TIDMJHD
RNS Number : 6178T
James Halstead PLC
31 March 2016
31 March 2016
JAMES HALSTEAD PLC
INTERIM RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015
Key Figures
James Halstead plc, the AIM listed manufacturer and
international distributor of commercial floor coverings,
reports:
* Revenue lower at GBP114.7 million - a decrease of
2.1% (on a constant exchange rate basis increased by
2.9%)
* Operating profit higher at GBP23.3 million - an
increase of 7.7%
* Pre-tax profit higher at GBP23.0 million - an
increase of 7.5%
* Basic earnings per ordinary share 8.6p - an increase
of 10.3%
* Interim dividend increased to a record 3.5p - an
increase of 11.4%
* Net cash at GBP55.9 million
The Chief Executive, Mr. Mark Halstead, commented:
"We continue to build on the robust performance of the last 15
years and despite having the strength of sterling as a strong
headwind to our exports in the first half we have again reported a
record profit".
Enquiries:
James Halstead 0161 767 2500
Mark Halstead, Chief Executive
Gordon Oliver, Finance Director
Hudson Sandler 020 7796 4133
Nick Lyon
Panmure Gordon (Nomad and Joint Broker) 020 7886 2500
Ben Thorne
Andrew Potts
Arden Partners (Joint Broker)
Chris Hardie 020 7614 5900
CHAIRMAN'S STATEMENT
Given the strength of our currency here in the UK and the
consequential effects on the translation of our results it is
gratifying to report improved pre-tax profit of GBP23.0 million
(2014: GBP21.4 million), an increase of 7.5%.
I can report that revenue of GBP114.7 million (2014: GBP117.2
million) was 2.1% below the comparative, owing to the strength of
sterling over the first six months. This adverse situation has
mathematically lowered the currency equivalent. At constant
exchange rates sales were 2.9% ahead.
Trading
As already noted, the translation of overseas sales was affected
by adverse exchange rates but there was growth in most markets when
measured in local currency. Polyflor Canada Inc. continues to
expand with a 32% growth in turnover. It is pleasing to report that
our flooring is refurbishing store chains such as Loblaws and
Indigo Kids in many cities. James Halstead France reported a near
10% increase and notable projects include the Alstrom Epsilon
building complex in the heart of Lyon.
In our more established markets, Objectflor, our central
European operation based in Cologne reported 4% growth in sales.
Our latest range, "Expona Flow" has already been fitted in sales
areas within Ikea stores in Kaiserlautern, Berlin and Ravensburg
and long term customers such as the fashion retail chain Modepark
Röther continue to expand. It is pleasing to report that "Simplay",
our loose lay vinyl tile, was awarded a "Pro K Award" for
innovative product development in the area of consumer
plastics.
In looking at our home territory, it is clear that Polyflor UK
maintains its strong presence, with notable projects such as
Croydon University Hospital, the Vision Express retail chain and
the new Pontypridd Lido at Ynysangharad Park. The UK market,
representing about 39% of total turnover, has shown a solid
performance with growth of 4.5% in the period, which is ahead of
the market growth over that period.
Australia and New Zealand have reported 8-9% growth with the
former providing flooring to Aldi stores across the country and the
latter to Burwood Hospital in Christchurch (the country's largest
ever healthcare project) and are just two examples of the growth in
this region.
Gross margins have improved by 1.5% despite the adverse effects
of foreign exchange rates on overseas trading. The reasons for this
are threefold: being the effects of increased output of
heterogeneous flooring, reduced raw material prices (in part helped
by the strength of sterling) and energy savings. Overheads are 3.2%
below the comparative period but on a par when viewed on a constant
exchange rate basis.
The balance sheet is, as usual, robust with the component
showing the largest change being cash which stands at GBP55.9
million some 19.5% ahead of the comparative of last year (2014:
GBP46.7 million) and after dividends paid out of GBP22.8
million.
Earnings per Share
Our basic earnings per share at 8.6p are 10.3% ahead of the
comparative of 7.8p and the Board is pleased to propose an
increased interim dividend.
Having regard to cash, I am pleased to say that a dividend of
3.5p will be paid (2015: 3.142p), representing an 11.4% increase
and this reflects both the strength of earnings and the cash
reserves of the Company. This will be payable on 3 June 2016 to
those shareholders on the register at the close of business on 6
May 2016.
Outlook
We have delivered a solid first half performance.
Early trading in the second half has been challenging, with the
UK noticeably facing rougher trading conditions. Nevertheless, our
global footprint continues to provide good opportunities for
advancement and I am confident that the depth of our experience of
this industry, which has stood us in good stead for a generation,
will continue to lead us to greater success.
Many are quick to apply hindsight to business but I think that
the accumulation of knowledge our team offers James Halstead
something better- insight.
Our group remains focused on sales growth and has every
expectation of continued progress in the second half year.
Geoffrey Halstead
Chairman
31 March 2016
Consolidated Income Statement
for the half-year ended 31 December 2015
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Revenue 114,675 117,168 227,261
============ ============ ===========
Operating profit 23,311 21,640 44,720
Net finance cost (272) (215) (536)
Profit before income tax 23,039 21,425 44,184
Income tax expense (5,304) (5,222) (10,250)
Profit for the period 17,735 16,203 33,934
============ ============ ===========
Earnings per ordinary share of 5p:
-basic 8.6p 7.8p 16.4p
-diluted 8.5p 7.8p 16.3p
All amounts relate to continuing operations.
Details of dividends paid and proposed are given in note 4.
Consolidated Balance Sheet
as at 31 December 2015
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 32,185 31,954 31,172
Intangible assets 3,232 3,232 3,232
Deferred tax assets 5,061 5,641 4,908
---------- ---------- ----------
40,478 40,827 39,312
---------- ---------- ----------
Current assets
Inventories 58,567 58,025 58,707
Trade and other receivables 27,909 29,438 31,402
Derivative financial instruments 696 2,427 2,242
Cash and cash equivalents 55,850 46,716 47,428
---------- ---------- ----------
143,022 136,606 139,779
---------- ---------- ----------
Current liabilities
Trade and other payables 50,634 54,235 48,022
Derivative financial instruments 635 286 8
Current income tax liabilities 5,346 4,902 4,814
Dividend payable 16,303 - -
---------- ---------- ----------
72,918 59,423 52,844
---------- ---------- ----------
Net current assets 70,104 77,183 86,935
---------- ---------- ----------
Non-current liabilities
Retirement benefit obligations 18,904 20,115 18,492
Deferred tax liabilities 709 744 709
Borrowings 200 200 200
Other payables 390 389 386
---------- ---------- ----------
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
20,203 21,448 19,787
---------- ---------- ----------
Net assets 90,379 96,562 106,460
========== ========== ==========
Equity
Equity share capital 10,373 10,363 10,364
Equity share capital (B shares) 160 160 160
---------- ---------- ----------
10,533 10,523 10,524
Share premium account 3,096 2,899 2,917
Capital redemption reserve 1,174 1,174 1,174
Currency translation reserve 87 1,455 (782)
Hedging reserve 14 1,237 1,427
Retained earnings 75,475 79,274 91,200
Total equity attributable to shareholders of the parent 90,379 96,562 106,460
========== ========== ==========
Consolidated Cash Flow Statement
for the half-year ended 31 December 2015
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Cash inflow from operations 31,059 28,315 42,015
Net interest received 96 138 150
Taxation paid (4,729) (3,671) (8,416)
Cash inflow from operating activities 26,426 24,782 33,749
------------ ------------ -------------
Purchase of property, plant and equipment (2,180) (2,297) (3,855)
Proceeds from disposal of property, plant and equipment 166 91 187
------------ ------------ -------------
Cash outflow from investing activities (2,014) (2,206) (3.668)
------------ ------------ -------------
Equity dividends paid (16,302) (14,507) (21,020)
Shares issued 188 169 188
Cash outflow from financing activities (16,114) (14,338) (20,832)
------------ ------------ -------------
Net increase in cash and cash equivalents 8,298 8,238 9,249
Effect of exchange differences 124 (199) (498)
Cash and cash equivalents at start of period 47,428 38,677 38,677
Cash and cash equivalents at end of period 55,850 46,716 47,428
============ ============ =============
Consolidated Statement of Comprehensive Income
for the half-year ended 31 December 2015
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Profit for the period 17,735 16,203 33,934
--------------------- ---------------- -----------------
Other comprehensive income net of tax:
Actuarial loss on the defined benefit scheme (855) (3,392) (2,720)
Deferred taxation - change of rate - - 35
Foreign currency translation differences 869 (1,631) (3,868)
Fair value movements on hedging instruments (1,413) 1,133 1,323
Other comprehensive income for the period net of tax (1,399) (3,890) (5,230)
Total comprehensive income for the period 16,336 12,313 28,704
===================== ================ =================
Attributable to equity holders of the
parent company 16,336 12,313 28,704
===================== ================ =================
Notes to the Interim Results
for the half-year ended 31 December 2015
1. Basis of preparation
The interim financial statements are unaudited and do not constitute statutory accounts as
defined within the Companies Act 2006.
The principal accounting policies applied in the preparation of the consolidated interim statements
are those set out in the annual report and accounts for the year ended 30 June 2015.
The figures for the year ended 30 June 2015 are an abridged statement of the group audited
accounts for that year. The financial statements for the year ended 30 June 2015 were audited
and have been delivered to the Registrar of Companies.
As is permitted by the AIM rules, the directors have not adopted the requirements of IAS34
'Interim Financial Reporting' in preparing the interim financial statements. Accordingly the
interim financial statements are not in full compliance with IFRS.
2. Taxation
Income tax has been provided at the rate of 23.0% (2014: 24.4%).
3. Earnings per share
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Profit for the period 17,735 16,203 33,934
--------------- --------------- --------------
Weighted average number of shares in issue 207,392,532 207,200,361 207,238,042
Dilution effect of outstanding share options 541,827 530,901 562,584
Diluted weighted average number shares 207,934,359 207,731,262 207,800,626
Basic earnings per 5p ordinary share 8.6p 7.8p 16.4p
Diluted earnings per 5p ordinary share 8.5p 7.8p 16.3p
4. Dividends
Half-year Half-year Year
ended ended ended
31.12.15 31.12.14 30.06.15
GBP'000 GBP'000 GBP'000
Equity dividends paid:
Final dividend for the year ended 30 June 2014 - 14,507 14,507
Interim dividend for the year ended 30 June 2015 - - 6,513
Final dividend for the year ended 30 June 2015 16,302 - -
---------- ---------- ----------
16,302 14,507 21,020
---------- ---------- ----------
Equity dividends proposed at the end of the period
Interim dividend 7,261 6,513 -
Final dividend - - 16,302
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
Equity dividends per share, paid and proposed are as follows
7.0p final dividend for the year ended 30 June 2014, paid on 5 December 2014
3.142p interim dividend for the year ended 30 June 2015, paid on 5 June 2015
7.858p final dividend for the year ended 30 June 2015, paid on 4 December 2015
3.5p interim dividend for the year ended 30 June 2016, payable on 3 June 2016, to those shareholders
on the register at the close of business on 6 May 2016
In addition a 7.858p special dividend amounting to GBP16,303,000 was declared on 27 November
2015 and paid on 26 February 2016
5. Copies of the interim results
Copies of the interim results have been sent to shareholders who requested them. Further copies
can be obtained from the Company's registered office, Beechfield, Hollinhurst Road, Radcliffe,
Manchester, M26 1JN.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)