Half Yearly Report

RNS Number : 2883W

Heath(Samuel) & Sons PLC

23 November 2010

 



SAMUEL HEATH & SONS plc

("the Company")

INTERIM REPORT

Half year ended 30 September 2010

CHAIRMAN'S STATEMENT

As I intimated in my statement at the time of the annual results, we traded ahead of our budget for the first six months up to the end of September.  Our sales were slightly up at £4,920,000 (2009: £4,753,000) and we achieved a profit before taxation of £222,000 (2009: £97,000 loss). The net assets remain strong with the business continuing to be free of bank debt. We have replaced a further £302,000 of our bank balances with other investments in order to protect the yield on these funds.

I have explained in this statement many times, that, in this day and age, an order book is a thing of the past.  We are reliant on each daily intake of orders, to generate our sales.  Within the six month period, August proved to be a very difficult and lean month.  Had it not been, the figures might have been much better.

I mention this to illustrate how difficult it is to forecast the results for the full year.  I am pleased to say business has picked up again since August, but we have every reason to be fearful of the early months of 2011.

We feel able to recommend a dividend of 5.5 pence per share (2009: 5.5 pence per share) payable on 25^th March 2011.

Sam Heath

Chairman

23^rd November 2010

For further information, please contact:

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

Unaudited Interim Financial Report

For the Half Year ended 30 September 2010

CONSOLIDATED INCOME STATEMENT
	Half year ended 30 September 2010	Half year ended 30 September 2009	Year ended 31 March 2010
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Revenue	4,920	4,753	9,529
Cost of sales	(2,512)	(2,695)	(4,968)
	----------	----------	----------
Gross profit	2,408	2,058	4,561
Selling and distribution costs	(1,507)	(1,421)	(2,784)
Administrative expenses	(675)	(707)	(1,372)
	----------	----------	----------
Operating profit/(loss)	226	(70)	405
Gain on sale of financial assets	-	19	19
Finance (costs)/income	(4)	(46)	(88)
	----------	----------	----------
Profit/(loss) before taxation	222	(97)	336
Taxation	(62)	-	(104)
	----------	----------	----------
Profit/(loss)for the period	160	(97)	232
	=====	=====	=====
Basic and diluted earnings/(loss) per ordinary share	6.3p	(3.8p)	9.2p
	=====	=====	=====

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Half year ended 30 September 2010	Half year ended 30 September 2009	Year ended 31 March 2010
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Profit/(loss) for the period	160	(97)	232
Actuarial loss on defined benefit scheme	-	-	(1,162)
Deferred taxation on actuarial loss	-	-	325
Gains on available for sale financial assets	32	96	128
Cash flow hedges	-	112	103
	----------	----------	----------
Total for the period	192	111	(374)
	----------	----------	----------
Equity shareholders funds brought forward	6,037	6,709	6,709
Total recognised income for the period	192	111	(374)
Equity dividends paid	(158)	(158)	(298)
	----------	----------	----------
Equity shareholders funds	6,071	6,662	6,037
	=====	=====	=====

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	At 30 September 2010	At 30 September 2009	At 31 March 2010
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Non current assets
Intangible assets	210	225	172
Property, plant and equipment	2,229	2,410	2,239
Deferred tax asset	577	284	577
	----------	----------	----------
	3,016	2,919	2,988
	----------	----------	----------
Current assets
Inventories	2,426	2,295	2,405
Trade and other receivables	1,563	1,699	1,653
Available for sale financial assets	1,531	866	1,198
Cash and cash equivalents	874	1,145	1,070
	----------	----------	----------
	6,394	6,005	6,326
	----------	----------	----------
Total assets	9,410	8,924	9,314
	----------	----------	----------
Current liabilities
Trade and other payables	(913)	(906)	(929)
Derivative financial instruments	-	(57)	-
Current tax payable	(155)	-	(112)
	----------	----------	----------
	(1,068)	(963)	(1,041)
	----------	----------	----------
Non current liabilities
Pension scheme deficit	(2,096)	(1,084)	(2,061)
Deferred tax liability	(175)	(215)	(175)
	----------	----------	----------
	(2,271)	(1,299)	(2,236)
	----------	----------	----------
Total liabilities	(3,339)	(2,262)	(3,277)
	----------	----------	----------
Net assets	6,071	6,662	6,037
	=====	=====	=====
Capital and reserves
Called up share capital	254	254	254
Capital redemption reserve	109	109	109
Retained earnings	5,708	6,299	5,674
	----------	----------	----------
Equity shareholders' funds	6,071	6,662	6,037
	=====	=====	=====

CONSOLIDATED CASH FLOW STATEMENT
	Half year Ended 30 September 2010	Half year Ended 30 September 2009	Year ended 31 March 2010
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Net cash flow generated from operations	468	688	1,128
Income taxes (paid)/received	(19)	88	88
	----------	----------	----------
Net cash flow from operating activities	449	776	1,216
	----------	----------	----------
Cash flow from investing activities
Purchases of property, plant and equipment	(175)	(29)	(97)
Proceeds from sale of property, plant and equipment	-	5	21
Purchase of intangible assets	(41)	(62)	(111)
Purchase of financial assets	(302)	(245)	(545)
Proceeds from sale of available for sale financial assets	-	265	264
Interest received	31	22	49
	----------	----------	----------
Net cash outflow from investing activities	(487)	(44)	(419)
	----------	----------	----------
Financing
Equity dividends paid	(158)	(158)	(298)
	----------	----------	----------
Net cash outflow from financing	(158)	(158)	(298)
	----------	----------	----------
Decrease/(increase) in cash and cash equivalents	(196)	574	499
Cash and cash equivalents at beginning of period	1,070	571	571
	----------	----------	----------
Cash and cash equivalents at end of period	874	1,145	1,070
	======	======	=====

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 2010 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 2010 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 2009 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 2010 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2010. 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 2010. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements.
3	DIVIDENDS
	An interim dividend of 5.5 pence per share is proposed (30 September 2009: 5.5 pence per share) and will be payable on 25 March 2011 with a record date of 25 February 2011.
4	EARNINGS PER SHARE
	The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £160,000 (30 September 2009: £97,000 loss) by the average number of ordinary shares in issue during the period being 2,534,322 (2009: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

 

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