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

Samuel Heath and SonsAnnouncement

12/11/2014 08:00

RNS Number : 5953W
Heath(Samuel) & Sons PLC
12 November 2014
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2014
CHAIRMAN'S STATEMENT
As I warned at the time of my annual statement, incoming orders were well down on the same period last year. This continued throughout the entire six months period which we are now reporting. Sales were in fact 5,398,000 (2013: 5,526,000). Since all our budgets were based on expected growth, this had the effect of reducing our profit before tax to 96,000 (2013: 326,000). 
The reasons for the downturn are a rather unusual and unwelcome mixture of the UK market not recovering at the rate we hoped, some markets suffering sharp economic downturns and others almost cancelled altogether for geopolitical reasons.
As I also warned in my annual statement, the strong pound had a very significant impact on our profitability.
When it comes to forecasting the second half of the year, it would be reckless to be too optimistic. However the pound has devalued and the order book has shown signs of improvement in the short period since the half year end.
We continue to have a strong balance sheet and we propose a same again interim dividend of 5.5p per share (2013: 5.5p per share) payable on 23rd March 2015. However, the board will obviously be looking at the final dividend in the light of the full year's trading.
Sam Heath
Chairman
12th November 2014
For further information, please contact:
Samuel Heath & Sons Plc

John Park, Company Secretary
0121 772 2303
Zeus Capital Limited

Ross Andrews/Jamie Peel
0161 831 1512


Unaudited Interim Financial Report 
For the Half Year ended 30 September 2014
CONSOLIDATED INCOME STATEMENT

Half year
ended
30 September
2014
Half year
ended
30 September
2013
Year ended
31 March
2014

Unaudited
Unaudited
Audited




Continuing operations
'000
'000
'000
Revenue
 5,398
 5,526
10,979
Cost of sales
(2,873)
 (2,859)
(5,647)




Gross profit
2,525
2,667
5,332
Distribution costs
(1,521)
(1,523)
(2,958)
Administrative expenses
(830)
(818)
(1,676)




Operating profit
174
326
698
Gain on sale of financial assets
-
58
58
Finance costs
(78)
(58)
(146)




Profit before taxation
96
326
610
Taxation
(19)
(64)
(167)




Profit for the period
77
262
443








Basic and diluted earnings per ordinary share
3.0p
10.3p
17.5p




CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Half year
ended
30 September
2014
Half year
ended
30 September
2013
Year ended
31 March
2014

Unaudited
Unaudited
Audited

'000
'000
'000
Profit for the period
77
262
443








Items that will be reclassified to profit or loss:



Loss on available for sale financial assets
 -
(115)
(115)
Cash flow hedges
 39
 37
 1





 39
(78)
(114)








Items that will not be reclassified to profit or loss:



Actuarial (loss)/gain on defined benefit pension scheme 
(833)
 681
 294
Deferred tax on actuarial gain(loss)
 167
(262)
(187)





(666)
 419
 107

 


Total comprehensive income for the period
(550)
 603
 436






CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At
30 September
2014
At
30 September
2013
At
31 March
2014

Unaudited
Unaudited
Audited

'000
'000
'000
Non current assets



Intangible assets
303
358
326
Property, plant and equipment
1,620
1,820
1,668
Deferred tax asset
941
725
774





2,864
2,903
2,768




Current assets



Inventories
3,034
2,724
2,899
Trade and other receivables
1,723
1,728
1,819
Derivative financial instruments
37
35
-
Cash and cash equivalents
1,785
1,853
2,026





6,579
6,340
6,744








Total assets
9,443
9,243
9,512








Current liabilities



Trade and other payables
(949)
(898)
(1,164)
Derivative financial instruments
 -
 -
(2)
Current tax payable
(135)
(90)
(116)





(1,084)
(988)
(1,282)








Non current liabilities



Retirement benefit scheme
(4,707)
(3,624)
(3,870)
Deferred tax liability
(110)
(74)
(110)





(4,817)
(3,698)
(3,980)








Total liabilities
(5,901)
(4,686)
(5,262)








Net assets
3,542
4,557
4,250




Capital and reserves



Called up share capital
254
254
254
Capital redemption reserve
109
109
109
Retained earnings
3,179
4,194
3,887




Equity shareholders' funds
3,542
4,557
4,250






CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share capital
Capital redemption reserve
Retained earnings
Total equity

000
000
000
000





Balance at 31 March 2013
254
109
 3,749
 4,112
Equity dividends paid
-
-
(158)
(158)
Profit for period
-
-
 262
 262
Other comprehensive income for the period
-
-
 341
 341





Balance at 30 September 2013
254
109
 4,194
 4,557
Equity dividends paid
-
-
(140)
(140)
Profit for period
-
-
 181
 181
Other comprehensive income for the period
-
-
(348)
(348)





Balance at 31 March 2014
254
109
 3,887
 4,250
Equity dividends paid
-
-
(158)
(158)
Profit for period
-
-
 77
 77
Other comprehensive income for the period
-
-
(627)
(627)





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







CONSOLIDATED CASH FLOW STATEMENT

Half year
Ended
30 September
2014
Half year
Ended
30 September
2013
Year ended
31 March
2014

Unaudited
Unaudited
Audited

'000
'000
'000
Cash flow from operating activities







Profit for the period before tax
 96
326
610




Adjustments for:



Depreciation
 178
187
 375 
Amortisation
 31
18
 50
Profit on disposal of property, plant and equipment
(8)
(6)
(13)
Profit on disposal of available for sale financial assets
 -
(58)
(58)
Finance income
(5)
(32)
(37)
Finance costs
 -
-
 1
Increase/(decrease) in post-employment benefit obligations
 5
17
(126)




Operating cash flow before movements in working capital
 297
452
802




Changes in working capital:



(Increase)/decrease in inventories
(135)
7
(168)
Decrease/(increase) in trade and other receivables
96
106
75
(Decrease)/increase in trade and other payables
(215)
23
214




Cash generated from operations
43
588
923




Taxation paid
-
-
(15)




Net cash from operating activities
43
588
908








Cash flow from investing activities



Payments to acquire property, plant and equipment
(173)
(182)
(221)
Proceeds from the sale of property, plant and equipment
50
18
29
Payments to acquire intangible assets
(8)
(5)
(6)
Payments to acquire available for sale financial assets
-
(57)
(57)
Proceeds from the sale of available for sale financial assets
-
1,398
1,400
Finance income
5
32
53





(126)
1,204
1,198








Cash flow from financing activities



Interest paid
-
-
(1)
Dividends paid
(158)
(158)
(298)




Net cash outflow from financing 
(158)
(158)
(299)








Net (decrease)/increase in cash and cash equivalents
(241)
1,634
1,807
Cash and cash equivalents at beginning of period
2,026
219
219




Cash and cash equivalents at end of period
1,785
1,853
2,026






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 2014 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 2014 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 2013 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 2014 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2014.
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 2014. 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 2014 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 2013: 5.5 pence per share) and will be payable on 23rd March 2015 with a record date of 27th February 2015.
4
EARNINGS PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of 77,000 (30 September 2013: 262,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2013: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

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