REG - Heath(Samuel) & Sons - Half-year Report
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2018
CHAIRMAN'S STATEMENT
As I said in my statement in July, we have budgeted this year for lower figures than last year. In the event this has proved correct. Sales revenue was £6.722m (2017: £7.377m) and profit before tax £402k (2017: £687k). The business is trading at a level slightly better than budgeted and has been relatively evenly split across our major markets, although it is fair to say that the UK trade has been somewhat more subdued than elsewhere given the current situation.
As has been the case for some time now, we are still experiencing a level of uncertainty which is expected to persist at least until the final decision is taken as to what will happen with our trade with the EU after 29 March 2019. Although this falls at the end of our annual financial reporting period, we have already had to take decisions which will affect our statement of financial position at that time, as well as possibly our income statement. The vast majority of our purchases of raw materials, either directly or indirectly, are from Europe. We have thought it wise to buy forward with a number of these in good time, in case of a Hard Brexit, to ensure adequacy of supplies.
The effects of a Hard Brexit on actual trade are not known, but paying higher prices for our raw materials does not normally help. With all this going or not going on, it is even more difficult to forecast the results for the full year, but at the moment I am pleased to report that orders are coming in fairly well.
We are proposing an interim dividend of 5.5p per share (2017: 5.5p), which will be paid on 22 March 2019 to ordinary shareholders registered at the close of business on 22 February 2019.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Sam Heath
Chairman
8 November 2018
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 2018
CONSOLIDATED INCOME STATEMENT
Half year ended 30 September
Half year ended 30 September
Year
ended 31 March
2018
2017
2018
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Revenue
6,722
7,377
14,354
Cost of sales
(3,445)
(3,707)
(7,232)
Gross profit
3,277
3,670
7,122
Selling and distribution costs
(1,855)
(1,868)
(3,767)
Administrative expenses
(937)
(1,025)
(2,020)
Operating profit
485
777
1,335
Net finance costs
(83)
(90)
(158)
Profit before taxation
402
687
1,177
Taxation
(90)
(131)
(197)
Profit for the period
312
556
980
Basic and diluted earnings per ordinary share
13.0p
21.9p
38.7p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended 30 September
Half year ended 30 September
Year ended 31 March
2018
2017
2018
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Profit for the period
312
556
980
Items that will be reclassified to profit or loss:
Cash flow hedges
-
25
-
Items that will not be reclassified to profit or loss:
Actuarial gain on defined benefit pension scheme
29
(34)
(234)
Deferred tax on actuarial loss
Deferred taxation on revaluation of assets
(5)
-
6
-
40
44
24
(3)
(150)
Total comprehensive income for the period
336
553
830
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September
At 30 September
At 31 March
2018
2017
2018
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Non-current assets
Intangible assets
51
50
85
Property, plant and equipment
3,295
3,398
3,337
Deferred tax assets
818
791
853
4,164
4,239
4,276
Current assets
Inventories
3,956
3,901
3,930
Trade and other receivables
1,942
2,342
2,287
Derivative financial instruments
-
25
-
Cash and cash equivalents
2,814
2,170
2,366
8,712
8,438
8,583
Total assets
12,876
12,677
12,859
Current liabilities
Trade and other payables
(1,427)
(1,327)
(1,474)
Current tax payable
(231)
(289)
(175)
(1,658)
(1,616)
(1,649)
Non-current liabilities
Retirement benefit scheme
(6,318)
(6,463)
(6,472)
Total liabilities
(7,976)
(8,079)
(8,121)
Net assets
4,900
4,598
4,738
Equity
Called up share capital
254
254
254
Capital redemption reserve
109
109
109
Revaluation reserve
Retained earnings
1,324
3,213
1,346
2,889
1,357
3,018
Equity shareholders' funds
4,900
4,598
4,738
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 2017
254
109
1,389
2,609
4,361
Equity dividends paid
-
-
-
(316)
(316)
Profit for the period
-
-
-
556
556
Other comprehensive income for the period
Reclassification of amortisation on revaluation
-
-
-
-
-
(43)
(3)
43
(3)
-
Total comprehensive income for the period
-
-
(43)
596
553
Balance at 30 September 2017
254
109
1,346
2,889
4,598
Equity dividends paid
-
-
-
(137)
(137)
Profit for the period
-
-
-
424
424
Other comprehensive income for the period
Reclassification of amortisation on revaluation
-
-
-
-
44
(33)
(191)
33
(147)
-
Total comprehensive income for the period
-
-
11
266
277
Balance at 31 March 2018
254
109
1,357
3,018
4,738
Equity dividends paid
-
-
-
(174)
(174)
Profit for the period
-
-
-
312
312
Other comprehensive income for the period
Reclassification of amortisation on revaluation
-
-
-
-
-
(33)
24
33
24
-
Total comprehensive income for the period
-
-
(33)
369
336
Balance at 30 September 2018
254
109
1,324
3,213
4,900
CONSOLIDATED CASH FLOW STATEMENT
Half year ended 30 September
Half year ended 30 September
Year ended 31 March
2018
2017
2018
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Cash flow from operating activities
Profit for the period before taxation
402
686
1,177
Adjustments for:
Depreciation
172
186
365
Amortisation
35
28
58
Profit/(loss) on disposal of property, plant and equipment
(16)
10
(10)
Finance income
(25)
(4)
(30)
Defined benefit pension scheme expenses
132
126
237
Contributions to defined benefit pension scheme
(258)
(200)
(500)
Operating cash flow before movements in working capital
442
832
1,297
Changes in working capital:
Increase in inventories
(26)
(107)
(141)
Decrease/(increase) in trade and other receivables
315
(203)
(118)
(Decrease)/increase in trade and other payables
(17)
(40)
74
Cash generated from operations
714
482
1,112
Taxation paid
-
-
(157)
Net cash from operating activities
714
482
955
Cash flow from investing activities
Payments to acquire property, plant and equipment
(133)
(80)
(222)
Proceeds from the sale of property, plant and equipment
16
-
41
Payments to acquire intangible assets
-
-
(64)
Finance income
25
5
30
(92)
(75)
(215)
Cash flow from financing activities
Dividends paid
(174)
(316)
(453)
Net increase in cash and cash equivalents
448
91
287
Cash and cash equivalents at beginning of period
2,366
2,079
2,079
Cash and cash equivalents at end of period
2,814
2,170
2,366
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 2018 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 2018 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 2017 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 interpretations. There has been no impact on the adoption of IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments" in the period.
The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2018. 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 2018 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 22 March 2019 (paid 23 March 2018: 5.5p).
4. EARNINGS PER SHARE
The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £330,000 (30 September 2017: £556,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2017: 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.ENDIR BRBDBDGGBGIR
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