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Half-year Report

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RNS Number : 8451V
Heath(Samuel) & Sons PLC
09 November 2017
 

SAMUEL HEATH & SONS plc

("the Company")

 

INTERIM REPORT

 

Half year ended 30 September 2017

 

CHAIRMAN'S STATEMENT

 

 

The first half of the year was satisfactory. Revenue was up at £7.377m (2016: £6.635m). The profit before tax was 5.6% down at £687k (2016: £728k), the previous year having benefitted from the windfall drop in Sterling after the Brexit referendum as I reported in my last full year's statement.

 

We sell all over the world, with exports increasing by 18%, but our performance has been very patchy in nearly all of our markets, with some doing much better than expected, some worse.

 

Although it is only a relatively short time since the end of September, we have to say that sales generally have weakened, particularly in the U.K. market, where the number of projects in the pipeline have decreased, not enormously but perhaps significantly.   As always, it is difficult to forecast how this will affect the twelve months figures.

 

For the future, it is perhaps trite to say that we would prefer more clarity, but we would.

 

We are proposing an interim dividend of 5.5p per share (2016: deferred interim dividend of 5.5p), which will be paid on 23 March 2018.

 

 

 

Sam Heath

Chairman

9th November 2017

 

For further information, please contact:

Samuel Heath & Sons Plc

John Park, Company Secretary                                          0121 766 4235

 

Cairn Financial Advisers LLP

James Caithie / Jo Turner                                                    020 7213 0880                                       


Unaudited Interim Financial Report

For the Half Year ended 30 September 2017

 

 

CONSOLIDATED INCOME STATEMENT






Half year ended 30 September


Half year ended 30 September


Year ended 31 March

 


2017

2016


2017


Unaudited

Unaudited


Audited


£'000


£'000


£'000

Continuing operations






Revenue

7,377

          6,635


         13,053






Cost of sales

(3,707)


  (3,141)


(6,386)







Gross profit

3,670

          3,494


            6,667






Distribution costs

(1,868)

(1,664)


(3,274)

Administrative expenses

(1,025)

(998)


(1,949)






Operating profit

777

           832


            1,444






Finance costs

                (90)

 (104)


(210)






Profit before taxation

687

              728


             1,234

 

Taxation

            

              (131)

             

               (149)


 

(221)







Profit for the period

556


              579


             1,013











Basic and diluted earnings per ordinary share

21.9p


22.8p


40.0p


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








Half year ended 30 September

Half year ended 30 September


Year ended 31 March

 


2017

2016


2017


Unaudited

Unaudited


Audited


£'000

£'000


£'000






Profit for the period

             556

              579


             1,013











Items that will be reclassified to profit or loss:





Cash flow hedges

               25

              15


               16







           25

              15


              16






Items that will not be reclassified to profit or loss:





Actuarial (loss) on defined benefit pension scheme

(34)

 (4,762)


            (629)

Deferred tax on actuarial loss

Revaluation of property, plant and Equipment

Deferred taxation on revaluation of assets

           6

-

-

738

-

-


            46

1,607

(218)







        (28)

(4,024)


          806






Total comprehensive income for the period

        553

(3,430)


          1,835








            


             

 

 

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION


At 30 September


 At 30 September


    At 31   March

 


2017


2016


2017

 

 

Unaudited


Unaudited


Audited


£'000


£'000


£'000

Non-current assets






Intangible assets

50


99


              79

Property, plant and equipment

3,398


1,848


           3,511

Deferred tax asset

791


1,836


           793








4,239


3,783


           4,383







Current assets






Inventories

3,901


3,537


           3,789

Trade and other receivables

2,342


1,978


           2,169

Derivative financial instruments

         25


                  -


                   -

Cash and cash equivalents

           2,170


           2,268


           2,079


           8,438


           7,783


           8,037







Total assets

        12,677


          11,566


          12,420







Current liabilities






Trade and other payables

(1,327)


(1,290)


(1,400)

Current tax payable

(289)


(296)


(158)


(1,616)


(1,586)


(1,558)







Non-current liabilities






Retirement benefit scheme

(6,463)


(10,805)


(6,501)

Deferred tax liability

-


(79)


-


(6,463)


(10,884)


(6,501)







Total liabilities

(8,079)


(12,470)


(8,059)







Net assets

            4,598


          (904)


          4,361







Equity






Called up share capital

            254


             254


             254

Capital redemption reserve

            109


             109


             109

Revaluation reserve

Retained earnings

1,346

2,889


-

(1,267)


1,389

2,609







Equity shareholders' funds

           4,598


          (904)


          4,361

























 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

Share capital

Capital redemption reserve

Revaluation reserve

Retained earnings

Total equity


£000

£000

£000

£000

£000







Balance at 31 March 2016

254

109

-

    2,337

     2,700







Equity dividends paid

-

-

-

        (174)

 (174)







Profit for period

-

-

-

            579

          579

Other comprehensive loss for the period

-

-

-

      (4,009)

      (4,009)

Total comprehensive loss for the period

-

-

-

(3,430)

(3,430)







Balance at 30 September 2016

254

109

-

      (1,267)

     (904)







Equity dividends paid

-

-

-

-

-







Profit for period

-

-

-

            434

            434

Other comprehensive income for the period

-

-

1,389

3,442

4,831

Total comprehensive income for the period

-

-

1,389

3,876

5,265







Balance at 31 March 2017

254

109

1,389

         2,609

     4,361







Equity dividends paid

-

-

-

         (316)

(316)







Profit for period

-

-

-

            556

        556

Other comprehensive income for the period

-

-

-

         (3)

(3)

Total comprehensive income for the period

-

-

-

          553

553







Transfer relating to amortisation

-

-

(43)

43

-







Balance at 30 September 2017

254

109

1,346

        2,889

      4,598








CONSOLIDATED CASH FLOW STATEMENT                         

 

Half year ended 30 September


Half year ended 30 September


Year ended 31 March


2017


2016


2017


Unaudited


Unaudited


Audited


£'000


£'000


£'000

Cash flow from operating activities












Profit for the period before tax

686


             728


           1,234







Adjustments for:






Depreciation

              186


             130


             272

Amortisation

                28


               29


               57

Profit/(loss) on disposal of property, plant and equipment

10


               (18)


              (37)

Finance income

(4)


                (5)


             (7)

Defined benefit pension scheme expenses

              126


             132


             282

Contributions to defined benefit pension scheme

(200)


             (189)


            (511)







Operating cash flow before movements in working capital

              832


             807


          1,290







Changes  in working capital:






(Increase)/decrease in inventories

(107)


 (216)


(468)

(Increase)/decrease in trade and other receivables

             (203)


              134


              (16)

Increase/(decrease) in trade and other payables

               (40)


              13


             117







Cash generated from operations

               482


            738


           923







Taxation paid

-


                -


(155)







Net cash from operating activities

482


            738


768













Cash flow from investing activities






Payments to acquire property, plant and equipment

(80)


            (397)


            (646)

Proceeds from the sale of property, plant and equipment

                 -


               18


             53

Proceeds from sale of financial assets

                 -


                -


                (8)

Finance income

                 5


               5


             8








(75)


           (374)


           (593)



















Cash flow from financing activities






Dividends paid

(316)


(174)


(174)








(316)


(174)


(174)













Net increase/(decrease) in cash and cash equivalents

91


190


           1

 

Cash and cash equivalents at beginning of period

2,079


          2,078


         2,078







Cash and cash equivalents at end of period

2,170


          2,268


          2,079



















 

 

 

 

 

 

 

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 2017 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 2017 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 2016 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 2017 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2017.

 

The group has not availed itself of early adoption options in such standards and interpretations.

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2017. 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 2017 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 23 March 2018. (30 September 2016: nil, although a deferred interim dividend was paid in August 2017 of 5.5p)

4.            EARNINGS PER SHARE 

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £556,000 (30 September 2016: £579,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2016: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

 

 

 


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