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Heath(Samuel) & Sons PLC  -  HSM   

Half-year Report

Released 07:00 08-Nov-2018

RNS Number : 6917G
Heath(Samuel) & Sons PLC
08 November 2018
 

SAMUEL HEATH & SONS plc

("the Company")

 

INTERIM REPORT

 

Half year ended 30 September 2018

 

CHAIRMAN'S STATEMENT

 

 

As I said in my statement in July, we have budgeted this year for lower figures than last year. In the event this has proved correct. Sales revenue was £6.722m (2017: £7.377m) and profit before tax £402k (2017: £687k). The business is trading at a level slightly better than budgeted and has been relatively evenly split across our major markets, although it is fair to say that the UK trade has been somewhat more subdued than elsewhere given the current situation.

 

As has been the case for some time now, we are still experiencing a level of uncertainty which is expected to persist at least until the final decision is taken as to what will happen with our trade with the EU after 29 March 2019. Although this falls at the end of our annual financial reporting period, we have already had to take decisions which will affect our statement of financial position at that time, as well as possibly our income statement. The vast majority of our purchases of raw materials, either directly or indirectly, are from Europe. We have thought it wise to buy forward with a number of these in good time, in case of a Hard Brexit, to ensure adequacy of supplies.

The effects of a Hard Brexit on actual trade are not known, but paying higher prices for our raw materials does not normally help. With all this going or not going on, it is even more difficult to forecast the results for the full year, but at the moment I am pleased to report that orders are coming in fairly well.

 

We are proposing an interim dividend of 5.5p per share (2017: 5.5p), which will be paid on 22 March 2019 to ordinary shareholders registered at the close of business on 22 February 2019.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

Sam Heath

Chairman

8 November 2018

 

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 2018

 

 

CONSOLIDATED INCOME STATEMENT







Half year ended 30 September


Half year ended 30 September


Year

ended 31 March


2018


2017


2018


Unaudited


Unaudited


Audited


£'000


£'000


£'000







Revenue

6,722


          7,377


         14,354







Cost of sales

(3,445)


  (3,707)


(7,232)







Gross profit

3,277


          3,670


            7,122







Selling and distribution costs

(1,855)


(1,868)


(3,767)

Administrative expenses

(937)


(1,025)


(2,020)







Operating profit

485


           777


            1,335







Net finance costs

             (83)


 (90)


(158)







Profit before taxation

402


              687


             1,177

 

Taxation

             

(90)


             

(131)


 

(197)







Profit for the period

312


              556


             980













Basic and diluted earnings per ordinary share

13.0p


21.9p


38.7p


 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME








Half year ended 30 September


Half year ended 30 September


Year ended 31 March

 


2018


2017


2018


Unaudited


Unaudited


Audited


£'000


£'000


£'000







Profit for the period

             312


              556


             980













Items that will be reclassified to profit or loss:






Cash flow hedges

               -


              25


               -



















Items that will not be reclassified to profit or loss:






Actuarial gain on defined benefit pension scheme

29


 (34)


            (234)

Deferred tax on actuarial loss

Deferred taxation on revaluation of assets

           (5)

-


6

-


            40

44








        24


(3)


          (150)







Total comprehensive income for the period

        336


553


          830










            


             

 

 

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION


At 30 September


 At 30 September


    At 31   March

 


2018


2017


2018

 

 

Unaudited


Unaudited


Audited


£'000


£'000


£'000

Non-current assets






Intangible assets

51


50


              85

Property, plant and equipment

3,295


3,398


           3,337

Deferred tax assets

818


791


           853








4,164


4,239


           4,276







Current assets






Inventories

3,956


3,901


           3,930

Trade and other receivables

1,942


2,342


           2,287

Derivative financial instruments

         -        


                 25


                   -

Cash and cash equivalents

           2,814


           2,170


           2,366


           8,712


           8,438


           8,583







Total assets

        12,876


          12,677


          12,859







Current liabilities






Trade and other payables

(1,427)


(1,327)


(1,474)

Current tax payable

(231)


(289)


(175)


(1,658)


(1,616)


(1,649)







Non-current liabilities






Retirement benefit scheme

(6,318)


(6,463)


(6,472)













Total liabilities

(7,976)


(8,079)


(8,121)







Net assets

            4,900


          4,598


          4,738







Equity






Called up share capital

            254


             254


             254

Capital redemption reserve

            109


             109


             109

Revaluation reserve

Retained earnings

1,324

3,213         


1,346        

2,889


1,357         

3,018







Equity shareholders' funds

           4,900


          4,598


          4,738

























 

 

 

 

 

 

 

 

 

 

 

 

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 2017

254

109

1,389

    2,609

     4,361







Equity dividends paid

-

-

-

        (316)

 (316)







Profit for the period

-

-

-

           556

          556

Other comprehensive income for the period

Reclassification of amortisation on revaluation

 

-

 

-

-

 

-

-

 

(43)

             (3)

 

43

             (3)

 

-

Total comprehensive income for the period

-

-

(43)

596

553







Balance at 30 September 2017

254

109

1,346

      2,889

     4,598







Equity dividends paid

-

-

-

(137)

(137)







Profit for the period

-

-

-

            424

            424

Other comprehensive income for the period

Reclassification of amortisation on revaluation

 

-

 

-

-

 

-

44

 

(33)

(191)

 

33

(147)

 

-

Total comprehensive income for the period

-

-

11

266

277







Balance at 31 March 2018

254

109

1,357

         3,018

     4,738







Equity dividends paid

-

-

-

         (174)

(174)







Profit for the period

-

-

-

            312

        312

Other comprehensive income for the period

Reclassification of amortisation on revaluation

 

-

 

-

-

 

-

-

 

(33)

         24

 

33

24

-    

Total comprehensive income for the period

-

-

(33)

          369

336













Balance at 30 September 2018

254

109

1,324

3,213

      4,900








CONSOLIDATED CASH FLOW STATEMENT                         

 


Half year ended 30 September


Half year ended 30 September


Year ended 31 March


2018


2017


2018


Unaudited


Unaudited


Audited


£'000


£'000


£'000

Cash flow from operating activities












Profit for the period before taxation

402


             686


           1,177







Adjustments for:






Depreciation

              172


             186


             365

Amortisation

                35


               28


               58

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

(16)


               10


              (10)

Finance income

(25)


                (4)


             (30)

Defined benefit pension scheme expenses

              132


             126


             237

Contributions to defined benefit pension scheme

(258)


             (200)


            (500)







Operating cash flow before movements in working capital

              442


             832      


          1,297







Changes in working capital:






Increase in inventories

(26)


 (107)


(141)

Decrease/(increase) in trade and other receivables

             315


            (203)


            (118)

(Decrease)/increase in trade and other payables

               (17)


             (40)


             74







Cash generated from operations

               714


            482


           1,112







Taxation paid

-


                -


(157)







Net cash from operating activities

714


            482


955            













Cash flow from investing activities






Payments to acquire property, plant and equipment

(133)


            (80)


            (222)

Proceeds from the sale of property, plant and equipment

                 16


               -


             41

Payments to acquire intangible assets

                 -


                -


              (64)

Finance income

                 25


               5


          30








(92)


           (75)


           (215)



















Cash flow from financing activities






Dividends paid

(174)


(316)


(453)







 

 

 






Net increase in cash and cash equivalents

448


91


           287

 

Cash and cash equivalents at beginning of period

2,366


          2,079


         2,079







Cash and cash equivalents at end of period

2,814


          2,170


          2,366



















 

 

 

 

 

 

 

 

NOTES TO THE INTERIM FINANCIAL REPORT

 

 

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 2018 is not audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The statutory accounts for the year ended 31 March 2018 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 2017 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 and interpretations issued by the International Financial Reporting Interpretations Committee as adopted by the European Union.

 

The group has not availed itself of early adoption options in such standards and interpretations. There has been no impact on the adoption of IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments" in the period.

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2018. 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 2018 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 22 March 2019 (paid 23 March 2018: 5.5p).

4.            EARNINGS PER SHARE 

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £330,000 (30 September 2017: £556,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2017: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

 

 


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Half-year Report - RNS