TIDMLTHM
RNS Number : 3954G
Latham(James) PLC
25 November 2020
James Latham plc
("James Latham" or the "Company")
HALF YEARLY RESULTS FOR THE PERIODED 30 SEPTEMBER 2020
Chairman's statement
Unaudited results for the six months trading to 30 September
2020
Revenue for the six months ended 30 September 2020 was
GBP107.0m, down 14.8% on GBP125.6m for the same period last year.
Revenue in Q2 was 5.3% up on the same period last year highlighting
the strong recovery from Q1 which as previously reported was
significantly impacted by the first lockdown. Month on month trends
continue to improve with September being ahead of the same month
last year. We have had strong volume growth in both delivered and
direct commodity panel products. Cost prices on both timber and
panels have been slowly rising during the period. All sites have
coped very well with the local lockdowns and all the other
challenges that they have faced during this unprecedented
period.
Gross profit, which includes warehouse costs, for the six month
period ended 30 September 2020 was 16.9% compared with 17.4% in the
comparative six months. Overheads have been very well controlled
during the 6 months.
Operating profit was GBP6.5m, down 22.7% on the GBP8.5m profit
for the same period last year. Profit before tax was GBP6.3m
compared with GBP8.3m for the same period last year. Earnings per
ordinary share were 25.6p (2019: 33.8 p) a decrease of 24.3%.
As at 30 September 2020 net assets are GBP109.1m (2019:
GBP97.6m). Stock volume levels have remained stable throughout the
six months, although the strong sales at the end of Q2 resulted in
a temporary reduction in our inventory values. Trade receivables
have continued to show good debtor day figures, with bad debts at a
very low figure. Cash and cash equivalents of GBP26.1m (2019:
GBP16.5m) remain strong due to the reduced inventory figures and
also good collections of our trade receivables. We continue to take
advantage of additional early settlement discount opportunities
with our suppliers.
These positive results are a good indication of the strength of
our business model, and the importance of having a diversified
customer base.
The calculation of the pension deficit remains very sensitive to
changes in assumptions, and the pension deficit under IAS19 is
calculated as decreasing from GBP11.8m at 31 March 2020 to GBP8.8m
at 30 September 2020. This is largely due to a recovery in the plan
asset valuations, although discount rates continue to fall which
add to the deficit.
Interim dividend
The Board has declared an increased interim dividend of 5.7p per
Ordinary Share (2019: 5.5p), which is covered 4.5 times (2019: 6.1
times). The dividend is payable on 29 January 2021 to ordinary
shareholders on the Company's Register at close of business on 4
January 2021. The ex-dividend date will be 31 December 2020.
Current and future trading
The second half of 2020/21 has started strongly with margins
slightly ahead of the previous period. We are seeing significant
increased volumes of commodity products, but reduced volumes of
some of our added value panel products which predominantly go into
market sectors that have been adversely affected by the COVID-19
pandemic, such as hospitality, exhibitions and shopfitting.
Purchase prices of many of our commodity panel products continue to
rise with some extended lead times. The majority of our customers
are busy, and we remain confident that we will have a strong end to
our financial year. The investment in our Gateshead facility is now
complete, and we are mid-way through a large racking project at our
Thurrock facility which will improve the stock holding and
efficiency of the warehouse. This project will be completed by end
March 2021.
We have been working for some time in preparation for Brexit and
have acted on the risks to our business. Our supply chain team have
been working closely with suppliers and intermediaries and have
identified the best routes to market, and we have increased stock
levels of those products most at risk of disruption.
We remain committed to continued investment in the business,
both in our existing depots and in looking for other opportunities
to grow our market position.
Nick Latham
Chairman
25 November 2020
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
For further information please visit www.lathams.co.uk or
contact:
James Latham plc Tel: 01442 849 100
Nick Latham, Chairman
David Dunmow, Finance Director
SP Angel Corporate Finance LLP
Matthew Johnson / Charlie Bouverat (Corporate Tel: 0203 470 0470
Finance)
Abigail Wayne (Corporate Broking)
JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the six months to 30 September 2020
Six months Six months Year to
to 30 Sept. to 30 Sept. 31 March
2020 unaudited 2019 unaudited 2020 audited
GBP000 GBP000 GBP000
Revenue 107,034 125,609 247,100
Cost of sales (including warehouse costs) (88,985) (103,726) (203,656)
Gross profit 18,049 21,883 43,444
Selling and distribution costs (7,449) (9,703) (19,251)
Administrative expenses (4,056) (3,712) (8,196)
Operating profit 6,544 8,468 15,997
Finance income 5 46 82
Finance costs (236) (198) (417)
Profit before tax 6,313 8,316 15,662
Tax expense (1,215) (1,630) (3,181)
Profit after tax attributable to owners
of the parent company 5,098 6,686 12,481
Earnings per ordinary share (basic) 25.6p 33.8p 63.1p
Earnings per ordinary share (diluted) 25.6p 33.8p 63.0p
============================================== ================ ================ ==============
All results relate to continuing operations.
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the six months to 30 September 2020
Six months Six months Year to
to 30 Sept. to 30 Sept. 31 March
2020 unaudited 2019 unaudited 2020 audited
GBP000 GBP000 GBP000
---------------------------------------------- ---------------- ---------------- --------------
Profit after tax 5,098 6,686 12,481
Other Comprehensive income
Actuarial gains/(loss) on defined benefit
pension scheme 1,923 (6,767) (4,823)
Deferred tax relating to components of other
comprehensive income (365) 1,150 916
Foreign translation credit 23 12 80
---------------------------------------------- ---------------- ---------------- --------------
Other comprehensive income for the period,
net of tax 1,581 (5,605) (3,827)
---------------------------------------------- ---------------- ---------------- --------------
Total comprehensive income, attributable
to owners of the parent company 6,679 1,081 8,654
============================================== ================ ================ ==============
JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 30 September 2020
As at 30 As at 30 As at 31
Sept. 2020 Sept. 2019 March 2020
unaudited unaudited audited
GBP000 GBP000 GBP000
ASSETS
Non-current assets
Goodwill 872 523 872
Intangible assets 1,738 1,905 1,822
Property, plant and equipment 35,477 34,581 35,952
Right-of-use-asset 4,629 4,344 4,895
Deferred tax asset 1,694 2,560 2,258
Total non-current assets 44,410 43,913 45,799
Current assets
Inventories 41,360 42,501 44,288
Trade and other receivables 44,764 45,697 47,046
Cash and cash equivalents 26,159 16,538 16,950
Total current assets 112,283 104,736 108,284
Total assets 156,693 148,649 154,083
------------------------------------------- ------------ ------------ ------------
Current liabilities
Lease liabilities 1,242 1,143 1,178
Trade and other payables 30,122 28,321 28,686
Current tax payable - 86 -
------------------------------------------- ------------ ------------ ------------
Total current liabilities 31,364 29,550 29,864
Non-current liabilities
Interest bearing loans and borrowings 592 592 592
Lease liabilities 3,579 3,252 3,857
Retirement and other benefit obligation 8,774 14,637 11,812
Other payables - 180 392
Deferred tax liabilities 3,264 2,856 3,289
------------------------------------------- ------------ ------------ ------------
Total non-current liabilities 16,209 21,517 19,942
Total liabilities 47,573 51,067 49,806
Net assets 109,120 97,582 104,277
=========================================== ============ ============ ============
Capital and reserves
Issued capital 5,040 5,040 5,040
Share-based payment reserve 96 89 25
Own shares (542) (891) (619)
Capital reserve 398 398 398
Retained earnings 104,128 92,946 99,433
------------------------------------------- ------------ ------------ ------------
Total equity attributable to shareholders
of the parent company 109,120 97,582 104,277
=========================================== ============ ============ ============
JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months to 30 September 2020
Six months Six months Year to
to 30 Sept to 30 Sept 31 March
2020 unaudited 2019 unaudited 2020 audited
GBP000 GBP000 GBP000
------------------------------------------------ ---------------- ---------------- --------------
Net cash flow from operating activities
Cash generated from operations 13,565 8,040 13,528
Interest paid - (3) (3)
Income tax paid (950) (2,552) (3,851)
Net cash inflow from operating activities 12,615 5,485 9,674
------------------------------------------------ ---------------- ---------------- --------------
Cash flows from investing activities
Interest received and similar income 5 46 82
Acquisition of businesses net of cash acquired - - (578)
Purchase of property, plant and equipment (785) (1,512) (3,886)
Proceeds from sale of property, plant and
equipment 6 119 152
Net cash outflow from investing activities (774) (1,347) (4,230)
------------------------------------------------ ---------------- ---------------- --------------
Cash flows before financing activities
Sale of treasury shares - - 1,036
Purchase of treasury shares - (5) -
Lease liability payments (621) (572) (1,390)
Equity dividends paid (1,987) (2,540) (3,633)
Preference dividend paid (24) (24) (48)
Cash outflow from financing activities (2,632) (3,141) (4,035)
------------------------------------------------ ---------------- ---------------- --------------
Increase in cash and cash equivalents for
the period 9,209 997 1,409
================================================
Cash and cash equivalents at beginning of
the period 16,950 15,541 15,541
Cash and cash equivalents at end of the
period 26,159 16,538 16,950
================================================ ================ ================ ==============
JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the
parent company
Share-based
Issued payment Own Capital Retained Total
capital reserve shares reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
As at 1 April 2019 (audited) 5,040 259 (923) 3 93,427 98,177
Profit for the period - - - - 6,686 6,686
Other comprehensive income:
Actuarial loss on defined
benefit
pension scheme - - - - (6,767) (6,767)
Deferred tax relating to
components
of other comprehensive income - - - - 1,150 1,150
Foreign translation charge - - - - 12 12
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Total comprehensive income for
the period - - - - 1,081 1,081
Transaction with owners:
Dividends - - - - (2,540) (2,540)
Exercise of options - (181) (520) - 1,488 787
Deferred tax on share options - (32) - - (32) (64)
Purchase of preference shares 5 - - - - 5
Cancellation of preference
shares (395) - 478 395 (478) -
Change in investment in ESOP
shares - - 74 - - 74
Share-based payment expense - 43 - - - 43
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Total transactions with owners (390) (170) 32 395 (1,562) (1,676)
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Balance at 30 September 2019
(unaudited) 5,040 89 (891) 398 92,946 97,582
Profit for the period - - - - 5,795 5,795
Other comprehensive income:
Actuarial gain on defined
benefit
pension scheme - - - - 1,944 1,944
Deferred tax relating to
components
of other comprehensive income - - - - (234) (234)
Foreign translation charge - - - - 68 68
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Total comprehensive income for
the period - - - - 7,573 7,573
Transactions with owners:
Dividends - - - - (1,093) (1,093)
Exercise of options - (72) 259 - (25) 162
Deferred tax on share options - (13) - - 32 19
Change in investment in ESOP
shares - - 13 - - 13
Share-based payment expense - 21 - - - 21
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Total transactions with owners - (64) 272 - (1,086) (878)
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Balance at 31 March 2020
(audited) 5,040 25 (619) 398 99,433 104,277
Profit for the period - - - - 5,098 5,098
Other comprehensive income:
Actuarial gain on defined
benefit
pension scheme - - - - 1,923 1,923
Deferred tax relating to
components
of other comprehensive income - - - - (365) (365)
Foreign translation charge - - - - 23 23
Total comprehensive income for
the period - - - - 6,679 6,679
Transactions with owners:
Dividends - - - - (1,987) (1,987)
Exercise of options - (8) - - 3 (5)
Change in investment in ESOP
shares - - 77 - - 77
Share-based payment expense - 79 - - - 79
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Total transactions with owners - 71 77 - (1,984) (1,836)
--------------------------------- ------------ ---------------- ----------- ----------- ------------- ----------
Balance at 30 September 2020
(unaudited) 5,040 96 (542) 398 104,128 109,120
================================= ============ ================ =========== =========== ============= ==========
JAMES LATHAM PLC
NOTES TO THE HALF YEARLY REPORT
1. The results presented in this report are unaudited and they have
been prepared in accordance with the recognition and measurement principles
of International Financial Reporting Standards ('IFRS') as adopted
by the EU and on the basis of the accounting policies expected to
be used in the financial statements for the year ending 31 March 2021.
The half yearly report does not include all the disclosures that would
be required for full compliance with IFRS. The figures for the year
ended 31 March 2020 are extracted from the statutory accounts of the
group for that period.
2. The directors propose an interim dividend of 5.7p per ordinary
share which will absorb GBP1,133,000 (2019: 5.5p absorbing GBP1,085,000),
payable on 29 January 2021 to shareholders on the Company's Register
at the close of business on 4 January 202. The ex-dividend date is
31 December 2020.
3. This half yearly report does not constitute statutory financial
accounts within the meaning of section 434 of the Companies Act 2006.
The statutory accounts for the year ended 31 March 2020 were filed
with the Registrar of Companies. The audit report on those financial
statements was not qualified and did not contain a reference to any
matters to which the auditor drew attention by way of emphasis without
qualifying the report and did not contain a statement under section
498 (2) or (3) of the Companies Act 2006. The half yearly report has
not been audited by the Company's auditor.
4. Earnings per ordinary share is calculated by dividing the net profit
for the period attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the period.
Six months Six months Year to
to 30 Sept to 30 Sept 31 March
2020 unaudited 2019 unaudited 2020 audited
GBP000 GBP000 GBP000
Net profit attributable to ordinary shareholders 5,098 6,686 12,481
Number '000 Number '000 Number
'000
Weighted average share capital 19,876 19,759 19,781
Add: diluted effect of share capital options
issued 26 33 23
Weighted average share capital for diluted
earnings per ordinary share calculation 19,902 19,792 19,804
---------------- ---------------- --------------
5. Net cash flow from operating activities
Six months Six months Year to
to 30 Sept to 30 Sept 31 March
2020 unaudited 2019 unaudited 2020 audited
GBP000 GBP000 GBP000
Profit before tax 6,313 8,316 15,662
Adjustment for finance income and expenditure 231 152 335
Depreciation and amortisation 2,017 1,797 3,790
Profit on disposal of property, plant
and equipment (6) (119) (121)
Increase in inventories 2,928 (151) (1,659)
Increase in receivables 2,193 (3,084) (3,963)
Increase/(decrease) in payables 962 1,162 1,244
Own shares non cash amounts 77 853 -
Retirement benefits non cash amounts (1,247) (941) (1,904)
Translation non cash amounts 23 12 80
Share-based payments non cash amounts 74 43 64
Cash generated from operations 13,565 8,040 13,528
---------------- ---------------- --------------
6. Copies of this statement will be posted on our website, www.lathams.co.uk
. A copy can be emailed or posted upon application to the Company
Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road Hemel
Hempstead, Herts, HP2 7QU, or by email to plc@lathams.co.uk
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END
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November 25, 2020 02:00 ET (07:00 GMT)
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