7 Jun 2010 07:00
7 June 2010
LATCHWAYS PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Latchways plc is the world leader in the design, manufacture and sale of engineered fall protection safety systems, which offer continuous protection to individuals working at height. Latchways' systems are sold globally through a network of trained installers to a legislation-driven marketplace. These systems are used to provide worker safety on a diverse range of applications including commercial rooftops, wind power turbines, electricity transmission towers, aircraft wings and industrial plants.
Summary
·; Overall Revenue down 8% with specific impact from the recession in the UK commercial construction sector
·; Export revenues up 6% to a record £16.7 million (2009: £15.8 million) and now accounting for 66% of product revenues
·; Profit before tax reduced by 8% to £7.6 million (2009: £8.3 million)
·; Diluted earnings per share down 5% to 49.12 pence (2009: 51.47 pence)
·; Net cash at year end up £2.4 million to £7.2 million (2009: £4.8 million) due to strong cash generation
·; Final dividend increased by 15% to 17.97 pence (2009: 15.63 pence)
·; Total dividend for the year 25.78 pence (2009: 23.44 pence), a 10% increase
·; Further investment in sales resource underway to ensure potential delivered
·; Strong start to the new financial year
Commenting on the results, Paul Hearson, Chairman, said
"The past eighteen months have been a challenging period for Latchways, as the global recession and the lack of credit available for capital projects have combined to reduce demand across a number of our markets, in particular the UK construction sector. We have responded to this by increasing our emphasis on overseas growth, through initiatives involving both new products and new geographic territories.
Whilst there remains uncertainty in the global economic outlook, current orders are ahead of the same period last year and we continue to generate cash.
We believe that the targeted additions of new sales resources, together with a robust pipeline of business prospects, will allow Latchways to resume its historically successful pattern of growth in the current year and beyond."
Enquiries: Latchways plc Threadneedle Communications
David Hearson, Chief Executive Graham Herring
Rex Orton, Financial Director Tel: 020 7653 9858Tel: 01380 732700
7 June 2010
LATCHWAYS PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Chairman's Statement
The past eighteen months have been a challenging period for Latchways, as the global recession and the lack of credit available for capital projects have combined to reduce demand across a number of our markets, in particular the UK construction sector. We have responded to this by increasing our emphasis on overseas growth, through initiatives involving both new products and new geographic territories.
I am pleased to report that these initiatives resulted in improved trading in the second half of the year, with both existing and new product ranges providing overseas revenue growth. Exports now account for 66% of our product revenue, compared with 53% three years ago, and we expect this trend to continue.
Throughout these challenging times, our business has remained profitable and cash generative, and we end the year with cash balances in excess of £7 million and no debt.
Results
Group revenue for the year ended 31 March 2010 was £33.9 million (2009: £37.0 million), 8% less than last year.
Group profit before taxation was also 8% lower than last year at £7.6 million (2009: £8.3 million).
Diluted earnings per share reduced by 5% to 49.12 pence (2009: 51.47 pence).
Net cash balances at year end were £7.2 million (2009: £4.8 million).
Dividends
The Latchways business remains strongly cash generative, despite the more challenging economic environment. Cash balances have increased by £2.4 million in the year.
The board is committed to maintaining a progressive dividend policy whilst ensuring that the group retains sufficient funds to make ongoing investment decisions without recourse to banks or shareholders. At the half year, the board adopted a "wait and see" approach to the economic climate, maintaining an unchanged interim dividend. Given the ongoing strength of cash flows, and the more stable business climate, the board is recommending a 15% increase in the final dividend to 17.97 pence per share (2009: 15.63 pence). Taken together with the interim dividend of 7.81 pence, the total dividend for the year of 25.78 pence per share represents a 10% increase on 2009.
The final dividend will be paid on 17 September 2010 to shareholders on the register as at 20 August 2010.
Our trading environment
The global recession of the past 18 months has created a more challenging environment for the Latchways business, most particularly in our construction-facing markets. Despite this, we have continued to win new business in our target markets, and to open up new and potentially significant geographical opportunities. Whilst the economic outlook remains fraught with uncertainty, we are convinced that our strategy is the right one to secure future growth.
Our UK markets are exposed to the commercial construction sector. We have seen significant reductions in business volume over the past 18 months, but the past few months have given us grounds for cautious optimism. We have seen a noticeable bottoming out of volumes in this sector, although it should be noted that, with many projects involving at least some element of public financing, we should not expect to see growth here for some time to come.
Contrasting with the commercial construction sector, the wind power market represents a real growth opportunity, both in the UK and overseas. We have seen initial success with our new sealed Self-Retracting Lifeline in the offshore wind turbine market, as well as positive responses from the oil and gas industry.
Outside of the UK, the picture is more positive, with our European markets proving very resilient throughout the downturn. The pipeline of prospects across Europe gives us confidence of renewed revenue growth in this market, while our newer product ranges continue to gain market share. Whilst the problems of the Eurozone have been well publicized, there has been little impact on our business to date. Our exposure to those countries with particular difficulties is modest.
Our North American business has seen strong growth in the year, with the Wingrip product making successful inroads into the US military. We are also seeing greater acceptance of our expanding Self Retracting Lifeline range amongst both end users and distributors. We expect further progress with both these product ranges this year. Our traditional installer-based US business has also fared well, taking advantage of improving economic conditions.
Other parts of the world have made increasing revenue contributions during the past year, driven by new customer wins in the utilities sector and also new partnerships in geographies which are just beginning to adopt relevant safety standards. We are investing in additional resources to ensure that we make the most of the many opportunities that we see worldwide.
We continue to seek suitable acquisitions to further enhance our product range. Whilst we have not found any opportunities over the past twelve months, the continued success of the products that we have acquired such as Wingrip and, most recently, the Versirail guardrail system, demonstrate the strength of Latchways' customer network in providing a ready market for high quality safety products. We have been very pleased with the progress of the Versirail system this year, increasing revenues in spite of the recession in construction.
New Product Development
Much of the effort of our dedicated, professional in-house design team over the past year has been directed towards completing the range of our Self Retracting Lifeline product offering. We now have a complete range of both conventional SRLs, and sealed variants for the offshore environment, which will allow us full access to these markets going forward. Given the difficult market conditions into which these product ranges have been launched, we are pleased with the progress made to date and with the market's reaction to them. We have no doubt that these will grow to become a significant proportion of Latchways' revenues over time.
The coming year will see further enhancements to the Latchways product portfolio, which address proven needs in our market place.
Recent Projects
Despite the challenging economic climate of the past year, our products continue to be selected for the most prestigious projects worldwide. Recent examples include the New Doha International Airport, the Adelaide Oval, the 2012 Olympic Stadium, and Greater Gabbard, the UK's largest offshore wind farm. These and other similar projects demonstrate the enduring confidence of our customers in the quality and reliability of Latchways products.
People
During the past two years, we have been cautious in our application of resources across the business. This was appropriate given the level of global uncertainty that we were dealing with. However, we are now convinced that the need to respond to and take advantage of the opportunities that are currently presenting themselves requires us to take steps to further strengthen our sales and marketing resources. We have identified a number of areas where additional revenues can be targeted and are recruiting to address those areas. Whilst these resources will take time to become fully effective, we believe that this investment is both appropriate and essential to secure growth in 2011/12 and beyond.
The increased demands of the past year have demonstrated further the loyalty and ingenuity of our excellent team. On behalf of the board I would once again like to express our thanks and admiration to our staff for a job well done.
Current Trading and Prospects
Whilst there remains uncertainty in the global economic outlook, current orders are ahead of the same period last year and we continue to generate cash.
We believe that the targeted additions of new sales resources, together with a robust pipeline of business prospects, will allow Latchways to resume its historically successful pattern of growth in the current year and beyond.
Paul Hearson
Chairman
OPERATING AND FINANCIAL REVIEW
The board of Latchways plc is pleased to report these consolidated results for the year ended 31 March 2010.
Financial Results
Group revenue for the year was £33.9 million, a reduction of 8% compared with the 2009 figure of £37.0 million. This resulted in an operating profit of £7.6 million, down 7% on 2009 (2009: £8.2 million), and a pre-tax profit of £7.6 million (2009: £8.3 million).
Both gross and operating margins are among the group's key performance indicators.
The consolidated gross margin was 2.5% better than last year at 55.9% (2009: 53.4%). This was in part due to the stronger Euro and US Dollar, and partly due to product cost reductions achieved through our ongoing re-sourcing programme.
Excluding the 2009 exceptional charge, overheads were 3% higher than last year at £11.3 million. This was mainly due to foreign exchange impacts, together with costs relating to the settlement of a legal claim involving the Specialist Fixings division. As a result, operating margins (before exceptional charges) reduced by 1.1% to 22.5%.
The effective rate of taxation for the year was 28.0% (2009: 30.9%). The 2009 tax rate was increased by 2.6% by a deferred tax charge relating to the abolition of Industrial Buildings Allowances.
Basic earnings per share reduced by 5% to 49.25 pence (2009: 51.61 pence), whilst diluted earnings per share reduced by 5% to 49.12 pence (2009: 51.47 pence).
On the balance sheet, non-current assets reduced by £0.6 million to £9.7 million (2009: £10.3 million). This was due to depreciation and amortisation charges, there being only modest capital expenditure during the year. Goodwill of £4.4 million (2009: £4.3 million) increased slightly due to the annual re-assessment of deferred contingent consideration on the Sigma 6 acquisition. Other intangible assets of £2.0 million (2009: £2.3 million) comprise the intellectual property, brands, order books and customer relationships acquired since 2004, together with internally generated patents and trademarks, computer software and ongoing development costs that have been capitalised. Property, plant and equipment of £3.3 million (2009: £3.6 million) mainly represents premises, together with production plant and tooling. The premises consist of a 2,000 square metre warehouse and head office at Devizes, together with a further 2 acres of additional land directly adjacent. The group has detailed planning permission for a second unit on this land, providing ample scope for foreseeable future expansion.
Inventory of £3.5 million was £0.4 million lower than last year (2009: £3.9 million).
Trade and other receivables were £1.7 million higher at £10.3 million (2009: £8.6 million). This was in part due to the strength of revenues in February and March, reflecting strong utility sales in those months which had not been paid by year end. Further, a specific order of £0.7 million, payment for which should have been received by year end, was not paid until April due to administrative delays at the customer. Not surprisingly, during the past year we have seen some UK construction-facing customers failing, but these are adequately covered by specific bad debt reserves and have been of a manageable level.
Group creditor days were 36 days (2009: 36 days). It remains our clear policy to ensure that suppliers are paid on time, particularly in these more difficult times. This results in strong relationships with those suppliers which are of substantial benefit to Latchways in the longer term.
Cash generation is a key performance indicator for the group. Cash generated from operations as a proportion of pre-exceptional operating profit was 106% (2009: 90%). This was achieved despite the increase in receivables in the fourth quarter, and further demonstrates the cash generative nature of the business. Tax payments in the year were unchanged at £2.5 million (2009: £2.5 million). Capital expenditure on tangible assets reduced by £0.3 million in the year, with lower tooling spend needed for the later parts of the SRL product range.
Dividend payments increased by £0.1 million to £2.6 million (2009: £2.5 million).
Net cash, which represents cash and cash equivalents less bank and other borrowings, was £2.4 million higher than last year at £7.2 million (2009: £4.8 million). The group has no borrowings.
Strategic Overview
Latchways is a world leader in the provision of quality fall protection equipment and related services. Our aim is to maximise shareholder return through providing the most innovative and functional equipment to a largely legislation-driven market, with a customer support network and after-sales service that is unrivalled in our industry. There has been no change to this strategy during the year.
Our products are sold both directly and through a network of trained independent installation companies, which we have been expanding geographically during the year. We place significant importance on developing strategic partnerships with key customers around the world, and on developing products which address their needs. New product offerings, whether developed in-house or acquired, remain a central pillar of our growth strategy. Such products, for example the Self Retracting Lifeline and the Versirail guardrail, are complementary to our range and provide excellent cross selling opportunities to existing and new customer bases.
Operating Review
The Latchways group has three business segments, each of which is managed independently with strategic input from the group board. These segments are as follows:
Safety Products This is the main Latchways product business, operating out of the group headquarters in Devizes and a small production plant in Kozina, Slovenia. Safety Products generates 68% of group revenue and generates almost two thirds of this revenue overseas.
Safety Services The principal activity of this business is the installation and servicing of safety products in the UK, which generates 25% of group revenue.
Specialist Fixing This business is involved with a range of technical services including structural building refurbishment and specialist fixing solutions in the UK. It represents 7% of group revenue.
Safety Products
Latchways designs and manufactures fall protection equipment for people working at height. This equipment is sold worldwide, both directly to end users and also through a network of independent, trained installers. The business is broadly categorized between horizontal business (systems for those working at height, eg on rooftops, crane rails etc) and vertical business (systems for those climbing to or from height, eg ladders, telecom masts, electricity transmission towers).
The Safety Products business saw total revenues fall 6% in the year, mainly due to the weakness of the UK construction market. Export revenues, by contrast, increased by 6%. Operating profits reduced by 10% to £6.6 million.
As the Safety Products business operates in a worldwide market, a key performance measure is the relative geographic split of revenues.
The UK business bore the brunt of revenue reductions with the commercial construction sector particularly badly hit. Revenues were down 26% to £8.6 million, with over half of this fall due to a substantial reduction in new build construction projects, with the recession and the credit crunch resulting in many planned projects being shelved or cancelled. Whilst recent activity levels suggest that this business has made some improvement from the lowest point, the likelihood of cuts in publically financed projects leads us to remain cautious over the immediate future for this market. The remainder of the UK shortfall was due to much reduced UK based Wingrip business after a very strong 2009.
Despite these impacts, some aspects of our business in the UK have performed well this year. We have seen strong interest from the wind power market for our sealed SRL product, with product installed at several offshore farms. Additionally, we have made good progress with the Versirail guardrail system, with UK revenues well ahead of last year.
Our European revenues were 10% lower than the previous year. However, this was mainly due to lower public spending in specific areas, together with the absence of one utility customer who had completed their requirements. Apart from these effects our European business has held up well and we are optimistic that we will see a return to growth this year. We have brought on customers in new geographies which, although small so far, are expected to achieve good growth going forward.
Our North American market has performed particularly well this year, with revenues up 70% to a record £4.7 million. A significant part of this growth has come from Wingrip, which has been accepted as the fall protection product of choice by both the US military and Boeing. We expect to see further military business in the coming year. Additionally, our traditional installer based business has performed well, reflecting the success of our customers in the improving economic climate.
We have also made further progress across the rest of the world this year, with revenues up 14% at £1.4 million despite a relatively quiet year for electricity transmission sales in South Africa. We have seen good progress in both installer based and direct business in a number of new markets.
Safety Services
As the Safety Services division is Latchways' UK installation arm, its revenues have been affected by similar issues to those facing the Safety Products division. The recession in the commercial construction sector has resulted in a 19% fall in installation revenues, although annual inspection revenues have increased slightly. Overall, Safety Services revenues were down 14% on 2009 at £8.4 million (2009: £9.8 million). As a result, operating profits were down 20% at £1.0 million (2009: £1.3 million).
During the year, Safety Services, as the largest installer of Latchways products, purchased £2.5 million of product from Latchways, a 17% reduction on the previous period.
Specialist Fixing
Trading conditions remained difficult for the Specialist Fixings division in the year. With financing remaining tight, many of the housing refurbishment projects on which the business operates have been deferred or cut back, resulting in reduced revenues. Given the outlook for publically financed spending, we do not expect significant improvement in the short term. Specialist Fixings revenues were down 7% for the year to £2.6 million (2009: £2.8 million). Operating profit was £0.1 million (2009: £0.2 million).
Risks and the Operational Environment
As a provider of fall protection solutions to a global marketplace, the group is subject to a number of external factors which affect its risk profile. The more important of these are discussed below.
The Global Economy
Few manufacturing businesses are immune to the effects of a global economic downturn and Latchways is no exception to this. The events of the past two years have been unprecedented and there remain significant threats to the resumed growth of the world economy. A renewed downturn would naturally represent a risk to our growth plans. However, by actively seeking new markets and geographies into which to sell our products, this risk is being managed to the best extent possible.
The Commercial Construction Market
Latchways operates in a diverse and growing range of markets. This ensures that we are not excessively dependent on one market for our growth. The largest individual market is the UK commercial construction market, which is currently in recession and, given likely restrictions on UK government spending, must be expected to remain so for some time to come. We have for a number of years been actively seeking other markets in other geographies, which has substantially reduced our reliance on UK construction. Well over half of our product revenues now come from overseas markets, which have collectively provided revenue growth in this most difficult of years.
The Legislative Environment
The increasing emphasis on Health and Safety legislation throughout the European Union has been one of the key drivers of the fall protection business over the past decade. The UK and certain other EU countries which have interpreted this into specific fall-protection legislation have become significant markets for the Latchways product range. Within the UK, the most obvious examples of this legislation are the Workplace (Health, Safety & Welfare) Regulations 1992, the Construction (Design and Management) Regulations 1994 (revised in 2007), and the Working at Height Regulations 2005. Latchways sees the development of appropriate, workable safety regulations as of critical importance, not just to its own business but to business as a whole. As a result, we have ensured that Latchways is represented on a number of key legislative standards committees, both in the UK and overseas. Outside of the EU, we are progressively seeing other countries adopting Health and Safety standards which should continue to provide us with opportunities in the years to come.
Commodity Prices
The majority of Latchways products are constructed of marine grade stainless steel. Market prices for this commodity are volatile, as demonstrated by the significant price spike in 2007, falling away rapidly as the global recession took hold. Recently prices have been rising again, which combined with the strength of the US Dollar is likely to result in pressure on component pricing over the coming year.
It remains Latchways' philosophy to protect our customers from the volatility of commodity prices through a combination of modest annual price increases and product re-sourcing efforts. Our customers have been through a difficult period and we have avoided adding to this by not increasing prices over the past two years.
We also have an increasing range of products manufactured from aluminium. The commodity pricing risk associated with this is handled in the same manner as stainless steel.
Currency Risk
Latchways has significant exposure to fluctuations in the Sterling/Euro exchange rate, as our European sales are invoiced in Euros. There is also some exposure to the Sterling/USD exchange rate. The Euro exchange risk is partly mitigated by the fact that guardrail and cable are now purchased in Euros. Forward exchange contracts are used to mitigate the remaining exposures.
Prospects
Fall protection is becoming a truly global industry, as evidenced by the number and variety of prospects presenting themselves to Latchways at this time. We are in the process of making the necessary investments in our sales infrastructure to ensure that we take advantage of these prospects, further reducing the importance of the UK construction sector. Whilst these investments will take time to reach their full potential, we are confident that this is laying the foundations for delivering future growth for our shareholders.
David Hearson
Chief Executive
| Latchways plc |
|
|
|
|
|
| |||
| Group Statement of Comprehensive Income |
|
|
|
| |||||
|
|
|
|
|
|
|
|
| ||
| for the year ended 31 March 2010 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| 2010 | 2009 | ||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| £'000 | £'000 | ||
|
|
|
|
|
|
|
|
| ||
| Revenue |
|
|
| 33,850 | 36,960 | ||||
|
|
|
|
|
|
|
| |||
| Cost of sales |
|
|
|
| (14,913) | (17,218) | |||
|
|
|
|
|
|
|
|
| ||
| Gross profit |
|
|
|
| 18,937 | 19,742 | |||
|
|
|
|
|
|
|
|
| ||
| Administrative expenses |
|
|
| (11,328) | (11,538) | ||||
|
|
|
|
|
|
|
| |||
| Group operating profit |
|
|
|
| 7,609 | 8,204 | |||
|
|
|
|
|
|
|
|
| ||
| Analysed as: |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| ||
| Operating profit before exceptional items |
|
|
|
| 7,609 | 8,723 | |||
|
|
|
|
|
|
|
|
| ||
| Exceptional charge (included within administrative expenses) |
|
| - | (519) | |||||
|
|
|
|
|
|
|
|
| ||
| Group operating profit |
|
| 7,609 | 8,204 | |||||
|
|
|
|
|
|
|
| |||
| Finance income |
|
|
|
| 25 | 114 | |||
|
|
|
|
|
|
|
|
| ||
| Finance costs |
|
|
|
| (19) | (9) | |||
|
|
|
|
|
|
|
|
| ||
| Profit before taxation |
|
| 7,615 | 8,309 | |||||
|
|
|
|
|
| |||||
| Taxation |
|
|
| (2,133) | (2,565) | ||||
|
|
|
|
|
|
|
|
| ||
| Profit for the year attributable to equity shareholders |
|
| 5,482 | 5,744 | |||||
|
|
|
|
|
|
|
|
| ||
| Basic earnings per share (pence) |
|
|
| 49.25 | 51.61 | ||||
|
|
|
|
|
|
|
|
| ||
| Diluted earnings per share (pence) |
|
| 49.12 | 51.47 | |||||
|
|
|
|
|
|
|
|
| ||
| Adjusted basic earnings per share (pence) |
|
|
| 49.25 | 54.97 | ||||
|
|
|
|
|
|
|
|
| ||
| Adjusted diluted earnings per share (pence) |
|
| 49.12 | 54.82 | |||||
Adjusted earnings per share exclude the post-tax impact of exceptional items.
The directors propose a final dividend of 17.97 pence per share (2009: 15.63 pence) at an estimated cost of £2,001,000 (2009: £1,739,000), which will be subject to shareholder approval at the Annual General Meeting on 10 September 2010.
| Latchways plc |
|
|
|
|
|
|
| |||
| Group Balance Sheet |
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
| as at 31 March 2010 |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
| 2010 | 2009 | ||
|
|
|
|
|
|
|
| £'000 | £'000 | ||
|
|
|
|
|
|
|
|
| |||
| Assets |
|
|
|
|
|
|
| |||
| Non-current assets |
|
|
|
|
|
|
| |||
| Goodwill |
|
|
|
|
| 4,377 | 4,341 | |||
| Other intangible assets |
|
|
|
|
| 1,968 | 2,289 | |||
| Property, plant and equipment |
|
|
|
|
| 3,283 | 3,593 | |||
| Deferred income tax assets |
|
|
|
|
|
| 104 | 69 | ||
|
|
|
|
|
|
|
| 9,732 | 10,292 | ||
| Current assets |
|
|
|
|
|
|
| |||
| Financial assets |
|
|
|
| ||||||
| - Derivative financial instruments |
|
| 30 | - | ||||||
| Inventories |
|
|
|
|
|
| 3,537 | 3,926 | ||
| Trade and other receivables |
|
|
|
|
|
| 10,283 | 8,557 | ||
| Cash and cash equivalents |
|
|
|
| 7,156 | 4,777 | ||||
|
|
|
|
|
|
|
| 21,006 | 17,260 | ||
|
|
|
|
|
|
|
|
|
| ||
| Liabilities |
|
|
|
| ||||||
| Current Liabilities |
|
|
|
| ||||||
| Financial liabilities |
|
|
|
| ||||||
| - Derivative financial instruments |
|
| - | (175) | ||||||
| Trade and other payables |
|
| (3,960) | (3,131) | ||||||
| Deferred consideration |
|
| (68) | (63) | ||||||
| Current tax liabilities |
|
| (976) | (1,274) | ||||||
|
|
|
| (5,004) | (4,643) | ||||||
|
|
|
|
|
|
|
|
|
| ||
| Net current assets |
|
|
|
|
| 16,002 | 12,617 | |||
|
|
|
|
|
|
|
|
|
| ||
| Non-current liabilities |
|
|
|
| ||||||
|
|
|
|
|
| ||||||
| Deferred consideration |
|
| (363) | (350) | ||||||
| Deferred income tax liabilities |
|
| (525) | (569) | ||||||
|
|
|
| (888) | (919) | ||||||
|
|
|
|
|
|
|
|
|
| ||
| Net assets |
|
|
|
|
|
| 24,846 | 21,990 | ||
|
|
|
|
|
|
|
|
|
| ||
| Equity |
|
|
|
|
|
|
| |||
| Ordinary shares |
|
|
|
|
| 557 | 556 | |||
| Share premium account |
|
|
|
| 1,807 | 1,793 | ||||
| Translation reserve |
|
|
|
| 208 | 252 | ||||
| Other reserves |
|
|
|
| 290 | 287 | ||||
| Retained earnings |
|
|
|
|
| 21,984 | 19,102 | |||
|
|
|
|
|
|
|
|
|
| ||
| Total shareholders' equity |
|
|
|
| 24,846 | 21,990 | ||||
| Latchways plc |
|
|
|
|
|
|
| ||
| Group Cash Flow Statement |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| |
| for the year ended 31 March 2010 |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 2010 | 2009 | |
|
|
|
|
|
|
|
| £'000 | £'000 | |
|
|
|
|
|
|
|
|
|
| |
| Cash flows from operating activities |
|
|
|
|
|
| |||
| Cash generated from operations |
|
|
|
| 8,058 | 7,826 | |||
| Interest paid |
|
|
|
| - | (9) | |||
| Taxation paid |
|
|
|
| (2,501) | (2,523) | |||
| Net cash generated from operating activities |
|
|
|
| 5,557 | 5,294 | |||
|
|
|
|
|
|
|
|
|
| |
| Cash flows from investing activities |
|
|
|
| |||||
| Acquisitions, net of cash acquired |
|
|
| - | (1,692) | ||||
| Additional consideration paid to acquire subsidiaries |
|
|
| (57) | (10) | ||||
| Interest received |
|
|
| 25 | 114 | ||||
| Purchase of property, plant and equipment |
|
|
| (322) | (654) | ||||
| Purchase of intangible assets |
|
|
| (115) | (127) | ||||
| Development expenditure capitalised |
|
|
| (115) | (157) | ||||
| Net cash used in investing activities | (584) | (2,526) | |||||||
|
|
|
|
|
|
|
|
|
| |
| Cash flows from financing activities |
|
|
|
|
| ||||
| Net proceeds from issue of ordinary share capital |
|
|
| 15 | - | ||||
| Repayment of borrowings |
|
|
| - | (177) | ||||
| Dividends paid to shareholders |
|
|
| (2,609) | (2,451) | ||||
| Net cash used in financing activities |
|
|
|
| (2,594) | (2,628) | |||
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| Net increase in cash and cash equivalents |
|
| 2,379 | 140 | |||||
|
|
|
|
|
| |||||
| Cash and cash equivalents at 1 April |
|
| 4,777 | 4,637 | |||||
|
|
|
|
|
| |||||
| Cash and cash equivalents at 31 March |
|
| 7,156 | 4,777 | |||||
| Latchways plc |
|
|
|
|
|
|
| |||
| Group Statement of Changes in Shareholders' Equity |
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||
| for the year ended 31 March 2010 |
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
|
| Share Capital £'000 | Share Premium £'000 | Retained Earnings £'000 | Other Reserves £'000 |
| Total Reserves £'000 | ||||
|
|
|
|
|
|
|
| ||||
| 1 April 2008 | 556 | 1,793 | 15,846 | 268 |
| 18,463 | ||||
| Profit for the year attributable to equity shareholders | - | - | 5,744 | - |
| 5,744 | ||||
| Exchange differences on consolidation | - | - | - | 252 |
| 252 | ||||
| Total comprehensive income | - | - | 5,744 | 252 |
| 5,996 | ||||
| Transactions with owners: Share options: |
|
|
|
|
|
| ||||
| - Value of employee services | - | - | - | 19 |
| 19 | ||||
| Deferred taxation on share options | - | - | (37) | - |
| (37) | ||||
| Dividends | - | - | (2,451) | - |
| (2,451) | ||||
| At 31 March 2009 | 556 | 1,793 | 19,102 | 539 |
| 21,990 | ||||
| Profit for the year attributable to equity shareholders | - | - | 5,482 | - |
| 5,482 | ||||
| Exchange differences on consolidation | - | - | - | (44) |
| (44) | ||||
| Total comprehensive income | - | - | 5,482 | (44) |
| 5,438 | ||||
| Transactions with owners: Share options: |
|
|
|
|
|
| ||||
| - Proceeds from shares issued | 1 | 14 | - | - |
| 15 | ||||
| - Value of employee services | - | - | - | 3 |
| 3 | ||||
| Deferred taxation on share options | - | - | 9 | - |
| 9 | ||||
| Dividends | - | - | (2,609) | - |
| (2,609) | ||||
| At 31 March 2010 | 557 | 1,807 | 21,984 | 498 |
| 24,846 | ||||
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||||
NOTES
1. Basis of accountingThe financial information set out above does not constitute the group's statutory accounts for the years ended 31 March 2009 and 2010. The financial information in respect of 2010 has been extracted from the audited financial statements for the year ended 31 March 2010 which have not yet been delivered to the Registrar of Companies. The information has been prepared in accordance with the EU-adopted International Financial Reporting Standards (IFRS) and IFRIC interpretations and with those parts of the Companies Act 2006 which are applicable to companies reporting under IFRS.
2. Accounting Policies The accounting policies applied by the group were published in the Annual Report and Accounts for the year ended 31 March 2009, which is available on the group's website at www.latchways.com, and they will also be included in the Annual Report and Accounts for the year ended 31 March 2010. There have been no significant changes to the group's accounting policies during the year.
3. Earnings per share
The calculation of basic earnings per ordinary share is based on a weighted average of 11,131,091 ordinary shares in issue and ranking for dividend (2009: 11,129,151) and on a profit of £5,482,000 (2009: £5,744,000). Adjusted earnings per share exclude the post -tax effects of exceptional items and are therefore based on a profit of £5,482,000 (2009: £6,118,000).
The calculation of diluted earnings per share is based on a weighted average of 11,159,710 ordinary shares (2009: 11,160,342), and uses an average market price for the year of £6.41 (2009: £6.79).
4. Dividends
|
|
| 2010 | 2009 |
|
|
| £'000 | £'000 |
|
Final Paid 15.63p (2009: 14.21p) per 5p share |
| 1,739 | 1,582 |
| Interim Paid 7.81p (2009: 7.81p) per 5p share |
| 870 | 869 |
|
|
|
|
|
| Total Paid |
| 2,609 | 2,451 |
In addition, the directors are proposing a final dividend in respect of the financial year ended 31 March 2010 of 17.97p (2009:15.63p) per share which will absorb an estimated £2,001,000 of shareholders' funds (2009: £1,739,000). It will be paid on 17 September 2010 to shareholders who are on the register of members on 20 August 2010.
5. The Annual Report and Accounts
The Annual Report and Accounts for Latchways plc for the year ended 31 March 2010 will be posted to shareholders on or before 31 July 2010 and copies will be available from the registered office, Latchways plc, Hopton Park, Devizes, Wiltshire, SN10 2JP.
6. The Annual General Meeting
The Annual General Meeting will be held at Hopton Park, Devizes, Wiltshire, SN10 2JP on 10 September 2010 at 12 noon.