Heath(Samuel) & Sons - Half-year Report

Samuel Heath and Sons

09/11/2017 07:00

RNS Number : 8451V

Heath(Samuel) & Sons PLC

09 November 2017

SAMUEL HEATH & SONS plc

("the Company")

INTERIM REPORT

Half year ended 30 September 2017

CHAIRMAN'S STATEMENT

The first half of the year was satisfactory. Revenue was up at 7.377m (2016: 6.635m). The profit before tax was 5.6% down at 687k (2016: 728k), the previous year having benefitted from the windfall drop in Sterling after the Brexit referendum as I reported in my last full year's statement.

We sell all over the world, with exports increasing by 18%, but our performance has been very patchy in nearly all of our markets, with some doing much better than expected, some worse.

Although it is only a relatively short time since the end of September, we have to say that sales generally have weakened, particularly in the U.K. market, where the number of projects in the pipeline have decreased, not enormously but perhaps significantly. As always, it is difficult to forecast how this will affect the twelve months figures.

For the future, it is perhaps trite to say that we would prefer more clarity, but we would.

We are proposing an interim dividend of 5.5p per share (2016: deferred interim dividend of 5.5p), which will be paid on 23 March 2018.

Sam Heath

Chairman

9th November 2017

For further information, please contact:

Samuel Heath & Sons Plc

John Park, Company Secretary 0121 766 4235

Cairn Financial Advisers LLP

James Caithie / Jo Turner 020 7213 0880

Unaudited Interim Financial Report
For the Half Year ended 30 September 2017
CONSOLIDATED INCOME STATEMENT
Half year ended 30 September
Half year ended 30 September
Year ended 31 March
2017
2016
2017
Unaudited
Unaudited
Audited
'000
'000
'000
Continuing operations
Revenue
7,377
6,635
13,053
Cost of sales
(3,707)
(3,141)
(6,386)
Gross profit
3,670
3,494
6,667
Distribution costs
(1,868)
(1,664)
(3,274)
Administrative expenses
(1,025)
(998)
(1,949)
Operating profit
777
832
1,444
Finance costs
(90)
(104)
(210)
Profit before taxation
687
728
1,234
Taxation
(131)
(149)
(221)
Profit for the period
556
579
1,013
Basic and diluted earnings per ordinary share
21.9p
22.8p
40.0p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended 30 September
Half year ended 30 September
Year ended 31 March
2017
2016
2017
Unaudited
Unaudited
Audited
'000
'000
'000
Profit for the period
556
579
1,013
Items that will be reclassified to profit or loss:
Cash flow hedges
25
15
16
25
15
16
Items that will not be reclassified to profit or loss:
Actuarial (loss) on defined benefit pension scheme
(34)
(4,762)
(629)
Deferred tax on actuarial loss
Revaluation of property, plant and Equipment
Deferred taxation on revaluation of assets
6
-
-
738
-
-
46
1,607
(218)
(28)
(4,024)
806
Total comprehensive income for the period
553
(3,430)
1,835


CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September
At 30 September
At 31 March
2017
2016
2017
Unaudited
Unaudited
Audited
'000
'000
'000
Non-current assets
Intangible assets
50
99
79
Property, plant and equipment
3,398
1,848
3,511
Deferred tax asset
791
1,836
793
4,239
3,783
4,383
Current assets
Inventories
3,901
3,537
3,789
Trade and other receivables
2,342
1,978
2,169
Derivative financial instruments
25
-
-
Cash and cash equivalents
2,170
2,268
2,079
8,438
7,783
8,037
Total assets
12,677
11,566
12,420
Current liabilities
Trade and other payables
(1,327)
(1,290)
(1,400)
Current tax payable
(289)
(296)
(158)
(1,616)
(1,586)
(1,558)
Non-current liabilities
Retirement benefit scheme
(6,463)
(10,805)
(6,501)
Deferred tax liability
-
(79)
-
(6,463)
(10,884)
(6,501)
Total liabilities
(8,079)
(12,470)
(8,059)
Net assets
4,598
(904)
4,361
Equity
Called up share capital
254
254
254
Capital redemption reserve
109
109
109
Revaluation reserve
Retained earnings
1,346
2,889
-
(1,267)
1,389
2,609
Equity shareholders' funds
4,598
(904)
4,361


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share capital
Capital redemption reserve
Revaluation reserve
Retained earnings
Total equity
000
000
000
000
000
Balance at 31 March 2016
254
109
-
2,337
2,700
Equity dividends paid
-
-
-
(174)
(174)
Profit for period
-
-
-
579
579
Other comprehensive loss for the period
-
-
-
(4,009)
(4,009)
Total comprehensive loss for the period
-
-
-
(3,430)
(3,430)
Balance at 30 September 2016
254
109
-
(1,267)
(904)
Equity dividends paid
-
-
-
-
-
Profit for period
-
-
-
434
434
Other comprehensive income for the period
-
-
1,389
3,442
4,831
Total comprehensive income for the period
-
-
1,389
3,876
5,265
Balance at 31 March 2017
254
109
1,389
2,609
4,361
Equity dividends paid
-
-
-
(316)
(316)
Profit for period
-
-
-
556
556
Other comprehensive income for the period
-
-
-
(3)
(3)
Total comprehensive income for the period
-
-
-
553
553
Transfer relating to amortisation
-
-
(43)
43
-
Balance at 30 September 2017
254
109
1,346
2,889
4,598


CONSOLIDATED CASH FLOW STATEMENT

Half year ended 30 September
Half year ended 30 September
Year ended 31 March
2017
2016
2017
Unaudited
Unaudited
Audited
'000
'000
'000
Cash flow from operating activities
Profit for the period before tax
686
728
1,234
Adjustments for:
Depreciation
186
130
272
Amortisation
28
29
57
Profit/(loss) on disposal of property, plant and equipment
10
(18)
(37)
Finance income
(4)
(5)
(7)
Defined benefit pension scheme expenses
126
132
282
Contributions to defined benefit pension scheme
(200)
(189)
(511)
Operating cash flow before movements in working capital
832
807
1,290
Changes in working capital:
(Increase)/decrease in inventories
(107)
(216)
(468)
(Increase)/decrease in trade and other receivables
(203)
134
(16)
Increase/(decrease) in trade and other payables
(40)
13
117
Cash generated from operations
482
738
923
Taxation paid
-
-
(155)
Net cash from operating activities
482
738
768
Cash flow from investing activities
Payments to acquire property, plant and equipment
(80)
(397)
(646)
Proceeds from the sale of property, plant and equipment
-
18
53
Proceeds from sale of financial assets
-
-
(8)
Finance income
5
5
8
(75)
(374)
(593)
Cash flow from financing activities
Dividends paid
(316)
(174)
(174)
(316)
(174)
(174)
Net increase/(decrease) in cash and cash equivalents
91
190
1
Cash and cash equivalents at beginning of period
2,079
2,078
2,078
Cash and cash equivalents at end of period
2,170
2,268
2,079


1. BASIS OF PREPARATION OF INTERIM REPORT

As permitted, IAS34 'Interim Financial Reporting' has not been applied in this interim report. The information for the period ended 30 September 2017 is not audited and does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2017 were given an unqualified audit report and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The interim accounts for the half year ended 30 September 2016 were also unaudited.

2. ACCOUNTING POLICIES

Basis of accounting

The report has been prepared on a going concern basis in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") at 30 September 2017 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2017.

The group has not availed itself of early adoption options in such standards and interpretations.

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2017. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements.

The retirement benefit scheme liability recognised in these interim accounts reflects the estimated change in the deficit at 30 September 2017 from the movements in discount rates and inflation during the six months.

3. DIVIDENDS

An Interim dividend of 5.5p per share is proposed, payable on 23 March 2018. (30 September 2016: nil, although a deferred interim dividend was paid in August 2017 of 5.5p)

4.  EARNINGS PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of 556,000 (30 September 2016: 579,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2016: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

This information is provided by RNS

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