Final Results

Heath(Samuel) & Sons PLC 06 July 2006 SAMUEL HEATH AND SONS PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2006 CHAIRMAN'S STATEMENT This year for the first time we are obliged to present our accounts under the FRS17 requirements, and this has had the effect of artificially increasing declared profits. We have also restated the 2005 figures to make a more meaningful comparison. The results were extremely satisfactory. In the second half, we pulled back the shortfall to match our sales budget, which further improved the bottom line. This out-turn has only been achieved by a quite outstanding performance by our own people. Although deserving a large amount of the praise, I am certain that my fellow Executive Directors will agree that our strength in depth of personnel, going right through the Company, is the cause of the success. New products performed well, and we are making progress with some of them in parts of the world where we have not previously traded. We continue to make significant investment in new plant. It has to be said however that, as new doors open others close. Some of our products are being put under pressure from ever increasing imports. To counteract this, we are of course offering our own limited range of imported items. However, this all means that we are finding it extremely difficult to grow sales. As will be apparent from the accounts, the Group continues to have a strong balance sheet, and the Directors believe that a purchase of the Company's shares at the right price level could benefit the Company, and thereby its shareholders. Accordingly, the Directors are seeking approval for the purchase of up to 15% of the issued share capital, 381,423 shares, between Annual General Meetings. During the last financial year the Company did not buy any shares. The coming year could be significantly affected by the oil price rise but, much more importantly, the quite spectacular increase in the price of copper and to a lesser extent zinc. I always seem to be cautious, but these factors make me more so when talking about prospects for the next trading periods. As explained in my interim statement, we are continuing our policy of returning cash to shareholders by increasing our dividends while, as can be seen, paying off our pension scheme deficit at the same time. The Board is recommending a final dividend therefore of 12.5 pence per share (2005: 8.5 pence), making a total for the year of 23.5 pence per share (2005: 13.5 pence). Sam Heath Chairman 6 July 2006 PROFIT & LOSS ACCOUNT Before exceptional Exceptional item item Total 2006 2005 2005 2005 £000 £000 £000 £000 Turnover 11,677 11,375 - 11,375 Cost of sales 5,045 5,119 - 5,119 -------- -------- -------- -------- Gross profit 6,632 6,256 - 6,256 Distribution costs 386 361 - 361 Administrative expenses* 4,906 4,783 (680) 4,103 -------- -------- -------- -------- 5,292 5,144 (680) 4,464 Operating profit 1,340 1,112 (680) 1,792 Net interest receivable 98 5 - 5 -------- -------- -------- -------- Profit before taxation 1,438 1,117 (680) 1,797 Taxation 375 477 - 477 -------- -------- -------- -------- Profit on ordinary activities after taxation 1,063 640 (680) 1,320 Deduct: Dividends 2006 Interim of 11.0 pence per share (2005: 2005 280 128 - 128 interim of 5.0 pence) 2005 Final of 8.5 pence per share 216 216 - 216 (2005: 2004 final of 8.5 pence) -------- -------- -------- -------- 496 344 - 344 -------- -------- -------- -------- Profit for the year retained 567 296 (680) 976 -------- -------- -------- -------- Earnings per share - basic and diluted 41.7p 25.1p 26.7p 51.8p The 2005 comparatives have been restated. * 2005 administrative expenses include an exceptional pension credit of £680,000 as a result of the full adoption of FRS 17. BALANCE SHEETS Group Parent company 2006 2005 2006 2005 (restated) (restated) £000 £000 £000 £000 Fixed assets Tangible assets 3,211 2,757 3,211 2,757 Investments - - 399 399 -------- -------- -------- -------- 3,211 2,757 3,610 3,156 -------- -------- -------- -------- Current assets Stocks 2,191 1,921 2,191 1,921 Debtors 2,154 2,004 2,154 2,004 Cash at bank 2,691 2,562 2,691 2,562 -------- -------- -------- -------- 7,036 6,487 7,036 6,487 -------- -------- -------- -------- Creditors: amounts falling due within one year Corporation tax 190 165 190 165 Amount owed to Group undertakings - - 1,052 1,052 Other creditors 1,755 1,093 1,755 1,093 -------- -------- -------- -------- 1,945 1,258 2,997 2,310 -------- -------- -------- -------- Net current assets 5,091 5,229 4,039 4,177 -------- -------- -------- -------- Total assets less current liabilities 8,302 7,986 7,649 7,333 Provision for liabilities Deferred tax 400 340 400 340 Pension scheme deficit 806 1,591 806 1,591 -------- -------- -------- -------- 1,206 1,931 1,206 1,931 -------- -------- -------- -------- Net assets 7,096 6,055 6,443 5,402 -------- -------- -------- -------- Financed by Capital and reserves Called up share capital 255 255 255 255 Capital redemption reserve 108 108 108 108 Profit and loss account 6,733 5,692 6,080 5,039 -------- -------- -------- -------- Equity shareholders' funds 7,096 6,055 6,443 5,402 -------- -------- -------- -------- GROUP CASH FLOW STATEMENT for the year ended 31st March 2006 2006 2005 £000 £000 £000 £000 Net cash inflow from operating activities 1,234 1,141 Returns on investments and servicing of finance Interest received 121 106 -------- -------- Net cash inflow from returns on investments and servicing of finance 121 106 Taxation U.K. corporation tax paid (157) (191) Capital expenditure Purchase of fixed assets (618) (285) Sale of fixed assets 45 44 -------- -------- Net cash outflow for capital expenditure (573) (241) Management of liquid resources Increase in short-term deposits (21) (317) Equity dividends paid (496) (344) -------- -------- Increase in cash 108 154 -------- -------- The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £1,063,000 (2005:£1,320,000) by the average number of ordinary shares in issue during the year being 2,546,818 (2005: 2,546,818). The number of shares used in the calculation is the same for both basic and diluted earnings. The Annual General Meeting has been fixed for Friday 18th August 2006 at 12 noon. The Final Ordinary Share dividend of 12.5 pence will be declared payable on Friday 25th August 2006 to ordinary shareholders registered at the close of business on Friday 28th July 2006. This information is provided by RNS The company news service from the London Stock Exchange

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