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Heath(Samuel) & Sons PLC   -  HSM   

Half-year Report

Released 07:00 15-Nov-2019

RNS Number : 5040T
Heath(Samuel) & Sons PLC
15 November 2019
 

SAMUEL HEATH & SONS plc

 

("the Company")

 

INTERIM REPORT

 

Half year ended 30 September 2019

 

CHAIRMAN'S STATEMENT

 

 

Despite all the political and economic uncertainties in the UK, our six month figures to 30th September showed profit before tax down only a little on the prior period, but ahead of our internal budget, at £363k (2018: £402k) on sales of £6.920m (2018: £6.722m).

 

Although the UK market is showing up some classic signs of a downturn, we received enough orders, particularly for our newer products, backed up by our export sales, to produce the current result.

 

I cannot believe that yet again that I have to bring up Brexit as the reason for continued uncertainties, which could affect the next six months quite dramatically. To this must now be added the Election here in UK, as well as others coming up elsewhere in the world. It is very difficult to forecast how all these factors will affect our second half trading.

 

We are proposing an interim dividend of 5.5p per share (2018: 5.5p), which will be paid on 20 March 2020 to ordinary shareholders registered at the close of business on 21 February 2020.

 

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

 

Sam Heath

Chairman

15 November 2019

 

 

 

For further information, please contact:

 

Samuel Heath & Sons Plc

 

Simon Latham, Company Secretary

0121 766 4200

Cairn Financial Advisers LLP

 

James Caithie / Jo Turner

020 7213 0880

Unaudited Interim Financial Report

For the Half Year ended 30 September 2019

 

CONSOLIDATED INCOME STATEMENT

 

 

Half year

Half year

Year

 

 

 

ended 30

ended 30

ended 31

 

 

 

September

September

March

 

 

 

2019

2018

2019

 

 

 

Unaudited

Unaudited

Audited

 

 

 

£'000

£'000

£'000

 

 

 

 

 

Revenue

6,920

6,722

13,893

 

Cost of sales

(3,598)

(3,445)

(7,125)

 

Gross profit

3,322

3,277

6,768

 

Selling and distribution costs

(1,776)

(1,855)

(3,474)

 

Administrative expenses

(1,067)

(937)

(1,915)

 

Operating profit

479

485

1,379

 

Net finance income

9

5

13

 

Net finance cost

(125)

(88)

(211)

 

 

 

 

 

 

 

Profit before taxation and exceptional items

363

402

1,181

 

Exceptional item - GMP equalisation

-

-

(299)

 

Profit before taxation

363

402

882

 

Taxation

(69)

(90)

(144)

 

Profit for the period

294

312

738

 

Basic and diluted earnings per ordinary share

11.6p

12.3p

29.1p

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

Half year

Half year

Year ended

 

 

 

ended 30

ended 30

31 March

 

 

 

September

September

 

 

 

 

2019

2018

2019

 

 

 

Unaudited

Unaudited

Audited

 

 

 

£'000

£'000

£'000

 

Profit for the period

294

312

738

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

Actuarial gain/(loss) on defined benefit pension scheme

204

29

(933)

Deferred tax on actuarial loss

(34)

(5)

159

 

170

24

(774)

Total comprehensive income for the period

464

336

(36)

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

At 30

At 30

At 31

 

 

September

September

March

 

 

2019

2018

2019

 

 

Unaudited

Unaudited

Audited

 

 

£'000

£'000

£'000

 

Non-current assets

 

 

 

 

Intangible assets

74

51

82

 

Property, plant and equipment

3,519

3,295

3,210

 

Deferred tax assets

972

818

1,048

 

 

4,565

4,164

4,340

 

Current assets

 

 

 

Inventories

3,883

3,956

3,989

 

Trade and other receivables

2,216

1,942

2,286

 

Cash and cash equivalents

3,100

2,814

3,153

 

 

9,199

8,712

9,428

 

Total assets

13,764

12,876

13,768

 

 

Current liabilities

 

 

 

 

Trade and other payables

(1,665)

(1,427)

(1,789)

 

Current tax payable

(239)

(231)

(171)

 

Finance lease liability for right of use assets

(57)

-

-

 

 

(1,961)

(1,658)

(1,960)

 

Non-current liabilities

 

 

 

 

Retirement benefit scheme

(7,050)

(6,318)

(7,420)

 

Finance lease liability for right of use assets

(75)

-

-

 

 

(7,125)

(6,318)

(7,420)

 

Total liabilities

(9,086)

(7,976)

(9,380)

 

Net assets

4,678

4,900

4,388

 

Equity

 

 

 

 

Called up share capital

254

254

254

 

Capital redemption reserve

109

109

109

 

Revaluation reserve

1,224

1,324

1,277

 

Retained earnings

3,091

3,213

2,748

 

Equity shareholders' funds

4,678

4,900

4,388

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

Share

Capital

Revaluation

Retained

Total equity

 

 

capital

redemption

reserve

earnings

 

 

 

 

reserve

 

 

 

 

 

£000

£000

£000

£000

£000

Balance at 31 March 2018

254

109

1,357

3,018

4,738

Total transactions with owners

 

 

 

 

 

Equity dividends paid

-

-

-

(174)

(174)

Profit for the period

-

-

-

312

312

Other comprehensive income for the

-

-

-

24

24

period

 

 

 

 

 

Reclassification of amortisation on

-

-

(33)

33

-

revaluation

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the

-

-

(33)

369

336

period

 

 

 

 

 

Balance at 30 September 2019

254

109

1,324

3,213

4,900

Total transactions with owners

 

 

 

 

 

Equity dividends paid

-

-

-

(140)

(140)

Profit for the period

-

-

-

426

426

Other comprehensive income for the

-

-

-

(798)

(798)

period

 

 

 

 

 

Reclassification of amortisation on

-

-

(47)

47

-

revaluation

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the

-

-

(47)

(325)

(372)

period

 

 

 

 

 

Balance at 31 March 2019

254

109

1,277

2,748

4,388

Total transactions with owners

-

-

-

(174)

(174)

Equity dividends paid

 

 

 

 

 

Profit for the period

-

-

-

294

294

Other comprehensive income for the

-

-

-

170

170

period

 

 

 

 

 

Reclassification of amortisation on

-

-

(53)

53

-

revaluation

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the

-

-

(53)

517

464

period

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 September 2019

254

109

1,224

3,091

4,678

 

 

 

 

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

 

Half year

Half year

Year

 

ended 30

ended 30

ended 31

 

September

September

March

 

2019

2018

2019

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

Cash flow from operating activities

 

 

 

Profit for the period before taxation

363

402

882

Adjustments for:

 

 

 

Depreciation

192

172

348

Amortisation

8

35

27

Loss/(profit) on disposal of property, plant and equipment

3

(16)

(16)

Net finance cost/(income)

7

(25)

17

Defined benefit pension scheme expenses

137

132

530

Contributions to defined benefit pension scheme

(266)

(258)

(516)

Operating cash flow before movements in working capital

444

442

1,272

Changes in working capital:

 

 

 

Decrease/(increase) in inventories

106

(26)

(59)

Decrease in trade and other receivables

46

315

6

Increase/(decrease) in trade and other payables

23

(17)

310

Cash generated from operations

619

714

1,529

Taxation paid

-

-

(184)

Net cash from operating activities

619

714

1,345

Cash flow from investing activities

 

 

 

Payments to acquire property, plant and equipment

(510)

(133)

(239)

Proceeds from the sale of property, plant and equipment

19

16

35

Payments to acquire intangible assets

-

-

(23)

Net finance income

(5)

25

(17)

 

(496)

(92)

(244)

Cash flow from financing activities

 

 

 

Dividends paid

(174)

(174)

(314)

Finance lease interest

(2)

-

-

 

(176)

(174)

(314)

Net increase in cash and cash equivalents

(53)

448

787

Cash and cash equivalents at beginning of period

3,153

2,366

2,366

Cash and cash equivalents at end of period

3,100

2,814

3,153

 

 

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 2019 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 2019 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 2018 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 interpretation. IFRS 16 Leases has been adopted in the period, the effect at the Half Year is to recognise the right of use asset of £133k and the finance lease liability of £132k.

 

IFRS 16 brings all operating leases onto the statement of financial position. The Group has used the modified retrospective transition approach on adoption of IFRS 16 Leases, where the initial right of use asset values recognised on property leases of £159k are equal to the present value of the future lease payments as at the date of transition (1 April 2019).

 

The net impact on the consolidated income statement is a decrease in profit before taxation of £1k. Finance costs have increased by £2k with the pre-IFRS 16 rental charge of £29k replaced by a depreciation charge £28k.

 

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2019, except for changes due to the adoption of IFRS16. 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 2019 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 20 March 2020 (paid 22 March 2019: 5.5p).

 

4.            EARNINGS PER SHARE

 

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £294,000 (30 September 2018: £312,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2018: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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Half-year Report - RNS