REG - Heath(Samuel) & Sons - Half-year Report
26/11/2025 12:00
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RNS Number : 1156J Heath(Samuel) & Sons PLC 26 November 2025
SAMUEL HEATH & SONS plc
("Samuel Heath" or "the Company")
UNAUDITED HALF-YEAR REPORT
Half year ended 30 September 2025
CHAIR'S STATEMENT
For the half year ended 30 September 2025, sales came in at £7.69m
representing an increase of £147k (1.9%) compared to the six months ended 30
September 2024. However, the order intake has been below budget since June
2025 which will affect trading in the second half of the year (as discussed
below). Operating profit was £489k compared to £481k in the six months to 30
September 2024, an £8k increase.
The increase in national insurance contributions and minimum wage affect a
labour-intensive business like ours considerably, but we are pleased to have
increased profit before tax by £103k to £542k (£439k six months to 30
September 2024) during the first half of this year. Tariffs on our sales to
the USA are reflected in our turnover, however this cost has been fully passed
on to our customers.
Cash and cash equivalents at 30 September 2025 increased by £454k to £2.62m,
from £2.17m as at
31 March 2025. Working capital was largely unchanged overall, although
management of stock reduced inventory by £209k. Plant expenditure of £34k
was incurred to support production efficiency and productivity. Product
development costs of £175k (£150k six months to 30 September 2024) were also
incurred and capitalised.
The Company's contribution to the defined benefit pension scheme stood at
£nil (six months to 30 September 2024: £nil).
The pension scheme surplus was £701k (£526k net of deferred tax) valued
under the IAS 19 rules. The scheme continues to be heavily invested in fixed
income securities to match movements in assets and liabilities and minimise
risk. The status is being regularly monitored to be able to take advantage of
a possible buy-out opportunity should it arise. Currently, a significant
premium would be required, and it is not believed that a buy-out will be
affordable in the near future.
Looking to the second half of the year, the Board has concerns about the
economic environment in its two key markets. As mentioned, the order intake
from June 2025 has been significantly below budget. Although the UK has
secured a USA tariff level at the lower end of the scale, our brassware is
only part of a bathroom and other product costs have risen as much as 50%,
causing overall construction costs to increase substantially. Many customers
have pressed on regardless, but we have seen some pausing of projects while
assessments are made of the budget revisions required. In the UK, current and
pending changes to inheritance tax and income tax in November 2025's budget
has led to some of our clients moving overseas and others waiting to see what
happens next. This has led to a degree of caution especially in the London
market. The double effects of tariffs and tax increases have led the Company
to take action and reduce headcount and costs in anticipation of a tougher
second half year and into the next financial year.
The Company is pleased to report that the introduction of four key new
finishes, including Anthracite and Old Brass, has met with expectations and
are selling well. Events such as Milan and Wow!house in Chelsea Harbour have
helped increase our profile with premium interior designers and we feel well
placed to mitigate the worst of the events mentioned above to a degree.
However, we are expecting sales to be weaker in the second half of the year
which will have an impact on our final year profit. Next year will see the
launch of our Octelle collection, which is a collaboration with the esteemed
interior designer, Laura Hammett which we expect to gain us new sales in our
key markets.
Anthony Buttanshaw
Chair
26 November 2025
Dividend
As a result of the uncertain trading conditions, the directors recommend the
same interim dividend as last year at 4.5p per share (2024: 4.5p). The interim
dividend will be paid on 20 March 2026 to shareholders on the register at the
close of business on 13 February 2026. The ex-dividend date for this payment
is 12 February 2026.
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, please contact:
Samuel Heath & Sons Plc
Simon Latham, Company
Secretary
0121 766 4200
Cairn Financial Advisers LLP
Sandy Jamieson / James Western
020 7213 0880
Unaudited Interim Financial Report
For the Half Year ended 30 September 2025
CONSOLIDATED INCOME STATEMENT
Half year Half year Year
ended 30 ended 30 ended 31
September September March
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 7,695 7,548 14,769
Cost of sales (4,142) (4,114) (7,930)
Gross profit 3,553 3,434 6,839
Selling and distribution costs (1,989) (1,886) (3,711)
Administrative expenses (1,075) (1,067) (2,163)
Other operating income (note 5) - - 61
Operating profit 489 481 1,026
Finance income 53 - 137
Finance cost - (42) -
Profit before taxation 542 439 1,163
Taxation - (28) (275)
Profit for the period 542 411 888
Basic and diluted earnings per ordinary share (note 4) 21.4p 16.2p 35.0p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended 30 September Half year ended 30 September Year ended 31 March
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
542 411 888
Profit for the period
Items that will not be reclassified to profit or loss:
Actuarial (loss)/profit on defined benefit pension scheme (122) 332 (531)
Deferred tax on actuarial profit/(loss) 32 (82) 133
Revaluation of property, plant and equipment (29) (43) -
Deferred tax on revaluation 8 11 -
(111) 218 (398)
Total comprehensive income for the period 431 629 490
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September At 30 September At 31 March
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Intangible assets 1,096 963 1,059
Property, plant and equipment 4,505 4,728 4,755
Deferred tax assets - - -
Retirement benefit scheme (note 6) 526 941 617
6,127 6,632 6,431
Current assets
Inventories 4,413 4,650 4,622
Trade and other receivables 2,005 1,749 1,951
Derivative financial instruments - - 32
Current tax receivable 61 - 61
Cash and cash equivalents 2,623 1,937 2,169
9,102 8,336 8,835
Total assets 15,229 14,968 15,266
Current liabilities
Trade and other payables (1,592) (1,548) (1,813)
Right of use lease liabilities (79) (28) (74)
Current tax payable - (28) -
(1,671) (1,604) (1,887)
Non-current liabilities
Right of use liabilities (92) (19) (128)
Deferred tax liability (950) (758) (949)
(1,042) (777) (1,077)
Total liabilities (2,713) (2,381) (2,964)
Net assets 12,516 12,587 12,302
Equity
Called up share capital 254 254 254
Capital redemption reserve 109 109 109
Revaluation reserve 1,014 1,079 1,044
Retained earnings 11,139 11,145 10,895
Equity shareholders' funds 12,516 12,587 12,302
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Parent Company
Share capital Capital redemption reserve Revaluation reserve Retained earnings Total equity
£000 £000 £000 £000 £000
Balance at 31 March 2024 254 109 1,146 10,666 12,175
Total transactions with owners
Equity dividends paid - - - (217) (217)
Transfer to retained earnings
Disposal of revalued asset - - (32) (32)
Reclassification of depreciation on revaluation
- - (35) 35 -
- - (67) 35 (32)
Profit for the period - - - 411 411
Other comprehensive income for the period - - - 250 250
Total comprehensive income for the period - - - 661 661
Balance at 30 September 2024 254 109 1,079 11,145 12,587
Total transactions with owners
Equity dividends paid - - - (114) (114)
Transfer to retained earnings
Reclassification of depreciation on revaluation - - (35) 35 -
- - (35) 35 -
Profit for the period - - - 477 477
Other comprehensive income for the period - - - (648) (648)
Total comprehensive income for the period - - - (171) (171)
Balance at 31 March 2025 254 109 1,044 10,895 12,302
Total transactions with owners
Equity dividends paid - - - (217) (217)
Transfer to retained earnings
Reclassification of depreciation on revaluation - - (30) 30 -
- - (30) 30 -
Profit for the period - - - 542 542
Other comprehensive income for the period - - - (111) (111)
Total comprehensive income for the period - - - 431 431
Balance at 30 September 2025 254 109 1,014 11,139 12,516
CONSOLIDATED CASH FLOW
STATEMENT
Half year ended 30 September Half year ended 30 September Year ended 31 March
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flow from operating activities
Profit for the period before taxation 542 439 1,163
Adjustments for:
Depreciation 284 246 540
Amortisation 138 106 227
(Profit) on disposal of property, plant and equipment - (39) (36)
Interest charged on capitalised leases 6 1 2
Interest received (24) - (107)
Defined benefit pension scheme expenses (17) 83 25
Contributions to defined benefit pension scheme - - (300)
Fair value gain on derivative financial instruments 10 - (32)
Operating cash flow before movements in working capital 939 836 1,482
Changes in working capital:
Decrease in inventories 209 192 220
Decrease/(increase)in trade and other receivables (32) 319 59
(Decrease) in trade and other payables (184) (381) (184)
Cash (used in) / generated from operations 932 966 1,577
Taxation received - - -
Net cash from / (used in) operating activities 932 966 1,577
Cash flow from investing activities
Payments to acquire property, plant and equipment (34) (319) (402)
Proceeds from the sale of property, plant and equipment - 36 -
Payments to acquire intangible assets (175) (150) (375)
Net finance income/(costs) 24 (1) 107
Net cash outflow from investing activities (185) (434) (670)
Cash flow from financing activities
Payment for right of use assets (39) (38) (76)
Dividends paid (217) (217) (331)
Net cash outflow from financing activities (256) (255) (407)
Net increase in cash and cash equivalents 491 277 500
Effect of exchange rate differences on cash or cash equivalents (37) (24) (5)
Cash and cash equivalents at beginning of period 2,169 1,684 1,674
Cash and cash equivalents at end of period 2,623 1,937 2,169
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 2025 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 2025 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 2024 were
also unaudited.
2. ACCOUNTING POLICIES
Basis of accounting
The report has been prepared on a going concern basis in accordance UK-adopted
International Accounting Standards.
The group has not availed itself of early adoption options in standards and
interpretations.
The principal accounting policies adopted are as set out in the Annual Report
for the year ended 31 March 2025. The valuation of inventories is considered
to be the main area in terms of significant accounting estimates and
judgements.
The retirement benefit scheme surplus recognised in these interim accounts
reflects the estimated change in the surplus at 30 September 2025 from the
movements in discount rates and inflation during the six months.
3. DIVIDENDS
A final dividend for the financial year 2025 of 8.5625p per share (2024:
8.5625p) was paid during the period.
An Interim dividend for the financial year 2026 of 4.5p per share is proposed
(2025: 4.5p), payable on 20 March 2026.
4. EARNINGS PER SHARE
The basic and diluted earnings per share are calculated by dividing the
relevant profit after taxation of £542,000 (2024: profit £411,000) by the
average number of ordinary shares in issue during the period 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.
5. OTHER OPERATING INCOME
Income was recognised for the financial year 2025 through the gaining of tax
credits under the Research and Development tax regime.
Half year ended 30 September Half year ended 30 September Year ended 31 March
2025 2024 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
R&D Expenditure Credits - - 61
Total other operating income - - 18
Income has been accounted for under the accruals method.
NOTES TO THE INTERIM FINANCIAL REPORT (cont.)
6. RETIREMENT BENEFIT SCHEME
The values used in the Financial Statements are valued using IAS 19, which
shows a surplus of £701k (shown in the balance sheet as £526k net of
deferred tax). However, the Director's support the goal of a Buyout for the
Scheme which is likely to result in a premium being paid to the insurance
company. This would mean that the Directors do not expect this asset to be
realised or ultimately distributable.
Contributions for the year to 31 March 2026 have been agreed at nil (2025:
£300,000).
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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