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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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