Latham Timber Regulatory News (LTHM)

28 Jun 2007 07:01

Latham(James) PLC28 June 2007 James Latham plc Announcement of Preliminary Results for the year ended 31 March 2007 Chairman's Statement Results Group turnover for continuing operations in the financial year to 31 March 2007at £99,662,000 is 9.9% ahead of last year's £90,650,000. Last year's grouptotal turnover was £114,867,000 and included £24,217,000 for Nevill LongLimited, which was sold on 31 March 2006. Operating profit for continuing operations increased by 46% to £4,989,000 from£3,419,000 last year. Net interest receivable was £634,000 against £439,000 last year. Pre-tax profit is £5,706,000 against £11,628,000 last year which included£6,221,000 of exceptional profit on the sale of Nevill Long Limited. Profit after tax is £4,071,000 compared with £9,712,000 in the previous year.Earnings per share is 20.5p. Total net assets (shareholders' funds) after the FRS17 pension liability haverisen to £42,996,000 from £39,902,000. Cash flow from operating activities is £3,240,000 before the final payment of £5million of the £9 million to be paid into the pension scheme as previouslyannounced. Final dividend The directors recommend a final dividend of 5.4p per ordinary share (2006 4.4p). The final dividend will be paid on 31 August 2007 to shareholders on theregister at the close of business on 3 August 2007. The shares will becomeex-dividend on 1 August 2007. The total dividend per ordinary share of 7.4p for the year is covered 2.8 timesby earnings. Financial year 2006/07 Following the sale of Nevill Long Limited last year, the Group's results arebased on the trading of Lathams Limited, a specialist panel and timberdistributor, where the performance shows a marked improvement on last year.Turnover was almost 10% higher and a useful improvement in gross marginpercentage resulted in a marked increase in the operating profit. This morethan compensated for the loss of Nevill Long Limited profit. International demand for timber products remained strong throughout the year andwith temporary shortages in some areas, prices increased. This was noted in theinterim statement and this continued into the rest of the year. However, timberprices are cyclical and will come down. Volumes handled are lower than the previous year reflecting the Company's moveto higher value products and away from the more cyclical commodity type items. Following the Company's substantial contribution to the pension scheme the FRS17deficit has been reduced to £2,123,000. However the value of pensionliabilities is very sensitive to changes in interest rates. Current financial year 2007/08 - April and May trading Last year's trading climate had continued into this year and figures for Apriland May are encouraging. Development strategy Following the disposal of the Clapton site and the Nevill Long Limited business,the Company has cash of £9m at the year end. The Directors have a programme forupgrading the warehouses at the older sites by introducing high racking andnarrow aisles so that the changing product range can be handled more efficientlyusing state of the art handling equipment. This has been started at Yate andWigston and will be carried out at Ossett during the current financial year.There are plans to move the Dudley and Eastleigh depots which have outgrowntheir existing sites. Opportunities to extend the geographic coverage are beingpursued, as are other opportunities to grow the business through acquisition. Past Chairman Roger Latham retired as Chairman and Chief Executive in December 2006 afterworking in the business for more than forty years, six as Chairman. The Boardrecords its thanks to Roger for his skill in managing the Company through aperiod of great change. Peter LathamChairman28 June 2007 Further enquiries: Peter Latham, Chairman Tel: 01442 849 100David Dunmow, Finance Director Tel: 01442 849 100 Blue Oar Securities PlcMike Coe, Director Tel: 0117 933 0020 CONSOLIDATED BALANCE SHEET As at 31 March 2007 As at 31 March 2007 As at 31 March 2006 (as restated) £000 £000 Fixed assets Intangible fixed assets 237 362Tangible fixed assets 11,226 11,438 11,463 11,800Current assets Stocks - goods for resale 16,405 13,746Debtors: amounts falling due within one year 27,870 32,073Debtors: amounts falling due after more than one year 500 5,919Cash at bank and in hand 8,872 1,399 53,647 53,137Creditors: amounts falling due within one year (18,219) (17,623)Net current assets 35,428 35,514 Total assets less current liabilities 46,891 47,314 Creditors: amounts falling due after more than one year (1,664) (2,328)Provisions for liabilities (108) (157) Net assets excluding pension liability 45,119 44,829 Net pension liability (2,123) (4,927)Total net assets 42,996 39,902 Represented by:Capital and reserves Called up share capital 5,040 5,040Investment in own shares (170) (47)Share-based payment reserve 56 23Capital reserve 3 3Revaluation reserve 758 758Profit and loss account 37,309 34,125Equity shareholders' funds 42,996 39,902 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the year ended 31 March 2007 Year to 31 March 2007 Year to 31 March 2006 (as restated) £000 £000Turnover Continuing operations 99,662 90,650Discontinued operations - 24,217 99,662 114,867Cost of sales (including warehouse costs) (82,031) (94,937)Gross profit 17,631 19,930 Selling and distribution costs (8,231) (9,272)Administrative expenses (4,619) (5,892)Other operating income 208 202 (12,642) (14,962)Operating profit Continuing operations 4,989 3,419Discontinued operations - 1,549 4,989 4,968Profit on disposal of subsidiary 83 6,229Loss on disposal of fixed assets - (8)Net interest receivable 634 439Profit on ordinary activities before taxation 5,706 11,628Tax on profit on ordinary activities (1,635) (1,916)Profit on ordinary activities after taxation 4,071 9,712 Earnings per ordinary share (basic) 20.5p 48.3pEarnings per ordinary share (diluted) 20.4p 48.2p CONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 March 2007 Year to 31 March 2007 Year to 31 March 2006 £000 £000 Cash flow from operating activities before specialcontribution to pension fund 3,240 5,489Special contribution to pension fund (5,000) (4,000)Net cash flow from operating activities (1,760) 1,489Returns on investments and servicing of financeInterest received and similar income 889 1,488Interest paid (163) (380)Preference dividend paid (79) (79)Net cash flow from returns on investments and servicingof finance 647 1,029Taxation (757) (2,345) Capital expenditure Purchase of tangible fixed assets (186) (417)Proceeds of sale of tangible fixed assets including 3,946 4,809propertyNet cash flow from capital expenditure 3,760 4,392Acquisitions and disposals Proceeds of sale of investment in subsidiary undertaking 9,228 - Equity dividends paid (1,278) (2,449) Cash flow before financing 9,840 2,116Financing Bank loans repaid during the period (2,214) (714) Finance leases repaid during the period (23) (25) Purchase of own shares (130) (36) Proceeds of sale of own shares - 92 Net cash outflow from financing (2,367) (683) Increase in cash for the year 7,473 1,433 Year to 31 March 2007 Year to 31 March 2006 £000 £000 Increase in cash for the year 7,473 1,433 New finance lease (106) - Cash inflow from decrease in debt and lease financing 2,237 739 Movement in net funds (debt) for the year 9,604 2,172 Net debt at 1 April 2006 (2,887) (5,059) Net funds (debt) at 31 March 2007 6,717 (2,887) CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFor the year ended 31 March 2007 Year to 31 March 2007 Year to 31 March 2006 (as restated) £000 £000 Profit for the year 4,071 9,712Actual return less expected return on pension scheme assets (114) 3,950 Experience gains and losses from pension scheme liabilities (1) 1,028Changes in assumptions underlying the present value of 673 (5,242)pension scheme liabilities Movement in deferred tax relating to actuarial loss on (167) 79pension scheme Total recognised gains and losses relating to the year 4,462 9,527 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDSFor the year ended 31 March 2007 Year to 31 March 2007 Year to 31 March 2006 (as restated) £000 £000 Profit attributable to shareholders 4,071 9,712Dividends (1,278) (2,449) 2,793 7,263Other recognised gains and losses relating to the year 391 (185) Change in investment in own shares (123) 49 Movement in share based payment reserve 33 23 Movement in the year 3,094 7,150 Opening shareholders' funds 39,902 32,752 Closing shareholders' funds 42,996 39,902 NOTES TO THE ACCOUNTS 1. The financial information in this announcement does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. Statutory accountsfor the previous financial year ended 31 March 2006 have been delivered to theRegistrar of Companies. The auditors' report on those accounts was unqualifiedand did not contain any statement under section 237(2) or (3) of the CompaniesAct 1985. The auditors have indicated that they intend to give an unqualifiedreport, which will not contain any statement under section 237(2) or (3) of theCompanies Act 1985, on the statutory accounts for the year ended 31 March 2007.Copies of the Company's Report and Accounts will be sent to shareholders shortlyand will be available at the registered office of the company: Unit 3, SwallowPark, Finway Road, Hemel Hempstead, Herts HP2 7QU. 2. The consolidated accounts include the accounts of the Company and itssubsidiary undertakings and have been prepared using acquisition accountingprinciples. 3. Basic earnings per share are calculated on the weighted average number ofshares in issue during the year of 19,866,000 (2006: 19,963,000). The fullydiluted earnings per share takes account of the outstanding options whichresults in a weighted average number of shares in issue during the year of19,924,000 (2006: 19,993,000). 4. The directors recommend payment of a final dividend of 5.4p perordinary share (2006: 4.4p). 5. The taxation charge for the year ended 31 March 2006 as a percentage ofpre-tax profit was 16.5%. This is because the company took advantage of thesubstantial shareholder exemption on the disposal of a subsidiary company, andno taxation will arose on the sale. Proceeds of sale of tangible fixed assetsand property largely comprise continuing receipts from the sale of the Claptondepot. 6. The accounts have been prepared on the basis of the accounting policiesset out in the audited accounts for the year ended 31 March 2007 except for theimplementation of FRS 20 Share-based payment, which has been applied to allgrants of equity instruments after 7 November 2002 that were unvested at 1 April2006. Equity settled share based payments (share options) are measured at fairvalue at the date of grant. The fair value determined at the grant date isexpensed on a straight-line basis over the vesting period based on thedirectors' estimate of shares that will eventually vest. Fair value is measuredby use of the Black-Scholes model. All comparative figures have been restated to reflect this standard. The effect of adopting this accounting standard has been as follows: Year to 31 March 2007 Year to 31 March 2006 (as restated)Profit and loss account £000 £000Profit before adoption of new accounting standards 4,111 9,728FRS 20 adjustment (40) (16)Restated profit after adoption of new accounting standards 4,071 9,712 Balance Sheet There is no impact on shareholders' funds at 31 March 2007 or 31 March 2006. 7. Copies of this statement will be sent to all shareholders and will alsobe available on written applications to the Company Secretary, James Latham plc,Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Hertfordshire, HP2 7QU. This information is provided by RNS The company news service from the London Stock Exchange