Half Yearly Report

RNS Number : 2305E
Heath(Samuel) & Sons PLC
04 November 2015
 

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

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

50 

70 

Payments to acquire intangible assets

                     - 

(8)

(54)

Finance income

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.

 


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