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

Samuel Heath and SonsAnnouncement

04/11/2015 07:00

RNS Number : 2305E
Heath(Samuel) & Sons PLC
04 November 2015
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2015
CHAIRMAN'S STATEMENT
It is pleasing to report a much better first half of the trading year with sales of 6,061,000 as against 5,398,000 and profit before taxation at 437,000 as against 96,000. It is even more pleasing to see the increase in operating profit to 542,000 (2014: 174,000). It should be pointed out however that this comparison is with a particularly difficult six months for the company last year. 
Both the home market and export markets performed well during the period. As a result of this we were able to increase our labour force and authorise further purchases of machinery, which will come into operation in the second half of the year.
The order book has continued to be healthy but, as I have had to say so many times over the years, in a business such as our own things can change very rapidly. It is therefore extremely hazardous to forecast the results for the full year. 
With our relatively strong balance sheet we have no hesitation in recommending the same again dividend of 5.5p (2014: 5.5p) to be paid on 21st March 2016.
Sam Heath
Chairman
4th November 2015
For further information, please contact:
Samuel Heath & Sons Plc

John Park, Company Secretary
0121 772 2303
Zeus Capital Limited

Dan Bate/Ross Andrews/Jamie Peel
0161 831 1512


Unaudited Interim Financial Report 
For the Half Year ended 30 September 2015
CONSOLIDATED INCOME STATEMENT

Half year
ended
30 September
2015
Half year
ended
30 September
2014
Year ended
31 March
2015

Unaudited
Unaudited
Audited




Continuing operations
'000
'000
'000
Revenue
 6,061
 5,398
11,198
Cost of sales
(3,083)
 (2,873)
(5,873)




Gross profit
2,978
2,525
5,325
Distribution costs
(1,543)
(1,521)
(3,006)
Administrative expenses
(893)
(830)
(1,721)




Operating profit
542
174
598
Finance costs
(105)
(78)
(155)




Profit before taxation
437
96
443
Taxation
(87)
(19)
(49)




Profit for the period
350
77
394








Basic and diluted earnings per ordinary share
13.8p
3.0p
15.5p




CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Half year
ended
30 September
2015
Half year
ended
30 September
2014
Year ended
31 March
2015

Unaudited
Unaudited
Audited

'000
'000
'000
Profit for the period
350
77
 394








Items that will be reclassified to profit or loss:



Cash flow hedges
 (48)
 39
 58





 (48)
 39
 58








Items that will not be reclassified to profit or loss:



Actuarial gain/(loss) on defined benefit pension scheme 
 1,408
 (833)
 (2,888)
Deferred tax on actuarial (gain)/loss
 (255)
 167
 578





 1,153
 (666)
 (2,310)

 


Total comprehensive income for the period
 1,455
 (550)
 (1,858)






CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At
30 September
2015
At
30 September
2014
At
31 March
2015

Unaudited
Unaudited
Audited

'000
'000
'000
Non current assets



Intangible assets
156
303
184
Property, plant and equipment
1,471
1,620
1,475
Deferred tax asset
1,058
941
1,313





2,685
2,864
2,972




Current assets



Inventories
3,388
3,034
3,157
Trade and other receivables
2,066
1,723
2,085
Derivative financial instruments
7
37
56
Cash and cash equivalents
1,887
1,785
1,648





7,348
6,579
6,946








Total assets
10,033
9,443
9,918








Current liabilities



Trade and other payables
(1,133)
(949)
(1,126)
Current tax payable
(159)
(135)
(72)





(1,292)
(1,084)
(1,198)








Non current liabilities



Retirement benefit scheme
(5,292)
(4,707)
(6,568)
Deferred tax liability
(58)
(110)
(58)





(5,350)
(4,817)
(6,626)








Total liabilities
(6,642)
(5,901)
(7,824)








Net assets
3,391
3,542
2,094




Capital and reserves



Called up share capital
254
254
254
Capital redemption reserve
109
109
109
Retained earnings
3,028
3,179
1,731




Equity shareholders' funds
3,391
3,542
2,094






CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share capital
Capital redemption reserve
Retained earnings
Total equity

000
000
000
000





Balance at 31 March 2014
254
109
 3,887
 4,250





Equity dividends paid
-
-
(158)
(158)





Profit for period
-
-
 77
 77
Other comprehensive loss for the period
-
-
 (627)
 (627)
Total comprehensive loss for the period
-
-
(550)
(550)





Balance at 30 September 2014
254
109
 3,179
 3,542





Equity dividends paid
-
-
(140)
(140)





Profit for period
-
-
 317
 317
Other comprehensive loss for the period
-
-
(1,625)
(1,625)
Total comprehensive loss for the year
-
-
(1,308)
(1,308)





Balance at 31 March 2015
254
109
 1,731
 2,094





Equity dividends paid
-
-
(158)
(158)





Profit for period
-
-
 350
 350
Other comprehensive income for the period
-
-
 1,105
 1,105
Total comprehensive income for period
-
-
 1,455
 1,455





Balance at 30 September 2015
254
109
 3,028
 3,391







CONSOLIDATED CASH FLOW STATEMENT

Half year
Ended
30 September
2015
Half year
Ended
30 September
2014
Year ended
31 March
2015

Unaudited
Unaudited
Audited

'000
'000
'000
Cash flow from operating activities







Profit for the period before tax
 437
 96
443




Adjustments for:



Depreciation
 161
178
 357 
Amortisation
 28
31
 61
Impairment of intangible asset
 -
 -
 135
Profit on disposal of property, plant and equipment
(3)
(8)
(8)
Finance income
(5)
(5)
(11)
Defined benefit pension scheme expenses
 133
 105
 210
Contributions to defined benefit pension scheme
 -
(100)
(400)




Operating cash flow before movements in working capital
 751
 297
787




Changes in working capital:



Increase in inventories
 (231)
(135)
(258)
(Increase)/decrease in trade and other receivables
 (63)
 96
(266)
Increase/(decrease) in trade and other payables
 89
(215)
(39)




Cash generated from operations
 546
43
224




Taxation paid
 -
-
(106)




Net cash from operating activities
 546
43
118








Cash flow from investing activities



Payments to acquire property, plant and equipment
(157)
(173)
(225)
Proceeds from the sale of property, plant and equipment
3
50
70
Payments to acquire intangible assets
 -
(8)
(54)
Finance income
5
5
11





(149)
(126)
(198)








Cash flow from financing activities



Dividends paid
(158)
(158)
(298)




Net cash outflow from financing 
(158)
(158)
(298)








Net increase/(decrease) in cash and cash equivalents
 239
(241)
(378)
Cash and cash equivalents at beginning of period
1,648
2,026
2,026




Cash and cash equivalents at end of period
1,887
 1,785
1,648






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 2015 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 2015 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 2014 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 2015 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2015.
The group has not availed itself of early adoption options in such standards and interpretations.
The financial statements have been prepared under the historical cost basis. The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2015. 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 2015 from the movements in discount rates and inflation during the six months.
3
DIVIDENDS

An interim dividend of 5.5 pence per share is proposed (30 September 2014: 5.5 pence per share) and will be payable on 21st March 2016 with a record date of 26th February 2016.
4
EARNINGS PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of 350,000 (30 September 2014: 77,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2014: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

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