TIDMHSM
RNS Number : 5015U
Heath(Samuel) & Sons PLC
12 July 2018
HEATH (Samuel) & SONS PLC
12th JULY 2018
PRELIMINARY RESULTS FOR THE YEARED 31ST MARCH 2018
CHAIRMAN'S STATEMENT
It is pleasing to report the results for the year, which
although a little bit down on the previous one, were still
satisfactory.
Sales revenue was up to GBP14.354m (2017: GBP13.053m) although
profit before tax was GBP1.177m (2017: GBP1.234m). The operating
profit was GBP1.335m (2017: GBP1.444m). Operating profit has
reduced a little, reflecting investment in overseas markets, with a
margin of 9.3%, compared to 11.1% last year.
During the year, sterling appreciated after its sharp decline
following the Brexit vote, reducing profitability on export sales.
At the same time, the business invested in its sales
infrastructure, principally to benefit future export sales. These
combined to reduce our current margins.
Moving forward to the future and the current financial year, we
must be very cautious. Shareholders must be sick of me saying it,
but uncertainty is the worst thing for a good business environment.
We certainly have plenty of uncertainty at the moment.
In constructing our budget this year, we consulted with some of
our larger customers, particularly in the UK, about their own
budgets. These varied from cautious to the downright pessimistic.
Our own order book is down on what it was last year, which reflects
the lack of sizeable contracts, again caused by others fearing to
commit. On the other side of the coin we have some first class
products including our expanding Landmark range of taps and
accessories and the much tested Powermatic door closer. We also
have active, if sometime erratic, export markets, which are the
result of much thought and hard work over the years.
We are budgeting for a sales and profit figure down on last
year, whilst remaining profitable, and at the time of writing are
achieving our budgeted levels.
Our current profitability and strength of the Balance Sheet
allow us to recommend, in addition to the interim dividend of 5.5p
which was paid in March, a final dividend at the same level as last
year, at 6.875p, which will be paid on 17th August 2018 to
shareholders registered as at 20th July 2018.
Sam Heath
Chairman
For further information:
Samuel Heath & Sons Plc
John Park - Company Secretary +44 (0)121 772 2303
Cairn Financial Advisers LLP +44 (0)20 7213 0880
James Caithie/Jo Turner
CONSOLIDATED INCOME STATEMENT FOR THE YEARED 31 MARCH 2018
Note 2018 GBP000
GBP000 2017
Revenue 3 14,354 13,053
Cost of sales (7,232) (6,386)
-------- --------
Gross profit 7,122 6,667
Selling & distribution costs (3,767) (3,274)
Administrative expenses (2,020) (1,949)
-------- --------
Operating profit 1,335 1,444
Net finance costs (158) (210)
-------- --------
Profit before taxation 1,177 1,234
4
Taxation (197) (221)
-------- --------
Profit for the year attributable
to owners of the parent company 980 1,013
Basic and diluted earnings per
ordinary share 6 38.7p 40.0p
-------- --------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31st March 2018
2018 2017
GBP000 GBP000
Profit for the year 980 1,013
Items that will be reclassified
to profit or loss:
Cash flow hedges - 16
Items that will not be reclassified
to profit or loss:
Actuarial loss on defined benefit
pension scheme (234) (629)
Deferred taxation on actuarial
loss 40 46
Revaluation of property, plant
and equipment - 1,607
Deferred taxation on revaluation
of assets 44 (218)
------- -------
(150) 806
Total comprehensive income for
the year 830 1,835
------- -------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH
2018
2018 2017
GBP000 GBP000
Non-current assets
Intangible assets 85 79
Property, plant and equipment 3,337 3,511
Deferred tax asset 853 793
--------- --------
4,276 4,383
Current assets
Inventories 3,930 3,789
Trade and other receivables 2,287 2,169
Cash and cash equivalents 2,366 2,079
--------- --------
8,583 8,037
Total assets 12,859 12,420
Current liabilities
Trade and other payables (1,474) (1,400)
Current tax payable (175) (158)
--------- --------
(1,649) (1,558)
Non-current liabilities
Retirement benefit scheme (6,472) (6,501)
(6,472) (6,501)
Total liabilities (8,121) (8,059)
Net assets 4,738 4,361
--------- --------
Equity
Called up share capital 254 254
Capital redemption reserve 109 109
Revaluation reserve 1,357 1,389
Retained earnings 3,018 2,609
Equity shareholders' funds 4,738 4,361
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31
MARCH 2018
Share Capital Revaluation Retained Total
capital redemption reserve Earnings Equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31st March 2016 254 109 - 2,337 2,700
-------- ----------- ----------- --------- -------
Equity dividends paid - - - (174) (174)
-------- ----------- ----------- --------- -------
Profit for the year - - - 1,013 1,013
Other comprehensive income
for the year - - 1,389 (567) (822
-------- ----------- ----------- --------- -------
Total comprehensive loss
for the year - - 1,389 446 1,835
Balance at 31st March 2017 254 109 1,389 2,609 4,361
Equity dividends paid - - - (453) (453)
-------- ----------- ----------- --------- -------
Profit for the year - - - 980 980
Reclassification of depreciation
on revaluation (76) 76 -
Other comprehensive income
for the year - - 44 (194) 150
-------- ----------- ----------- --------- -------
Total comprehensive income
for the year - - (32) 862 830
Balance at 31st March 2018 254 109 1,357 3,018 4,738
-------- ----------- ----------- --------- -------
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEARED 31 MARCH
2018
2018 2017
GBP000 GBP000
Cash flow from operating activities
Profit for the year before tax 1,177 1,234
Adjustments for:
Depreciation 365 272
Amortisation 58 57
Profit on disposal of property, plant and equipment (10) (37)
Finance income (30) (7)
Defined benefit pension scheme expenses 237 282
Contributions to defined benefit pension scheme (500) (511)
Operating cash flow before movements in working
capital 1,297 1,290
Changes in working capital:
Increase in inventories (141) (468)
Increase in trade and other receivables (118) (16)
Increase in trade and other payables 74 117
Cash generated from operations 1,112 923
Taxation paid (157) (155)
Net cash from operating activities 955 768
Cash flows from investing activities
Payments to acquire property, plant and equipment (222) (646)
Proceeds from the sale of property, plant and
equipment 41 53
Payments to acquire intangible assets (64) (8)
Finance income 30 8
(215) (593)
Cash flows from financing activities
Dividends paid (453) (174)
(453) (174)
Net increase in cash and cash equivalents 287 1
Cash and cash equivalents at beginning of period 2,079 2,078
Cash and cash equivalents at end of period 2,366 2,079
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. Basis of preparation
The Group has prepared its consolidated financial statements for
the year ended 31 March 2018 in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union. The accounting policies applied are consistent with those
included in the financial statements of the Group for the year
ended 31 March 2017.
The financial information contained in this preliminary
announcement does not constitute the Group's statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
The annual report and financial statements for the year ended 31
March 2018 were approved by the Board of Directors on 11 July 2018
along with this preliminary announcement. The annual report and
financial statements will be delivered to the Registrar of
Companies after the Annual General Meeting.
The statutory accounts of Samuel Heath & Sons PLC for the
year ended 31 March 2017 have been delivered to the Registrar of
Companies. The auditor's reports on the statutory accounts for the
years ended 31 March 2018 and 31 March 2017 were unqualified and
did not contain a statement under section 498 of the Companies Act
2006.
2. Critical accounting and key sources of estimation
Critical accounting estimates, assumptions and judgements
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates and assumptions will, by
definition, seldom equal the related actual results. The Group has
evaluated the estimates and assumptions that have been made in
relation to the carrying amounts of assets and liabilities in these
financial statements.
The key accounting judgements and sources of estimation
uncertainty with a significant risk of causing a material
adjustment to assets and liabilities in the next 12 months include
the following:
Pensions - movements in equity markets, interest rates and life
expectancy could materially affect the level of surpluses and
deficits in the defined benefit pension scheme.
Valuation of property, plant and equipment - the Group reviews
the value, useful economic lives and residual values attributed to
assets on an on-going basis to ensure they are appropriate. Changes
in market value, economic lives or residual values could impact the
carrying value and charges to the income statement in future
periods.
Provisions - using information available at the balance sheet
date, the Directors make judgements based on experience on the
level of provision required against assets, including inventory and
trade receivables. Further information received after the balance
sheet date may impact the level of provision required.
Deferred tax assets - deferred tax assets are recognised to the
extent that it is probable that taxable profit will be available
against which the losses can be utilised. Management judgement is
required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and level of future
taxable profits.
3. Sales revenue by geographic
market
2018 2017
GBP000 GBP000
Overseas 6,013 5,478
Home 8,341 7,575
14,354 13,053
------- -------
4. Income taxes
2018 2017
GBP000 GBP000
Current taxes
Current year 175 158
Adjustments in respect of prior periods (1) 8
-------- --------
174 166
Deferred taxes
Origination and reversal of temporary differences 23 59
Effect of change in tax rates - (4)
-------- --------
23 54
Total income taxes 197 221
-------- --------
Corporation tax is calculated at 19% (2017: 20%) of the
estimated assessable profit for the year.
Tax reconciliation
2018 2017
GBP000 GBP000
Profit for the year 1,177 1,234
-------- -------
Corporation tax charge thereon at 19% (2017:
20%) 224 247
Adjusted for the effects of:
Prior year adjustments (1) 8
Research and development claim (22) (24)
Other adjustments (4) (10)
Total income taxes 197 221
-------- -------
Effective tax rate 16.7% 17.9%
-------- -------
5. Dividends
2018 2017
GBP000 GBP000
Final dividend for the year ended 31st March
2017 of 6.875 pence per share (2017: 6.875
pence per share) 174 174
Interim dividend for the year ended 31st
March 2017 of 5.50 pence per share (2016:
0.0 pence per share) 139 -
Interim dividend for the year ended 31st
March 2018 of 5.50 pence per share (2017:
5.50 pence per share) 139 -
452 174
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In addition to the dividends paid during the year the directors
are recommending a final dividend for 2018 of 6.875 pence per share
amounting to GBP174,000. The proposed final dividend is subject to
approval at the Annual General Meeting and hence 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 GBP980,000 (2017:
GBP1,013,000) by the average number of ordinary shares in issue
during the year being 2,534,322 (2017: 2,534,322). The number of
shares used in the calculation is the same for both basic and
diluted earnings.
7. Notice of annual general meeting
Notice is hereby given that the 2018 Annual General Meeting of
the Company will be held at the registered office of the Company,
Leopold Street, Birmingham, on 10(th) August 2018 at 12.00 noon.
The final dividend of 6.875 pence, if approved, will be payable on
17(th) August 2018 to ordinary shareholders registered at close of
business on 20(th) July 2018.
8. Posting of Accounts
The report and accounts are being posted to shareholders today,
and are available on the Company's website, at
www.samuel-heath.com/investor-relations.
This information is provided by RNS, the news service of the
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END
FR SFMFLEFASESW
(END) Dow Jones Newswires
July 12, 2018 10:26 ET (14:26 GMT)
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