Share Name Share Symbol Market Type Share ISIN Share Description
Latham (james) Plc LSE:LTHM London Ordinary Share GB00B04NP100 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 675.00 640.00 710.00 675.00 675.00 675.00 13,573 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 235.1 15.4 63.1 10.7 134

Latham(James) PLC Half-year Report

28/11/2019 7:00am

UK Regulatory (RNS & others)


Latham (james) (LSE:LTHM)
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6 Months : From Oct 2019 to Apr 2020

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RNS Number : 9021U

Latham(James) PLC

28 November 2019

James Latham plc

("James Latham" or the "Company")

HALF YEARLY RESULTS FOR THE PERIODED 30 SEPTEMBER 2019

Chairman's statement

Unaudited results for the six months trading to 30 September 2019

Revenue for the six months ended 30 September 2019 was GBP125.6m, up 6.3% on GBP118.2m for the same period last year. This turnover increase is down to our long term strategic changes in product mix, as overall volumes have been static. The panel product business has seen an increase in delivered volumes through our warehouses, but a reduction in our direct volumes. Our timber business has also seen an increase in delivered volumes especially on added value products. Prices have decreased on most of our commodity panel products throughout this six month period although timber prices have remained stable.

Gross margin for the six month period ended 30 September 2019 was 17.4% compared with 17.1% in the comparative six months. This figure includes warehouse costs which are higher due to the increased volumes through our warehouses, and also part of our strategy to increase the working hours in order to better meet our customer needs. Three of our depots are now working 24 hours/5 days a week. The increased delivered volumes have also resulted in an increase in distribution costs. Administrative expenses though are lower than last year, with a reduction in the bad debt charge.

Operating profit was GBP8.5m, up 9.6% on last year's profit of GBP7.7m. Profit before tax was GBP8.3m compared with GBP8.7m in the comparative six months which included a profit of GBP1.1m on the sale of our old Yate site. Earnings per ordinary share, excluding the profit on the sale of Yate were 33.8p (2018: 31.5p) an increase of 7.3%.

As at 30 September 2019 net assets are GBP97.6m (2018: GBP98.6m). We have adopted IFRS 16 on leasing in these results, which has had an insignificant effect on profit before tax and these changes are explained in note 6 to this statement. Stock volume levels have remained stable throughout the six months. Trade Receivables have continued to show good debtor days figures. Cash and cash equivalents of GBP16.5m (2018: GBP12.9m) remain strong and we continue to take advantage of additional early settlement discount opportunities with our suppliers.

The calculation of the pension deficit remains very sensitive to changes in assumptions, and the pension deficit under IAS19 is calculated as increasing from GBP8.7m at 31 March 2019 to GBP14.6m at 30 September 2019. This is largely due to a reduction in the discount rate.

Interim dividend

The Board has declared an increased interim dividend of 5.5p per Ordinary Share (2018: 5.0p), which is covered 6.1 times (2018: 7.4 times). The dividend is payable on 24 January 2020 to ordinary shareholders on the Company's Register at close of business on 3 January 2020. The ex-dividend date will be 2 January 2020.

Current and future trading

The second half of 2019/20 has started well with margins slightly ahead of the previous period. We are seeing increased sales at Abbey Woods, the Irish timber distributor purchased in February 2019, and also an improvement in our panel product volumes. Purchase prices of our commodity panel products remain weak. The investment in our Gateshead facility, to improve the site efficiency, is going well, and should be completed in June 2020. The racking investment at Purfleet will be completed by the end of December 2019. The majority of our customers are busy, and we remain confident that we can continue to grow our business, but remain mindful of the uncertainties caused by the forthcoming General Election and a weakening global economy.

I am also very pleased to have reported this week the strategic purchase of Dresser Mouldings for GBP1 million, which will allow us to continue to grow our sales of added value timber.

Nick Latham

Chairman

28 November 2019

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        Tel: 0203 470 
  Bouverat (Corporate Finance)     0470 
 Abigail Wayne (Corporate 
  Broking) 
 
 
 JAMES LATHAM PLC 
 CONSOLIDATED INCOME STATEMENT 
 
 For the six months to 30 September 2019 
 
                                                      Six months        Six months         Year to 
                                                      to 30 Sept.       to 30 Sept.        31 March 
                                                     2019 unaudited    2018 unaudited    2019 audited 
 
                                                        GBP000            GBP000           GBP000 
 
 Revenue                                                    125,609           118,160         235,132 
 
 Cost of sales (including warehouse costs)                (103,726)          (97,974)       (194,686) 
 
 Gross profit                                                21,883            20,186          40,446 
 
 Selling and distribution costs                             (9,703)           (8,679)        (18,082) 
 Administrative expenses                                    (3,712)           (3,782)         (7,896) 
 
 Operating profit                                             8,468             7,725          14,468 
 
 Profit on disposal of property                                   -             1,052           1,052 
 Finance income                                                  46                32              71 
 Finance costs                                                (198)             (141)           (256) 
 
 Profit before tax                                            8,316             8,668          15,335 
 
 Tax expense                                                (1,630)           (1,418)         (2,913) 
 
 Profit after tax attributable to owners 
  of the parent company                                       6,686             7,250          12,422 
 
 Earnings per ordinary share (basic)                          33.8p             36.9p           63.1p 
 
 Earnings per ordinary share (diluted)                        33.8p             36.8p           63.0p 
=================================================  ================  ================  ============== 
 
 Earnings per ordinary share (basic, excluding 
  profit on disposal of property)                             33.8p             31.5p           61.6p 
 
 Earnings per ordinary share (diluted, excluding 
  profit on disposal of property)                             33.8p             31.5p           61.5p 
=================================================  ================  ================  ============== 
 
 All results relate to continuing operations. 
 
 
 JAMES LATHAM PLC 
 
 CONSOLIDATED STATEMENT OF COMPREHENSIVE 
  INCOME 
 
 For the six months to 30 September 2019 
 
                                                   Six months        Six months         Year to 
                                                   to 30 Sept.       to 30 Sept.        31 March 
                                                  2019 unaudited    2018 unaudited    2019 audited 
 
                                                     GBP000            GBP000           GBP000 
----------------------------------------------  ----------------  ----------------  -------------- 
 
 Profit after tax                                          6,686             7,250          12,422 
 Other Comprehensive income 
 Actuarial (loss)/gains on defined benefit 
  pension scheme                                         (6,767)             4,444         (1,360) 
 Deferred tax relating to components of other 
  comprehensive income                                     1,150             (673)             314 
 Foreign translation credit/(charge)                          12                 -            (31) 
----------------------------------------------  ----------------  ----------------  -------------- 
 Other comprehensive income for the period, 
  net of tax                                             (5,605)             3,771         (1,077) 
----------------------------------------------  ----------------  ----------------  -------------- 
 Total comprehensive income, attributable 
  to owners of the parent company                          1,081            11,021          11,345 
==============================================  ================  ================  ============== 
 
 
 JAMES LATHAM PLC 
 CONSOLIDATED BALANCE SHEET 
 
 At 30 September 2019 
 
                                               As at 30      As at 30      As at 31 
                                               Sept. 2019    Sept. 2018    March 2019 
                                               unaudited     unaudited      audited 
 
                                                GBP000        GBP000        GBP000 
 ASSETS 
 Non-current assets 
 Goodwill                                             523           237           523 
 Intangible assets                                  1,905             1         1,989 
 Property, plant and equipment                     34,581        33,979        34,159 
 Right-of-use-asset                                 4,344             -             - 
 Deferred tax asset                                 2,560           582         1,577 
 Total non-current assets                          43,913        34,799        38,248 
 
 Current assets 
 Inventories                                       42,501        41,462        42,350 
 Trade and other receivables                       45,697        43,082        42,613 
 Cash and cash equivalents                         16,538        12,864        15,541 
 Total current assets                             104,736        97,408       100,504 
 
 
 Total assets                                     148,649       132,207       138,752 
-------------------------------------------  ------------  ------------  ------------ 
 
 Current liabilities 
 Lease liabilities                                  1,143             -             - 
 Trade and other payables                          28,321        25,743        27,113 
 Current tax payable                                   86         1,272         1,193 
-------------------------------------------  ------------  ------------  ------------ 
 Total current liabilities                         29,550        27,015        28,306 
 
 Non-current liabilities 
 Interest bearing loans and borrowings                592           987           597 
 Lease liabilities                                  3,252             -             - 
 Retirement and other benefit obligation           14,637         3,072         8,714 
 Other payables                                       180           262           413 
 Deferred tax liabilities                           2,856         2,283         2,762 
-------------------------------------------  ------------  ------------  ------------ 
 Total non-current liabilities                     21,517         6,604        12,486 
 
 
 Total liabilities                                 51,067        33,619        40,792 
 
 
 Net assets                                        97,582        98,588        97,960 
===========================================  ============  ============  ============ 
 
 Capital and reserves 
 Issued capital                                     5,040         5,040         5,430 
 Share-based payment reserve                           89           235           259 
 Own shares                                         (891)         (423)         (923) 
 Capital reserve                                      398             3             3 
 Retained earnings                                 92,946        93,733        93,191 
-------------------------------------------  ------------  ------------  ------------ 
 
 Total equity attributable to shareholders 
  of the parent company                            97,582        98,588        97,960 
===========================================  ============  ============  ============ 
 
 
 JAMES LATHAM PLC 
 
 CONSOLIDATED CASH FLOW STATEMENT 
 
 For the six months to 30 September 2019 
 
                                                       Six months        Six months         Year to 
                                                        to 30 Sept        to 30 Sept        31 March 
                                                      2019 unaudited    2018 unaudited    2019 audited 
 
                                                         GBP000            GBP000           GBP000 
--------------------------------------------------  ----------------  ----------------  -------------- 
 Net cash flow from operating activities 
 Cash generated from operations                                7,468             1,972          10,267 
 Interest paid                                                   (3)               (1)             (8) 
 Income tax paid                                             (2,552)           (1,292)         (2,651) 
 Net cash inflow from operating activities                     4,913               679           7,608 
--------------------------------------------------  ----------------  ----------------  -------------- 
 
 Cash flows from investing activities 
 Interest received and similar income                             46                32              71 
 Acquisition of businesses net of cash acquired                    -                 -         (1,604) 
 Purchase of property, plant and equipment                   (1,512)           (1,136)         (2,362) 
 Proceeds from sale of property, plant and 
  equipment                                                      119             1,718           1,743 
 Net cash (outflow)/inflow from investing 
  activities                                                 (1,347)               614         (2,152) 
--------------------------------------------------  ----------------  ----------------  -------------- 
 
 Cash flows before financing activities 
 Purchase of treasury shares                                     (5)                 -           (478) 
 Equity dividends paid                                       (2,540)           (2,379)         (3,363) 
 Preference dividend paid                                       (24)              (39)            (63) 
 Cash outflow from financing activities                      (2,569)           (2,418)         (3,904) 
--------------------------------------------------  ----------------  ----------------  -------------- 
 
 Increase/(decrease) in cash and cash equivalents 
  for the period                                                 997           (1,125)           1,552 
================================================== 
 
 Cash and cash equivalents at beginning of 
  the period                                                  15,541            13,989          13,989 
 
 Cash and cash equivalents at end of the 
  period                                                      16,538            12,864          15,541 
==================================================  ================  ================  ============== 
 
 
 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 2018 (audited)             5,040               184        (529)            3         85,091      89,789 
 Profit for the period                        -                 -            -            -          7,250       7,250 
 Other comprehensive income: 
 Actuarial gain on defined 
  benefit 
  pension scheme                              -                 -            -            -          4,444       4,444 
 Deferred tax relating to 
  components 
  of other comprehensive income               -                 -            -            -          (673)       (673) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Total comprehensive income for 
  the period                                  -                 -            -            -         11,021      11,021 
 Transaction with owners: 
 Dividends                                    -                 -            -            -        (2,379)     (2,379) 
 Exercise of options                          -                 -            -            -              -           - 
 Change in investment in ESOP 
  shares                                      -                 -          106            -              -         106 
 Share-based payment expense                  -                51            -            -              -          51 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Total transactions with owners               -                51          106            -        (2,379)     (2,222) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Balance at 30 September 2018 
  (unaudited)                             5,040               235        (423)            3         93,733      98,588 
 Profit for the period                        -                 -            -            -          5,172       5,172 
 Other comprehensive income: 
 Actuarial loss on defined 
  benefit 
  pension scheme                              -                 -            -            -        (5,804)     (5,804) 
 Deferred tax relating to 
  components 
  of other comprehensive income               -                 -            -            -            987         987 
 Foreign translation charge                   -                 -            -            -           (31)        (31) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Total comprehensive income for 
  the period                                  -                 -            -            -            324         324 
 Transactions with owners: 
 Dividends                                    -                 -            -            -          (984)       (984) 
 Transfer of treasury shares                  -                 -         (82)            -             82           - 
 Exercise of options                          -              (19)           54            -             19          54 
 Deferred tax on share options                -                 -            -            -             31          31 
 Write down on conversions of 
  ESOP shares                                 -                 -           14            -           (14)           - 
 Purchase of preference shares              390                 -        (478)            -              -        (88) 
 Change in investment in ESOP 
  shares                                      -                 -          (8)            -              -         (8) 
 Share-based payment expense                  -                43            -            -              -          43 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Total transactions with owners               -                24        (500)            -          (866)       (952) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Balance at 31 March 2019 
  (audited)                               5,430               259        (923)            3         93,191      97,960 
 Change in accounting policy 
  (IFRS16)                                    -                 -            -            -            262         262 
 Deferred tax on IFRS 16                      -                 -            -            -           (45)        (45) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 As at 1 April 2019 (as restated)         5,430               259        (923)            3         93,408      98,177 
 Profit for the period                        -                 -            -            -          6,686       6,686 
 Other comprehensive income: 
 Actuarial gain 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 
 Transactions with owners: 
 Dividends                                    -                 -            -            -        (2,540)     (2,540) 
 Transfer of treasury shares                  -                 -      (1,668)            -          1,668           - 
 Exercise of options                          -             (213)          779            -            213         779 
 Deferred tax on share options                -                 -            -            -           (32)        (32) 
 Write down on conversions of 
  ESOP shares                                 -                 -          369            -          (369)           - 
 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        (1,543)     (1,676) 
---------------------------------  ------------  ----------------  -----------  -----------  -------------  ---------- 
 Balance at 30 September 2019 
  (unaudited)                             5,040                89        (891)          398         92,946      97,582 
=================================  ============  ================  ===========  ===========  =============  ========== 
 
 
 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 2020. 
  The figures for the year ended 31 March 2019 are extracted from the 
  statutory accounts of the group for that period. 
 
 2. The directors propose an interim dividend of 5.5p per ordinary 
  share which will absorb GBP1,085,000 (2018: 5.0p absorbing GBP980,000), 
  payable on 24 January 2020 to shareholders on the Company's Register 
  at the close of business on 3 January 2020. The ex-dividend date is 
  2 January 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 2019 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 
                                                      2019 unaudited    2018 unaudited    2019 audited 
                                                         GBP000            GBP000           GBP000 
 
 Net profit attributable to ordinary shareholders              6,686             7,250          12,422 
 
                                                     Number '000       Number '000              Number 
                                                                                                  '000 
 Weighted average share capital                               19,759            19,661          19,674 
 Add: diluted effect of share capital options 
  issued                                                          33                41              28 
 Weighted average share capital for diluted 
  earnings per ordinary share calculation                     19,792            19,702          19,702 
                                                    ----------------  ----------------  -------------- 
 
 5. Net cash flow from operating activities 
 
                                                       Six months        Six months         Year to 
                                                        to 30 Sept        to 30 Sept        31 March 
                                                      2019 unaudited    2018 unaudited    2019 audited 
                                                         GBP000            GBP000           GBP000 
 
 Profit before tax                                             8,316             8,668          15,335 
 Adjustment for finance income and expenditure                   152               109             185 
 Depreciation and amortisation                                 1,174               970           2,036 
 Profit on disposal of property, plant 
  and equipment                                                (119)           (1,062)         (1,079) 
 Increase in inventories                                       (151)           (1,394)         (2,282) 
 Increase in receivables                                     (3,084)           (1,574)         (1,105) 
 Increase/(decrease) in payables                               1,236           (2,935)         (1,825) 
 Own shares non cash amounts                                     853               106             152 
 Retirement benefits non cash amounts                          (941)             (967)         (1,213) 
 Translation non cash amounts                                     12                 -            (31) 
 Share-based payments non cash amounts                            43                51              94 
 IFRS16 Lease non cash items                                    (23)                 -               - 
                                                    ----------------  ----------------  -------------- 
 Cash generated from operations                                7,468             1,972          10,267 
                                                    ----------------  ----------------  -------------- 
 
 
 6. The Group has adopted IFRS 16 "leases" which is effective for annual 
  periods beginning on or after 1 January 2019. The Company has chosen 
  to apply the modified retrospective transition method and so the prior 
  year figures have not been adjusted. The Company has elected to apply 
  the practical expedient for short-term leases to leases for which 
  the lease term ends within 12 months of the date of initial application, 
  and the practical expedient for low value leases. 
 
   The adoption of the standard has resulted in the Group bringing many 
   of its leases onto the balance sheet reflecting 'right-of-use' assets 
   which, are depreciated, and corresponding liabilities on which interest 
   accrues. The impact of the standard in the period to 30 September 
   2019, compared to the results if the standard had not been recognised, 
   is that operating profit has increased by GBP23,000 due to the elimination 
   of rent costs and recognition of depreciation. However, profit before 
   and after tax has reduced by GBP51,000 due to interest charges. 
 
   At 30 September 2019 non-current assets have increased by GBP4,344,000 
   as a result of the additional right-of-use assets. Total liabilities 
   have increased by GBP4,395,000 due to the addition of finance lease 
   liabilities. Total net asset effect is a decrease of GBP51,000. 
 
   The rent-free period accruals previously recognised under liabilities 
   to the value of GBP262,000 have been transferred to retained earnings. 
   A deferred tax provision of GBP45,000 has been recognised on the impact 
   of IFRS 16. 
 
 7. 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 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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