Half-year Report

RNS Number : 2636P
Heath(Samuel) & Sons PLC
16 November 2016
 

SAMUEL HEATH & SONS plc

("the Company")

 

INTERIM REPORT

 

Half year ended 30 September 2016

 

CHAIRMAN'S STATEMENT

 

 

The results for the half year to September 30th were obviously satisfactory. Sales revenue was up to £6,635,000 (2015: £6,061,000). Operating profit was also up at £832,000 (2015: £542,000). Profit before tax was £728,000 (2015: £437,000).  This general improvement took place in most markets in which we operate and was fairly evenly spread over most of our product groups.

 

It is with great sadness that I report that in August our Financial Director, Paul Turner, died after a short illness at the age of 49. He had made a large contribution to the Company during his nine years with us.

 

I have said before that the job for businesses is to work in the circumstances they are given and not to expect to change them. We equally hope to be interfered with as little as possible as a trade off to this.

 

The immediate future and long term outlook is going to be affected by the current uncertain situation.  Seventy-five per cent of our purchases are being impacted by the devaluation of the Pound against the Dollar and the Euro.  Our main purchase of brass is directly hit by both these currencies. Our sterling prices are therefore going to have to rise.  It is always difficult to foresee the acceptance of these new prices, particularly since, in the current circumstances, increases of competitors are going to be phased in haphazardly.

 

Perhaps also, longer term, the health of our business will be very dependent on the prosperity being enjoyed in London and the South East.  It is for these reasons that I am extremely cautious in forecasting the results for the second six months of the year. Experience tells us that there can be rapid changes in spending patterns.

 

The Bank of England decided to lower interest rates after the Brexit vote.  This has had an immediate impact on our pension scheme deficit.  This now stands at £10,805,000, as against £5,292,000 at the end of September 2015.  Since we are allowed only to pay dividends when total assets exceed liabilities, we are prevented from paying a dividend at this time.  If the position changes by the year end, we hope to make up for this lack of payment at that time.  Meanwhile I find it extremely ironic that this situation has arisen, when the Company is announcing its record operating profit before tax at the interim stage in the forty-five years, in which I have been Chairman.  I can only add that increased spending in order to keep the economy moving is unlikely to be carried out by Samuel Heath and Sons shareholders.

 

 

 

Sam Heath

Chairman

16th November 2016

 

For further information , please contact:

Samuel Heath & Sons Plc

John Park, Company Secretary                                          0121 772 2303

 

Cairn Financial Advisors LLP

James Caithie                                                                        020 7213 0882                                       


Unaudited Interim Financial Report

For the Half Year ended 30 September 2016

 

 

CONSOLIDATED INCOME STATEMENT






Half year ended 30 September

Half year ended 30 September


Year ended 31 March

 

2016

2015


2016

Unaudited

Unaudited


Audited

£'000

£'000


£'000

Continuing operations





Revenue

6,635


          6,061


         12,584






(3,141)


  (3,083)


(6,528)






Gross profit

3,494


          2,978


            6,056






(1,664)


(1,543)


(3,083)

(998)


(893)


(1,817)






Operating profit

832


           542


            1,156






                             (104)



 (105)



(209)






Profit before taxation

728


              437


              947

               
              (149)

                           (87)


(178)







Profit for the period

579


              350


              769











Basic and diluted earnings per ordinary share

22.8p


13.8p


30.3p






Half year ended 30 September


Half year ended 30 September


Year ended 31 March

 

2016


2015


2016

Unaudited


Unaudited


Audited

£'000


£'000


£'000






Profit for the period

             579


              350


             769











Items that will be reclassified to profit or loss:






                  15


              (48)


               (71)






             15


              (48)


              (71)






Items that will not be reclassified to profit or loss:






       (4,762)


 1,408


            411

                 738


             (255)


            (205)






        (4,024)


1,153


          206






Total comprehensive income for the period

        (3,430)


1,455


          904







         


             

 

 

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION


At 30 September


 At 30 September


    At 31   March

 

2016


2015


2016

Unaudited


Unaudited


Audited

£'000


£'000


£'000

Non-current assets






99


156


              128

1,848


1,471


           1,581

1,836


1,058


           1,098






3,783


2,685


           2,807






Current assets






3,537


3,388


           3,321

1,978


2,066


           2,153

         -        


                  7


                   -

           2,268


           1,887


           2,078

           7,783


           7,348


           7,552






Total assets

        11,566


          10,033


          10,359






Current liabilities






(1,290)


(1,133)


(1,317)

-


-


(15)

(296)


(159)


(147)

(1,586)


(1,292)


(1,479)






Non-current liabilities






(10,805)


(5,292)


(6,101)

(79)


(58)


(79)

(10,884)


(5,350)


(6,180)






Total liabilities

(12,470)


(6,642)


(7,659)







Net assets

            (904)


          3,391


          2,700







Equity






            254


             254


             254

            109


             109


             109

           (1,267) 


          3,028


          2,337






           (904)


          3,391


          2,700












 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 


Share capital

Capital redemption reserve

Retained earnings

Total equity


£000

£000

£000

£000






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 the period



1,455

1,455






Balance at 30 September 2015

254

109

         3,028

     3,391






Equity dividends paid

-

-

(140)

(140)






Profit for period

-

-

              419

        419

Other comprehensive loss for the period

-

-

(970)

(970)

Total comprehensive loss for the period

-

-

(551)

(551)






Balance at 31 March 2016

254

109

         2,337

     2,700






Equity dividends paid

-

-

             (174)

(174)






Profit for period

-

-

              579

        579

Other comprehensive loss for the period

-

-

         (4,009)

Total comprehensive loss for the period

-

-

          (3,430)

(3,430)






Balance at 30 September 2016

254

109

        (1,267)

      (904)







CONSOLIDATED CASH FLOW STATEMENT                         

 

Half year ended 30 September

Half year ended 30 September


Year ended 31 March

2016

2015


2016

Unaudited

Unaudited


Audited

£'000

£'000


£'000

Cash flow from operating activities








728

             437

           947







              130

             161

             313

                29

               28

               56

(18)

                (3)

              (7)

(5)

                (5)

             (10)

              132

             133

             255

(189)

               -

            (311)




Operating cash flow before movements in working capital

              807

             751      

          1,243








(216)

 (231)

(164)

              134

              (63)

              (68)

                13

              89

             159




Cash generated from operations

               738

            546

           1,170





-

                -

(72)




Net cash from operating activities

738

            546

1,098            








Cash flow from investing activities




(397)

            (157)

            (390)

               18

               3

             10

                 -

                -

                 -

                 5

               5

             10





(374)

           (149)

           (370)












Cash flow from financing activities




Dividends paid

(174)

(158)

(298)






(174)

(158)

(298)









190


239


           430

 

2,078

          1,648


          1,648




2,268


          1,887


          2,078












 

 

 

 

 

 

 

1.             BASIS OF PREPARATION OF INTERIM REPORT

2.             ACCOUNTING POLICIES

Basis of accounting

The group has not availed itself of early adoption options in such standards and interpretations.

3.            Dividends

No interim dividend is proposed (30 September 2015: 5.5 pence per share).

4.            EARNINGS PER SHARE

(2015: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

 

 

 


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