RNS Number : 1411G
John Lewis Of Hungerford PLC
28 March 2022
 

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

 

28 March 2022

John Lewis of Hungerford plc

(the "Company")

Half-year Report

 

John Lewis of Hungerford Plc (AIM: JLH), the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, is pleased to announce its unaudited interim results for the six months ended 31 December 2021

 

Overview

The Company is pleased to report that the first half sales to 31 December 2021 are the highest in our history, at £4.6 million (2020: £3.3 million), with the current full year total of despatched sales and confirmed forward orders standing at £8.5 million. After 38 weeks of trading, our future orders, combined with the confirmed order book above, would indicate a full year turnover, in excess of £10 million for the first time in our history. Given the uncertain climate in which we are operating, the Board have modelled a range of scenarios for the financial out-turn in the current year, and our central scenario would deliver a profit which is materially ahead of the prior year.

Sales for the six months to 31 December 2021 stood at £4,561k (2020: £3,326k) and the loss before tax for the period is £81k (2020: loss before tax £213k), with an improved cash position of £824k (2020: £504k).

The Company has taken steps to put in place important building blocks over the last two years, including significant investment in our Digital Strategy, the Novuna (formerly known as Hitachi) Finance - customer financing facility, together with the addition of key heads, to improve productivity around the business.

These initiatives have delivered a structural change in our model, with now sustained levels of consumer interest, as a result of our improved visibility online, which has reduced the dependency on local footfall in our territories. The investment in heads required to support this increase in new business span across front-end sales support, additional production heads and enhanced installation management, to ensure the customer experience remains a priority as we grow and scale the business.

The cost of the additional heads offset by the non-recurring government support during the pandemic, reflect the movement on the administration costs. The year-on-year movement on selling and distribution spend demonstrates costs related to increased sales including logistics, together with a return to pre-pandemic levels of marketing spend, delivering around 30% more new business into the Company, which has greatly contributed to the sales we report today. Both areas of spend play an important part in supporting our teams through the growth we are seeing in all areas of the Company.

With the majority of roles required now recruited, we are confident that there will be a minimal need to add additional heads moving forward into the next financial year FY23, as we capitalise on the strength of our brand positioning during our 50th Birthday year.

Our investments in the core building blocks, including the Digital Strategy, the Consumer Finance and the headcount required to ensure continuous improvements to our sales conversion are now bearing fruit, and we are pleased with the robust future order book as we near the end of the financial year.

Globally disrupted supply chains continue to have an impact on our purchasing activities, with our UK suppliers bearing additional costs to manage their businesses. We have passed on price increases of 8% to our customers in this financial year FY22 and anticipate further inflationary pressures necessitating another increase as we begin our new financial year FY23 on 1 July 2022.

 

Current Trading and Outlook

As stated above our despatched sales and confirmed forward orders (which we consider to be the best measure of current trading) for the first 38 weeks of trading of the current financial year stood at £8.5 million (2021: £6.5 million). Future orders against which a first stage deposit has been taken are substantially higher than the prior year, which we expect will deliver in excess of £10 million+ full year revenue performance. Our central scenario as stated above, would deliver a profit materially ahead of the prior year, together with a forward order book which is a substantially higher than the prior year.

Given the current levels of market fluctuations impacted by the unfolding global uncertainties, the Board remains cautious regarding any significant disruption to our production and logistics capabilities. The Company remains confident that the resilience in the order book would mean that any in-year disruption for this financial year FY22, would move a portion of the profits into the next financial year FY23 reporting period.

 

 

Kiran Noonan

Chief Executive Officer and Acting Chairman

28 March 2022

 

 

Enquiries:

John Lewis of Hungerford plc                                                                                            01235 774300

Kiran Noonan - Chief Executive Officer and Acting Chairman

 

Allenby Capital Limited (Nominated Adviser and Broker)                                          020 3328 5656

David Worlidge / Nick Naylor / George Payne (Corporate Finance)

Amrit Nahal (Sales and Corporate Broking)

 

 

INCOME STATEMENT

 

 

 

 

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

 

 

 

 

 

 

 

 

 

 

 

 

Audited

 

Unaudited 6 months ended

 

 Year ended

 

31 December

31 December

 

30 June

 

2021

2020

 

2021

 

 

 

 

 

 

£'000

£'000

 

£'000

 

 

 

 

 

Revenue

4,561

3,326

 

7,877

 

 

 

 

 

Cost of sales

(2,530)

(1,807)

 

(4,165)

 

 

 

 

 

Gross profit

2,031

1,519

 

3,712

 

 

 

 

 

Selling and distribution costs

(245)

(146)

 

(409)

 

 

 

 

 

Administration expenses:

 

 

 

 

  Other

(1,758)

(1,469)

 

(3,160)

  Other operating income

3

  -

 

165

Total

(1,755)

(1,469)

 

(2,995)

 

 

 

 

 

Profit/(Loss) from operations

31

(96)

 

307

 

 

 

 

 

Finance expenses

(112)

(117)

 

(227)

 

 

 

 

 

(Loss)/Profit before tax

(81)

(213)

 

81

 

 

 

 

 

Taxation

  -

  -

 

125

 

 

 

 

 

(Loss) after taxation

(81)

(213)

 

205

 

 

 

 

 

(Loss)/Earnings per share

 

 

 

 

Basic

(0.04)p

(0.11)p

 

0.11p

Fully diluted

(0.04)p

(0.11)p

 

0.10p

 

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

 

 

 

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

 

 

 

 

 

 

 

 

 

 

 

Audited

 

Unaudited 6 months ended

 

 Year ended

 

31 December

31 December

 

30 June

 

2021

2020

 

2021

 

 

 

 

 

 

£'000

£'000

 

£'000

 

 

 

 

 

(Loss)/Profit  for the period

(81)

(213)

 

205

 

 

 

 

 

Deferred tax on revaluation of freehold land and buildings

  -

  -

 

(43)

 

 

 

 

 

Total Comprehensive (Loss)/Income

(81)

(213)

 

163

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

AS AT 31 DECEMBER 2021

 

 

 

Audited

 

 

Unaudited As at

 

 As at

 

 

31 December

31 December

 

30 June

 

 

2021

2020

 

2021

 

 

£'000

£'000

 

£'000

 

Non-Current Assets

 

 

 

 

 

Intangible assets

124

140

 

140

 

Tangible assets

3,811

4,030

 

4,001

 

Trade and other receivables

32

43

 

32

 

 

3,966

4,213

 

4,173

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Inventories

167

174

 

193

 

Trade and other receivables

1,140

570

 

869

 

Deferred Tax asset

82

  -

 

82

 

Cash and cash equivalents

824

507

 

1,302

 

 

2,214

1,251

 

2,446

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

(3,070)

(2,571)

 

(3,291)

 

 

 

 

 

 

 

Net current liabilities

(856)

(1,320)

 

(845)

 

 

 

 

 

 

 

Total assets less current

 

 

 

 

 

liabilities

3,110

2,894

 

3,329

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Borrowings

(1,127)

(1,147)

 

(1,137)

 

Lease Liabilities

(1,208)

(1,309)

 

(1,336)

 

Provisions for liabilities

 

 

 

 

 

and charges

(53)

(56)

 

(53)

 

 

 

 

 

 

 

Net Assets

722

381

 

803

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Share capital

194

187

 

194

 

Other reserves

1

1

 

1

 

Share premium account

1,222

1,188

 

1,222

 

Revaluation Reserve

518

561

 

518

 

Retained Earnings

(1,214)

(1,556)

 

(1,133)

 

 

 

 

 

 

 

Total Equity

722

381

 

803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

 

 

 

 

 

 

 

 

 

 

 

 

Share

Share

Other

Revaluation

Retained

 

 

Capital

Premium

Reserves

Reserves

Earnings

Total

 

 

 

 

 

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

At 30 June 2020 (Audited)

187

1,188

1

560

(1,474)

594

Loss for the period

  -

  -

  -

  -

(213)

(213)

At 31 December 2020 (Unaudited)

187

1,188

1

560

(1,687)

381

Profit for the period

  -

  -

  -

  -

418

418

Share issue

7

34

  -

  -

  -

42

Deferred tax on Revaluation of freeholds

  -

  -

  -

(43)

  -

(43)

Share based payments

  -

  -

  -

  -

4

4

At 30 June 2021 (Audited)

194

1,222

1

518

(1,264)

803

Loss for the period

  -

  -

  -

  -

(81)

(81)

At 31 December 2021 (Unaudited)

194

1,222

1

518

(1,345)

722

 

 

 

 

 

 

 

                     

 

 

 

STATEMENT OF CASH FLOWS

 

 

 

 

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited 6 months ended

 

Audited

 

 

 

 

 Year ended

 

31 December

31 December

 

30 June

 

2021

2020

 

2021

 

 

 

 

 

 

£'000

£'000

 

£'000

 

 

 

 

 

Profit/(Loss) from operations

31

(96)

 

432

 

 

 

 

 

Depreciation, impairment and amortisation

239

239

 

478

Share based payments

  -

  -

 

4

Decrease/(Increase) in inventories

26

(21)

 

(41)

(Increase) in receivables

(271)

(28)

 

(315)

(Decrease)/Increase  in payables

(506)

(22)

 

598

Increase in Customer Deposits

298

254

 

363

Loss on disposal of property plant and equipment

0

1

 

3

Increase in  provisions

  -

  -

 

(34)

Tax (credit) on operations

  -

  -

 

(125)

 

 

 

 

 

Net cash from operating activities

(183)

328

 

1,364

 

 

 

 

 

Cash flows from financing activities

(263)

(361)

 

(575)

 

 

 

 

 

Cash flows from investing activities

(32)

(19)

 

(46)

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) / increase in cash and cash equivalents

(478)

(52)

 

743

Net cash and cash equivalents at the start of the period

1,302

559

 

559

Net cash and cash equivalents at the end of the period

824

507

 

1,302

 

 

 

 

 

 

 

 

 

 

 

 

 

  NOTES:                        

 

 

 

 

 

 

 

 

 

 

 

1.        This interim financial statement has been prepared on the basis of accounting policies adopted by the Company and set out in the annual report and accounts for the period ended 30 June 2021. The Company does not anticipate any change in these accounting policies for the year ending 30 June 2022.  As permitted, this interim report has been prepared in accordance with the AIM Rules and not in accordance with IAS 34 "Interim financial reporting".  The principal risks and uncertainties facing the Company are disclosed in the Company's financial statements for the period ended 30 June 2021, available from www.john-lewis.co.uk and remain unchanged.      

2.       (Loss) / Earnings per share

 Basic and fully diluted loss per ordinary share is calculated as follows:

 

 

 

 

 

 

 

 

 

6 months

6 months

Year

 

 

 

ended

ended

ended

 

 

 

31 December

31 December

30 June

 

 

 

2021

2020

2021

 

 

 

 

 

 

(Loss) / Profit attributable to ordinary shareholders (£'000)

(81)

(213)

205

Weighted average number of shares in issue

 

 

193,945,519

186,745,519

189,388,807

Shares used to calculate diluted earnings per share

193,945,519

186,745,519

206,867,673

 

 

 

 

 

 

Basic(loss) / earnings per ordinary share (pence)

 

 

(0.04)p

(0.11)p

0.11p

Diluted (loss) / earnings per ordinary share (pence)

 

 

(0.04)p

(0.11)p

0.10p

 

 

 

3.        Availability of the 2021 Interim accounts

Copies of the interim accounts for the six months ended 31 December 2021 will be available to shareholders on the Company's website - www.john-lewis.co.uk

 

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