Half-year Report

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.

 

END

 

 

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