Interim Results
Heath(Samuel) & Sons PLC
06 December 2005
SAMUEL HEATH & SONS PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
CHAIRMAN'S STATEMENT.
The profit for the first six months of our trading year to September 30th of
£489,000 was, in our opinion, satisfactory. This was despite the fact that we
did not quite hit our sales budget.
Trade is not easy, but we are fortunate to have many loyal customers throughout
the world.
In recent years, we have adopted a conservative distribution policy due to the
uncertainties of the marketplace and a strong programme of investment in
machinery and new products. Despite this, the Company has generated cash, and
we now think it is right to pass out cash to shareholders by way of increased
dividends. We are therefore proposing an interim dividend of 11.0 pence per
share as against 5.0 pence per share.
I have explained many times that, in this day and age, many factories like
ourselves do not have order books of more than three to five days. It is
therefore extremely difficult to predict the future. However, up to the time of
this announcement, it has been a case of more of the same, and there has not
been a fall-off in demand for the majority of our products. This could of
course change.
GROUP PROFIT & LOSS ACCOUNT
The results of the group for the half year ended 30th September 2005 which have
been neither audited nor reviewed by our external auditors were as follows:
Half-year Half -year Year
ended ended ended
30 September 30 September 31 March
2005 2004 (restated) 2005 (restated)
£'000 £'000 £'000
TURNOVER 5,674 5,752 11,375
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GROUP PROFIT before taxation 489 301 683
Deduct: Estimated corporation tax 140 80 146
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GROUP PROFIT after taxation 349 221 537
Deduct: Dividends 216 216 255
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133 5 282
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* EARNINGS per 10p Share - Basic & Diluted 13.7p 8.7p 21.1p
* EARNINGS per Share Before Exceptional Item 13.7p 8.7p 30.9p
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RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS.
Profit for Period 349 221 537
Dividends (216) (216) (255)
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133 5 282
Opening Shareholders' Funds 7,726 7,444 7,444
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Closing Shareholders' Funds 7,859 7,449 7,726
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* Earnings per share are based upon 2,546,818 ordinary shares, being the
average number of ordinary shares in issue during this half year
(2004: £221,000 related to 2,546,818 ordinary shares).
An interim dividend of 11.0 pence per share is proposed (2004: 5.0 pence per
share) and will be payable on 31st March 2006 with a record date of 3rd March
2006 and will be accounted for in the year to 31st March 2006.
GROUP BALANCE SHEET
Unaudited at At
30 September 31 March
2005 2005 (as restated)
£'000 £'000
Tangible Fixed Assets 2,873 2,757
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Current Assets 6,729 6,607
Creditors (1,363) (1,258)
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Net Current Assets 5,366 5,349
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Total Assets Less Current Liabilities 8,239 8,106
Provision for Liabilities and Charges (380) (380)
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7,859 7,726
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CAPITAL AND RESERVES
Called up Share Capital 255 255
Other Reserves 7,604 7,471
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7,859 7,726
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The results for the year ended 31st March 2005 are an abridged version of the
group's full accounts for that year which received an unqualified auditors'
report and have been filed with the Registrar of Companies. The results for the
year ended 31st March 2005 have been adjusted for the effects of FRS 21 as
proposed dividends are now accounted for in the period declared and paid.
A copy of this announcement will be sent to all ordinary Shareholders. Further
copies are available to members of the public from the Company's registered
office.
The interim financial statements have been prepared in accordance with
applicable accounting standards. The accounting policies applied are those set
out in the Annual Report and Accounts for the year ended 31st March 2005 except
that proposed dividends are now accounted for in accordance with FRS 21.
GROUP CASH FLOW STATEMENT
Half-year ended Year ended
30th September 2005 31st March 2005
£000s £000s £000s £000s
Operating profit 427 577
Depreciation charges and loss/surplus on disposals 223 438
Pension scheme charge 6 12
Decrease in stocks 59 46
Decrease in debtors 22 189
Decrease in creditors (27) (121)
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Net cash inflow from operating activities 710 1,141
Returns on investments and servicing of finance
Interest received 62 106
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Net cash inflow from returns on investments and
servicing of finance 62 106
Taxation
U.K. Corporation Tax paid (7) (191)
Capital expenditure
Purchase of tangible fixed assets (355) (285)
Sale of tangible fixed assets 15 44
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Net cash outflow for capital expenditure (340) (241)
Management of liquid resources
Increase in short-term deposits (289) (317)
Equity dividends paid (216) (344)
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Increase/(decrease) in cash (80) 154
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Analysis of net funds
At 31st At 31st At 30th
March Cash March Cash September
2004 Flow 2005 Flow 2005
£000's £000's £000's £000's £000's
Bank balances (207) 154 (53) (80) (133)
Short-term deposits 2,298 317 2,615 289 2,904
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Cash at bank per balance sheet 2,091 471 2,562 209 2,771
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On behalf of the Board
S B Heath
Chairman
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