RNS Number:7594I
Litho Supplies PLC
12 September 2006
LITHO SUPPLIES Plc
Results for the six months ended 30 June 2006
HIGHLIGHTS
Litho Supplies Plc, the leading supplier of consumable products, analogue and
digital equipment and related services to the printing, graphic arts and
corporate markets in the UK, announces its results for the six months ended 30
June 2006.
Overview:
* Pre-tax profits of #0.55m (#0.57m) on sales of #21.79m (#22.82m).
* Strong control of working capital and costs resulted in a cash balance at
30 June 2006 of #4.23m compared to #2.99m at 30 June 2005.
* The board is recommending an interim dividend of 1.95p per share (1.875p),
an increase of 4.00%.
Litho Supplies Chief Executive Michael Hammond said:
"In challenging market conditions with the inevitable decline in analogue
consumable products, I am pleased to report growth in digital consumable
products and good contributions from the sale of pressroom, flexographic and
wide format equipment and consumables.
Our balance sheet remains strong with reductions in stock and an increased cash
balance compared to the same period last year.
The board is actively looking at acquisitions in the growth areas of our market
but these must be at a price which will add value to our business."
Contacts:
Michael Hammond, Chief Executive Tel: 01332 873921
Gerry Mitchell, Financial Director Tel: 0117 9724455
CHAIRMAN'S INTERIM STATEMENT
Unaudited results for the six months ended 30 June 2006
The unaudited interim results for the six months ended 30 June 2006 show pretax
profits of #0.55m (#0.57m), after adding back #0.03m (#0.02m) of costs
associated with the reorganisation of the business. The profit before tax after
reorganisation expenses was #0.52m (#0.55m) and sales for the period were
#21.79m (#22.82m).
Basic earnings per share for the six months ended 30 June 2006 were 1.98p
(2.11p).
The Group's balance sheet remains strong and reflects further progress in the
reduction of stock levels compared to the same period last year which, together
with continued control of costs, resulted in a cash balance at 30 June 2006 of
#4.23m compared to #2.99m at 30 June 2005.
The board is declaring an interim dividend of 1.95p (1.875p) per share, an
increase of 4.00% reflecting the strength of the balance sheet and cash
position. The dividend will be paid on 31 October 2006 to shareholders on the
register on 29 September 2006. The ex-dividend date is 27 September 2006.
Trading performance
UK consumable sales which remain, with electronic equipment sales, the core
activity of the business, were #16.82m (#17.71m). Within that figure, growth in
the sales of digital consumable products was 7% higher compared to the first
half last year whilst, as expected, sales of analogue consumable products
continued to decline.
Sales of both pressroom consumable products and the growth area of wide format
inkjet equipment and materials were significant in the sales mix. There was an
increase in the sales of flexo products with new equipment orders boosting the
figures.
The move made some three years ago to develop our telesales operation is
gathering momentum. Progress is also currently being made in increasing the
number of customers ordering online through our revised Web site facility
(www.litho.co.uk), thereby offering increased opportunities for business.
As reported at our 2006 AGM, our main manufacturing suppliers implemented a
round of price increases in the second quarter of 2006 to cover increased raw
material and energy costs, but I am pleased to report that these increased costs
have been successfully passed on to our customers.
Our Electronics Equipment team had a busy end to the first half with a strong
presence at the International Printing Exhibition at the NEC in April 2006,
generating good equipment orders and helping towards a satisfactory first half
performance, in very competitive market conditions.
The reorganisation of Murodigital which sells digital office equipment and
presentation products, is continuing with plans to develop and enhance the
business.
Prospects
Although the results for the first half of the year were in line with our
expectations, market conditions remain challenging with over-capacity in the
printing sector as demand particularly from advertisers for printed media
continues to be weak. We anticipate that activity in the printing market will
be at a similar level in the second half to the first six months of the year,
but some progress has been made in increasing our share of the resulting smaller
market.
The level of our bad debts in the first half was slightly higher than I would
have expected but we continue to take a rigorous approach to customers who are
slow to pay and we have tight credit control procedures to protect our business
from this exposure.
We continue to explore suitable acquisition opportunities in those areas of the
industry which have significant growth potential, but these must be at a price
which will add value to our shareholders.
To offset the decline in film and other analogue products, we continue with our
plans, in conjunction with our major manufacturing suppliers, to offer both
replacement and complementary equipment and consumable products to our
customers, and a number of these products will be launched in the second half of
2006. I expect to provide further information on these initiatives in my year
end statement.
Once again, I thank all of our customers and suppliers for their ongoing support
and especially I thank all of our employees for their loyalty and hard work.
B C Clark
Chairman
12 September 2006
Litho Supplies Plc
Consolidated Income Statement
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Continuing operations
Revenue
Sale of goods 21,791 22,821 44,048
Cost of sales 18,139 19,030 36,725
Gross profit 3,652 3,791 7,323
Distribution costs 1,091 1,051 2,111
Administrative expenses 2,094 2,220 3,831
Reorganisation costs 33 17 50
Profit from continuing operations
before tax and net finance income 434 503 1,331
Finance costs 1 2 5
Finance income 83 51 110
Profit before tax 516 552 1,436
Income tax expense 91 99 373
Profit for the period 425 453 1,063
Attributable to:
Equity holders of the company 425 453 1,063
Earnings per share
-basic 1.98p 2.11p 4.95p
-diluted 1.94p 2.00p 4.71p
Litho Supplies Plc
Consolidated Balance Sheet
30 June 30 June 31 Dec
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Assets
Non-current assets
Property, plant and equipment 385 471 439
Intangible assets 1,089 1,092 1,089
Deferred tax asset 1,767 1,993 2,000
3,241 3,556 3,528
Current assets
Inventories 4,566 5,988 4,588
Trade receivables 11,186 12,850 11,387
Other current assets 900 995 1,447
Cash and cash equivalents 4,227 2,988 4,370
20,879 22,821 21,792
Total assets 24,120 26,377 25,320
Equity
Equity attributable to equity holders
of the parent
Share capital 2,144 2,146 2,144
Share premium 13,420 13,420 13,420
Other reserves 508 500 508
Retained earnings (7,839) (8,602) (8,364)
Total equity 8,233 7,464 7,708
Liabilities
Non-current liabilities
Interest bearing loans and borrowings 4 - 6
Provisions 5,821 6,803 6,849
5,825 6,803 6,855
Current liabilities
Trade and other payables 9,055 10,290 9,239
Interest bearing loans and borrowings 4 23 77
Income tax payable 76 184 198
Provisions 927 1,613 1,243
10,062 12,110 10,757
Total liabilities 15,887 18,913 17,612
Total equity and liabilities 24,120 26,377 25,320
Litho Supplies Plc
Consolidated Statement of Changes in Equity
Share Share Other Retained Total
Capital Premium Reserves Earnings Equity
#'000 #'000 #'000 #'000 #'000
At 1 January 2005 2,146 13,420 497 (7,743) 8,320
Actuarial losses - - - (920) (920)
Profit for the period - - - 453 453
Total recognised
income for the period - - - (467) (467)
Share option expense - - 3 - 3
Dividends - - - (392) (392)
At 30 June 2005 2,146 13,420 500 (8,602) 7,464
Actuarial losses - - - (160) (160)
Deferred tax credit - - - 202 202
Profit for the period - - - 610 610
Total recognised
income for the period - - - 652 652
Share option expense - - 6 - 6
Dividends - - - (402) (402)
Repurchase of shares (2) - 2 (12) (12)
At 31 December 2005 - 2,144 13,420 508 (8,364) 7,708
Audited
Actuarial gains - - - 725 725
Deferred tax charge - - - (218) (218)
Profit for the period - - - 425 425
Total recognised
income for the period - - - 932 932
Dividends - - - (407) (407)
At 30 June 2006 2,144 13,420 508 (7,839) 8,233
Litho Supplies Plc
Consolidated Cash Flow
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Cash flows from operating activities
Cash flows generated from operations 132 (516) 1,249
Income tax paid (198) (134) (199)
Net cash flows from operating (66) (650) 1,050
activities
Cash flows from investing activities
Proceeds from sale of property,
plant and equipment 359 4 164
Interest received 83 58 111
Interest paid (1) (2) (5)
Purchase of property, plant and equipment (26) (45) (218)
Acquisitions (10) (490) (490)
Net cash flows from investing activities 405 (475) (438)
Cash flows from financing activities
Payment of finance lease liabilities (4) (12) (24)
Payment for repurchase of shares - - (12)
Dividends paid to equity holders of the
company (407) (392) (794)
Net cash flows from financing (411) (404) (830)
activities
Net decrease in cash and
cash equivalents (72) (1,529) (218)
Cash and cash equivalents at start of
period 4,299 4,517 4,517
Cash and cash equivalents at end of 4,227 2,988 4,299
period
NOTES:
1. The financial information in this interim statement for the six months
ended 30 June 2006 and the comparative figures for the six months ended 30
June 2005 do not constitute statutory accounts as defined in Section 240 of
the Companies Act 1985. The financial information for the full preceding
year is extracted from the statutory accounts for the financial year ended
31 December 2005, as stated under IFRS as adapted for use in the European
Union. Those statutory accounts, upon which the auditors issued an
unqualified opinion, have been delivered to the Registrar of Companies.
2. The interim financial information has been prepared on the basis of the
IFRS expected to be in issue for the year ending 31 December 2006.
3. EARNINGS PER SHARE
The earnings per share have been calculated as follows:
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2006 2005 2005
Profit available for equity shareholders #425,000 #453,000 #1,063,000
Basic:
Weighted average number of shares of
10p each in issue 21,436,148 21,461,148 21,456,216
Earnings per share 1.98p 2.11p 4.95p
Diluted:
Weighted average number of shares of
10p each in issue 21,896,148 22,596,148 22,566,216
Earnings per share 1.94p 2.00p 4.71p
The number of dilutive potential shares from unexercised executive share options
granted as at 30 June 2006 was 460,000 and as at 30 June 2005 was 1,135,000.
4. DIVIDENDS
The dividends paid in May 2006 and May 2005 were 1.90p per share and 1.825p
per share respectively.
The board is declaring an interim dividend for 2006 of 1.95p per share to
shareholders on the register on 29 September 2006 and will be paid on 31
October 2006. These interim results do not reflect this dividend payable.
5. PROVISIONS FOR LIABILITIES AND CHARGES
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2006 2005 2005
#'000 #'000 #'000
Balance at 1 January 6,849 6,005 6,005
Pension cost for the period 48 111 222
Contributions during the period (351) (233) (458)
Actuarial (gains)/losses (725) 920 1,080
5,821 6,803 6,849
6. CASH AND CASH EQUIVALENTS
For the purposes of the cash flow statement, cash and cash equivalents
comprise the following:
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2006 2005 2005
#'000 #'000 #'000
Cash at bank and in hand 4,227 2,988 4,370
Bank overdrafts - - (71)
4,227 2,988 4,299
7. This interim statement was approved by the board on 12 September 2006 and
copies of this statement together with the accounts for the year ended 31
December 2005 and the interim report for the period ended 30 June 2005, can
be obtained from the Company Secretary at the Registered Office:- Unit 2,
Chapel Way, Avon Valley Business Park, St Annes Park, Bristol, BS4 4EU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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