REG - Heath(Samuel) & Sons - Final Results & Notice of AGM
25/07/2025 08:45
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RNS Number : 6004S Heath(Samuel) & Sons PLC 25 July 2025
HEATH (SAMUEL) & SONS PLC
25 July 2025
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2025 AND NOTICE OF AGM
CHAIR'S STATEMENT
Trading
I am pleased to report that despite revenues being 3% down, we were able to
improve our operating profit appreciably through a careful review of costs.
Sales for the year ended at £14.769m compared to £15.237m in 2024, a
decrease of £468k. The reduction was due to the factors mentioned at the half
year: namely worsened economic conditions partly caused by the UK budget and
the US Presidential elections. Our gross profit margin for the year came in at
46.3% (46.6% in 2024).
Management reviewed production staffing levels, sales & marketing activity
and other costs which, together with a reduction in energy bills, helped
improve operating profit to £1.026m (6.9% return on sales) compared to £832k
(5.5%) last year an increase of £226k. Profit after tax was £888k (2024:
£768k). Selling and distribution costs reduced by 6.6% and administrative
overheads decreased by 6.5% compared to prior year.
Cash and cash equivalents at 31 March 2025 increased by £485k to £2.169m,
from £1.684m at 31 March 2024.
Net Assets increased to £12.30m (2024: £12.18m), net of the £150k reduction
in pension surplus discussed below.
The pension scheme remains in surplus and Company contributions were reduced
by £609k to £300k (2024: £909k) after agreement with the scheme's trustees.
Although the asset values have reduced in value in line with the markets, the
discount rate has remained strong, reducing liabilities. In IAS19 accounting
terms, a surplus has been recorded of £823k (2024: £1.02m); however, the
Directors wish to highlight, as previously, that it is both their and the
Trustees' aim to move the scheme to a Buyout once it is viable and affordable
to do so. Therefore, any surplus recognised is unlikely ever to become
distributable. The latest balance, net of the related deferred tax liability,
is a surplus of £617k compared to £767k in 2024, a reduction of £150k.
Outlook
The start of the new financial year in April 2025 saw the imposition of
tariffs by the US administration which created volatility in a key export
market, as well as weakening the dollar in relation to sterling. The Company
has however been successful in passing on in full the current 10% tariff
level. Employment costs have risen higher than initially forecast due to the
unexpected lowering of the national insurance threshold. We are also seeing
evidence of the UK luxury market being affected by tax changes impacting on
high net-worth individuals and families.
On the positive, the Company's continued product development, both in new
finishes and specific fittings, is helping us outperform in a difficult market
overall. In 2025, we have commenced new marketing ventures, such as joining
the Fuorisalone Design Week at the Brera Design District in Milan and a
collaboration with a high profile British interior designer at Wow!house in
the Design Centre at Chelsea Harbour. We also organised VIP events for
specifiers in North America, all of which are helping us reach a wider
customer base. Further new markets are under development and should contribute
new sales this financial year.
Despite changes at the macro level the Board is cautiously optimistic for the
current year.
The directors recommend maintaining the final dividend at 8.5625p, which will
be paid on 26 September 2025 to shareholders registered as at 22 August 2025,
the ex-dividend date for the payment is 21 August 2025. This will bring the
total declared for the year (Interim and Final) to 13.0625p per share or
£331k (2024: £305k).
Anthony Buttanshaw
Non-Executive Chair
24 July 2025
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
For further information:
Samuel Heath & Sons Plc
Simon Latham - Company Secretary +44 (0)121 766 4200
Cairn Financial Advisers LLP +44 (0)20 7213 0880
Sandy Jamieson/James Western
________________________ CONSOLIDATED INCOME
STATEMENT_________________________
for the year ended 31 March 2025
2025 2024
Note
£000 £000
Revenue 3 14,769 15,237
Cost of sales (7,930) (8,137)
Gross profit 6,839 7,100
Selling and distribution costs (3,711) (3,973)
Administrative expenses (2,163) (2,313)
Other operating income 61 18
832
Operating profit 1,026
Finance income 137 64
Finance cost - (12)
884
Profit before taxation 1,163
Taxation 4 (275) (116)
Profit for the year attributable to owners of the Parent Company 768
888
Basic and diluted earnings per ordinary share 6 35.0p 30.3p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2025
£000 £000
Profit for the year 888 768
Items that will not be reclassified to profit or loss:
Actuarial gain on defined benefit pension scheme (531) 693
Deferred taxation on actuarial gain 133 (174)
(398) 519
Total comprehensive income for the year 490 1,287
__________________STATEMENT OF FINANCIAL POSITION_____________________
31 March 2025
Group
2025 2024
£000 £000
Non-current assets
Intangible assets 1,059 911
Property, plant and equipment 4,755 4,733
Retirement benefit scheme 617 767
6,431 6,411
Current assets
Inventories 4,622 4,842
Trade and other receivables 1,951 2,071
Derivative financial instruments 32 -
Current tax receivable 61 -
Cash and cash equivalents 2,169 1,684
8,835 8,597
Total assets 15,266 15,008
Current liabilities
Trade and other payables (1,813) (1,989)
Lease liabilities (74) (60)
(1,887) (2,049)
Non-current liabilities
Lease liabilities (128) (25)
Deferred tax liability (949) (759)
(1,077) (784)
Total liabilities (2,964) (2,833)
Net assets 12,302 12,175
Equity
Called up share capital 254 254
Capital redemption reserve 109 109
Revaluation reserve 1,044 1,146
Retained earnings 10,895 10,666
Total equity attributable to owners of the Parent Company 12,302 12,175
_____________ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY __________________
for the year ended 31 March 2025
Attributable to owners of the Parent Company
Share Capital redemption reserve Revaluation reserve Retained Total
capital Earnings Equity
£000 £000 £000 £000 £000
Balance at 31 March 2023 254 109 1,220 9,610 11,193
Transactions with owners
Equity dividends paid (305) (305)
Transfer to retained earnings
Reclassification of depreciation on revaluation (74) 74 -
Profit for the year - - - 768 768
Other comprehensive income for the year - - - 519 519
Total comprehensive income for the year - - (74) 1,361 1,287
Balance at 31 March 2024 254 109 1,146 10,666 12,175
Total transactions with owners
Equity dividends paid - - - (331) (331)
Transfer to retained earnings
Reclassification of depreciation on revaluation - - (70) 70 -
Disposal of revalued asset - - (32) - (32)
- - (102) 70 (32)
Profit for the year - - - 888 888
Other comprehensive income for the year - - - (398) (398)
Total comprehensive income for the year - - - 490 490
Balance at 31 March 2025 254 109 1,044 10,895 12,302
__________________________STATEMENTS OF CASHFLOWS
_____________________________
for the year ended 31 March 2025
Group
2025 2024
£000 £000
Cash flow from operating activities
Profit for the year before taxation 1,163 884
Adjustments for:
Depreciation 540 535
Amortisation 227 154
(Profit)/loss on disposal of property, plant and equipment (36) 1
Interest paid - 10
Interest charge on capitalised leases 2 2
Net finance costs (107) (64)
Defined benefit pension scheme expenses 25 38
Contributions to defined benefit pension scheme (300) (909)
Fair value gain on derivative financial instruments (32) -
Operating cash flows before movements in working capital 1,482 651
Changes in working capital:
(Increase) in inventories 220 (455)
(Increase)/decrease in trade and other receivables 59 (442)
Increase/(decrease) in trade and other payables (184) 345
Cash generated from operations 1,577 99
Taxation paid - 38
Net cash generated from operating activities 1,577 137
Cash flows used in investing activities
Payments to acquire property, plant and equipment (402) (476)
Proceeds from the sale of property, plant and equipment - 1
Payments to acquire intangible assets (375) (374)
Net finance income/(cost) 107 62
(670) (787)
Cash flows from financing activities
Lease payments (76) (71)
Dividends paid (331) (305)
(407) (376)
Net (decrease)/increase in cash and cash equivalents 500 (1,026)
Cash and cash equivalents at beginning of year 1,674 2,717
Effect of exchange rate differences on cash and cash equivalents (5) (7)
Cash and cash equivalents at end of year 2,169 1,684
NOTES
TO THE PRELIMINARY ANNOUNCEMENT
1. Basis of preparation
The Group has prepared its consolidated financial statements for the year
ended 31 March 2025 in accordance with UK-adopted International Accounting
Standards. The accounting policies applied are consistent with those included
in the financial statements of the Group for the year ended 31 March 2024.
The financial information contained in this preliminary announcement does not
constitute the Group's statutory accounts within the meaning of Section 434 of
the Companies Act 2006.
The annual report and financial statements for the year ended 31 March 2025
were approved by the Board of Directors on 24 July 2025 along with this
preliminary announcement. The annual report and financial statements will
be delivered to the Registrar of Companies after the Annual General Meeting.
The statutory accounts of Samuel Heath & Sons PLC for the year ended 31
March 2024 have been delivered to the Registrar of Companies. The auditor's
reports on the statutory accounts for the years ended 31 March 2025 and 31
March 2024 were unqualified and did not contain a statement under section 498
of the Companies Act 2006.
2. Key areas of judgment and sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The
resulting accounting estimates and assumptions will, by definition, seldom
equal the related actual results. The Group has evaluated the estimates and
assumptions that have been made in relation to the carrying amounts of assets
and liabilities in these financial statements.
The key accounting judgements and sources of estimation uncertainty with a
significant risk of causing a material adjustment to assets and liabilities in
the next 12 months include the following:
Pensions - movements in equity markets, interest rates and life expectancy
could materially affect the level of surpluses and deficits in the defined
benefit pension scheme. The key assumptions used to value pension assets and
liabilities are set out in note 23 "Retirement benefit scheme". Where a
surplus on a defined benefit scheme arises, the rights of the Trustees to
prevent the Group obtaining a refund of that surplus in the future are
considered in determining whether it is necessary to restrict the amount of
the surplus that is recognised. The Retirement benefit scheme is in surplus at
31 March 2025. The directors have made the judgement that these amounts meet
the requirements of recoverability and a gross surplus of £823k (£617k net)
has been recognised.
Valuation of property, plant and equipment - the Group reviews the value,
useful economic lives and residual values attributed to assets on an on-going
basis to ensure they are appropriate. Changes in market value, economic lives
or residual values could impact the carrying value and charges to the income
statement in future periods.
Provisions - using information available at the balance sheet date, the
Directors make judgements based on experience on the level of provision
required against assets. Provisions are initially determined by evaluating the
expected sales of each inventory line over the subsequent 12-month period. No
provision is made for inventory expected to be sold within this timeframe.
Where no sales are anticipated, a 100% provision is made. The Directors
subsequently review the initial provisions and adjust them manually,
particularly in cases involving inventory acquired within the past 12 months,
or where a minimum order quantity is greater than the expected use over a
12-month period. The stock provision at year end was £3.240m (2024:
£3.287m).
Research and development - the Group reviews the projects worked on during the
year and capitalises the costs of those projects deemed to generate profits in
future years, £350,000 was capitalised in the year (2024: £354,000). The
Company takes full advantage of available taxation support.
3. Revenue by geographic market
2025 2024
£000 £000
Overseas 7,348 7,316
UK 7,421 7,921
14,769 15,237
4. Income taxes
2025 2024
£000 £000
Current taxes:
Current year - -
Adjustments in respect of prior periods - -
- -
Deferred taxes:
Origination and reversal of temporary differences 306 203
Adjustments in respect of prior periods (31) (87)
275 116
Total income taxes 275 116
Corporation tax is calculated at 25% (2024: 25%) of the estimated assessable
profit for the year.
Tax reconciliation
2025 2024
£000 £000
Profit for the year 1,163 884
Corporation tax charge thereon at 25% (2024: 25%) 290 221
Adjusted for the effects of:
Prior year adjustments (31) (87)
Research and development claim 5 (71)
Patent Box (42) -
Fixed asset differences 39 42
Revaluation - -
Other adjustments 14 11
Total income taxes 275 116
5. Dividends
2025 2024
£000 £000
Final dividend for the year ended 31 March 2024 of 8.5625 pence per share 218 192
(2023: 7.5625 pence per share)
113
Interim dividend for the year ended 31st March 2025 of 4.50 pence per share 113
(2024: 5.50 pence per share)
331 305
The directors are recommending a final dividend for 2025 of 8.5625 pence per
share amounting to £218,000. The proposed final dividend is subject to
approval at the Annual General Meeting and hence has not been included as a
liability in these accounts.
6. Earnings per share
The basic and diluted earnings per share are calculated by dividing the
relevant profit after taxation of £888,000 (2024: £768,000) by the average
number of ordinary shares in issue during the year being 2,534,322 (2024:
2,534,322). The number of shares used in the calculation is the same for both
basic and diluted earnings.
7. Notice of annual general meeting
Notice is hereby given that the 2025 Annual General Meeting of the Company
will be held at the registered office of the Company, Leopold Street,
Birmingham, on 11 September 2025 at 12.00 noon.
8. Posting of accounts
The report and accounts are being posted to shareholders today where
requested, and are available on the Company's website, at
www.samuel-heath.com/investor-relations
(http://www.samuel-heath.com/investor-relations) .
Note:
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not a guarantee of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.
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