RNS Number:5942D
Litho Supplies PLC
11 September 2007
LITHO SUPPLIES Plc
Results for the six months ended 30 June 2007
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 2007.
Overview:
>Pre-tax profits (after the add back of reorganisation costs) of #0.58m
(#0.55m), an increase of 5.65%.
>Sales up by 2.84% to #22.41m (#21.79m).
>Strong control of working capital and costs resulted in a cash balance at 30
June 2007 of #4.87m compared to #4.23m at 30 June 2006.
>Improved total equity (net assets) position at 30 June 2007 #9.52m (#8.23m),
reflecting the strength of the balance sheet.
>The board is recommending an interim dividend of 2.00p per share (1.95p), an
increase of 2.56%.
Litho Supplies Chief Executive Michael Hammond said:
"I am pleased to report growth in the sale of digital consumable products and
solid contributions from the sale of pressroom, flexographic and wide format
equipment and consumables in continued competitive market conditions.
Progress has also been made in the first half of the year selling office
equipment solutions under our trading name LS Digital.
Our balance sheet has improved and remains strong with an increased cash balance
compared to the end of the first half last year.
The board continues to actively look at acquisitions in the growth areas of our
market but these must be at a price that will add value to our group."
CHAIRMAN'S INTERIM STATEMENT
Unaudited results for the six months ended 30 June 2007
The unaudited interim results for the six months ended 30 June 2007 show pretax
profits of #0.58m (#0.55m) after adding back #0.09m (#0.03m) of costs associated
with the reorganisation of the business. The profit before tax after
reorganisation expenses was #0.49m (#0.52m) and sales for the period were
#22.41m (#21.79m).
Basic earnings per share for the six months ended 30 June 2007 were 1.78p
(1.98p).
The Group's balance sheet identifies continued progress in the reduction of
stock levels compared to the same period last year and with tight control on the
cost base of the business, the cash balance has increased from #4.23m last year
to #4.87m as at 30 June 2007.
The board is declaring an interim dividend of 2.00p (1.95p).
The dividend will be paid on 31 October 2007 to shareholders on the register on
5 October 2007. The ex-dividend date is 3 October 2007.
Trading performance
This is the first year since I became Chairman of the Company that I have been
able to report any growth in sales and although the increase of #619,000 in the
first six months of a year is only an increase of 2.84%, it is a step in the
right direction.
The major area of sales growth comes from our investment into the corporate
digital reprographic market under the trading name of LS Digital selling Xerox
office equipment and complementary products.
Sales in the UK of consumable products which remain, with electronic equipment
sales, the core activity of the business were #16.70m (#16.82m). The market
remains extremely competitive and as anticipated the decline in analogue
consumable products continued. However, to counter this, we have seen growth in
the sale of digital consumable products and wide format inkjet equipment and
media. There were also good contributions from the sale of pressroom and
flexographic consumable products.
We continue to develop and improve our website ( www.litho.co.uk ) and an
increasing number of our customers are now placing their orders online.
In addition, there has been steady growth with telesales particularly with many
of our smaller customers.
During the first half we have been able to source additional competitively
priced products under the European Graphics label through our European Litho
Supplies Alliance. These products do not compromise quality and are a sensible
means to address and consolidate the requirements of our customers for end of
line analogue consumable products as well as maintaining a strict control over
the stock of these products.
In April 2007 we exhibited at the bi-annual Northprint exhibition in Harrogate
and Sign UK at the NEC in May 2007. The orders and sales leads obtained at the
exhibitions gave our Electronics team a busy second quarter with the resultant
sales for the half year 9.56% higher than for the same period in 2006.
Prospects
At this early stage, after a quiet summer period, I expect trading to remain at
a similar level as the first half of the year. Recent volatility in world stock
markets, the result of particular problems in the banking sector, may have an
impact on the confidence of our customers, although presently it is too early to
quantify this. However as we push ahead with new products, particularly in the
wide format market, we should be in a better position to see some growth coming
through in 2008.
In addition to our strong, long standing trading relationships with our existing
suppliers we have been building relations with new suppliers such as DuPont
(wide format and flexographic products), Fujipla (office equipment) and Spuhl
(wide format and super wide format equipment). We have also continued our joint
marketing of the Shinohara digital press with Graphic Arts Equipment with whom
we have formed a new business called Shinohara (UK) Limited.
We are constantly in discussion with acquisition targets which, at the right
price, will give some impetus to growth in sales and profits. I hope to be in a
position to report on such an acquisition by the end of the year.
As usual, I am again grateful to all of our customers and suppliers for their
continual support and I thank all of our employees for their loyalty and efforts
over the last six months.
B C Clark
Chairman
11 September 2007
Contacts:
Michael Hammond, Chief Executive Tel: 01332 873921
Gerry Mitchell; Finance Director Tel: 0117 9724455
John Wakefield; Blue Oar Securities Plc Tel 0117 9330020
Litho Supplies Plc
Consolidated Income Statement
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Continuing operations
Revenue
Sale of goods 22,410 21,791 42,877
Cost of sales 18,847 18,139 35,607
Gross profit 3,563 3,652 7,270
Distribution costs 1,094 1,091 2,209
Administrative expenses 2,011 2,094 4,090
Reorganisation costs 91 33 128
Profit from continuing operations
before tax and net finance income 367 434 843
Finance costs - 1 3
Finance income 122 83 173
Profit before tax 489 516 1,013
Income tax expense 107 91 237
Profit for the period 382 425 776
Attributable to:
Equity holders of the company 382 425 776
Earnings per share
-basic 1.78p 1.98p 3.62p
-diluted 1.65p 1.94p 3.36p
Litho Supplies Plc
Consolidated Statement of Recognised Income and Expense
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Income and expense recognised directly in equity
Actuarial gain for the period 1,732 725 992
Deferred tax charge (520) (218) (298)
Net income recognised directly in equity 1,212 507 694
Profit for the period 382 425 776
Total recognised income for the period 1,594 932 1,470
Attributable to: Equity holders of the company 1,594 932 1,470
Litho Supplies Plc
Consolidated Balance Sheet
30 June 30 June 31 Dec
2007 2006 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Assets
Non-current assets
Property, plant and equipment 410 385 361
Intangible assets 1,089 1,089 1,089
Deferred tax asset 966 1,767 1,575
2,465 3,241 3,025
Current assets
Inventories 4,357 4,566 3,612
Trade receivables 10,513 11,186 11,006
Income tax receivable 26 - 44
Other current assets 1,195 900 931
Cash and cash equivalents 4,873 4,227 5,048
20,964 20,879 20,641
Non-current assets classified as held for sale - - 87
20,964 20,879 20,728
Total assets 23,429 24,120 23,753
Equity
Equity attributable to equity holders
of the parent
Share capital 2,144 2,144 2,144
Share premium 13,420 13,420 13,420
Other reserves 512 508 511
Retained earnings (6,554) (7,839) (7,719)
Total equity 9,522 8,233 8,356
Liabilities
Non-current liabilities
Interest bearing loans and borrowings 2 4 2
Retirement benefit obligation 3,038 5,821 5,188
3,040 5,825 5,190
Current liabilities
Trade and other payables 9,551 9,055 8,942
Interest bearing loans and borrowings 2 4 4
Income tax payable - 76 -
Provisions 1,314 927 1,261
10,867 10,062 10,207
Total liabilities 13,907 15,887 15,397
Total equity and liabilities 23,429 24,120 23,753
Litho Supplies Plc
Consolidated Statement of Changes in Equity
Share Share Retained Other Total
capital premium earnings reserves equity
#'000 #'000 #'000 #'000 #'000
At 1 January 2006 2,144 13,420 (8,364) 508 7,708
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 (7,839) 508 8,233
Actuarial gains - - 267 - 267
Deferred tax charge - - (80) - (80)
Profit for the period - - 351 - 351
Total recognised income
for the period - - 538 - 538
Share option expense - - - 3 3
Dividends - - (418) - (418)
At 31 December 2006 - 2,144 13,420 (7,719) 511 8,356
Audited
Actuarial gains - - 1,732 - 1,732
Deferred tax charge - - (520) - (520)
Profit for the period - - 382 - 382
Total recognised income
for the period - - 1,594 - 1,594
Share option expense - - - 1 1
Dividends - - (429) - (429)
At 30 June 2007 2,144 13,420 (6,554) 512 9,522
Litho Supplies Plc
Consolidated Cash Flow
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec
2007 2006 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Cash flows from operating activities
Cash flows generated from operations 162 132 1,586
Income tax paid - (198) (352)
Net cash flows from operating activities 162 (66) 1,234
Cash flows from investing activities
Proceeds from sale of property,
plant and equipment 100 359 360
Interest received 133 83 157
Interest paid - (1) (3)
Purchase of property, plant and equipment (129) (26) (158)
Acquisitions (10) (10) (10)
Net cash flows from investing activities 94 405 346
Cash flows from financing activities
Payment of finance lease liabilities (2) (4) (6)
Dividends paid to equity holders of the company (429) (407) (825)
Net cash flows from financing activities (431) (411) (831)
Net (decrease)/increase in cash and
cash equivalents (175) (72) 749
Net cash and cash equivalents at start of period 5,048 4,299 4,299
Net cash and cash equivalents at end of period 4,873 4,227 5,048
NOTES:
1. The financial information in this interim statement for the six months
ended 30 June 2007 and the comparative figures for the six months ended
30 June 2006 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 2006, 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 2007.
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
2007 2006 2006
Profit available for equity
shareholders #382,000 #425,000 #776,000
Basic:
Weighted average number of shares
of 10p each in issue 21,436,148 21,436,148 21,436,148
Earnings per share 1.78p 1.98p 3.62p
Diluted:
Weighted average number of shares
of 10p each in issue 23,121,148 21,896,148 23,121,148
Earnings per share 1.65p 1.94p 3.36p
The number of dilutive potential shares from unexercised executive share options
granted as at 30 June 2007 was 1,685,000 and as at 30 June 2006 was 460,000.
4. DIVIDENDS
The dividends paid in May 2007 and May 2006 were 2.00p per share and 1.90p
per share respectively.
The board is declaring an interim dividend for 2007 of 2.00p per share to
shareholders on the register on 5 October 2007 and will be paid on 31
October 2007. 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
2007 2006 2006
#'000 #'000 #'000
Balance at 1 January 5,188 6,849 6,849
Pension cost for the period 11 48 109
Contributions during the period (429) (351) (778)
Actuarial gains (1,732) (725) (992)
3,038 5,821 5,188
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
2007 2006 2006
#'000 #'000 #'000
Cash at bank and in hand 4,873 4,227 5,048
4,873 4,227 5,048
7. This interim statement was approved by the board on 11 September 2007 and
copies of this statement together with the accounts for the year ended 31
December 2006 and the interim report for the period ended 30 June 2006,
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
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