TIDMHSM
RNS Number : 9118J
Heath(Samuel) & Sons PLC
07 July 2011
HEATH (Samuel) & SONS PLC
7th JULY 2011
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2011
CHAIRMAN'S STATEMENT
I have pleasure in reporting an increased profit before tax for
the year of GBP550,000 (2010: GBP336,000) on sales of GBP9,832,000,
3.2% up on last year's of GBP9,529,000. This is certainly a move in
the right direction, despite far from easy trading conditions.
During the year, amongst our expenditure, we updated our
computer system, which we believe will give us long term benefits.
This, plus the cost of financing the much increased price of brass,
saw our total cash and financial assets reduce from GBP2,268,000 to
GBP2,058,000.
David Coplestone has decided that it is the right time for him
to retire as a director at the Annual General Meeting in August. He
has been involved with the Company for forty-three years,
twenty-seven of them in a senior executive position. He became my
Deputy Managing Director and his contribution to the firm is
incalculable. I am sure that all shareholders will join me in
thanking him and wishing him a long retirement.
After the improvement in profits, it would be good to be able to
give an upbeat forecast for the coming year. We are not able to do
that. As we have budgeted, the year has started extremely slowly
with uncertainty in practically all of our markets, most
particularly in our biggest, the UK. If copper and zinc prices
continue at least to stabilize, this could help, but there is very
little else to cheer us.
However our net assets remain strong amounting to GBP6,350,000
(2010: GBP6,037,000). We therefore propose a same again final
dividend of 6.25p per share, making a total of 11.75p for the
year.
Sam Heath
Chairman
7(th) July 2011
For further information:
Samuel Heath & Sons Plc
John Park - Company Secretary 0121 772 2303
Zeus Capital Limited 0161 831 1512
Ross Andrews/Nick Cowles
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH
2011
Note 2011 2010
GBP000 GBP000
Continuing operations
Revenue 9,832 9,529
Cost of sales (4,990) (4,968)
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Gross profit 4,842 4,561
Distribution costs (2,987) (2,784)
Administrative expenses (1,371) (1,372)
Operating profit 484 405
Gain on sale of financial assets 51 19
Finance income 606 370
Finance costs (591) (458)
Profit before taxation 550 336
Taxation 4 (127) (104)
Profit for the year 423 232
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Basic and diluted earnings per
ordinary share 6 16.7p 9.2p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2011 2010
GBP000 GBP000
Profit for year 423 232
Actuarial gain/( loss) on defined
benefit pension scheme 345 (1,162)
Deferred taxation on actuarial
gain/ (loss) (114) 325
(Loss)/gain on available for sale
financial assets (45) 128
Cash flow hedges 2 103
Other comprehensive income 188 (606)
Total comprehensive income for
the year 611 (374)
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH
2011
2011 2010
GBP000 GBP000
Non current assets
Intangible assets 207 172
Property, plant and equipment 2,135 2,239
Deferred tax asset 411 577
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2,753 2,988
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Current assets
Inventories 2,547 2,405
Trade and other receivables 1,903 1,653
Derivative financial instruments 2 -
Available for sale financial
assets 1,505 1,198
Cash and cash equivalents 553 1,070
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Total current assets 6,510 6,326
Total assets 9,263 9,314
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Current liabilities
Trade and other payables (1,167) (929)
Current tax payable (87) (112)
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Total current liabilities (1,254) (1,041)
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Non current liabilities
Retirement benefit scheme (1,521) (2,061)
Deferred tax liability (138) (175)
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Total non current liabilities (1,659) (2,236)
Total liabilities (2,913) (3,277)
Net assets 6,350 6,037
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Equity
Called up share capital 254 254
Capital redemption reserve 109 109
Retained earnings 5,987 5,674
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Equity shareholders' funds 6,350 6,037
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED
31 MARCH 2011
Capital
Share redemption Retained Total
capital reserve earnings Equity
GBP000 GBP000 GBP000 GBP000
Balance at 31st March 2009 254 109 6,346 6,709
Equity dividends paid - - (298) (298)
Profit for year - - 232 232
Other comprehensive income
for the year - - (606) (606)
Balance at 31st March 2010 254 109 5,674 6,037
Equity dividends paid - - (298) (298)
Profit for year - - 423 423
Other comprehensive income
for the year - - 188 188
Balance at 31st March 2011 254 109 5,987 6,350
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH
2011
Note 2011 2010
GBP000 GBP000
Net cash inflow from operating activities 7 357 1,216
Cash flow from investing activities
Purchases of property, plant and equipment (319) (97)
Proceeds from sale of property, plant and
equipment 6 21
Purchase of intangible assets (42) (111)
Purchase of available for sale financial
assets (602) (545)
Proceeds from sale of available for sale
financial assets 302 264
Interest received 79 49
Net cash outflow from investing activities (576) (419)
Net cash outflow from financing activities
Equity dividends paid 5 (298) (298)
Net cash outflow from financing activities (298) (298)
(Decrease)/increase in cash and cash equivalents (517) 499
Cash and cash equivalents at beginning
of period 1,070 571
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Cash and cash equivalents at end of period 553 1,070
====== ======
1 Adoption of new and revised Standards
The Group has adopted all of the new and revised Standards and
Interpretations issued by the International Accounting Standards
Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) of the IASB that are relevant to
its operations and effective for accounting periods beginning on
1st April 2010. The adoption of the following IFRSs has not
impacted upon the financial statements:
IFRIC 10 - Interim Financial Reporting and Impairment
At the date of authorisation of these financial statements, the
following Standards and Interpretations which have not been applied
in these financial statements were in issue but not yet
effective:
IAS 27 - Consolidated and Separate Financial Statements (revised
2008)
IFRIC 11 - IFRS 2 - Group and Treasury Share Transactions
IFRS 7 - Financial Instruments: Disclosures
IFRS 9 - Financial Instruments (revised 2010)
IFRS 10 - Consolidated Financial Statements
IFRS 12 - Disclosure of Interests in Other Entities
IFRS 13 - Fair Value Measurement
2 Accounting policies
Basis of preparation of preliminary financial information
The financial statements, upon which this financial information
is based, have been prepared using accounting policies consistent
with International Financial Reporting Standards (IFRS).
This financial information does not constitute the Company's
statutory accounts as defined in section 434 of the Companies Act
2006 and has been prepared on the basis of the accounting policies
set out in the financial statements for the year ended 31 March
2011. Statutory accounts for 2010 have been delivered to the
Registrar of Companies, and those for 2011 will be delivered in due
course following the company's annual general meeting. The auditors
have reported on the 2010 accounts and their report was
unqualified, did not include references to any matters by way of
emphasis without qualifying their report and did not contain
statements under Section 498 (2) or (3) of the Companies Act
2006.
The Annual Report and Financial Statements will be posted to
shareholders shortly and thereafter will be available from the
Company's registered office, and from the Company's website
www.samuel-heath.com.
The financial statements have been prepared under the historical
cost basis except for the valuation of Available For Sale assets
which have been revalued to market value.
3 Critical accounting and key sources of estimation
Critical judgements in applying the entity's accounting
policies
In the process of applying the entity's accounting policies,
which are described above, the directors have made the following
judgements that have the most significant effect on the amounts
recognised in the financial statements.
Income taxes
The Group is subject to income taxes in the United Kingdom.
Judgment is required in determining the provision for income taxes.
There are many transactions and calculations for which the ultimate
tax determination is uncertain during the ordinary course of
business. The Group recognises liabilities for anticipated tax
audit issues based on estimates of whether additional taxes will be
due. Where the final tax outcome of these matters is different from
the amounts that were initially recorded, such differences will
impact the income tax and deferred tax provisions in the period in
which such determination is made.
The recoverable amounts of the Group's deferred tax assets have
been determined based on the Board's estimates of future taxable
profits and income and tax rates.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources
of estimation uncertainty at the balance sheet date, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are discussed below.
Valuation of intangible assets
Intangible assets are initially valued at their cost and then
evaluated periodically for impairment. For purposes of valuation an
intangible asset is considered impaired if its carrying value is
less than the expected net cash flow from the asset.
Valuation of inventories
Determining the valuation of inventories requires an estimation
of the obsolescence provision required to write down items to their
realisable value.
Retirement benefit scheme deficit
The valuation of expected returns on assets and the present
value of the liabilities of the scheme are determined by
assumptions and estimates made by the directors based on the
current information to hand. Therefore amounts are open to
fluctuations in the future due to unforeseen changes or additional
factors that come to light following the year end.
4. Income taxes
2011 2010
GBP000 GBP000
Current taxes 112 112
Deferred taxes 15 (8)
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Total income taxes 127 104
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Corporation tax is calculated at 28% (2010: 28%) of the
estimated assessable profit for the year.
Tax rate reconciliation
2011 2010
GBP000 GBP000
Profit for the year 550 336
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Corporation tax charge thereon at 28% (2010:
28%) 154 94
Adjusted for the effects of:
Depreciation in excess of capital allowances 11 37
Marginal relief (19) (18)
Prior year adjustments 18 -
Research and development claim (9) (22)
Capitalisation of research and development
expenditure (12) (31)
Loan relationships (9) 29
Other adjustments (7) 15
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Total income taxes 127 104
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Effective tax rate 23.1% 31.0%
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5. Dividends
2011 2010
GBP 000 GBP 000
Final dividend for the year ended 31st March
2010 of 6.25 pence per share (2009: 6.25
pence per share) 158 158
Interim dividend for the year ended 31st
March 2011 of 5.50 pence per share (2010:
5.50 pence per share) 140 140
298 298
In addition to the dividends paid during the year the directors
are recommending a final dividend for 2011 of 6.25 pence per share
amounting to GBP158,000. The proposed final dividend is subject to
approval at the Annual General Meeting (see note 8) and has not
been included as a liability in these accounts.
6. Earnings per share
The basic and diluted earnings per share are calculated by
dividing the relevant profit after taxation of GBP423,000 (2010:
GBP232,000) by the average number of ordinary shares in issue
during the year being 2,534,322 (2010: 2,534,322). The number of
shares used in the calculation is the same for both basic and
diluted earnings.
7. Notes to the cash flow statement
2011 2010
GBP000 GBP000
Operating profit 484 405
Depreciation, amortisation and impairment 428 554
Gain on disposal of property, plant and equipment (3) (3)
Operating cash flows before movements in
working capital 909 956
(Increase)/decrease in inventories (142) 249
(Increase)/decrease in receivables (254) 102
Increase in payables 236 76
Pension contributions (255) (255)
Cash generated by operations 494 1,128
Income tax (paid)/received (137) 88
Net cash flow from operating activities 357 1,216
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Cash and cash equivalents (which are presented as a single class
of assets on the face of the Statement of Financial Position)
comprise cash at bank and other short-term highly liquid
investments with a maturity of three months or less.
8. Annual General Meeting
The Annual General Meeting has been fixed for 12th August 2011
at 12 noon. The final Ordinary Share dividend of 6.25 pence, if
approved, will be payable on 26th August 2011 to ordinary
shareholders registered at close of business on 29th July 2011.
This information is provided by RNS
The company news service from the London Stock Exchange
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