Last checked at 4 Dec 2008 07:00
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2008
CHAIRMAN'S STATEMENT
I forecast in July "a significant further fall in profits for the coming year". During the first half turnover was 0.6% higher at £6,148,000, and operating profit was 1.7% higher at £354,000.
I have to say that this result was considerably better than anticipated and a great credit to all concerned.
However, since the end of this half-year, business has deteriorated sharply, which is not altogether surprising in such uncertain times. The second six months will almost certainly confirm my July view of a considerable fall in profits, with an outcome worse than our original budgets.
Despite all of this, the Company continues to have a strong balance sheet, and we are proposing to pay a same again interim dividend of 11 pence per share.
Mr. Anthony Buttanshaw has joined the Board of Directors. Aged 53, he is a chartered accountant and spent some fifteen years in the G.K.N. Group, reaching high positions both in the U.K. and U.S.A. It is felt that this experience will be of great benefit to the Company and I welcome him.
Sam Heath
Chairman
4th December 2008
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 (IFRS)
For the Half Year ended 30 September 2008
| CONSOLIDATED INCOME STATEMENT | |||
| Half year ended 30 September 2008 | Half year ended 30 September 2007 | Year ended 31 March 2008 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 (Restated) | £'000 (Restated) | |
| Revenue | 6,148 | 6,111 | 12,085 |
| Cost of sales | 3,390 | 3,469 | 6,371 |
| ---------- | ---------- | ---------- | |
| Gross profit | 2,758 | 2,642 | 5,714 |
| Selling and distribution costs | 1,618 | 1,525 | 3,028 |
| Administrative expenses | 786 | 769 | 1,504 |
| ---------- | ---------- | ---------- | |
| Operating profit: | |||
| Net of contributions to pension deficit | 226 | 236 | 672 |
| Contribution to pension fund deficit | 128 | 112 | 510 |
| ---------- | ---------- | ---------- | |
| Operating profit | 354 | 348 | 1,182 |
| Finance income | 33 | 45 | 210 |
| ---------- | ---------- | ---------- | |
| Profit before taxation | 387 | 393 | 1,392 |
| Income tax expense | 108 | 118 | 345 |
| ---------- | ---------- | ---------- | |
| Profit for the period | 279 | 275 | 1,047 |
| ===== | ===== | ===== | |
| Basic and diluted earnings per ordinary share | 11.0p | 10.8p | 41.3p |
| ===== | ===== | ===== | |
| Consolidated Statement of Recognised Income and Expense | |||
| Half year ended 30 September 2008 | Half year ended 30 September 2007 | Year ended 31 March 2008 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| Profit for the period | 279 | 275 | 1,047 |
| Actuarial loss on retirement benefits | - | - | (200) |
| Tax on actuarial loss | - | - | 40 |
| ---------- | ---------- | ---------- | |
| Total for the period | 279 | 275 | 887 |
| ---------- | ---------- | ---------- | |
| Equity shareholders funds brought forward | 7,905 | 7,614 | 7,614 |
| Total recognised income for the period | 279 | 275 | 887 |
| Equity dividends paid | (317) | (317) | (596) |
| Purchase of own shares | (4) | - | - |
| ---------- | ---------- | ---------- | |
| Equity shareholders funds carried forward | 7,863 | 7,572 | 7,905 |
| ===== | ===== | ===== | |
| CONSOLIDATED BALANCE SHEET | |||
| At 30 September 2008 Unaudited | At 30 September 2007 Unaudited | At 31 March 2008 Audited | |
| £'000 | £'000 | £'000 | |
| Non current assets | |||
| Property, plant and equipment | 2,830 | 3,098 | 2,934 |
| Deferred tax assets | 32 | 201 | 101 |
| ---------- | ---------- | ---------- | |
| Total non current assets | 2,862 | 3,299 | 3,035 |
| Current assets | |||
| Inventories | 2,713 | 2,692 | 2,787 |
| Trade and other receivables | 2,178 | 2,332 | 2,166 |
| Cash and cash equivalents | 1,675 | 1,850 | 1,728 |
| ---------- | ---------- | ---------- | |
| Total current assets | 6,566 | 6,874 | 6,681 |
| Total assets | 9,428 | 10,173 | 9,716 |
| Current liabilities | |||
| Trade and other payables | 946 | 1,393 | 986 |
| Current tax payable | 252 | 245 | 213 |
| ---------- | ---------- | ---------- | |
| Total current liabilities | 1,198 | 1,638 | 1,199 |
| ---------- | ---------- | ---------- | |
| Non current liabilities | |||
| Deferred tax liabilities | 252 | 292 | 252 |
| Retirement benefits obligations | 115 | 671 | 360 |
| ---------- | ---------- | ---------- | |
| Total non current liabilities | 367 | 963 | 612 |
| ---------- | ---------- | ---------- | |
| Total liabilities | 1,565 | 2,601 | 1,811 |
| ---------- | ---------- | ---------- | |
| Net assets | 7,863 | 7,572 | 7,905 |
| ===== | ===== | ===== | |
| Capital and reserves | |||
| Called up share capital | 254 | 254 | 254 |
| Capital redemption reserve | 109 | 109 | 109 |
| Profit and loss account | 7,500 | 7,209 | 7,542 |
| ---------- | ---------- | ---------- | |
| Shareholders' funds | 7,863 | 7,572 | 7,905 |
| CONSOLIDATED CASH FLOW STATEMENT | |||
| Half year Ended 30 September 2008 | Half year Ended 30 September 2007 | Year ended 31 March 2008 | |
| Unaudited | Unaudited | Audited | |
| £'000 | £'000 | £'000 | |
| Net cash flow generated from operations | 361 | 348 | 762 |
| Income taxes paid | - | - | (243) |
| ---------- | ---------- | ---------- | |
| Net cashflow from operating activities | 361 | 348 | 519 |
| ---------- | ---------- | ---------- | |
| Cashflow from investing activities | |||
| Purchases of property, plant and equipment | (174) | (147) | (226) |
| Sale of property, plant and equipment | 38 | 20 | 33 |
| Interest received | 43 | 45 | 97 |
| ---------- | ---------- | ---------- | |
| Net cash outflow from investing activities | (93) | (82) | (96) |
| ---------- | ---------- | ---------- | |
| Financing | |||
| Equity dividends paid | (317) | (317) | (596) |
| Purchase of own shares | (4) | - | - |
| ---------- | ---------- | ---------- | |
| Net cash outflow from financing | (321) | (317) | (596) |
| Decrease in cash and cash equivalents | (53) | (51) | (173) |
| Cash and cash equivalents at beginning of period | 1,728 | 1,901 | 1,901 |
| ---------- | ---------- | ---------- | |
| Cash and cash equivalents at end of period | 1,675 | 1,850 | 1,728 |
| ===== | ===== | ===== | |
| 1 | BASIS OF PREPARATION OF INTERIM REPORT |
| The information for the period ended 30 September 2008 is not audited and does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 March 2008 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 2007 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 2008 as well as all interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") at 30 September 2008. 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 2008. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements. The comparative figures in the Income Statement have been restated merely to reflect a more conventional presentation and have no affect on the overall profitability. | |
| 3 | Dividends |
| An interim dividend of 11.0 pence per share is proposed (30 September 2007: 11.0 pence per share) and will be payable on 27 March 2009 with a record date of 27 February 2009. | |
| 4 | EARNINGS per share |
| The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £279,000 (30 September 2007: £275,000) by the average number of ordinary shares in issue during the period being 2,534,833 (2007: 2,535,322). The number of shares used in the calculation is the same for both basic and diluted earnings. |