. Although the benefits of
this have been largely offset by the stronger US Dollar, this has enabled us to
achieve product cost stability, and some savings, after several years of intense
upward pressure.
Sigma 6
The acquisition of Sigma 6 d.o.o ("Sigma 6") in Slovenia in April 2008 enabled
Latchways to complement its existing individual fall protection systems with a
guardrail system, which we have rebranded as "Versirail". Guardrails service the
demand for collective fall protection, and are often preferred by customers when
there is no need to approach the fall hazard.
This acquisition, which cost 1.6 million Euros cash, with further more modest
payments based on future revenues, has been very successful to date. As a very
young company, Sigma 6 produced revenues of 0.3 million Euros in the year prior
to acquisition. Latchways' sales in the first year have been 1.8 million Euros,
achieved both through Sigma's existing customers and the Latchways installer
network.
New Product Development
The Self Retracting Lifeline (SRL) range was initially launched in North America
in 2007/08. Further additions to the range have been developed and completed
during this financial year and have been well received by customers.
The recent decline of the North American construction market has resulted in
lower revenues for the SRL than we would have hoped, but still strong enough to
give us confidence that we have the right products in place to take advantage as
markets recover.
More recently this product range has also been launched into Europe, and this is
an area of potential revenue growth for the coming year.
The most significant additional development this year has been the initial range
of Sealed SRLs. These products are targeted towards offshore applications,
primarily the Oil and Gas market. We have received encouraging expressions of
interest and production is now underway.
We continue to seek and develop new ideas to further enhance our range.
People
Given the economic conditions, this has been a year of consolidation rather than
expansion of the team, with the strengthened sales team now showing their mettle
in a difficult trading environment. I am delighted to report that they are
rising to the challenge, with a number of significant prospects for incremental
business across the group.
It comes as no surprise to see that staff have shown great determination to
contribute to the group's success despite the tougher market conditions. This is
a testament to the quality of our people, and once again I would like to thank
them on behalf of the board.
Current Trading and Prospects
The global picture for construction related projects remains weak, and must be
expected to remain so for some time. However, the variety and scale of
non-construction related prospects is encouraging and we are confident that
these will generate revenues for the coming year.
We are debt free, with cash in the bank and strong cash generation. This gives
us the financial strength to steer the business through the current economic
conditions and take advantage of opportunities as they present themselves.
Paul Hearson
Chairman
OPERATING AND FINANCIAL REVIEW
The board of Latchways plc is pleased to report these consolidated results for
the year ended 31 March 2009.
Financial Results
Group revenue for the year was GBP37.0 million, an increase of 5% over the 2008
figure of GBP35.2 million. This resulted in an operating profit before
exceptional items of GBP8.7 million, down 3% on 2008 (2008: GBP9.0 million), and
a pre-exceptional pre-tax profit of GBP8.8 million (2008: GBP9.1 million).
After accounting for the exceptional charge of GBP0.5 million (2008:GBP0.5
million), pre-tax profits were down 4% at GBP8.3 million (2008: GBP8.6 million).
Both gross and operating margins are key performance indicators for the group.
The consolidated gross margin was slightly improved on last year at 53.4% (2008:
52.9%). This was mainly due to the effects of the stronger Euro.
Excluding exceptional charges, overheads were 15% higher than last year at
GBP11.0 million. There were three reasons for this. There was significant
investment in sales and marketing resource made towards the end of 2007/08. This
resource was in place for the full year and is vital to the long term growth of
the business. Secondly, tooling and product development costs associated with
the SRL and other projects were subject to a full year's amortisation. Finally,
the acquisition of Sigma 6 added GBP0.3 million to overheads. As a result,
operating margins (before exceptional charges) reduced by 1.9% to 23.6%.
The effective rate of taxation for the year was 30.9% (2008: 29.3%). Although
the rate of corporation tax reduced by 2% in the year, the abolition of
Industrial Buildings Allowances resulted in a deferred tax charge which added
2.6% to the effective rate. The remainder of the increase was due to the absence
of a small prior year tax credit this year.
Adjusted earnings per share are calculated on the same basis as
statutory earnings per share but before accounting for exceptional charges and
their related tax impact. Adjusted earnings per share reduced by 5% to 54.97
pence (2008: 57.93 pence), whilst adjusted diluted earnings per share reduced by
5% to 54.82 pence (2008: 57.65 pence).
After accounting for the exceptional charge, basic earnings per share reduced by
6% to 51.61 pence (2008: 54.77 pence), whilst diluted earnings per share reduced
by 6% to 51.47 pence (2008: 54.51 pence).
On the balance sheet, non-current assets increased by GBP2.3 million to GBP10.3
million (2008: GBP8.0 million). Goodwill of GBP1.6 million arose on the
acquisition of Sigma 6 in April 2008, increasing total goodwill to GBP4.3
million. Other intangible assets of GBP2.3 million (2008: GBP1.8 million)
comprise the intellectual property, brand, order book and customer relationships
acquired since 2004, internally generated patents and trademarks, computer
software and ongoing development costs that have been capitalised. Tangible
assets of GBP3.6 million (2008: GBP3.4 million) mainly represent the premises at
Devizes, together with production plant and tooling. The premises consist of a
2,000 square metre warehouse and head office, together with a further 2 acres of
additional land directly adjacent. The group has detailed planning permission
for a second unit on this land, providing ample scope for foreseeable future
expansion. The GBP0.2 million increase in tangible assets in the year was mainly
due to the acquisition and subsequent upgrading of Sigma 6 production equipment.
Inventory of GBP3.9 million was GBP0.3 million higher than last year (2008:
GBP3.6 million). This was mainly due to Versirail inventory. A project has been
underway since the start of the calendar year to reduce group inventories, which
increased as revenues slowed.
Trade and other receivables were down GBP0.6 million, or 7%, at GBP8.6 million
(2008: GBP9.2 million). To date our collections have remained robust across the
group. While there have been some instances of contractors failing, these have
not resulted in material losses to the group.
Group creditor days were 36 days (2008:44 days). It has always been a central
theme of our business practice to pay all creditors in line with agreed credit
terms. This has been especially important of late as many suppliers have seen
other revenue sources declining.
Cash generation is a key performance indicator for the group. Cash generated
from operations as a proportion of pre-exceptional operating profit was 90%
(2008: 75%). This improvement reflects the strong cash collections achieved in
the year, and further demonstrates how cash generative the business is. Tax
payments in the year increased by 21% to GBP2.5 million (2008: GBP2.1 million).
This was mainly due to tax credits arising on the exercise of share options in
July 2006, which reduced the tax payable in 2007/08. Capital expenditure on
tangible assets reduced by GBP0.3 million in the year, after the high tooling
spend in 2007/08. Acquisitions, principally Sigma 6, cost a further GBP1.7
million.
Dividend payments increased by GBP0.4 million to GBP2.5 million (2008: GBP2.1
million).
Net cash, which represents cash and cash equivalents less bank and other
borrowings, was GBP0.3 million higher than last year at GBP4.8 million (2007:
GBP4.5 million). Subsequent to paying down final instalments on both existing
loans during the year, the group is now entirely debt-free.
Strategic Overview
Latchways is a world leader in the provision of quality fall protection
equipment and related services. Our aim is to maximise shareholder return
through providing the most innovative and functional equipment to a largely
legislation-driven market, with a customer support network and after-sales
service that is unrivalled in our industry.
Our products are sold both directly and through a network of trained independent
installation companies. We place significant importance on developing strategic
partnerships with key customers around the world, and on developing products
which address their needs. New product offerings, whether developed in-house or
acquired, form a central pillar of our growth strategy. Such products, for
example the Self Retracting Lifeline, the Walksafe walkway and the Versirail
guardrail, are complementary to our range and provide excellent cross selling
opportunities to existing and new customer bases.
Operating Review
The Latchways group has three business segments, each of which is managed
independently with strategic input from the group board. These segments are as
follows:
+----------------------+--------------------------------------------------+
| Safety Products | This is the main Latchways product business, |
| | operating out of the group headquarters in |
| | Devizes and a small production plant in Kozina, |
| | Slovenia. Safety Products generates 66% of group |
| | revenue and generates almost two thirds of this |
| | revenue overseas. |
+----------------------+--------------------------------------------------+
| Safety Services | The principal activity of this business is the |
| | installation and servicing of safety products in |
| | the UK, which generates 26% of group revenue. |
+----------------------+--------------------------------------------------+
| Specialist Fixing | This business is involved with a range of |
| | technical services including structural building |
| | refurbishment and specialist fixing solutions in |
| | the UK. It represents 8% of group revenue. |
+----------------------+--------------------------------------------------+
The Safety Products division, despite the adverse market conditions, generated
record revenues and operating profits (pre-exceptional items) in the year.
Safety Products
Latchways designs and manufactures fall protection equipment for people working
at height. This equipment is sold worldwide, both directly to end users and also
through a network of independent, trained installers. The business is broadly
categorized between horizontal business (systems for those working at height, eg
on rooftops, crane rails etc) and vertical business (systems for those climbing
to or from height, eg ladders, telecom masts, electricity transmission towers).
During the year, the guardrail business of Sigma 6 was integrated into this
division, and Sigma 6 effectively became a contract manufacturer for Latchways.
The Safety Products business achieved revenue growth of 3% in the year.
Excluding the acquired guardrail business, there was an underlying reduction
of 3%, with both the UK and North America seeing revenues reduce. Operating
profits increased by 2% to GBP7.3 million.
As the Safety Products business operates in a worldwide market, a key
performance measure is the relative geographic split of revenues.
The UK business, after a good start to the year, saw revenues fall in the second
half as customers deferred spending decisions. As a result, revenues for the
year were down 5%. Excluding guardrail, underlying UK business was down 11%.
This was partly due to a relatively quiet year for electricity generation and
transmission business, after a very strong 2007/08. Construction of wind
turbines was undoubtedly influenced by lack of availability of credit, whilst
maintenance schedules for the transmission industry were slow in the year.
Our UK installer business was affected by the economic slowdown, in particular
in commercial construction. However, given the extent of the problems faced by
that industry, our business has held up relatively well.
Our European business achieved further growth in the year, with revenue up 20%
in total, and 11% excluding guardrail. Whilst some countries have seen
significant economic slowdowns, the early stage of adoption of fall protection
has meant that growth opportunities remain. The addition of the Versirail
guardrail range has improved our position in France, where collective protection
is often preferred to individual protection.
After a very strong previous year, North American markets were badly affected by
the rapid decline of the US economy. The resulting collapse in confidence caused
significant curtailment of both capital and maintenance spend throughout the US
private sector. This led to a 21% fall in North American revenues in the year,
despite a rise in Self Retracting Lifeline sales. Although disappointing, North
American sales were still 15% higher than two years ago. We have not lost any
customers and there is evidence that some are beginning to look at re-instating
plans in the near future.
The rest of the world produced slight growth this year, with revenues up 2% at
GBP1.2 million. This year we have seen new countries beginning to generate
additional sales, as the need for fall protection gains recognition. We are
cautiously optimistic that these will generate growth for the coming year and
beyond.
Safety Services
Safety Services had an excellent start to the year, but the second half was
affected by the recession in UK commercial construction. The main impact of this
was to squeeze gross margins as the business strove to maintain throughput of
Latchways products. For the year, revenue was up 3% to GBP9.8 million (2008:
GBP9.5 million), whilst operating profits were 13% lower at GBP1.3 million
(2008: GBP1.5 million). The focus of this business remains on efficient
installation and system certification, whilst continuing to provide the
"one-stop shop" solution to customers such as telecommunications companies and
wind power operators.
During the year, Safety Services, as the largest installer of Latchways
products, purchased GBP3.0 million of product from Latchways, a 7% increase.
Excluding guardrail, purchases were broadly unchanged.
Specialist Fixing
Specialist Fixings achieved increased activity this year, with revenues up 31%
to GBP2.8 million (2008: GBP2.1 million). However, this was at the expense of
gross margins in a fiercely competitive market place. As a result, operating
profits declined by 40% to GBP0.2 million. Steps have now been taken to reduce
the overhead base of the business to be more in line with the new market
realities. This, combined with a current improvement in the order book, gives us
a degree of confidence that growth can be achieved in the coming year.
Risks and the Operational Environment
As a provider of fall protection solutions to a global marketplace, the group is
subject to a number of external factors which affect its risk profile. The more
important of these are discussed below.
The Global Economy
The events of the past year have demonstrated that Latchways, like any business,
is not immune to the global economic cycle. However, the relatively modest
impact on Latchways to date underlines the strength of our business model and
the legislative drivers that affect it, as well as the advantages in continued
geographic and market diversification.
The Commercial Construction Market
Latchways operates in a diverse and growing range of markets. This ensures that
we are not excessively dependent on one market for our growth. The largest
individual market is the UK commercial construction market. We began to see the
impact of the slowdown in this market early in the second half of the year, and
this can be expected to continue for some time to come. Although architect's and
specifier's enquiries remain very strong, there is a marked reluctance to commit
to projects compared with a year ago. This has impacted both Safety Products and
Safety Services divisions.
The 2005 Working at Height Regulations, which increase the responsibilities of
building owners to provide fall protection for personnel working in their
buildings, together with the investments in infrastructure that will precede the
2012 London Olympics, give us confidence that growth opportunities will continue
in the years ahead, although this must be tempered with concern as to the likely
effect of the state of government finances on future public spending plans.
The Legislative Environment
The increasing emphasis on Health and Safety legislation throughout the European
Union has been one of the key drivers of the fall protection business over the
past decade. The UK and certain other EU countries which have interpreted this
into specific fall-protection legislation have become significant markets for
the Latchways product range. Within the UK, the most obvious examples of this
legislation are the Workplace (Health, Safety & Welfare) Regulations 1992, the
Construction (Design and Management) Regulations 1994 (revised in 2007), and the
Working at Height Regulations 2005. Latchways sees the development of
appropriate, workable safety regulations as of critical importance, not just to
its own business but to business as a whole. As a result, we have ensured that
Latchways is represented on a number of key legislative standards committees,
both in the UK and overseas. During the past year we have seen business from a
number of new countries which, from a zero historic base, are expected to
generate good business going forward.
Commodity Prices
The majority of Latchways products are constructed of Marine Grade stainless
steel. The market price of this commodity has seen extraordinary fluctuations in
recent years, with a very high spike during the summer of 2007 followed by a
steep decline in the latter half of 2008, although the positive effect of this
decline on Latchways' costs was partially offset by the strengthening of the US
Dollar.
It has been Latchways' philosophy throughout the past few year's volatility to
seek to protect our customers from the impacts of increased costs through a
combination of modest annual price increases and product re-sourcing efforts.
The recent retracement in the price of stainless steel has enabled us to hold
pricing for the coming year, again showing our commitment to assisting our
customers whenever possible.
The acquisition of Sigma 6 has increased our exposure to aluminium prices, as
the Versirail guardrail is largely constructed of aluminium alloy. Our approach
to pricing is identical to that described for stainless steel.
Currency Risk
Latchways has significant exposure to fluctuations in the Sterling/Euro exchange
rate, as our European sales are invoiced in Euros. There is also some exposure
to the Sterling/USD exchange rate. The Euro exchange risk is partly mitigated by
the fact that guardrail and cable are now purchased in Euros. Forward exchange
contracts are used to mitigate the remaining exposures.
Prospects
The investments in sales resource and new products that we have made in the past
two years, although adding to our cost base, are now generating new prospects in
a number of geographies. Whilst the global economic downturn has impacted our
business in the short term, we remain confident that the strength of our
business model will continue our track record of providing excellent returns to
shareholders.
David Hearson
Chief Executive
+----------------+--------+--+--------+----+---------+-------+------+-----------+----------+
| Latchways plc | | | | | | |
+----------------------------+-------------+---------+-------+------+-----------+----------+
| Consolidated Income Statement | | | | |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| for the year ended 31 March 2009 | | | | | |
+------------------------------------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| | | | | | | 2009 | 2008 |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| | | | | | | GBP'000 | GBP'000 |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Revenue | | | | 36,960 | 35,212 |
+-------------------------+--------------------------+-------+------+-----------+----------+
| | | | | | | |
+----------------------------+-------------+---------+-------+------+-----------+----------+
| Cost of sales | | | | | (17,218) | (16,565) |
+----------------------------+-------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Gross profit | | | | | 19,742 | 18,647 |
+----------------------------+-------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Administrative expenses | | | | (11,538) | (10,176) |
+------------------------------------------+---------+-------+------+-----------+----------+
| | | | | | | |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| Group operating profit | | | | | 8,204 | 8,471 |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| | | | | | | | |
+----------------+--------------------+----+---------+-------+------+-----------+----------+
| Analysed as: | | | | | | |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+-----------+----+---------+-------+------+-----------+----------+
| Operating profit before exceptional | | | | | 8,723 | 8,973 |
| items | | | | | | |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+-----------+----+---------+-------+------+-----------+----------+
| Exceptional charge (included within administrative | | | (519) | (502) |
| expenses) | | | | |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+-----------+----+---------+-------+------+-----------+----------+
| Group operating profit | | | 8,204 | 8,471 |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | | | |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| Interest receivable | | | | | 114 | 180 |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+-----------+----+---------+-------+------+-----------+----------+
| Interest payable and similar | | | | | (9) | (35) |
| charges | | | | | | |
+-------------------------------------+----+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+-----------+----+---------+-------+------+-----------+----------+
| Profit before taxation | | | 8,309 | 8,616 |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | |
+----------------------------------------------------+-------+------+-----------+----------+
| Taxation | | | | (2,565) | (2,521) |
+------------------------------------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Profit for the year attributable to equity | | | 5,744 | 6,095 |
| shareholders | | | | |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Basic earnings per share (pence) | | | | 51.61 | 54.77 |
+------------------------------------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Diluted earnings per share (pence) | | | 51.47 | 54.51 |
+----------------------------------------------------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Adjusted basic earnings per share | | | | 54.97 | 57.93 |
| (pence) | | | | | |
+------------------------------------------+---------+-------+------+-----------+----------+
| | | | | | | | |
+-------------------------+--+-------------+---------+-------+------+-----------+----------+
| Adjusted diluted earnings per share (pence) | | | 54.82 | 57.65 |
+----------------+--------+--+--------+----+---------+-------+------+-----------+----------+
Adjusted earnings per share exclude the post-tax impact of exceptional items.
The directors propose a final dividend of 15.63 pence per share (2008: 14.21
pence) at an estimated cost of GBP1,739,000 (2008: GBP1,582,000), which will be
subject to shareholder approval at the Annual General Meeting on 11 September
2009.
+----------------+-+-----+----------+----------+--------+--------+--------+------+----------+---------+
| Latchways plc | | | | | | | |
+------------------+---------------------------+--------+--------+--------+------+----------+---------+
| Consolidated Balance Sheet | | | | | | |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| as at 31 March 2009 | | | | | | | |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+------------------+----------+--------+--------+--------+------+----------+---------+
| | | | | | | | 2009 | 2008 |
+----------------+------------------+----------+--------+--------+--------+------+----------+---------+
| | | | | | | | GBP'000 | GBP'000 |
+----------------+------------------+----------+--------+--------+--------+------+----------+---------+
| | | | | | | | |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Assets | | | | | | | |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Non-current assets | | | | | | | |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Goodwill | | | | | | 4,341 | 2,615 |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Other intangible assets | | | | | | 2,289 | 1,804 |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Property, plant and equipment | | | | | | 3,593 | 3,442 |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Deferred income tax | | | | | | | 69 | 129 |
| assets | | | | | | | | |
+------------------------+----------+----------+--------+--------+--------+------+----------+---------+
| | | | | | | | 10,292 | 7,990 |
+------------------------+----------+----------+--------+--------+--------+------+----------+---------+
| Current assets | | | | | | | |
+-----------------------------------+----------+--------+--------+--------+------+----------+---------+
| Inventories | | | | | | | 3,926 | 3,631 |
+------------------------+----------+----------+--------+--------+--------+------+----------+---------+
| Trade and other | | | | | | | 8,557 | 9,165 |
| receivables | | | | | | | | |
+------------------------+----------+----------+--------+--------+--------+------+----------+---------+
| Cash and cash equivalents | | | | | 4,777 | 4,637 |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | | 17,260 | 17,433 |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Liabilities | | | | |
+----------------------------------------------------------------+--------+------+----------+---------+
| Current Liabilities | | | | |
+----------------------------------------------------------------+--------+------+----------+---------+
| Financial liabilities | | | | |
+----------------------------------------------------------------+--------+------+----------+---------+
| - Borrowings | | | - | (177) |
+----------------------------------------------------------------+--------+------+----------+---------+
| - Derivative financial instruments | | | (175) | (502) |
+----------------------------------------------------------------+--------+------+----------+---------+
| Trade and other payables | | | (3,131) | (4,573) |
+----------------------------------------------------------------+--------+------+----------+---------+
| Deferred consideration | | | (63) | - |
+----------------------------------------------------------------+--------+------+----------+---------+
| Current tax liabilities | | | (1,274) | (1,373) |
+----------------------------------------------------------------+--------+------+----------+---------+
| | | | (4,643) | (6,625) |
+----------------------------------------------------------------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Net current | | | | | | 12,617 | 10,808 |
| assets | | | | | | | |
+------------------+---------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Non-current liabilities | | | | |
+----------------------------------------------------------------+--------+------+----------+---------+
| | | | | |
+----------------------------------------------------------------+--------+------+----------+---------+
| Deferred consideration | | | (350) | - |
+----------------------------------------------------------------+--------+------+----------+---------+
| Deferred income tax liabilities | | | (569) | (335) |
+----------------------------------------------------------------+--------+------+----------+---------+
| | | | (919) | (335) |
+----------------------------------------------------------------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Net assets | | | | | | | 21,990 | 18,463 |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Equity | | | | | | | |
+------------------+---------------------------+--------+--------+--------+------+----------+---------+
| Ordinary shares | | | | | | 556 | 556 |
+------------------+---------------------------+--------+--------+--------+------+----------+---------+
| Share premium account | | | | | 1,793 | 1,793 |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| Translation reserve | | | | | 252 | - |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| Other reserves | | | | | 287 | 268 |
+----------------------------------------------+--------+--------+--------+------+----------+---------+
| Retained | | | | | | 19,102 | 15,846 |
| earnings | | | | | | | |
+------------------+---------------------------+--------+--------+--------+------+----------+---------+
| | | | | | | | | |
+----------------+-+---------------------------+--------+--------+--------+------+----------+---------+
| Total shareholders' equity | | | | | 21,990 | 18,463 |
+----------------+-+-----+----------+----------+--------+--------+--------+------+----------+---------+
+-------------------+-+----------+--------+--------+------+------+----+----------+---------+
| Latchways plc | | | | | | | |
+---------------------+-------------------+--------+------+------+----+----------+---------+
| Consolidated Cash Flow Statement | | | | | | |
+-----------------------------------------+--------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| for the year ended 31 March 2009 | | | | | | |
+-----------------------------------------+--------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| | | | | | | | 2009 | 2008 |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| | | | | | | | GBP'000 | GBP'000 |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| Cash flows from operating activities | | | | | | |
+-----------------------------------------+--------+------+------+----+----------+---------+
| Cash generated from operations | | | | | 7,826 | 6,695 |
+-----------------------------------------+--------+------+------+----+----------+---------+
| Interest paid | | | | | (9) | (29) |
+-----------------------------------------+--------+------+------+----+----------+---------+
| Taxation paid | | | | | (2,523) | (2,090) |
+-----------------------------------------+--------+------+------+----+----------+---------+
| Net cash from operating activities | | | | | 5,294 | 4,576 |
+-----------------------------------------+--------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+-------------------+--------+------+------+----+----------+---------+
| Cash flows from investing activities | | | | |
+---------------------------------------------------------+------+----+----------+---------+
| Acquisitions, net of cash acquired | | | | (1,692) | (795) |
+--------------------------------------------------+------+------+----+----------+---------+
| Additional consideration paid | | | | (10) | - |
+--------------------------------------------------+------+------+----+----------+---------+
| Interest received | | | | 114 | 179 |
+--------------------------------------------------+------+------+----+----------+---------+
| Purchase of property, plant and equipment | | | | (654) | (933) |
+--------------------------------------------------+------+------+----+----------+---------+
| Purchase of intangible assets | | | | (127) | (296) |
+--------------------------------------------------+------+------+----+----------+---------+
| Development expenditure capitalised | | | | (157) | (221) |
+--------------------------------------------------+------+------+----+----------+---------+
| Net cash used in investing activities | (2,526) | (2,066) |
+---------------------------------------------------------------------+----------+---------+
| | | | | | | | | |
+-------------------+-+----------+-----------------+------+------+----+----------+---------+
| Cash flows from financing activities | | | | | |
+--------------------------------------------------+------+------+----+----------+---------+
| Net proceeds from issue of ordinary share | | | | - | 13 |
| capital | | | | | |
+--------------------------------------------------+------+------+----+----------+---------+
| Repayment of borrowings | | | | (177) | (598) |
+--------------------------------------------------+------+------+----+----------+---------+
| Dividends paid to shareholders | | | | (2,451) | (2,107) |
+--------------------------------------------------+------+------+----+----------+---------+
| Net cash used in financing | | | | | (2,628) | (2,692) |
| activities | | | | | | |
+--------------------------------+-----------------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+----------+-----------------+------+------+----+----------+---------+
| | | | | | | | | |
+-------------------+-+----------+-----------------+------+------+----+----------+---------+
| Net increase/(decrease) in cash and cash equivalents | | | 140 | (182) |
+---------------------------------------------------------+------+----+----------+---------+
| | | | | |
+---------------------------------------------------------+------+----+----------+---------+
| Cash and cash equivalents at 1 April | | | 4,637 | 4,819 |
+---------------------------------------------------------+------+----+----------+---------+
| | | | | |
+---------------------------------------------------------+------+----+----------+---------+
| Cash and cash equivalents at 31 March | | | 4,777 | 4,637 |
+-------------------+-+----------+--------+--------+------+------+----+----------+---------+
+-------------------+-+----------+---------+-----+-----+-----+--------+----------+------+----------+
| Latchways plc | | | | | | | |
+---------------------+----------+---------------+-----------+--------+----------+------+----------+
| Consolidated Statement of Changes in Shareholders' Equity | | |
+--------------------------------------------------------------------------------+------+----------+
| | | | | | | | | |
+-------------------+-+----------+---------+-----------+--------------+----------+------+----------+
| for the year ended 31 March | | | | | | |
| 2009 | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| | Share | Share | Retained | Other | | Total |
| | Capital | Premium | Earnings | Reserves | | Reserves |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| 1 April 2007 | 556 | 1,780 | 11,945 | 221 | | 14,502 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Net profit | - | - | 6,095 | - | | 6,095 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Share options: | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| - Proceeds from shares issued | - | 13 | - | - | | 13 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| - Value of employee services | - | - | - | 47 | | 47 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Deferred taxation on share | - | - | (87) | - | | (87) |
| options | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Dividends | - | - | (2,107) | - | | (2,107) |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| At 31 March 2008 | 556 | 1,793 | 15,846 | 268 | | 18,463 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Net profit | - | - | 5,744 | - | | 5,744 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Share options: | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| - Value of employee services | - | - | - | 19 | | 19 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Exchange differences on | - | - | - | 252 | | 252 |
| consolidation | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Deferred taxation on share | - | - | (37) | - | | (37) |
| options | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| Dividends | - | - | (2,451) | - | | (2,451) |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| At 31 March 2009 | 556 | 1,793 | 19,102 | 539 | | 21,990 |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| | | | | | | |
+--------------------------------+---------+-----------+--------------+----------+------+----------+
| | | | | | | |
+-------------------+-+----------+---------+-----+-----+-----+--------+----------+------+----------+
NOTES
1. Basis of accounting
The financial information set out above does not
constitute the Group's statutory accounts for the years ended 31 March 2008 and
2009. The financial information in respect of 2009 has been extracted from the
audited financial statements for the year ended 31 March 2009 which have not yet
been delivered to the Registrar of Companies.
The information has been
prepared in accordance with the EU-adopted International Financial Reporting
Standards (IFRS) and IFRIC interpretations and with those parts of the Companies
Act 1985 which are applicable to companies reporting under IFRS.
2. Accounting Policies
The accounting policies applied by the group were published in the Annual
Report and Accounts for the year ended 31 March 2008, which is available on the
group's website at www.latchways.com, and they will also be included in the
Annual Report and Accounts for the year ended 31 March 2009. There have been no
significant changes to the group's accounting policies during the year.
3. Earnings per share
The calculation of basic earnings per ordinary share is based on a weighted
average of 11,129,151 ordinary shares in issue and ranking for dividend (2008:
11,127,663) and on a profit of GBP5,744,000 (2008: GBP6,095,000). Adjusted
earnings per share exclude the post -tax effects of exceptional items and are
therefore based on a profit of GBP6,118,000 (2008: GBP6,446,000).
The calculation of diluted earnings per share is based on a weighted average of
11,160,342 ordinary shares (2008: 11,181,204), and uses an average market price
for the year of GBP6.79 (2008: GBP10.22).
4. Dividends
+----------------------------------------------+------+---------+---------+
| | | 2009 | 2008 |
+----------------------------------------------+------+---------+---------+
| | | GBP'000 | GBP'000 |
+----------------------------------------------+------+---------+---------+
| Final Paid 14.21p (2008: 11.84p) per 5p | | 1,582 | 1,317 |
| share | | | |
+----------------------------------------------+------+---------+---------+
| Interim Paid 7.81p (2008: 7.1p) per 5p share | | 869 | 790 |
+----------------------------------------------+------+---------+---------+
| | | | |
+----------------------------------------------+------+---------+---------+
| Total Paid | | 2,451 | 2,107 |
+----------------------------------------------+------+---------+---------+
In addition, the directors are proposing a final dividend in respect of the
financial year ending 31 March 2009 of 15.63p (2008:14.21p) per share which will
absorb an estimated GBP1,739,000 of shareholders' funds (2008: GBP1,582,000). It
will be paid on 18 September 2009 to shareholders who are on the register of
members on 21 August 2009.
5. The Annual Report and Accounts
The Annual Report and Accounts for Latchways plc for the year ended
31 March 2009 will be posted to shareholders on or before 31 July 2009 and
copies will be available from the registered office, Latchways plc, Hopton Park,
Devizes, Wiltshire, SN10 2JP.
6. The Annual General Meeting
The Annual General Meeting will be held at Hopton Park, Devizes, Wiltshire, SN10
2JP on 11 September 2009 at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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