Interim Results

Latham(James) PLC 07 December 2004 JAMES LATHAM PLC UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2004 Highlights: â€¢ Turnover up 11.6%. â€¢ Pre-tax profit up 60%. â€¢ Earnings per share up 62%. â€¢ Interim dividend up 9%. CHAIRMAN'S STATEMENT On 30 November 2004, the Board announced our intention to transfer our Ordinary Shares and Preference Shares from the Official List to the Alternative Investment Market (AIM). It is currently anticipated that dealings will cease on the Official List at close of business on 30 December 2004 and will commence on AIM with effect from 31 December 2004. I am now pleased to announce a good set of trading results for the half-year. In addition, and as suggested in our announcement of 30 November 2004, an extraordinary general meeting has been convened for the purpose of dividing each existing ordinary share of Â£1 into four ordinary shares of 25p each (the EGM). Further information regarding the EGM is set out in the enclosed letter, together with the formal notice of the EGM and the associated form of proxy. Results Pre-tax profit on ordinary activities is Â£2,231,000 compared to Â£1,393,000 for the period to 30 September 2003. Gross profit increased by Â£1,709,000 and overheads (excluding interest) by Â£802,000. Group turnover at Â£54,375,000 is 11.6% ahead of the Â£48,724,000 for the first six months of last year. Operating profit is Â£2,227,000 against Â£1,320,000 last time. Earnings per Ordinary Share are 30.6p (2003 18.9p). Trading Operations Sales at Lathams Limited, our timber and panel products distribution company, increased 11.1% over the first six months of last year, helped by rising panels prices. Both the panels and timber departments returned substantially improved results. It was also encouraging that recently opened depots produced strong sales and profits. Demand for Nevill Long Limited's ceiling, dry lining and partitioning products was more buoyant than a year ago. This, assisted by higher steel prices, produced an increase in sales of 15.9%. Overall, the profit achieved was much improved and satisfactory. Clapton Site Sale A lot of progress has been made in negotiating a satisfactory agreement with Countryside Properties plc, the purchasers of the James Latham plc vacant site at Clapton, and we hope to be in a position to make an announcement shortly. Current Trading October and November have seen a good level of sales and gross margin. Some panels' prices have, however, retreated from the highest levels of a few months ago. The Directors anticipate that the second six months of the financial year are unlikely to match the first six months in absolute terms, although the result is expected to be satisfactory. Interim Dividend The Board has declared an interim dividend of 6.0p per Ordinary Share (2003 5.5p), which is covered 5.1 times (2003 3.4 times), and is payable on 26 January 2005 to Ordinary Shareholders on the Company's Register at the close of business on 7 January 2005. The ex-dividend date is 5 January 2005. Please note that the references to the value of dividends per Ordinary Share are to the existing Ordinary Shares of Â£1, prior to any division pursuant to the resolution to be put to the EGM. If the resolution is passed the interim dividend will amount to 1.5p per Ordinary Share of 25p. Roger Latham Executive Chairman 7 December 2004 Contacts: Roger Latham Executive Chairman 01442 849121 David Dunmow, Finance Director 01442 849126 Barrie Newton, Rowan Dartington 0117 933 0011 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months to 30 September 2004 Six months to Six months to Year to 30 Sept.2004 30 Sept. 2003 31 March 2004 unaudited unaudited audited Â£000 Â£000 Â£000 Turnover 54,375 48,724 97,546 Cost of sales (including warehouse costs) (44,889) (40,947) (81,427) Gross profit 9,486 7,777 16,119 Selling and distribution costs (4,039) (3,811) (7,701) Administrative expenses (3,311) (2,646) (5,850) Other operating income 91 - 223 (7,259) (6,457) (13,328) Operating profit 2,227 1,320 2,791 Share of profits of associated undertakings - 4 4 Profit on disposal of associated undertaking - - 18 Net interest 4 69 216 Profit on ordinary activities before taxation 2,231 1,393 3,029 Tax on profit on ordinary activities (669) (415) (921) Profit on ordinary activities after taxation 1,562 978 2,108 Dividends- preference (39) (39) (79) - ordinary (302) (271) (896) Retained profit 1,221 668 1,133 Earnings per ordinary share 30.6p 18.9p 40.9p CONSOLIDATED BALANCE SHEET As at 30 September 2004 As at 30 Sept. As at 30 Sept. As at 31 March 2004 unaudited 2003 unaudited 2004 audited Â£000 Â£000 Â£000 Fixed assets Intangible fixed assets 764 398 385 Tangible fixed assets 13,709 12,792 12,976 Investments - 373 - 14,473 13,563 13,361 Current assets Stocks - goods for resale 17,631 15,260 14,668 Debtors 24,813 21,745 22,249 Cash at bank and in hand 587 660 590 43,031 37,665 37,507 Creditors: amounts falling due within one year (23,918) (20,157) (19,867) Net current assets 19,113 17,508 17,640 Total assets less current liabilities 33,586 31,071 31,001 Creditors: amounts falling due after more than one year (3,883) (3,246) (2,707) Provisions for liabilities and charges (355) (364) (367) Total net assets 29,348 27,461 27,927 Represented by: Capital and reserves Called up share capital 6,027 6,027 6,027 Capital reserve 3 3 3 Revaluation reserve 149 149 149 Profit and loss account 23,174 21,488 21,953 Less investment in own shares (5) (206) (205) Shareholders' funds 29,348 27,461 27,927 Attributable to equity shareholders 28,361 26,474 26,940 Attributable to non-equity shareholders 987 987 987 CONSOLIDATED CASH FLOW STATEMENT For the six months to 30 September 2004 Six months to Six months to Year to 30 Sept. 2004 30 Sept. 2003 31 March 2004 unaudited unaudited audited Â£000 Â£000 Â£000 Cash flow from operating activities (628) (1,555) 1,978 Dividend received from associate - 17 18 Returns on investments and servicing of finance Interest received and similar income 183 205 444 Interest paid (170) (114) (223) Preference dividend paid (39) (39) (79) Net cash inflow from returns on investments and servicing of (26) 52 142 finance Taxation (316) (215) (624) Capital expenditure and financial investment Purchase of tangible fixed assets (958) (203) (624) Purchase of intangible fixed assets (395) - - Purchase of own shares (4) (73) (74) Proceeds of sale of own shares 199 - 1 Proceeds of sale of tangible fixed assets and property - 6 26 Net cash outflow from capital expenditure and financial (1,158) (270) (671) investment Acquisitions and disposals Proceeds on sale of investment in associated undertaking - - 392 Equity dividends paid (619) (548) (820) Cash outflow before use of liquid resources and financing (2,747) (2,519) 415 Financing Bank loans repaid during the period (357) (167) (523) Bank loans obtained during the period 1,500 - - Finance leases acquired during the period 66 - - Finance leases repaid during the period (1) - - Other creditors - - (700) Net cash outflow from financing 1,208 (167) (1,223) Decrease in cash for the period (1,539) (2,686) (808) Reconciliation of net cash flow to movement in net debt Decrease in cash for the period (1,539) (2,686) (808) Cash outflow from decrease in debt and lease financing (1,208) 167 1,223 Movement in net debt for the year (2,747) (2,519) 415 Net debt at 1 April 2004 (4,219) (4,634) (4,634) Net debt at 30 September 2004 (6,966) (7,153) (4,219) Notes 1. The results for the six months ended 30 September 2004 and 30 September 2003 are unaudited and prepared on the basis of the accounting policies set out in the Group statutory accounts for the year ended 31 March 2004. The results for the year ended 31 March 2004 are extracted from the statutory accounts, on which the auditors issued an unqualified report, and which have been filed with the Registrar of Companies. The presentation of the balance sheet has been amended to take account of the adoption of UITF38 on Share Option Schemes, and the prior year figures have been amended. 2. The directors have declared an interim dividend of 6.0p per ordinary share which will absorb Â£302,400 (2003: 5.5p absorbing Â£277,200), payable on 26th January 2005 to shareholders on the Register at the close of business on 7th January 2005. The ex-dividend date is 5th January 2005. This dividend is accrued in the above figures. 3. This statement does not comprise full accounts within the meaning of Section 240 of the Companies Act 1985. 4. Copies of this statement will be sent to all shareholders and will also be available on written application to the Company Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road Hemel Hempstead, Herts, HP2 7QU. 5. The Group had no recognised gains or losses for the six months to 30 September 2004 other than the results shown above. This information is provided by RNS The company news service from the London Stock Exchange

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