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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% 897.50 870.00 925.00 905.00 897.50 905.00 12,363 08:00:05
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 247.1 15.7 63.1 14.2 179

Latham(James) PLC Half-year Report

25/11/2020 7:00am

UK Regulatory (RNS & others)


Latham (james) (LSE:LTHM)
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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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