RNS Number : 5040T
Heath(Samuel) & Sons PLC
15 November 2019
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2019
CHAIRMAN'S STATEMENT
Despite all the political and economic uncertainties in the UK, our six month figures to 30th September showed profit before tax down only a little on the prior period, but ahead of our internal budget, at £363k (2018: £402k) on sales of £6.920m (2018: £6.722m).
Although the UK market is showing up some classic signs of a downturn, we received enough orders, particularly for our newer products, backed up by our export sales, to produce the current result.
I cannot believe that yet again that I have to bring up Brexit as the reason for continued uncertainties, which could affect the next six months quite dramatically. To this must now be added the Election here in UK, as well as others coming up elsewhere in the world. It is very difficult to forecast how all these factors will affect our second half trading.
We are proposing an interim dividend of 5.5p per share (2018: 5.5p), which will be paid on 20 March 2020 to ordinary shareholders registered at the close of business on 21 February 2020.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Sam Heath
Chairman
15 November 2019
For further information, please contact:
Samuel Heath & Sons Plc
Simon Latham, Company Secretary
0121 766 4200
Cairn Financial Advisers LLP
James Caithie / Jo Turner
020 7213 0880
Unaudited Interim Financial Report
For the Half Year ended 30 September 2019
CONSOLIDATED INCOME STATEMENT
Half year
Half year
Year
ended 30
ended 30
ended 31
September
September
March
2019
2018
2019
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Revenue
6,920
6,722
13,893
Cost of sales
(3,598)
(3,445)
(7,125)
Gross profit
3,322
3,277
6,768
Selling and distribution costs
(1,776)
(1,855)
(3,474)
Administrative expenses
(1,067)
(937)
(1,915)
Operating profit
479
485
1,379
Net finance income
9
5
13
Net finance cost
(125)
(88)
(211)
Profit before taxation and exceptional items
363
402
1,181
Exceptional item - GMP equalisation
-
-
(299)
Profit before taxation
363
402
882
Taxation
(69)
(90)
(144)
Profit for the period
294
312
738
Basic and diluted earnings per ordinary share
11.6p
12.3p
29.1p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year
Half year
Year ended
ended 30
ended 30
31 March
September
September
2019
2018
2019
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Profit for the period
294
312
738
Items that will not be reclassified to profit or loss:
Actuarial gain/(loss) on defined benefit pension scheme
204
29
(933)
Deferred tax on actuarial loss
(34)
(5)
159
170
24
(774)
Total comprehensive income for the period
464
336
(36)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30
At 30
At 31
September
September
March
2019
2018
2019
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Non-current assets
Intangible assets
74
51
82
Property, plant and equipment
3,519
3,295
3,210
Deferred tax assets
972
818
1,048
4,565
4,164
4,340
Current assets
Inventories
3,883
3,956
3,989
Trade and other receivables
2,216
1,942
2,286
Cash and cash equivalents
3,100
2,814
3,153
9,199
8,712
9,428
Total assets
13,764
12,876
13,768
Current liabilities
Trade and other payables
(1,665)
(1,427)
(1,789)
Current tax payable
(239)
(231)
(171)
Finance lease liability for right of use assets
(57)
-
-
(1,961)
(1,658)
(1,960)
Non-current liabilities
Retirement benefit scheme
(7,050)
(6,318)
(7,420)
Finance lease liability for right of use assets
(75)
-
-
(7,125)
(6,318)
(7,420)
Total liabilities
(9,086)
(7,976)
(9,380)
Net assets
4,678
4,900
4,388
Equity
Called up share capital
254
254
254
Capital redemption reserve
109
109
109
Revaluation reserve
1,224
1,324
1,277
Retained earnings
3,091
3,213
2,748
Equity shareholders' funds
4,678
4,900
4,388
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
Capital
Revaluation
Retained
Total equity
capital
redemption
reserve
earnings
reserve
£000
£000
£000
£000
£000
Balance at 31 March 2018
254
109
1,357
3,018
4,738
Total transactions with owners
Equity dividends paid
-
-
-
(174)
(174)
Profit for the period
-
-
-
312
312
Other comprehensive income for the
-
-
-
24
24
period
Reclassification of amortisation on
-
-
(33)
33
-
revaluation
Total comprehensive income for the
-
-
(33)
369
336
period
Balance at 30 September 2019
254
109
1,324
3,213
4,900
Total transactions with owners
Equity dividends paid
-
-
-
(140)
(140)
Profit for the period
-
-
-
426
426
Other comprehensive income for the
-
-
-
(798)
(798)
period
Reclassification of amortisation on
-
-
(47)
47
-
revaluation
Total comprehensive income for the
-
-
(47)
(325)
(372)
period
Balance at 31 March 2019
254
109
1,277
2,748
4,388
Total transactions with owners
-
-
-
(174)
(174)
Equity dividends paid
Profit for the period
-
-
-
294
294
Other comprehensive income for the
-
-
-
170
170
period
Reclassification of amortisation on
-
-
(53)
53
-
revaluation
Total comprehensive income for the
-
-
(53)
517
464
period
Balance at 30 September 2019
254
109
1,224
3,091
4,678
CONSOLIDATED CASH FLOW STATEMENT
Half year
Half year
Year
ended 30
ended 30
ended 31
September
September
March
2019
2018
2019
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Cash flow from operating activities
Profit for the period before taxation
363
402
882
Adjustments for:
Depreciation
192
172
348
Amortisation
8
35
27
Loss/(profit) on disposal of property, plant and equipment
3
(16)
(16)
Net finance cost/(income)
7
(25)
17
Defined benefit pension scheme expenses
137
132
530
Contributions to defined benefit pension scheme
(266)
(258)
(516)
Operating cash flow before movements in working capital
444
442
1,272
Changes in working capital:
Decrease/(increase) in inventories
106
(26)
(59)
Decrease in trade and other receivables
46
315
6
Increase/(decrease) in trade and other payables
23
(17)
310
Cash generated from operations
619
714
1,529
Taxation paid
-
-
(184)
Net cash from operating activities
619
714
1,345
Cash flow from investing activities
Payments to acquire property, plant and equipment
(510)
(133)
(239)
Proceeds from the sale of property, plant and equipment
19
16
35
Payments to acquire intangible assets
-
-
(23)
Net finance income
(5)
25
(17)
(496)
(92)
(244)
Cash flow from financing activities
Dividends paid
(174)
(174)
(314)
Finance lease interest
(2)
-
-
(176)
(174)
(314)
Net increase in cash and cash equivalents
(53)
448
787
Cash and cash equivalents at beginning of period
3,153
2,366
2,366
Cash and cash equivalents at end of period
3,100
2,814
3,153
NOTES TO THE INTERIM FINANCIAL REPORT
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 2019 is not audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2019 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 2018 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 and interpretations issued by the International Financial Reporting Interpretations Committee as adopted by the European Union.
The group has not availed itself of early adoption options in such standards and interpretation. IFRS 16 Leases has been adopted in the period, the effect at the Half Year is to recognise the right of use asset of £133k and the finance lease liability of £132k.
IFRS 16 brings all operating leases onto the statement of financial position. The Group has used the modified retrospective transition approach on adoption of IFRS 16 Leases, where the initial right of use asset values recognised on property leases of £159k are equal to the present value of the future lease payments as at the date of transition (1 April 2019).
The net impact on the consolidated income statement is a decrease in profit before taxation of £1k. Finance costs have increased by £2k with the pre-IFRS 16 rental charge of £29k replaced by a depreciation charge £28k.
The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2019, except for changes due to the adoption of IFRS16. 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 2019 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 20 March 2020 (paid 22 March 2019: 5.5p).
4. EARNINGS PER SHARE
The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £294,000 (30 September 2018: £312,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2018: 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, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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