Last checked at 4 Nov 2015 07:00
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2015
CHAIRMAN'S STATEMENT
It is pleasing to report a much better first half of the trading year with sales of £6,061,000 as against £5,398,000 and profit before taxation at £437,000 as against £96,000. It is even more pleasing to see the increase in operating profit to £542,000 (2014: £174,000). It should be pointed out however that this comparison is with a particularly difficult six months for the company last year.
Both the home market and export markets performed well during the period. As a result of this we were able to increase our labour force and authorise further purchases of machinery, which will come into operation in the second half of the year.
The order book has continued to be healthy but, as I have had to say so many times over the years, in a business such as our own things can change very rapidly. It is therefore extremely hazardous to forecast the results for the full year.
With our relatively strong balance sheet we have no hesitation in recommending the same again dividend of 5.5p (2014: 5.5p) to be paid on 21st March 2016.
Sam Heath
Chairman
4th November 2015
For further information, please contact:
Samuel Heath & Sons Plc | |
John Park, Company Secretary
| 0121 772 2303 |
Zeus Capital Limited | |
Dan Bate/Ross Andrews/Jamie Peel | 0161 831 1512 |
Unaudited Interim Financial Report
For the Half Year ended 30 September 2015
CONSOLIDATED INCOME STATEMENT | |||
Half year ended 30 September 2015 | Half year ended 30 September 2014 |
Year ended 31 March 2015 | |
Unaudited | Unaudited | Audited | |
Continuing operations | £'000
| £'000
| £'000
|
Revenue
| 6,061 | 5,398
| 11,198
|
Cost of sales | (3,083) | (2,873) | (5,873) |
Gross profit | 2,978 | 2,525 | 5,325
|
Distribution costs | (1,543) | (1,521) | (3,006) |
Administrative expenses | (893) | (830) | (1,721) |
Operating profit | 542 | 174 | 598
|
Finance costs | (105) | (78) | (155) |
Profit before taxation
| 437 | 96
| 443
|
Taxation | (87) | (19) | (49) |
Profit for the period | 350 | 77 | 394 |
Basic and diluted earnings per ordinary share | 13.8p | 3.0p | 15.5p |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
Half year ended 30 September 2015 | Half year ended 30 September 2014 |
Year ended 31 March 2015 | |
Unaudited | Unaudited | Audited | |
£'000
| £'000
| £'000
| |
Profit for the period | 350 | 77 | 394 |
Items that will be reclassified to profit or loss: | |||
Cash flow hedges | (48) | 39 | 58 |
(48) | 39 | 58 | |
Items that will not be reclassified to profit or loss: | |||
Actuarial gain/(loss) on defined benefit pension scheme | 1,408 | (833) | (2,888) |
Deferred tax on actuarial (gain)/loss | (255) | 167 | 578 |
1,153 | (666) | (2,310) | |
| |||
Total comprehensive income for the period | 1,455 | (550) | (1,858) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||
At 30 September 2015 | At 30 September 2014 | At 31 March 2015 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000
| |
Non current assets | |||
Intangible assets | 156 | 303 | 184 |
Property, plant and equipment | 1,471 | 1,620 | 1,475 |
Deferred tax asset | 1,058 | 941 | 1,313 |
2,685 | 2,864 | 2,972 | |
Current assets | |||
Inventories | 3,388 | 3,034 | 3,157 |
Trade and other receivables | 2,066 | 1,723 | 2,085 |
Derivative financial instruments | 7 | 37 | 56 |
Cash and cash equivalents | 1,887 | 1,785 | 1,648 |
7,348 | 6,579 | 6,946 | |
Total assets | 10,033 | 9,443 | 9,918 |
Current liabilities | |||
Trade and other payables | (1,133) | (949) | (1,126) |
Current tax payable | (159) | (135) | (72) |
(1,292) | (1,084) | (1,198) | |
Non current liabilities | |||
Retirement benefit scheme | (5,292) | (4,707) | (6,568) |
Deferred tax liability | (58) | (110) | (58) |
(5,350) | (4,817) | (6,626) | |
Total liabilities | (6,642) | (5,901) | (7,824) |
Net assets | 3,391 | 3,542 | 2,094 |
Capital and reserves | |||
Called up share capital | 254 | 254 | 254 |
Capital redemption reserve | 109 | 109 | 109 |
Retained earnings | 3,028 | 3,179 | 1,731 |
Equity shareholders' funds | 3,391 | 3,542 | 2,094 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||
Share capital | Capital redemption reserve | Retained earnings | Total equity | |
£000 | £000 | £000 | £000 | |
Balance at 31 March 2014 | 254 | 109 | 3,887 | 4,250 |
Equity dividends paid | - | - | (158) | (158) |
Profit for period | - | - | 77 | 77 |
Other comprehensive loss for the period | - | - | (627) | (627) |
Total comprehensive loss for the period | - | - | (550) | (550) |
Balance at 30 September 2014 | 254 | 109 | 3,179 | 3,542 |
Equity dividends paid | - | - | (140) | (140) |
Profit for period | - | - | 317 | 317 |
Other comprehensive loss for the period | - | - | (1,625) | (1,625) |
Total comprehensive loss for the year | - | - | (1,308) | (1,308) |
Balance at 31 March 2015 | 254 | 109 | 1,731 | 2,094 |
Equity dividends paid | - | - | (158) | (158) |
Profit for period | - | - | 350 | 350 |
Other comprehensive income for the period | - | - | 1,105 | 1,105 |
Total comprehensive income for period | - | - | 1,455 | 1,455 |
Balance at 30 September 2015 | 254 | 109 | 3,028 | 3,391 |
CONSOLIDATED CASH FLOW STATEMENT | |||
Half year Ended 30 September 2015 | Half year Ended 30 September 2014 |
Year ended 31 March 2015 | |
Unaudited | Unaudited | Audited | |
£'000
| £'000
| £'000
| |
Cash flow from operating activities | |||
Profit for the period before tax | 437 | 96 | 443 |
Adjustments for: | |||
Depreciation | 161 | 178 | 357 |
Amortisation | 28 | 31 | 61 |
Impairment of intangible asset | - | - | 135 |
Profit on disposal of property, plant and equipment | (3) | (8) | (8) |
Finance income | (5) | (5) | (11) |
Defined benefit pension scheme expenses | 133 | 105 | 210 |
Contributions to defined benefit pension scheme | - | (100) | (400) |
Operating cash flow before movements in working capital | 751 | 297 | 787 |
Changes in working capital: | |||
Increase in inventories | (231) | (135) | (258) |
(Increase)/decrease in trade and other receivables | (63) | 96 | (266) |
Increase/(decrease) in trade and other payables | 89 | (215) | (39) |
Cash generated from operations | 546 | 43 | 224 |
Taxation paid | - | - | (106) |
Net cash from operating activities | 546 | 43 | 118 |
Cash flow from investing activities | |||
Payments to acquire property, plant and equipment | (157) | (173) | (225) |
Proceeds from the sale of property, plant and equipment | 3 | 50 | 70 |
Payments to acquire intangible assets | - | (8) | (54) |
Finance income | 5 | 5 | 11 |
(149) | (126) | (198) | |
Cash flow from financing activities | |||
Dividends paid | (158) | (158) | (298) |
Net cash outflow from financing | (158) | (158) | (298) |
Net increase/(decrease) in cash and cash equivalents | 239 | (241) | (378) |
Cash and cash equivalents at beginning of period | 1,648 | 2,026 | 2,026 |
Cash and cash equivalents at end of period | 1,887 | 1,785 | 1,648 |
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 2015 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 2015 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 2014 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 2015 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2015.
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 2015. 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 2015 from the movements in discount rates and inflation during the six months. | |
3 | DIVIDENDS |
An interim dividend of 5.5 pence per share is proposed (30 September 2014: 5.5 pence per share) and will be payable on 21st March 2016 with a record date of 26th February 2016.
| |
4 | EARNINGS PER SHARE |
The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £350,000 (30 September 2014: £77,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2014: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings. |