REG - Heath(Samuel) & Sons - Half-year Report

Samuel Heath and SonsAnnouncement

15/11/2019 07:06

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.




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