Interim Results

RNS Number : 4177J

Heath(Samuel) & Sons PLC

04 December 2008

 



SAMUEL HEATH & SONS plc

('the Company')

INTERIM REPORT

Half year ended 30 September 2008

CHAIRMAN'S STATEMENT

I forecast in July 'a significant further fall in profits for the coming year'. During the first half turnover was 0.6% higher at £6,148,000, and operating profit was 1.7% higher at £354,000.

I have to say that this result was considerably better than anticipated and a great credit to all concerned.

However, since the end of this half-year, business has deteriorated sharply, which is not altogether surprising in such uncertain times. The second six months will almost certainly confirm my July view of a considerable fall in profits, with an outcome worse than our original budgets.

Despite all of this, the Company continues to have a strong balance sheet, and we are proposing to pay a same again interim dividend of 11 pence per share.

Mr. Anthony Buttanshaw has joined the Board of Directors. Aged 53, he is a chartered accountant and spent some fifteen years in the G.K.N. Group, reaching high positions both in the U.K. and U.S.A. It is felt that this experience will be of great benefit to the Company and I welcome him.

Sam Heath

Chairman

4th December 2008

For further information, please contact:

Samuel Heath & Sons Plc
John Park, Company Secretary	0121 772 2303
Evolution Securities Limited
Joanne Lake/Peter Steel	0113 243 1619

UNAUDITED INTERIM FINANCIAL REPORT (IFRS)

For the Half Year ended 30 September 2008

CONSOLIDATED INCOME STATEMENT
	Half year ended 30 September 2008	Half year ended 30 September 2007	Year ended 31 March 2008
	Unaudited	Unaudited	Audited
	£'000	£'000 (Restated)	£'000 (Restated)
Revenue	6,148	6,111	12,085
Cost of sales	3,390	3,469	6,371
	----------	----------	----------
Gross profit	2,758	2,642	5,714
Selling and distribution costs	1,618	1,525	3,028
Administrative expenses	786	769	1,504
	----------	----------	----------
Operating profit:
Net of contributions to pension deficit	226	236	672
Contribution to pension fund deficit	128	112	510
	----------	----------	----------
Operating profit	354	348	1,182
Finance income	33	45	210
	----------	----------	----------
Profit before taxation	387	393	1,392
Income tax expense	108	118	345
	----------	----------	----------
Profit for the period	279	275	1,047
	=====	=====	=====
Basic and diluted earnings per ordinary share	11.0p	10.8p	41.3p
	=====	=====	=====

Consolidated Statement of Recognised Income and Expense
	Half year ended 30 September 2008	Half year ended 30 September 2007	Year ended 31 March 2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Profit for the period	279	275	1,047
Actuarial loss on retirement benefits	-	-	(200)
Tax on actuarial loss	-	-	40
	----------	----------	----------
Total for the period	279	275	887
	----------	----------	----------
Equity shareholders funds brought forward	7,905	7,614	7,614
Total recognised income for the period	279	275	887
Equity dividends paid	(317)	(317)	(596)
Purchase of own shares	(4)	-	-
	----------	----------	----------
Equity shareholders funds carried forward	7,863	7,572	7,905
	=====	=====	=====

CONSOLIDATED BALANCE SHEET
	At 30 September 2008 Unaudited	At 30 September 2007 Unaudited	At 31 March 2008 Audited
	£'000	£'000	£'000
Non current assets
Property, plant and equipment	2,830	3,098	2,934
Deferred tax assets	32	201	101
	----------	----------	----------
Total non current assets	2,862	3,299	3,035
Current assets
Inventories	2,713	2,692	2,787
Trade and other receivables	2,178	2,332	2,166
Cash and cash equivalents	1,675	1,850	1,728
	----------	----------	----------
Total current assets	6,566	6,874	6,681
Total assets	9,428	10,173	9,716
Current liabilities
Trade and other payables	946	1,393	986
Current tax payable	252	245	213
	----------	----------	----------
Total current liabilities	1,198	1,638	1,199
	----------	----------	----------
Non current liabilities
Deferred tax liabilities	252	292	252
Retirement benefits obligations	115	671	360
	----------	----------	----------
Total non current liabilities	367	963	612
	----------	----------	----------
Total liabilities	1,565	2,601	1,811
	----------	----------	----------
Net assets	7,863	7,572	7,905
	=====	=====	=====
Capital and reserves
Called up share capital	254	254	254
Capital redemption reserve	109	109	109
Profit and loss account	7,500	7,209	7,542
	----------	----------	----------
Shareholders' funds	7,863	7,572	7,905

CONSOLIDATED CASH FLOW STATEMENT
	Half year Ended 30 September 2008	Half year Ended 30 September 2007	Year ended 31 March 2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Net cash flow generated from operations	361	348	762
Income taxes paid	-	-	(243)
	----------	----------	----------
Net cashflow from operating activities	361	348	519
	----------	----------	----------
Cashflow from investing activities
Purchases of property, plant and equipment	(174)	(147)	(226)
Sale of property, plant and equipment	38	20	33
Interest received	43	45	97
	----------	----------	----------
Net cash outflow from investing activities	(93)	(82)	(96)
	----------	----------	----------
Financing
Equity dividends paid	(317)	(317)	(596)
Purchase of own shares	(4)	-	-
	----------	----------	----------
Net cash outflow from financing	(321)	(317)	(596)
Decrease in cash and cash equivalents	(53)	(51)	(173)
Cash and cash equivalents at beginning of period	1,728	1,901	1,901
	----------	----------	----------
Cash and cash equivalents at end of period	1,675	1,850	1,728
	=====	=====	=====

1	BASIS OF PREPARATION OF INTERIM REPORT
	The information for the period ended 30 September 2008 is not audited and does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 March 2008 were given an unqualified audit report. 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 2007 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 2008 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ('IFRIC') at 30 September 2008. 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 2008. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements. The comparative figures in the Income Statement have been restated merely to reflect a more conventional presentation and have no affect on the overall profitability.
3	Dividends
	An interim dividend of 11.0 pence per share is proposed (30 September 2007: 11.0 pence per share) and will be payable on 27 March 2009 with a record date of 27 February 2009.
4	EARNINGS per share
	The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £279,000 (30 September 2007: £275,000) by the average number of ordinary shares in issue during the period being 2,534,833 (2007: 2,535,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

 

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