TIDMHSM
RNS Number : 3369M
Heath(Samuel) & Sons PLC
16 July 2014
HEATH (Samuel) & SONS PLC
16th JULY 2014
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2014
CHAIRMAN'S STATEMENT
It is a pleasure to be able to report a profit before taxation
of GBP610,000 (2013: GBP450,000) on sales up by 8.9% to
GBP10,979,000 (2013: GBP10,083,000). It is even more pleasing to
see the increase in operating profit to GBP698,000 (2013:
GBP350,000). In connection to this, I should point out that we
decided to be far more cautious with the Company's investments, in
view of the uncertainties around the world. We have therefore
disposed of all of our holdings, resulting in a profit on cost of
GBP58,000, and are now keeping our cash reserves on deposit.
We experienced considerable success with most of the new lines
launched during the year and there was improvement in some, but by
no means all, of our markets. We should emphasise that trading has
certainly not regained the position of pre-crisis level.
You would think from the daily news that we would be looking
forward to a strong year ahead. So far in this trading period our
sales have been below that achieved in the same trading period last
year. In addition, the current strength of Sterling compared to
many world currencies, will have a detrimental effect on our sales
revenue and profits, which are earned from overseas. It would seem
that the caution seen in the Markets could well be correct. We must
therefore add our own note of caution for the coming year, as it
would seem that the turbulent trading conditions, which we have
experienced in the last few years, are not yet at an end.
Our assets remain strong and 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
16(th) July 2014
For further information:
Samuel Heath & Sons Plc
John Park - Company Secretary 0121 772 2303
Zeus Capital Limited 0161 831 1512
Ross Andrews/Jamie Peel
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH
2014
Note 2014 2013
GBP000 GBP000
(Restated)
Continuing operations
Revenue 4 10,979 10,083
Cost of sales (5,647) (5,311)
---------------- ----------
Gross profit 5,332 4,772
Distribution costs (2,958) (2,870)
Administrative expenses (1,676) (1,552)
Operating profit 698 350
Gain on sale of financial assets 58 132
Finance income 433 505
Finance costs (579) (537)
Profit before taxation 610 450
Taxation 5 (167) (35)
Profit for the year 443 415
================ ==========
Basic and diluted earnings per
ordinary share 7 17.5p 16.4p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2014 2013
GBP000 GBP000
(Restated)
Profit for year 443 415
Actuarial gain/ (loss) on defined
benefit pension scheme 294 (1,560)
Deferred taxation on actuarial
gain/(loss) (187) 329
Loss on available for sale financial
assets (115) (17)
Cash flow hedges 1 (3)
Other comprehensive income (7) (1,251)
Total comprehensive income for
the year 436 (836)
================ ==========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH
2014
2014 2013
GBP000 GBP000
Non current assets
Intangible assets 326 370
Property, plant and equipment 1,668 1,838
Deferred tax asset 774 986
------- -------
2,768 3,194
------- -------
Current assets
Inventories 2,899 2,731
Trade and other receivables 1,819 1,909
Derivative financial instruments - 1
Available for sale financial
assets - 1,400
Cash and cash equivalents 2,026 219
------- -------
Total current assets 6,744 6,260
Total assets 9,512 9,454
------- -------
Current liabilities
Trade and other payables (1,164) (949)
Derivative financial instruments (2) (4)
Current tax payable (116) (15)
------- -------
Total current liabilities (1,282) (968)
------- -------
Non current liabilities
Retirement benefit scheme (3,870) (4,290)
Deferred tax liability (110) (84)
------- -------
Total non current liabilities (3,980) (4,374)
Total liabilities (5,262) (5,342)
Net assets 4,250 4,112
======= =======
Equity
Called up share capital 254 254
Capital redemption reserve 109 109
Retained earnings 3,887 3,749
------- -------
Equity shareholders' funds 4,250 4,112
======= =======
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED
31 MARCH 2014
Share Capital Retained Total
capital redemption earnings equity
reserve
GBP000 GBP000 GBP000 GBP000
Balance at 31st March 2012 254 109 4,883 5,246
Equity dividends paid - - (298) (298)
Profit for year - - 415 415
Other comprehensive income
for the year - - (1,251) (1,251)
Balance at 31st March 2013 254 109 3,749 4,112
Equity dividends paid - - (298) (298)
Profit for year - - 443 443
Other comprehensive income
for the year - - (7) (7)
Balance at 31st March 2014 254 109 3,887 4,250
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH
2014
Note 2014 2013
GBP000 GBP000
Net cash inflow from operating activities 8 908 72
Cash flow from investing activities
Purchases of property, plant and equipment (221) (268)
Proceeds from sale of property, plant and
equipment 29 6
Purchase of intangible assets (6) (117)
Purchase of available for sale financial
assets (57) (421)
Proceeds from sale of available for sale
financial assets 1,400 676
Interest received 52 92
Net cash inflow/(outflow) from investing
activities 1,197 (32)
Net cash outflow from financing activities
Equity dividends paid 6 (298) (298)
Net cash outflow from financing activities (298) (298)
Increase/(decrease) in cash and cash equivalents 1,807 (258)
Cash and cash equivalents at beginning
of period 219 477
------ ------
Cash and cash equivalents at end of period 2,026 219
====== ======
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 2013. The adoption of the following IFRSs has not
impacted upon the financial statements:
IFRS 10 - Consolidated Financial Statements
IFRS 11 - Joint Arrangements
IFRS 12 - Disclosure of Interests in Other Entities
IFRS 13 - Fair Value Measurement
IAS 19 - Employee Benefits (see note below)
IAS 32 - Financial Instruments (Presentation)
IAS 1- Presentation of items of Other Comprehensive Income
IAS 27 - Separate Financial Statements (amended 2011)
IAS 28 - Investments in Associates and Joint Ventures
IAS 16 - Property, Plant and Equipment
IAS 34 - Interim Reporting
IAS 19 - Employee Benefits
The Group has adopted the revised standard in relation to
Retirement Benefit Pension Schemes (IAS19 Employee Benefits). The
prior year figures have therefore been restated for comparative
purposes:
Impact of IAS19 on Consolidated Income Statement
GBP000
Previously declared - profit for year (after taxation) 555
* basic and diluted earnings per share 21.9p
------------------------------------------------------------------- -------
Administration costs of defined benefit pension
scheme (48)
Impact of change in measurement of expected return
on pension scheme assets (135)
Impact of change on deferred tax 43
Restated - profit for year (after taxation) 415
* basic and diluted earnings per share 16.4p
------------------------------------------------------------------- -------
Impact of IAS19 Consolidated Statement of Comprehensive
Income
GBP000
- total comprehensive income
Previously declared for the year (836)
--------------------- ------------------------------------- -------
Decrease in profit for year (after taxation) (140)
Change in actuarial loss on defined benefit pension
scheme 183
Impact of change on deferred tax (43)
- total comprehensive income
Restated for the year (836)
--------------------- ------------------------------------- -------
Adoption of IAS19 has had no impact of the Statement of
Financial Position for the prior year.
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 - Separate Financial Statements (October 2012)
IFRS 10 - Consolidated Financial Statements (October 2012)
IFRS 12 - Disclosure of Interests in Other Entities (October
2012)
IFRS 14 - Regulatory Deferral Accounts (January 2014)
IAS 19 - Employee Benefits (November 2013)
IFRS 2 - Share Based Payment (December 2013)
IFRS 3 - Business Combinations (December 2013)
IFRS 8 - Operating Segments (December 2013)
IFRS 13 - Fair Value Measurement (December 2013)
IAS 16 - Property, Plant and Equipment (December 2013)
IAS 24 - Related Party Disclosures (December 2013)
IAS 38 - Intangible Assets (December 2013)
IAS 40 - Investment Property (December 2013)
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) and
International Financial Reporting Interpretation Committee (IFRIC)
Interpretation as adopted by the European Union and the
requirements of the Companies Act applicable to companies reporting
under 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
2014. Statutory accounts for 2013 have been delivered to the
Registrar of Companies, and those for 2014 will be delivered in due
course following the company's Annual General Meeting. The auditors
have reported on the 2013 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 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. Sales revenue by geographical market
2014 2013
GBP000 GBP000
Overseas 4,246 3,810
Home 6,733 6,273
-------- --------
10,979 10,083
-------- --------
5. Income taxes
2014 2013
GBP000 GBP000
(Restated)
Current taxes 116 20
Deferred taxes 51 15
-------- ----------
Total income taxes 167 35
-------- ----------
Corporation tax is calculated at 20% (2013: 20%) of the
estimated assessable profit for the year.
Tax rate reconciliation
2014 2013
GBP000 GBP000
(Restated)
Profit for the year 610 450
-------- ----------
Corporation tax charge thereon at 20% (2013:
20%) 122 90
Adjusted for the effects of:
Depreciation in excess of capital allowances 16 7
Marginal relief 9 -
Prior year adjustments 69 1
Research and development claim (1) (28)
Capitalisation of research and development
expenditure (11) (23)
Loan relationships (15) (13)
Other adjustments (22) 1
-------- ----------
Total income taxes 167 35
-------- ----------
Effective tax rate 27.4% 7.8%
-------- ----------
6. Dividends
2014 2013
GBP 000 GBP 000
Final dividend for the year ended 31st March
2013 of 6.25 pence per share (2012: 6.25
pence per share) 158 158
Interim dividend for the year ended 31st
March 2014 of 5.50 pence per share (2013:
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 2014 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.
7. Earnings per share
The basic and diluted earnings per share are calculated by
dividing the relevant profit after taxation of GBP443,000 (2013
Restated: GBP415,000) by the average number of ordinary shares in
issue during the year being 2,534,322 (2013: 2,534,322). The number
of shares used in the calculation is the same for both basic and
diluted earnings.
8. Notes to the cash flow statement
2014 2013
GBP000 GBP000
(Restated)
Operating profit 698 350
Depreciation, amortisation and impairment 425 385
Gain on disposal of property, plant and equipment (13) (6)
Pension scheme administration costs 42 48
Operating cash flows before movements in
working capital 1,152 777
Increase in inventories (168) (116)
Decrease/(increase) in receivables 75 (29)
Increase/(decrease) in payables 214 (143)
Pension contributions (350) (350)
Cash generated by operations 923 139
Income tax paid (15) (67)
Net cash flow from operating activities 908 72
====== ==========
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.
9. Notice of annual general meeting
Notice is hereby given that the 2014 Annual General Meeting of
the Company will be held at the registered office of the Company,
Leopold Street, Birmingham, on 15(th) August 2014 at 12.00 noon.
The final Ordinary Share dividend of 6.25 pence, if approved, will
be payable on 22nd August 2014 to ordinary shareholders registered
at close of business on 25th July 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
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