Final Results

RNS Number : 9583D

John Lewis Of Hungerford PLC

11 December 2009

 



John Lewis of Hungerford plc

Final results - year ended 31 August 2009

John Lewis of Hungerford plc ("John Lewis of Hungerford" or the "Company") the specialist kitchen manufacturer and retailer today announces its final results for the year ended 31 August 2009.

CHAIRMAN'S STATEMENT

I reported in the Interim results covering the period ending 28th February 2009, that the first half of the trading year had been particularly difficult due to the challenging trading environment.  Revenue in the key Winter sale period being particularly affected. It was also reported that sales for the third quarter were stronger and the order book for the fourth quarter looked comparatively healthy.

I am pleased to report that the optimism expressed for the second half was borne out by the actual result.  Although sales for the full year of £4,084,694 represent a decrease of 10.8% on the previous year, this was a big improvement on the decrease of 25% reported at the half year stage. The actual sales results for the second half of the financial year were 2% higher than last year at £2,491,694. The advance order book as of 31st August 2009 was 25% ahead of last year. This reflects a strong Summer Sale and improving trends in consumer confidence and economic climate.

The loss before taxation, share based payments and exceptional expenses was £331,734, compared to £90,623 in 2008. Again, this represents an improvement on the loss of £509,000 reported at the half year and resulted in a profit of £177,266 for the second half.  Gross margins for the year improved to 56.9% (2008- 53.5%).

Management focus throughout the year has been centred on cash generation, whilst testing new product and service initiatives for the future development of the business in readiness for improved trading conditions.  In particular, the steps taken at the half year to reduce the cost base and delay any capital expenditure enabled the business to operate well within our agreed bank overdraft facilities and ensure the Company's cash flow was protected.  Regular meetings with the  Company's bankers were held throughout the year and this proved to be a very positive measure taken by management as it maintained the strong relationship with the bank at a time when the media were reporting on the difficulties of many small companies finding the opposite to be true.

Net cash outflows from operating activities were £70,558 (2008- £236,158 inflow) and at the balance sheet date, cash at bank stood at £784,455 (2008- £942,109).

Our Executive team has continued to implement improvements in the Company's working practices and the development of new and exciting ranges.  Karen Stanley has settled well into the role of Finance Director and has made significant improvements in the way in  which the finance function supports the management team in the running of the  business.  This will allow management to focus on the issues of building sales and improving margins.

On the back of the stronger trading results of the second half of the year there are plans in place to refurbish and introduce new ranges, as tested, into all the showrooms in the second quarter of the new financial year.  Management will return to our previously stated strategic plan of opening new showrooms, to that end the search for one new showroom to open this financial year has restarted.

Currently sales and the future order book look healthy with customer inquiries and interest in our   ranges remaining strong.  However, the Executive will remain vigilant for any sign of further economic downturn and, if necessary, will ensure that the capital expenditure plans are adjusted accordingly.

Whilst there are no guarantees that there will not be another downturn in the economic environment which could result in a loss of consumer expenditure that so badly affected our first quarter sales in 2009, management has demonstrated then and throughout the year the ability to react quickly to avoid the issues that damaged so many companies in the kitchen industry.

Your board believes we now have a strong platform with plans in place to build the sales and tackle the serious issue of profitably, but remain cautious in our outlook for the immediate future until a sustained recovery in consumer confidence and economic climate is experienced.

Malcolm R. Hepworth

Non Executive Chairman

Contacts:
Malcolm Hepworth	John Lewis of Hungerford	01235 774300
Martyn Fraser	Smith & Williamson Corporate Finance Limited	0117 376 2213

Profit and Loss Account for the year ended 31 August 2009

			2009		2008
			£		£
Turnover			4,084,694		4,577,045
Cost of sales			(1,761,635)		(2,129,247)
Gross profit			2,323,059		2,447,798
Selling and distribution costs			(483,428)		(518,946)
Administrative expenses
Share based payments			(152,855)		(143,633)
Exceptional expenses			-		(91,511)
Other			(2,171,365)		(2,019,475)
Total			(2,324,220)		(2,254,619)
Operating loss before share based payments and exceptional expenses			(331,734)		(90,623)
Operating loss			(484,589)		(325,767)
Interest receivable and similar income			11,589		17,219
Interest payable and similar charges			(20,752)		(22,521)
Loss on ordinary activities before taxation			(493,752)		(331,069)
Tax on loss on ordinary activities			52,898		50,704
Retained loss for the financial year			(440,854)		(280,365)
Loss per share
Basic			(0.24)p		(0.17)p
Fully diluted			(0.24)p		(0.17)p

The profit loss account has been prepared on the basis that all operations are continuing operations.

There are no recognised gains and losses other than those passing through the profit and loss account.

Balance Sheet as at 31 August 2009

			2009		2008
			£		£
Fixed assets
Intangible assets			12,238		16,606
Tangible assets			1,717,646		1,846,033
			1,729,884		1,862,639
Current assets
Stocks			596,034		580,868
Debtors			334,043		216,509
Cash at bank and in hand			784,455		942,109
			1,714,532		1,739,486
Creditors: amounts falling due within one year		(1,382,687)			(1,170,209)
Net current assets			331,845		569,277
Total assets less current liabilities			2,061,729		2,431,916
Creditors: amounts falling due after more than one year			(233,334)		(263,466)
Provisions for liabilities and charges			-		(52,898)
Net assets			1,828,395		2,115,552
Capital and reserves
Called up share capital			186,745		186,745
Share premium account			1,188,021		1,188,021
Share based payment reserve			323,025		170,170
Other reserves			1,421		1,421
Profit and loss account			129,183		569,195
Shareholders' funds - all equity interests			1,828,395		2,115,552

Cash Flow Statement for the year ended 31 August 2009

			2009				2008
			£		£		£		£
Net cash (outflow)/inflow from operating activities				(70,558)					236,158
Returns on investments and servicing of finance
Interest received			11,589				17,219
Interest paid			(20,752)				(22,521)
Net cash outflow from returns on investments and servicing of finance					(9,163)				(5,302)
Corporation tax paid					-				(48,034)
Capital expenditure
Payments to acquire tangible fixed assets			(57,273)			(388,146)
									(388,146)
Net cash outflow from capital expenditure					(57,273)
Equity dividends paid					-				-
Net cash (outflow)/inflow before financing				(136,994)				(205,324)
Financing
Issue of new shares			-				383,250
Repayment of bank loan			(20,660)				(20,659)
Net cash inflow/(outflow) from financing					(20,660)				362,591
(Decrease)/increase in cash					(157,654)				157,267

Notes

1. Statutory Accounts

The financial information does not constitute statutory accounts as defined in section 435 of the Companies Act 2006, but has been extracted from the statutory accounts for the year ended 31 August 2009 on which an unqualified audit report has been issued and which will be delivered to the Registrar following their adoption at the Annual General Meeting. 

The statutory accounts for the financial year ended 31 August 2008 have been delivered to the Registrar of Companies with an unqualified audit report and did not contain a statement under sections 237(2) or 237(3) of the Companies Act 1985. 

2. Basis of preparation

The Company's statutory accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards. The accounting policies used are consistent with those used in the previous year.

3. Loss per share

Basic and diluted

The calculation of loss per share is based on a loss of £440,854 (2008: £280,365) and a weighted average number of ordinary shares in issue of 186,745,519 ordinary shares (2008: 167,474,286).

4. Dividends

The Directors do not recommend payment of a dividend.

5. Posting of Accounts

Copies of the statutory accounts for the financial year ended 31 August 2009 will be posted shortly to shareholders with the notice of the Annual General Meeting. An electronic copy will be available, at the same time, on the Company's web site www.john-lewis.co.uk.

6. Annual General Meeting

The Annual General Meeting will be held on Monday 18 January 2010 at 4.00 pm at the Cygnet Suite, The Three Swans, The High Street, Hungerford, Berkshire, RG17 0EF.

 

END

 

 

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