Share Name Share Symbol Market Type Share ISIN Share Description
Heath (samuel) & Sons Plc LSE:HSM London Ordinary Share GB0004178710 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 280.00 250.00 310.00 280.00 280.00 280.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 13.9 0.9 29.1 9.6 7

Heath(Samuel) & Sons PLC Final Results

11/07/2019 7:00am

UK Regulatory (RNS & others)


Heath (samuel) & Sons (LSE:HSM)
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1 Year : From Jan 2019 to Jan 2020

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RNS Number : 1536F

Heath(Samuel) & Sons PLC

11 July 2019

HEATH (SAMUEL) & SONS PLC

11th JULY 2019

PRELIMINARY RESULTS FOR THE YEARED 31ST MARCH 2019

CHAIRMAN'S STATEMENT

It is pleasing to report the results for the year, in which revenue was a little down, but underlying operating profits improved.

Sales revenue was GBP13.89m (2018: GBP14.35m) and profit before tax was GBP0.88m (2018: GBP1.18m). This was after the exceptional item for Guaranteed Minimum Pension (GMP) Equalisation relating to our pension fund which we have had to recognise this year. The operating profit was better than last year at GBP1.38m (2018: GBP1.34m) reflecting savings made through overheads.

As I am certain shareholders are aware, this year has been the same as the one before with regard to trading conditions. The uncertainty around Brexit has caused us all sorts of continuing problems. These are perhaps surprisingly not led by uncertainty of sales to business customers within the EU, but much more seriously from our supplies from there. It is having, most importantly of all, a very bad effect on our business, and our future prospects, with our London and South Eastern customers within the UK.

It is therefore more difficult than ever to forecast where we might be in twelve months' time. You can imagine that I do not enjoy being so indecisive, but it is a unique situation we find ourselves in. Perhaps I could add, as a company listed on the London Stock Exchange since 1890, there must have been other times equally difficult, which we managed to get through.

Having said that, overall business activity has held up well up to the time of writing this statement. This has undoubtedly been helped by our considerable investment in some excellent designs and products, together with that in plant, machinery and IT systems in order to manufacture them efficiently.

Our current profitability allows us to recommend, in addition to the interim dividend of 5.5p per share which was paid 23(rd) March 219, a final dividend at the same level as last year, at 6.875p per share, which will be paid on 16th August 2019 to shareholders registered as at 19th July 2019.

Sam Heath

Chairman

10th July 2019

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information:

 
 Samuel Heath & Sons Plc 
 Simon Latham - Company Secretary    +44 (0)121 766 4200 
 
 Cairn Financial Advisers LLP        +44 (0)20 7213 0880 
 James Caithie/Jo Turner 
 

CONSOLIDATED INCOME STATEMENT FOR THE YEARED 31st MARCH 2019

 
 
 
 
                                                            2019       2018 
                                               Note 
                                                         GBP000       GBP000 
 
Revenue                                         3            13,893    14,354 
 
Cost of sales                                               (7,125)  (7,232) 
 
Gross profit                                                  6,768   7,122 
 
Selling & distribution costs                                (3,474)  (3,767) 
Administrative expenses                                     (1,915)  (2,020) 
 
 Operating profit (a)                                         1,379   1,335 
 
Finance income                                                   13     30 
Finance cost                                                  (211)   (188) 
 
 
Profit before taxation and exceptional 
 items                                                        1,181   1,177 
 
Exceptional item - GMP equalisation             7             (299)     - 
 
 Profit before taxation                                         882   1,177 
 
Taxation                                        4             (144)   (197) 
 
Profit for the year attributable 
 to owners of the parent company                                738    980 
 
 
Basic and diluted earnings per 
 ordinary share                                 6             29.1p   38.7p 
                                                      =============  ======== 
 
(a) Operating profit is calculated as profit before net finance costs, 
 exceptional items and taxation. 
 
 
 
                CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                      for the year ended 31st March 2019 
                                                               2019    2018 
                                                            GBP000    GBP000 
 
Profit for the year                                             738    980 
 
 
 
 
Items that will not be reclassified 
 to profit or loss: 
Actuarial loss on defined benefit 
 pension scheme                                               (933)   (234) 
Deferred taxation on actuarial 
 loss                                                           159     40 
Deferred taxation on revaluation 
 of assets                                                        -     44 
                                                      -------------  -------- 
                                                              (774)   (150) 
 
 
Total comprehensive income for 
 the year                                                      (36)    830 
                                                      -------------  -------- 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31st MARCH 2019

 
 
                                     2019      2018 
                                    GBP000    GBP000 
 Non-current assets 
 Intangible assets                       82        85 
 Property, plant and equipment        3,210     3,337 
 Deferred tax asset                   1,048       853 
                                  ---------  -------- 
                                      4,340     4,276 
 
 Current assets 
 Inventories                          3,989     3,930 
 Trade and other receivables          2,286     2,287 
 Cash and cash equivalents            3,153     2,366 
                                  ---------  -------- 
                                      9,428     8,583 
 
 Total assets                        13,768    12,859 
 
 Current liabilities 
 Trade and other payables           (1,789)   (1,474) 
 Current tax payable                  (171)     (175) 
                                  ---------  -------- 
                                    (1,960)   (1,649) 
 
 Non-current liabilities 
 Retirement benefit scheme          (7,420)   (6,472) 
 
 
 Total liabilities                  (9,380)   (8,121) 
 
 Net assets                           4,388     4,738 
                                  ---------  -------- 
 
 Equity 
 Called up share capital                254       254 
 Capital redemption reserve             109       109 
 Revaluation reserve                  1,277     1,357 
 Retained earnings                    2,748     3,018 
 
 
   Equity shareholders' funds         4,388     4,738 
 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31st MARCH 2019

 
                                      Share    Capital    Revaluation   Retained    Total 
                                    capital   redemption    reserve     earnings   Equity 
                                               reserve 
                                     GBP000       GBP000       GBP000     GBP000   GBP000 
 
Balance at 31st March 2017              254          109        1,389      2,609    4,361 
                                   --------  -----------  -----------  ---------  ------- 
Total transactions with owners 
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 
Total transactions with owners 
Equity dividends paid                     -            -            -      (314)    (314) 
                                   --------  -----------  -----------  ---------  ------- 
 
Profit for the year                       -            -            -        738      738 
Reclassification of depreciation 
 on revaluation                                                  (80)         80        - 
Other comprehensive income 
 for the year                             -            -            -      (774)    (774) 
                                   --------  -----------  -----------  ---------  ------- 
Total comprehensive income 
 for the year                             -            -         (80)         44     (36) 
 
Balance at 31st March 2019              254          109        1,277      2,748    4,388 
                                   --------  -----------  -----------  ---------  ------- 
 

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEARED 31st MARCH 2019

 
 
                                                        2019    2018 
                                                      GBP000  GBP000 
Cash flow from operating activities 
 
Profit for the year before taxation                      882   1,177 
 
Adjustments for: 
Depreciation                                             348     365 
Amortisation                                              27      58 
Profit on disposal of property, plant and equipment     (16)    (10) 
Net finance (income)/cost                                 17    (30) 
Defined benefit pension scheme expenses                  530     237 
Contributions to defined benefit pension scheme        (516)   (500) 
 
 
Operating cash flow before movements in working 
 capital                                               1,272   1,297 
 
Changes in working capital: 
Increase in inventories                                 (59)   (141) 
Decrease/ (increase) in trade and other receivables        6   (118) 
Increase in trade and other payables                     310      74 
 
Cash generated from operations                         1,529   1,112 
 
Taxation paid                                          (184)   (157) 
 
Net cash from operating activities                     1,345     955 
 
Cash flows from investing activities 
 
Payments to acquire property, plant and equipment      (239)   (222) 
Proceeds from the sale of property, plant and 
 equipment                                                35      41 
Payments to acquire intangible assets                   (23)    (64) 
Finance (costs)/income                                  (17)      30 
 
 
                                                       (244)   (215) 
 
Cash flows from financing activities 
 
Dividends paid                                         (314)   (453) 
 
                                                       (314)   (453) 
 
 
Net increase in cash and cash equivalents                787     287 
 
Cash and cash equivalents at beginning of year         2,366   2,079 
 
Cash and cash equivalents at end of year               3,153   2,366 
 
 

NOTES TO THE PRELIMINARY ANNOUNCEMENT

   1.     Basis of preparation 

The Group has prepared its consolidated financial statements for the year ended 31st March 2019 in accordance with International Financial Reporting Standards as adopted by the European Union. There was no impact on the reported results due to the adoption of IFRS 9 and IFRS 15. The accounting policies applied are consistent with those included in the financial statements of the Group for the year ended 31st March 2018 except for changes required on the adoption of IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments".

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 31st March 2019 were approved by the Board of Directors on 10th July 2019 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 2018 have been delivered to the Registrar of Companies. The auditor's reports on the statutory accounts for the years ended 31st March 2019 and 31st March 2018 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. Revenue by geographic 
 market 
                                2019     2018 
                              GBP000   GBP000 
Overseas                       6,027    6,013 
Home                           7,866    8,341 
                              13,893   14,354 
                             -------  ------- 
 
   4.     Income taxes 
 
                                                        2019      2018 
                                                      GBP000    GBP000 
Current taxes: 
Current year                                             169       175 
Adjustments in respect of prior periods                 (11)       (1) 
                                                    --------  -------- 
                                                         180       174 
Deferred taxes: 
Origination and reversal of temporary differences       (36)        23 
 
Total income taxes                                       144       197 
                                                    --------  -------- 
 

Corporation tax is calculated at 19% (2018: 19%) of the estimated assessable profit for the year.

Tax reconciliation

 
                                                    2019     2018 
                                                  GBP000   GBP000 
 Profit for the year                                 882    1,177 
                                                --------  ------- 
 
 Corporation tax charge thereon at 19% (2018: 
  19%)                                               168      224 
 Adjusted for the effects of: 
 Prior year adjustments                               11      (1) 
 Research and development claim                      (7)     (22) 
 Other adjustments                                  (28)      (4) 
 
 
 Total income taxes                                  144      197 
                                                --------  ------- 
 
 Effective tax rate                                16.3%    16.7% 
                                                --------  ------- 
 
   5.     Dividends 
 
                                                 2019    2018 
                                               GBP000  GBP000 
 
Final dividend for the year ended 31st March 
 2018 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                 -     139 
 Interim dividend for the year ended 31st 
  March 2019 of 5.50 pence per share (2018: 
  5.50 pence per share)                           139     139 
 
                                                  313     452 
                                               ------  ------ 
 

In addition to the dividends paid during the year the directors are recommending a final dividend for 2019 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 GBP738,000 (2018: GBP980,000) by the average number of ordinary shares in issue during the year being 2,534,322 (2018: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

   7.     Exceptional item 

The business has recognised the past service cost resulting from Guaranteed Minimum Pension (GMP) equalisation as an exceptional item on the basis that it is a one off cost of substance arising from a legal case during the financial year.

GMP equalisation is the recognition that during the 1990s benefits accrued differently for men and women based on their then different retirement ages.

   8.     Notice of annual general meeting 

Notice is hereby given that the 2019 Annual General Meeting of the Company will be held at the registered office of the Company, Leopold Street, Birmingham, on 9(th) August 2019 at 12.00 noon. The final dividend of 6.875 pence, if approved, will be payable on 16(th) August 2019 to ordinary shareholders registered at close of business on 19(th) July 2019.

   9.     Posting of accounts 

The report and accounts are being posted to shareholders today where requested, 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 London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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