Last checked at 24 Nov 2009 07:00
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2009
CHAIRMAN'S STATEMENT
The first six months trading until 30th September 2009 was very much as I forecast at the time of the annual results. In fact sales were slightly down on our budget at £4,753,000 (2008: £6,148,000) but the loss before taxation at £97,000 (2008: £387,000 profit) was in line with our expectations.
The figures speak for themselves: trading was extremely difficult. Towards the end of the six month period, we thought that we had detected some sort of recovery, but this has disappeared over the last weeks. We are therefore approaching the future with extreme caution and find it almost impossible to be at all certain of the full year's outcome.
Mainly because of the reduction of our stocks, to match the decline in turnover, the net cash position has improved and our balance sheet remains healthy. We therefore feel able to recommend a dividend of 5.5 pence per share (2008: 11.0 pence per share) payable on 26th March 2010.
Sam Heath
Chairman
24th November 2009
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
For the Half Year ended 30 September 2009
| CONSOLIDATED INCOME STATEMENT | |||
| Half year ended 30 September 2009 | Half year ended 30 September 2008 | Year ended 31 March 2009 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| Revenue | 4,753 | 6,148 | 10,897 |
| Cost of sales | (2,695) | (3,390) | (6,114) |
| ---------- | ---------- | ---------- | |
| Gross profit | 2,058 | 2,758 | 4,783 |
| Selling and distribution costs | (1,421) | (1,618) | (3,036) |
| Administrative expenses | (707) | (786) | (1,504) |
| ---------- | ---------- | ---------- | |
| Operating (loss)/profit | (70) | 354 | 243 |
| Gain on sale of financial assets | 19 | - | - |
| Finance (costs)/income | (46) | 33 | 49 |
| ---------- | ---------- | ---------- | |
| (Loss)/profit before taxation | (97) | 387 | 292 |
| Taxation | - | (108) | 23 |
| ---------- | ---------- | ---------- | |
| (Loss)/profit for the period | (97) | 279 | 315 |
| ===== | ===== | ===== | |
| Basic and diluted (loss)/earnings per ordinary share | (3.8p) | 11.0p | 12.5p |
| ===== | ===== | ===== | |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
| Half year ended 30 September 2009 | Half year ended 30 September 2008 | Year ended 31 March 2009 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| (Loss)/profit for the period | (97) | 279 | 315 |
| Actuarial loss on defined benefit scheme | - | - | (1,153) |
| Deferred taxation on actuarial loss | - | - | 322 |
| Gains on available for sale financial assets | 96 | - | 23 |
| Cash flow hedges | 112 | - | (103) |
| ---------- | ---------- | ---------- | |
| Total for the period | 111 | 279 | (596) |
| ---------- | ---------- | ---------- | |
| Equity shareholders funds brought forward | 6,709 | 7,905 | 7,905 |
| Total recognised income for the period | 111 | 279 | (596) |
| Equity dividends paid | (158) | (317) | (596) |
| Purchase of own shares | - | (4) | (4) |
| ---------- | ---------- | ---------- | |
| Equity shareholders funds | 6,662 | 7,863 | 6,709 |
| ===== | ===== | ===== | |
| CONSOLIDATED BALANCE SHEET | |||
| At 30 September 2009 | At 30 September 2008 | At 31 March 2009 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| Non current assets | |||
| Intangible assets | 225 | - | 164 |
| Property, plant and equipment | 2,410 | 2,830 | 2,617 |
| Deferred tax asset | 284 | 32 | 284 |
| ---------- | ---------- | ---------- | |
| 2,919 | 2,862 | 3,065 | |
| ---------- | ---------- | ---------- | |
| Current assets | |||
| Inventories | 2,295 | 2,713 | 2,654 |
| Trade and other receivables | 1,699 | 2,178 | 1,753 |
| Current tax receivable | - | - | 88 |
| Available for sale financial assets | 866 | - | 770 |
| Cash and cash equivalents | 1,145 | 1,675 | 571 |
| ---------- | ---------- | ---------- | |
| 6,005 | 6,566 | 5,836 | |
| ---------- | ---------- | ---------- | |
| Total assets | 8,924 | 9,428 | 8,901 |
| ---------- | ---------- | ---------- | |
| Current liabilities | |||
| Trade and other payables | (906) | (946) | (859) |
| Derivative financial instruments | (57) | - | (103) |
| Current tax payable | - | (252) | - |
| ---------- | ---------- | ---------- | |
| (963) | (1,198) | (962) | |
| ---------- | ---------- | ---------- | |
| Non current liabilities | |||
| Pension scheme deficit | (1,084) | (115) | (1,015) |
| Deferred tax liability | (215) | (252) | (215) |
| ---------- | ---------- | ---------- | |
| (1,299) | (367) | (1,230) | |
| ---------- | ---------- | ---------- | |
| Total liabilities | (2,262) | (1,565) | (2,192) |
| ---------- | ---------- | ---------- | |
| Net assets | 6,662 | 7,863 | 6,709 |
| ===== | ===== | ===== | |
| Capital and reserves | |||
| Called up share capital | 254 | 254 | 254 |
| Capital redemption reserve | 109 | 109 | 109 |
| Retained earnings | 6,299 | 7,500 | 6,346 |
| ---------- | ---------- | ---------- | |
| Equity shareholders' funds | 6,662 | 7,863 | 6,709 |
| ===== | ===== | ===== | |
| CONSOLIDATED CASH FLOW STATEMENT | |||
| Half year Ended 30 September 2009 | Half year Ended 30 September 2008 | Year ended 31 March 2009 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| Net cash flow generated from operations | 688 | 361 | 634 |
| Income taxes received/(paid) | 88 | - | (176) |
| ---------- | ---------- | ---------- | |
| Net cash flow from operating activities | 776 | 361 | 458 |
| ---------- | ---------- | ---------- | |
| Cash flow from investing activities | |||
| Purchases of property, plant and equipment | (29) | (174) | (203) |
| Sale of property, plant and equipment | 5 | 38 | 43 |
| Purchase of intangible assets | (62) | - | (164) |
| Purchase of financial assets | (245) | - | (747) |
| Sale of financial assets | 265 | - | - |
| Interest received | 22 | 43 | 56 |
| ---------- | ---------- | ---------- | |
| Net cash outflow from investing activities | (44) | (93) | (1,015) |
| ---------- | ---------- | ---------- | |
| Financing | |||
| Purchase of own shares | - | (4) | (4) |
| Equity dividends paid | (158) | (317) | (596) |
| ---------- | ---------- | ---------- | |
| Net cash outflow from financing | (158) | (321) | (600) |
| ---------- | ---------- | ---------- | |
| Increase/(decrease) in cash and cash equivalents | 574 | (53) | (1,157) |
| Cash and cash equivalents at beginning of period | 571 | 1,728 | 1,728 |
| ---------- | ---------- | ---------- | |
| Cash and cash equivalents at end of period | 1,145 | 1,675 | 571 |
| ====== | ===== | ===== | |
| 1 | BASIS OF PREPARATION OF INTERIM REPORT |
| The information for the period ended 30 September 2009 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 2009 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 2008 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 2009 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2009. 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 2009. 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 2008: 11.0 pence per share) and will be payable on 26 March 2010 with a record date of 26 February 2010. | |
| 4 | EARNINGS PER SHARE |
| The basic and diluted earnings per share are calculated by dividing the relevant loss after taxation of £97,000 (30 September 2008: £279,000 profit) by the average number of ordinary shares in issue during the period being 2,534,322 (2008: 2,534,833). The number of shares used in the calculation is the same for both basic and diluted earnings. |