TIDMLTHM
RNS Number : 4615U
Latham(James) PLC
25 June 2009
?
James Latham plc (the "Group")
Results
In what has been a very difficult year, I am pleased to report the results for
the financial year to 31 March 2009 which show a creditable trading performance
and a very strong balance sheet.
Group revenue in the financial year to 31 March 2009 was GBP113,904,000, 2.8%
lower than last year's GBP117,188,000.
Operating profit decreased by 42% to GBP3,812,000 from GBP6,612,000 last year.
Finance income was GBP647,000 against GBP642,000 last year and the financial
costs were GBP287,000 against GBP130,000.
Pre-tax profit is GBP4,172,000 and has decreased from last year's figure of
GBP7,124,000.
Profit after tax is GBP2,268,000 compared with GBP5,056,000 last year. Changes
in the Industrial Buildings Allowances regime have resulted in a one-off tax
charge of GBP743,000 causing a tax rate for the year of 46%.
Earnings per share is 11.8p. Earnings per share adjusted for the one-off tax
charge and the non-recurring costs referred to below is 18.1p.
Net assets (total equity) are GBP41,891,000.
There was a net cash inflow of GBP2,093,000 and the company's cash reserves
stood at GBP10,718,000 at 31 March 2009, up from GBP8,625,000 at 31 March 2008.
Final dividend
The directors recommend a final dividend of 4.25p per ordinary share (2008:
6.1p). The final dividend will be paid on 28 August 2009 to shareholders on the
register at the close of business on 7 August 2009. The shares will become
ex-dividend on 5 August 2009.
The total dividend per ordinary share of 6.25p for the year is covered 2.9 times
by adjusted earnings.
Financial year 2008/09
The Group's results are based on the trading of Lathams Limited, a specialist
panel and timber distributor.
Revenue was almost 3% lower, although the new branch in Scotland generated
additional turnover, and the gross margin percentage was 1% lower than the
previous year. These figures include non-recurring costs of GBP500,000 for new
depot opening and depot relocation, which contributed to the reduction in the
operating profit.
2007/08 was an exceptional year with both strong international demand increasing
timber product prices and a buoyant market for goods in the UK. However, as
predicted last year, in 2008/09 lower demand in both these areas has seen
falling prices and lower margins. UK demand was reasonably strong for the first
half of the year but then fell away sharply. This coincided with sterling
weakening rapidly against both the US dollar and the Euro, and increasing cost
prices could not be passed on into the market. In the final quarter of the year,
replacement prices of panel products fell and intense competition resulted in
significant reductions in margins.
The company saw a record number of customers going into liquidation in the
December quarter, and bad debts amounted to 0.74% of turnover for the year
compared with 0.3% last year. The company is taking on more risk as credit
insurance has either been reduced or withdrawn on a significant number of
customers with account balances over GBP50,000 that we insure.
The company started trading from a new depot in Motherwell in April 2008, its
first branch in Scotland, the Eastleigh depot was relocated to larger premises
in Fareham in March 2008 and the Dudley depot to larger premises in September
2008. The costs associated with these moves were in line with our expectations.
In spite of the tough trading conditions, trading has been encouraging and they
will prove valuable depots once market conditions return to some normality.
Current financial year 2009/10 - April and May trading
The reduced level of demand seen in the second half of last year has continued
into April and May. However there is evidence that margins are gradually
improving from the disappointing levels of the March quarter. Managing customer
credit levels continues to be difficult but on a positive note the number of
customer liquidations is down. In addition, less volatility in the exchange
rates has helped stabilise the markets we operate in. Savings are being realised
from the drive to reduce general overheads and from the review of staff numbers
in February.
While the volume of business done is unlikely to grow over the next six months,
margins should improve to more usual levels and there will be opportunities for
profitable business as supply adjusts to current levels of demand.
Development strategy
The Directors have reviewed the company's various activities and are
concentrating resources on areas where it has competitive opportunities in the
likely trading environment over the next 12 months, such as hardwoods, door
blanks and decorative panels. We have been working closely with suppliers and,
given increased market volatility, purchasing decisions have been shortened. The
company is in a strong financial position to take advantage of opportunities
that will occur in the current trading climate.
Peter Latham
Chairman
24 June 2009
JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 31 March 2009
+----------------------------------------------+---------------------+--------------------+
| |As at 31 March 2009 | As at 31 March |
| | | 2008 |
+----------------------------------------------+---------------------+--------------------+
| | GBP000 | GBP000 |
+----------------------------------------------+---------------------+--------------------+
| Assets | | |
+----------------------------------------------+---------------------+--------------------+
| Non-current assets | | |
+----------------------------------------------+---------------------+--------------------+
| Goodwill | 237 | 237 |
+----------------------------------------------+---------------------+--------------------+
| Intangible assets | 146 | 149 |
+----------------------------------------------+---------------------+--------------------+
| Property, plant and equipment | 18,496 | 17,515 |
+----------------------------------------------+---------------------+--------------------+
| Other receivables | - | 333 |
+----------------------------------------------+---------------------+--------------------+
| Total non-current assets | 18,879 | 18,234 |
+----------------------------------------------+---------------------+--------------------+
| | | |
+----------------------------------------------+---------------------+--------------------+
| Current assets | | |
+----------------------------------------------+---------------------+--------------------+
| Inventories | 16,251 | 18,181 |
+----------------------------------------------+---------------------+--------------------+
| Trade and other receivables | 21,334 | 24,826 |
+----------------------------------------------+---------------------+--------------------+
| Cash and cash equivalents | 10,718 | 8,625 |
+----------------------------------------------+---------------------+--------------------+
| Total current assets | 48,303 | 51,632 |
+----------------------------------------------+---------------------+--------------------+
| Total assets | 67,182 | 69,866 |
+----------------------------------------------+---------------------+--------------------+
| | | |
+----------------------------------------------+---------------------+--------------------+
| Current liabilities | | |
+----------------------------------------------+---------------------+--------------------+
| Trade and other payables | 15,179 | 18,681 |
+----------------------------------------------+---------------------+--------------------+
| Current portion of interest bearing loans | 21 | 378 |
| and borrowings | | |
+----------------------------------------------+---------------------+--------------------+
| Current tax payable | - | - |
+----------------------------------------------+---------------------+--------------------+
| Total current liabilities | 15,200 | 19,059 |
+----------------------------------------------+---------------------+--------------------+
| | | |
+----------------------------------------------+---------------------+--------------------+
| Non-current liabilities | | |
+----------------------------------------------+---------------------+--------------------+
| Interest bearing loans and borrowings | 1,020 | 1,041 |
+----------------------------------------------+---------------------+--------------------+
| Retirement and other benefit obligation | 5,244 | 5,108 |
+----------------------------------------------+---------------------+--------------------+
| Other payables | 886 | 644 |
+----------------------------------------------+---------------------+--------------------+
| Deferred tax liabilities | 2,941 | 1,893 |
+----------------------------------------------+---------------------+--------------------+
| Total non-current liabilities | 10,091 | 8,686 |
+----------------------------------------------+---------------------+--------------------+
| Total liabilities | 25,291 | 27,745 |
+----------------------------------------------+---------------------+--------------------+
| | | |
+----------------------------------------------+---------------------+--------------------+
| Net assets | 41,891 | 42,121 |
+----------------------------------------------+---------------------+--------------------+
| | | |
+----------------------------------------------+---------------------+--------------------+
| Capital and reserves | | |
+----------------------------------------------+---------------------+--------------------+
| Issued capital | 5,040 | 5,040 |
+----------------------------------------------+---------------------+--------------------+
| Share-based payment reserve | 1 | 95 |
+----------------------------------------------+---------------------+--------------------+
| Own shares | (139) | (429) |
+----------------------------------------------+---------------------+--------------------+
| Capital reserve | 3 | 3 |
+----------------------------------------------+---------------------+--------------------+
| Retained earnings | 36,986 | 37,412 |
+----------------------------------------------+---------------------+--------------------+
| Total equity attributable to equity holders | 41,891 | 42,121 |
| of the parent company | | |
+----------------------------------------------+---------------------+--------------------+
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the year to 31 March 2009
+----------------------------------------------+--------------------+--------------------+
| | Year to 31 March | Year to 31 March |
| | 2009 | 2008 |
+----------------------------------------------+--------------------+--------------------+
| | GBP000 | GBP000 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Revenue | 113,904 | 117,188 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Cost of sales (including warehouse costs) | (95,759) | (96,635) |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Gross profit | 18,145 | 20,553 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Selling and distribution costs | (9,507) | (9,160) |
+----------------------------------------------+--------------------+--------------------+
| Administrative expenses | (5,009) | (5,013) |
+----------------------------------------------+--------------------+--------------------+
| Other operating income | 183 | 232 |
+----------------------------------------------+--------------------+--------------------+
| | (14,333) | (13,941) |
+----------------------------------------------+--------------------+--------------------+
| Operating Profit | 3,812 | 6,612 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Finance income | 647 | 642 |
+----------------------------------------------+--------------------+--------------------+
| Finance costs | (287) | (130) |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Profit before tax | 4,172 | 7,124 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Tax expense | (1,904) | (2,068) |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Profit after tax attributable to equity | 2,268 | 5,056 |
| shareholders of the parent company | | |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Earnings per ordinary share (basic) | 11.8p | 25.7p |
+----------------------------------------------+--------------------+--------------------+
| Earnings per ordinary share (diluted) | 11.7p | 25.6p |
+----------------------------------------------+--------------------+--------------------+
All results relate to continuing operations
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year to 31 March 2009
+----------------------------------------------+--------------------+--------------------+
| | Year to 31 March | Year to 31 March |
| | 2009 | 2008 |
+----------------------------------------------+--------------------+--------------------+
| | GBP000 | GBP000 |
+----------------------------------------------+--------------------+--------------------+
| Net cash flow from operating activities | | |
+----------------------------------------------+--------------------+--------------------+
| Cash generated from operations | 4,997 | 5,163 |
+----------------------------------------------+--------------------+--------------------+
| Interest paid | (224) | (70) |
+----------------------------------------------+--------------------+--------------------+
| Income tax received/(paid) | 461 | (1,237) |
+----------------------------------------------+--------------------+--------------------+
| Net cash inflow from operating activities | 5,234 | 3,856 |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Cash flows from investing activities | | |
+----------------------------------------------+--------------------+--------------------+
| Interest received and similar income | 655 | 792 |
+----------------------------------------------+--------------------+--------------------+
| Purchase of property, plant and equipment | (1,647) | (6,792) |
+----------------------------------------------+--------------------+--------------------+
| Purchase of intangible asset | (4) | (150) |
+----------------------------------------------+--------------------+--------------------+
| Proceeds from sale of property, plant and | 46 | 48 |
| equipment | | |
+----------------------------------------------+--------------------+--------------------+
| Proceeds from prior year sale of property | 500 | 5,438 |
| and investment in subsidiary undertaking | | |
+----------------------------------------------+--------------------+--------------------+
| Net cash outflow from investing activities | (450) | (664) |
+----------------------------------------------+--------------------+--------------------+
| | | |
+----------------------------------------------+--------------------+--------------------+
| Cash flows before financing activities | | |
+----------------------------------------------+--------------------+--------------------+
| Bank loans repaid during the year | (357) | (714) |
+----------------------------------------------+--------------------+--------------------+
| Finance leases repaid during the year | (21) | (23) |
+----------------------------------------------+--------------------+--------------------+
| Equity dividends paid | (1,562) | (1,572) |
+----------------------------------------------+--------------------+--------------------+
| Preference dividend paid | (79) | (79) |
+----------------------------------------------+--------------------+--------------------+
| Purchase of own shares | (186) | (259) |
+----------------------------------------------+--------------------+--------------------+
| Sale of own shares | 313 | - |
+----------------------------------------------+--------------------+--------------------+
| Purchase of treasury shares | (799) | (792) |
+----------------------------------------------+--------------------+--------------------+
| Net cash outflow from financing activities | (2,691) | (3,439) |
+----------------------------------------------+--------------------+--------------------+
| Increase/(decrease) in cash and cash | 2,093 | (247) |
| equivalents for the year | | |
+----------------------------------------------+--------------------+--------------------+
| Cash and cash equivalents at beginning of | 8,625 | 8,872 |
| the year | | |
+----------------------------------------------+--------------------+--------------------+
| Cash and cash equivalents at end of the year | 10,718 | 8,625 |
+----------------------------------------------+--------------------+--------------------+
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF RECOGNISED
INCOME AND EXPENSE
For the year to 31 March 2009
+-----------------------------------------------+--------------------+--------------------+
| | Year to 31 March | Year to 31 March |
| | 2009 | 2008 |
+-----------------------------------------------+--------------------+--------------------+
| | GBP000 | GBP000 |
+-----------------------------------------------+--------------------+--------------------+
| Profit after tax | 2,268 | 5,056 |
+-----------------------------------------------+--------------------+--------------------+
| Actuarial losses on pension scheme | (312) | (2,024) |
+-----------------------------------------------+--------------------+--------------------+
| Deferred tax effect of actuarial losses on | 87 | 567 |
| pension scheme | | |
+-----------------------------------------------+--------------------+--------------------+
| Deferred tax on share-based payment | - | 12 |
+-----------------------------------------------+--------------------+--------------------+
| Total income and expense, attributable to | 2,043 | 3,611 |
| equity shareholders of the parent company | | |
+-----------------------------------------------+--------------------+--------------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year to 31 March 2009
+-----------------------------------------------+--------------------+--------------------+
| | Year to 31 March | Year to 31 March |
| | 2009 | 2008 |
+-----------------------------------------------+--------------------+--------------------+
| | GBP000 | GBP000 |
+-----------------------------------------------+--------------------+--------------------+
| | | |
+-----------------------------------------------+--------------------+--------------------+
| Profit attributable to shareholders | 2,043 | 3,611 |
+-----------------------------------------------+--------------------+--------------------+
| Dividends | (1,562) | (1,572) |
+-----------------------------------------------+--------------------+--------------------+
| | 481 | 2,039 |
+-----------------------------------------------+--------------------+--------------------+
| | | |
+-----------------------------------------------+--------------------+--------------------+
| Purchase of treasury shares | (799) | (792) |
+-----------------------------------------------+--------------------+--------------------+
| Change in investment in own shares | 290 | (259) |
+-----------------------------------------------+--------------------+--------------------+
| Transfer of share-based payment reserve on | 95 | - |
| exercise of options | | |
+-----------------------------------------------+--------------------+--------------------+
| Write off deferred tax on the above | (39) | - |
+-----------------------------------------------+--------------------+--------------------+
| Capital loss on conversion of ESOP shares | (164) | - |
+-----------------------------------------------+--------------------+--------------------+
| Change in Share-based payment reserve | (94) | 39 |
+-----------------------------------------------+--------------------+--------------------+
| | | |
+-----------------------------------------------+--------------------+--------------------+
| Movement in the year | (230) | 1,027 |
+-----------------------------------------------+--------------------+--------------------+
| Opening shareholders' funds | 42,121 | 41,094 |
+-----------------------------------------------+--------------------+--------------------+
| Closing shareholders' funds | 41,891 | 42,121 |
+-----------------------------------------------+--------------------+--------------------+
JAMES LATHAM PLC
Notes to the preliminary financial information
1. The results presented in this report are unaudited and they have been
prepared in accordance with the IFRS accounting policies (as adopted by the EU)
set out in the Group accounts for the year ended 31 March 2008 and those set out
in the Group accounts for the year ended 31 March 2009. The figures for the year
ended 31 March 2008 have been audited.
2. During 2007 proposed amendments to the Industrial Buildings Allowances
regime were announced. Substantive enactment took place on 2 July 2008. The
effect of this enactment has increased the deferred tax liability in the
consolidated balance sheet of these accounts by GBP743,000, with a corresponding
charge to the consolidated income.
3. The earnings per share figure, adjusted for the one-off deferred tax
liability referred to above and the non-recurring costs of new depots and depot
relocations is 18.1p (2008: 25.7p).
4. The directors propose a final dividend of 4.25p per ordinary share, which
will absorb GBP817,734 (2008: 6.1p absorbing GBP1,197,186), payable on 28 August
2009 to shareholders on the Register at the close of business on 7 August 2009.
The ex-dividend date is 5 August 2009.
5. The financial information in this announcement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.
Statutory accounts for the previous financial year ended 31 March 2008 have been
delivered to the Registrar of Companies. The auditors' report on those accounts
was unqualified and did not contain any statement under section 237(2) or (3) of
the Companies Act 1985 or an emphasis of matter paragraph. Copies of the
Company's Report and Accounts will be sent to shareholders shortly and will be
available at the registered office of the company: Unit 3, Swallow Park, Finway
Road, Hemel Hempstead, Herts HP2 7QU.
6. This announcement was approved by the Board of Directors on 24 June 2009.
7. The Annual General Meeting of James Latham plc will be held at Unit 3
Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU on 20 August 2009 at
12.30pm.
The Annual Report and Accounts for the year ended 31 March 2009 will be sent by
post to all shareholders in due course. The Annual Report and Accounts may also
be viewed in due course on James Latham plc's website at www.lathams.co.uk
Contacts:
JAMES LATHAM PLC
PETER LATHAM
DAVID DUNMOW 01442 849100
ASTAIRE SECURITIES PLC
ANDREW RACA 020 7448 4400
This information is provided by RNS
The company news service from the London Stock Exchange
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