REG - Heath(Samuel) & Sons - Half-year Report <Origin Href="QuoteRef">HSM.L</Origin>

Samuel Heath and SonsAnnouncement

09/11/2017 07:01

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.

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