James Latham Plc - Consolidated Accounts (June 2006)

Consolidated Accounts (June 2006)

JAMES LATHAM PLC
CONSOLIDATED BALANCE SHEET
As at 31 March 2006

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	As at 31 March 2006		As at 31 March 2005 (as restated)
	£000		£000
Fixed assets
Intangible fixed assets		362		740
Tangible fixed assets		11,438		11,823
		11,800		12,563
Current assets
Stocks – goods for resale		13,746		18,645
Debtors: amounts falling due within one year		32,073		29,001
Debtors: amounts falling due after more than one year		5,919		7,753
Cash at bank and in hand		1,399		148
		53,137		55,547
Creditors : amounts falling due within one year		(17,623)		(21,628)
Net current assets		35,514		33,919
Total assets less current liabilities		47,314		46,482
Creditors : amounts falling due after more than one year		(2,208)		(4,497)
Provisions for liabilities and charges
Deferred taxation		-		(62)
Other provisions		(277)		(339)
Net assets excluding pension liability		44,829		41,584
Net pension liability		(4,927)		(8,832)
Total net assets		39,902		32,752
Represented by:
Capital and reserves
Called up share capital		5,040		5,040
Less investment in own shares		(244)		(300)
Capital reserve		3		3
Revaluation reserve		758		758
Profit and loss account		34,345		27,251
Equity shareholders’ funds		39,902		32,752

JAMES LATHAM PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2006

	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Turnover
Continuing operations		90,650		88,077
Discontinuing operations		24,217		20,163
		114,867		108,240
Cost of sales (including warehouse costs)		(94,937)		(89,811)
Gross profit		19,930		18,429
Selling and distribution costs		(9,272)		(8,322)
Administrative expenses		(5,876)		(6,141)
Other operating income		202		182
		(14,946)		(14,281)
Operating profit
Continuing operations		3,435		3,726
Discontinued operations		1,549		422
		4,984		4,148
Profit on disposal of subsidiary		6,229		-
(Loss) profit on disposal of fixed assets		(8)		17,806
Net interest receivable (payable)		439		(360)
Profit on ordinary activities before taxation		11,644		21,594
Tax on profit on ordinary activities		(1,916)		(4,282)
Profit on ordinary activities after taxation		9,728		17,312
Dividends paid – ordinary		(2,449)		(2,426)
Retained profit		7,279		14,886
Earnings per ordinary share (basic)		48.3p		85.7p
Earnings per ordinary share (diluted)		48.3p		85.7p

JAMES LATHAM PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2006

	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Cash flow from operating activities		1,545		(336)
Returns on investments and servicing of finance
Interest received and similar income		1,488		493
Interest paid		(380)		(311)
Preference dividend paid		(79)		(79)
Net cash inflow from returns on investments and servicing of finance		1,029		103
Taxation		(2,345)		(2,020)
Capital expenditure
Purchase of tangible fixed assets		(417)		(1,235)
Purchase of intangible fixed assets		-		(395)
Proceeds of sale of tangible fixed assets and property		4,809		6,613
Net cash flow from capital expenditure		4,392		4,983
Equity dividends paid		(2,449)		(2,416)
Cash outflow before financing		2,172		314
Financing
Bank loans repaid during the period		(714)		(714)
Bank loans obtained during the year		-		1,500
Finance leases repaid during the period		(25)		(26)
Purchase of own shares		(36)		(312)
Proceeds of sale of own shares		92		211
Net cash (outflow) inflow from financing		(683)		659
Increase in cash for the year		1,489		973

	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Increase in cash for the year		1,489		973
Finance leases acquired during the period		-		(66)
Cash outflow (inflow) from decrease in debt and lease financing		683		(760)
Movement in net debt for the year		2,172		147
Net debt at 1 April 2005 (restated)		(5,059)		(5,206)
Net debt at 31 March 2006		(2,887)		(5,059)

JAMES LATHAM PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 March 2006

	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Profit for the period		9,728		17,312
Actual return less expected return on pension scheme assets		3,950		439
Experience gains and losses arising from pension scheme liabilities		1,028		75
Changes in assumptions underlying the present value of pension scheme liabilities		(5,242)		(676)
Movement in deferred tax relating to actuarial loss on pension scheme		79		48
Total recognised gains and losses relating to the period		9,543		17,198
Prior year adjustment
- FRS17 "Retirement benefits"		(9,720)		-
Total gains and losses recognised since the last annual report		(177)		17,198

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS’ FUNDS
For the year ended 31 March 2006

	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Profit attributable to shareholders		9,728		17,312
Dividends		(2,449)		(2,426)
		7,279		14,886
Other recognised gains and losses relating to the period		(185)		(114)
Change in investment in own shares		56		(95)
Movement in the period		7,150		14,677
Opening shareholders’ funds – as previously stated		42,723		27,927
Change in accounting policies:
FRS17 – recognition of pension liability net of SSAP24 adjustment		(9,720)		(9,495)
FRS21 – accounting for dividends on "paid" basis		736		630
FRS25 – reclassification of preference shares as a liability		(987)		(987)
Opening shareholders’ funds – restated		32,752		18,075
Closing shareholders’ funds		39,902		32,752

JAMES LATHAM PLC
NOTES TO THE FINANCIAL STATEMENT

The financial information in this announcement does not constitute statutory accounts as defined in section 240 of the companies Act 1985. Statutory accounts for the previous financial year ended 31 March 2005 have been delivered to the Registrar of Companies. The auditors’ report on those accounts was unqualified and did not contain any statement under section 237(2) or (3) of the Companies Act 1985. The auditors have indicated that they intend to give an unqualified report, and will not contain any statement under section 237(2) or (3) of the Companies Act 1985, on the statutory accounts for the year ended 31 March 2006. Copies of the Company’s Report and Accounts will be sent to shareholders shortly and will be available at the registered office of the company: Unit 3, Swallow Park, Finway Road, Hemel Hempstead, Herts HP2 7QU.
The consolidated accounts include the accounts of the Company and its subsidiary undertakings and have been prepared using acquisition accounting principles.
The basic earnings per share are calculated on the weighted average number of shares in issue during the year of 19,963,000 (2005: 20,108,000). The fully diluted earnings per share takes account of the outstanding options which results in a weighted average number of shares in issue during the year of 19,993,000 (2005: 20,108,000).
The directors recommend payment of a final dividend of 4.4p per ordinary share (2005: 3.7p).
The taxation charge for the year looks low as a percentage of pre-tax profit at 16.5% (2005: 19.8%). This is because the company has taken advantage of substantial shareholding exemption on the disposal of Nevill Long Limited, and no taxation will arise on the sale.
The accounts have been prepared using new accounting standards as detailed below:
1. FRS17 "Retirement benefits": This requires that the group pension liability be recognised in the financial statements.
2. FRS21 "Events after the balance sheet date": This requires that paid dividends are not accrued for in the accounts, but are recognised upon payment. Final dividends at 31 March are therefore not included as liabilities in the balance sheet.
3. FRS25 "Financial instruments": This requires that preference shares are disclosed as part of creditors: amounts falling due after more than one year, rather than as share capital.

All comparative figures have been restated to reflect these standards.

The effect of adopting these accounting standards have been as follows:

Profit and loss account	Year to 31 March 2006		Year to 31 March 2005 (as restated)
	£000		£000
Profit before adoption of new accounting standards		5,092		14,891
Decrease in pension costs		4,745		551
Increase in interest payable		(567)		(710)
Change in deferred taxation		(1,253)		48
Accounting for dividends on a "declared" basis		(738)		106
Restated profit after adoption of new accounting standards		7,279		14,886

Statement of total recognised gains and losses
Recognition of change in pension liability during the period		(185)		(114)
Recognition of pension fund liability at 1 April 2005 including SSAP24 adjustment		(10,100)		-
Change in other gains and losses after adopting new accounting standards		(10,285)		(114)

Balance sheet
Net assets before adopting new standards		45,817		42,723
Recognition of pension liability, including SSAP24 adjustment		(6,195)		(10,100)
Deferred tax on SSAP24 adjustment		380		380
Accounting for dividends on a "declared" basis		887		736
Preference shares disclosed as a liability		(987)		(987)
Net assets as restated		39,902		32,752

7. Copies of this statement will be sent to all shareholders and will also be available on written applications to the
Company Secretary, James Latham plc, Unit 3 Swallow Park, Finway Road, Hemel Hempstead, Herts, HP2 7QU.