Langley Holdings plc Interim Trading Statement
6 months ended 30 June 2015
langleyholdings.com 5 divisions over 80 subsidiaries 4,300 employees Contents
Company Information...... 4
Key Highlights...... 5
Chairman’s Statement...... 6
Consolidated Income Statement ...... 8
Consolidated Statement of Financial Position...... 9
Reconciliation of Retained Earnings ...... 10
3 LANGLEY HOLDINGS plc
Company Information 6 Months ended 30 June 2015
DIRECTORS: A J Langley – Chairman J J Langley – Non-Executive B A Watson
SECRETARY: B A Watson
REGISTERED OFFICE: Enterprise Way Retford Nottinghamshire DN22 7HH England
REGISTERED IN ENGLAND NUMBER: 1321615
AUDITORS: Nexia Smith & Williamson Chartered Accountants Statutory Auditor Portwall Lane Bristol BS1 6NA England
PRINCIPAL BANKERS: Barclays Bank plc PO Box 3333 Snowhill Queensway Birmingham B4 6GN England
Deutsche Bank AG Adolphsplatz 7 20457 Hamburg Germany
Commerzbank AG Sand 5-7 21073 Hamburg Germany 4 IFRS INTERIM TRADING STATEMENT 2015 Key Highlights 6 Months ended 30 June 2015
Actual Actual Forecast Year Ended 6 months to Year Ending 31 December 30 June 31 December 2014 2015 2015 €’000 €’000 €’000
REVENUE 779,367 417,394 946,226
OPERATING PROFIT 98,477 37,140 92,802
PRE TAX PROFIT 100,649 37,864 94,231
NET ASSETS 562,917 595,741 638,541
CASH 280,747 282,728 329,863
ORDERS ON HAND 278,882 316,533 332,947
No. No. No. EMPLOYEES 4,371 4,225 4,268
This Statement has been prepared in accordance with International Financial Reporting Standards (IFRS).
IFRS INTERIM TRADING STATEMENT 2015 5 LANGLEY HOLDINGS plc
Chairman’s Review 6 Months ended 30 June 2015
In the six months to 30 June 2015, the group posted a profit before tax (PBT) of €37.9 million on revenues of €417.4 million. This compares with €30.8 million for the same period last year, on revenues of €347.7 million. Net assets at June 2015 were €595.7 million (June 2014: €532.3 million) and cash €282.7 million (June 2014: €319.2 million).
The trading result to 30 June 2015 is in line with expectations. Projections for the year to 31 December indicate a PBT of circa €94 million on revenues of €946 million. The group is organised in five divisions with business units in each, making a total of some 80 operating companies. Each business unit maintains sufficient financial resources to meet its foreseeable requirements and pays surplus funds as dividends to its division annually. The divisions similarly pay their surpluses by way of dividend to Langley Holdings plc, normally in March each year. Dividends of €62 million were received from the divisions in the first quarter and a shareholder dividend of €30 million was paid in April.
All of the group’s divisions continue to report satisfactory trading results and I am optimistic that the forecast result for the full year will be achieved. Manroland, the German printing press builder, enjoyed strong order intake in the first half such that the factory is now fully loaded into 2016. Piller, our producer of power protection systems, also based in Germany, has seen a number of major projects delayed although orders are expected to improve in the second half and I anticipate that the full year will be in line with their forecasts. Similarly Claudius Peters, the plant machinery builder, mainly to the cement and steel industries, has experienced delays in order intake although I expect that this, the third of our major divisions based in Germany, will also catch up in the second half. The Aerospace division of Claudius Peters is running slightly ahead of plan. ARO, our French automobile welding machine producer, continues to exceed expectations and is already well ahead of plan, this for the third year in succession. Druck Chemie (DC), the printing consumables producer acquired towards the end of last year, is trading in line with expectations and the other businesses division as a whole, which is made up of DC and several mainly UK based companies, is also trading satisfactorily overall.
6 IFRS INTERIM TRADING STATEMENT 2015 Orders on hand for the group at the half-year totalled €317 million - almost identical to June 2014. This is forecast to increase to €333 million at the year end, whereas the year began with just €279 million.
The group is steadily moving toward the €1 billion revenue mark and, more significantly, toward the €100 million PBT milestone. Although this was reached in 2014, it was with the help of some €7 million of non-recurring gain arising from the purchase of Druck Chemie. PBT of €100 million could feasibly be reached from ordinary trading this year. However, our businesses are notoriously cyclical and the cycles long, often many years in duration and visibility typically poor beyond six months. By budgeting our businesses to be profitable on historically low revenues, the cost base is kept in check, and should revenue exceed budgeted levels, additional capacity is normally met by temporary resources. Consequently a downturn in business levels could largely be managed without costly reorganisation and I do not foresee any significant realignment costs being incurred should a volume reduction of up to 20% in any division occur. In the meantime the group continues to seek out opportunities to continue its development and has examined a number of possible acquisitions during the period, none of which are being pursued further at this time.
Anthony J Langley Chairman 27th July 2015
IFRS INTERIM TRADING STATEMENT 2015 7 LANGLEY HOLDINGS plc
Consolidated Income Statement 6 Months ended 30 June 2015
Actual Actual Forecast Year Ended 6 months to Year Ending 31 December 30 June 31 December 2014 2015 2015 €’000 €’000 €’000
REVENUE 779,367 417,394 946,226
Cost of Sales (512,453) (272,492) (634,697)
GROSS PROFIT 266,914 144,902 311,529
Net operating expenses (175,829) (107,762) (218,727)
OPERATING PROFIT BEFORE NON-RECURRING ITEMS 91,085 37,140 92,802
NON-RECURRING ITEMS 7,392 0 0
OPERATING PROFIT 98,477 37,140 92,802
Finance income 2,436 777 1,508
Finance costs (264) (53) (79) PROFIT BEFORE TAXATION 100,649 37,864 94,231
Income tax expense (24,454) (10,466) (24,033) PROFIT FOR THE PERIOD 76,195 27,398 70,198
This Statement has been prepared in accordance with International Financial Reporting Standards (IFRS).
8 IFRS INTERIM TRADING STATEMENT 2015 Consolidated Statement of Financial Position 6 Months ended 30 June 2015
Actual Actual Forecast Year Ended 6 months to Year Ending 31 December 30 June 31 December 2014 2015 2015 €’000 €’000 €’000
NON-CURRENT ASSETS Intangible assets 3,312 3,487 3,303 Property, plant and equipment 202,266 206,061 205,368 Investments 15 15 15 Trade and other receivables 1,983 2,288 2,269 Deferred income tax assets 24,825 23,103 22,431 Income tax recoverable 39 0 0 232,440 234,954 233,386 CURRENT ASSETS Inventories 153,687 182,097 167,345 Trade and other receivables 164,925 188,946 179,521 Cash and cash equivalents 280,747 282,728 329,863 Current income tax recoverable 6,493 7,327 3,002 605,852 661,098 679,731 CURRENT LIABILITIES Current portion of long term borrowings 110 1,028 40 Current income tax liabilities 13,677 6,503 8,928 Trade and other payables 181,020 209,446 182,293 Provisions 28,346 29,610 29,918 223,153 246,587 221,179 NET CURRENT ASSETS 382,699 414,511 458,552 Total assets less current liabilities 615,139 649,465 691,938
NON-CURRENT LIABILITIES Provisions 3,149 2,786 4,029 Long term borrowings 778 0 0 Trade and other payables 14,648 18,746 18,550 Retirement benefit obligations 12,874 13,389 13,570 Deferred income tax liabilities 20,773 18,803 17,248 52,222 53,724 53,397 NET ASSETS 562,917 595,741 638,541
EQUITY Share capital 71,227 71,227 71,227 Merger reserve 4,491 4,491 4,491 Revaluation reserve 3,929 3,929 3,929 Retained earnings 483,040 515,843 558,614 Minority interest 230 251 280 TOTAL EQUITY 562,917 595,741 638,541
This Statement has been prepared in accordance with International Financial Reporting Standards (IFRS). IFRS INTERIM TRADING STATEMENT 2015 9 LANGLEY HOLDINGS plc
Reconciliation of Retained Earnings 6 Months ended 30 June 2015
Actual Forecast 6 months to Year Ending 30 June 31 December 2015 2015 €’000 €’000
At 1 January 2015 483,040 483,040
Current profit for the period 27,398 70,198
Thereof minority interest (21) (50)
Currency exchange difference arising on retranslation 35,426 35,426
Dividend paid (30,000) (30,000)
TOTAL RETAINED EARNINGS AT PERIOD END 515,843 558,614
This Statement has been prepared in accordance with International Financial Reporting Standards (IFRS).
10 IFRS INTERIM TRADING STATEMENT 2015 INTERIM TRADING STATEMENT 2013 11 langleyholdings.comlangleyholdings.com