James Latham : Half Yearly Results - Nov 2016

HALF YEARLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2016 Chairman's statement

I am pleased to report good results for the six months to 30 September 2016.

Results

The results are better than the same period last year. Revenue for the six months to 30 September 2016 was

£100.3m, up 4.2 per cent on £96.2m for the same period last year. The operating profit was £7.8m, 21.3 per cent up on £6.5m last year. Profit before tax was £7.7m, up 22.4 per cent on last year's £6.3m. Earnings per ordinary share were 31.2p (2015: 25.8p) an increase of 20.9 per cent.

As at 30 September 2016 net assets had reduced to £64.5m (2015: £67.8m) with cash and cash equivalents of

£16.1m (2015: £12.4m). The actuarial calculation of the pension deficit is very sensitive to changes in the discount rate, and due to the fall in corporate bond yields, the pension deficit is calculated as increasing from

£7.7m to £23.2m. However the scheme investments have grown faster than the scheme assumptions.

Interim dividend

The Board has declared an increased interim dividend of 4.5p per Ordinary Share (2015: 4.0p), which is covered

6.9 times (2015: 6.5 times). The dividend is payable on 27th January 2017 to ordinary shareholders on the Company's Register at close of business on 6th January 2017. The ex-dividend date will be 5th January 2017.

Six months trading to 30 September 2016

In trading conditions which have been different for the various markets that we serve, group revenue has grown by £4.1m as a result of higher prices of imported goods resulting from the fall in the value of sterling with small gains from sales volumes and product mix.

Trading margins for the six months to 30 September 2016 are higher than for the previous year. Overheads have been well controlled. Bad debts have remained lower than expected. We continue to take advantage of cash settlement discounts from suppliers where this represents a good return.

Current and future trading

Management information shows growing revenue for October and the first half of November, at slightly lower margins. The weakness of sterling, whilst increasing prices, could put pressure on margins in the coming months. Market conditions continue to be difficult in some areas, while improving in others. We are in a good position with our wide range of customers and we are trading comfortably in line with market expectations. We are progressing with our plans to relocate our two oldest depots. Construction work has started on the new Yate site and terms have been agreed for the new Wigston site, subject to planning.

Peter Latham Chairman

23 November 2016

JAMES LATHAM PLC
CONSOLIDATED INCOME STATEMENT
For the six months to 30 September 2016
Six months to 30 Sept. 2016 unaudited	Six months to 30 Sept. 2015 unaudited	Year to 31 March 2016 audited
£000	£000	£000
Revenue	100,334	96,209	185,929
Cost of sales (including warehouse costs)	(81,582)	(78,975)	(151,389)
Gross profit	18,752	17,234	34,540
Selling and distribution costs	(7,889)	(7,674)	(15,129)
Administrative expenses	(3,027)	(3,099)	(6,170)
Operating profit	7,836	6,461	13,241
Finance income	33	25	56
Finance costs	(209)	(227)	(421)
Profit before tax	7,660	6,259	12,876
Tax expense	(1,545)	(1,257)	(2,410)
Profit after tax attributable to owners of the parent company	6,115	5,002	10,466
Earnings per ordinary share (basic)	31.2p	25.8p	53.7p
Earnings per ordinary share (diluted)	31.1p	25.5p	53.5p
All results relate to continuing operations.

JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months to 30 September 2016
Six months to 30 Sept. 2016 unaudited	Six months to 30 Sept. 2015 unaudited	Year to 31 March 2016 audited
£000	£000	£000
Profit after tax	6,115	5,002	10,466
Other Comprehensive income
Actuarial (losses)/gains on defined benefit pension scheme	(13,313)	2,766	825
Deferred tax relating to components of other comprehensive income	2,396	(491)	(219)
Other comprehensive income for the period, net of tax	(10,917)	2,275	606
Total comprehensive income, attributable to owners of the parent company	(4,802)	7,277	11,072

JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
At 30 September 2016
As at 30 Sept. 2016 unaudited		As at 30 Sept. 2015 unaudited		As at 31 March 2016 audited
£000	£000	£000
ASSETS
Non-current assets
Goodwill	237	237	237
Intangible assets	89	97	93
Property, plant and equipment	25,315		21,477		22,111
Deferred tax asset	4,245		1,773		1,802
Total non-current assets	29,886		23,584		24,243
Current assets
Inventories	35,065		32,419		33,403
Trade and other receivables	38,003		37,612		35,288
Cash and cash equivalents	16,102		12,432		16,832
Total current assets	89,170		82,463		85,523
Total assets	119,056		106,047		109,766
Current liabilities
Trade and other payables	25,730		24,917		23,471
Current tax payable	1,590		1,297		1,376
Total current liabilities	27,320		26,214		24,847
Non-current liabilities
Interest bearing loans and borrowings	987	987	987
Retirement and other benefit obligation	23,208		7,679		9,657
Other payables	377	435	406
Deferred tax liabilities	2,686		2,961		2,686
Total non-current liabilities	27,258		12,062		13,736
Total liabilities	54,578		38,276		38,583
Net assets	64,478		67,771		71,183
Capital and reserves
Issued capital	5,040		5,040		5,040
Share-based payment reserve	70	172	56
Own shares	(344)		(235)		(441)
Capital reserve	3	3	3
Retained earnings	59,709		62,791		66,525
Total equity attributable to owners of the parent company	64,478		67,771		71,183