RNS Number : 8236G
Heath(Samuel) & Sons PLC
18 November 2022
 

SAMUEL HEATH & SONS plc

("the Company")

 

UNAUDITED INTERIM REPORT

 

Half year ended 30 September 2022

 

CHAIR'S STATEMENT

 

 

 

 

 

 

Anthony Buttanshaw

Chair

17 November 2022

 

 

Dividend

For further information, please contact:

Samuel Heath & Sons Plc

Simon Latham, Company Secretary                                         0121 766 4200

 

Cairn Financial Advisers LLP

James Caithie / Jo Turner                                                             020 7213 0880                                   

 

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 


Unaudited Interim Financial Report

For the Half Year ended 30 September 2022

 

CONSOLIDATED INCOME STATEMENT







Half year


Half year


Year


ended 30


ended 30


ended 31


September


September


March


2022


2021


2022


Unaudited


Unaudited


Audited


£'000


£'000


£'000

 

 


 



Revenue

7,560


          6,904


         14,015


 





Cost of sales

(3,938)


  (3,510)


(6,975)


 





Gross profit

3,622


          3,394


            7,040


 





Selling and distribution costs

(1,981)


(1,510)


(2,917)

Administrative expenses

(1,031)


(1,051)


(1,986)

Other operating income - grants (note 5)

-


15


15


 





Operating profit

610


848


2,152


 





Finance income

-


 10


10

Finance cost

(89)


(82)


(132)


 











Profit/(loss) before taxation

521


776


2,030


 





Taxation

(33)


(125)


(558)


 


 



 

Profit for the period

 

488


 

651


 

1,472


 


 




 


 



Basic and diluted earnings per ordinary share (note 4)

19.3p


25.7p


58.1p

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME




 




Half year ended 30 September


Half year ended 30 September


Year ended 31 March

 


2022


2021


2022


Unaudited


Unaudited


Audited


£'000


£'000


£'000


 

 

 



 

Profit for the period

488

 

              651


             1,472


 

 





 

 





 

 





 

 




Items that will not be reclassified to profit or loss:

 

 




Actuarial profit/(loss) on defined benefit pension scheme

4,210

 

 (316)


            693

Deferred tax on actuarial loss

(1,052)

 

60


            (173)

Deferred tax rate change

 

 

298


381


 

 





3,158

 

42


          901


 

 




Total comprehensive income for the period

3,646

 

693


          2,373


 


 






         


             

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

At 30 September

 

 At 30 September

 

    At 31   March

 

 

2022

 

2021

 

2022

 

 

Unaudited

 

Unaudited

 

Audited

 

£'000

 

£'000

 

£'000

Non-current assets

 

 

 

 

 

Intangible assets

505

 

191


              442

Property, plant and equipment

3,891

 

3,345


           3,670

Deferred tax assets

-

 

997


           425


 

 




 

4,396

 

4,533


           4,537

 

 

 




Current assets

 

 




Inventories

4,188

 

3,718


           3,916

Trade and other receivables

2,115

 

2,113


           1,836

Cash and cash equivalents

3,479

 

           4,909


           4,410


 

9,782

 

           10,740


          

10,162


 

 




Total assets

14,178

 

          15,273


          14,699

 

 

 




Current liabilities

 

 




Trade and other payables

(2,017)

 

(1,862)


(1,982)

Right of use lease liabilities

(60)

 

(26)


(62)

Borrowings (note 6)

-

 

(84)


-

Current tax payable

(79)

 

(101)


(13)


(2,156)

 

(2,073)


(2,057)


 

 




Non-current liabilities

 

 




Right of use liabilities

(87)

 

-


(129)

Borrowings (note 6)

-

 

(866)


-

Deferred tax liability

(806)

 

-


-

Retirement benefit scheme (note 7)

-

 

(6,198)


(4,837)

 

(893)

 

(7,064)


(4,966)


 

 




Total liabilities

(3,049)

 

(9,137)


(7,023)

Net assets

11,129

 

          6,136


          7,676


 

 




Equity

 

 




Called up share capital

254

 

             254


             254

Capital redemption reserve

109

 

109


109

Revaluation reserve

Retained earnings

1,145

9,621

 

1,125

4,548


1,186

6,127


 

 




Equity shareholders' funds

          11,129

 

          6,136


          7,676


 

 




 

 

 




CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Parent Company

 

 

Share capital

Capital redemption reserve

Revaluation reserve

Retained earnings

Total equity

 

£000

£000

£000

£000

£000

 

 

 

 

 

 

Balance at 31 March 2021

254

109

1,267

    3,987

     5,617

 

Total transactions with owners






Equity dividends paid

-

-

-

        (174)

 (174)







Loss for the period

-

-

-

         651

         651

Other comprehensive income for the period

Reclassification of depreciation on revaluation

 

-

 

-

-

 

-

-

 

(42)

      42

 

42

         42

 

-

Total comprehensive income for the period

-

-

(42)

735

693

 

 

 

 

 

 

Balance at 30 September 2021

254

109

1,225

      4,548

     6,136

 

Total transactions with owners






Equity dividends paid

-

-

-

(140)

(140)







Profit for the period

-

-

-

            821

            821

Other comprehensive income for the period

Reclassification of depreciation on revaluation

 

-

 

-

-

 

-

-

 

(39)

859

 

39

859

 

-

Total comprehensive income for the period

-

-

(39)

1,719

1,680

 

 

 

 

 

 

Balance at 31 March 2022

254

109

1,186

         6,127

     7,676







Total transactions with owners

Equity dividends paid

-

-

-

         (193)

(193)







Profit for the period

-

-

-

     488

        488

Other comprehensive income for the period

Reclassification of depreciation on revaluation

 

-

 

-

-

 

-

-

 

(41)

     3,158

 

41

3,158

 

-    

Total comprehensive income for the period

-

-

(41)

3,687

3,646

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 September 2022

254

109

1,145

9,621

      11,129

 

 

 

 

 

 


CONSOLIDATED CASH FLOW STATEMENT                        

 


Half year ended 30 September


Half year ended 30 September


Year    ended 31 March


2022


2021


2022


Unaudited


Unaudited


Audited


£'000


£'000


£'000

Cash flow from operating activities

 


 



 

 





Profit for the period before taxation

521


             776


           2030


 





Adjustments for:

 





Depreciation

           168  


             150


             359

Amortisation

48


               24


               50

Loss/(profit) on disposal of property, plant and equipment

(1)


               10


              4

Net finance costs/(income)

-


               (10)


             (12)

Defined benefit pension scheme expenses

           83  


             106


             170

Contributions to defined benefit pension scheme

(533)


             (518)


          (1,036)


 





Operating cash flow before movements in working capital

286  


             538


          1,565

 

 





Changes in working capital:

 





(Increase)/decrease in inventories

(272)


 (36)


(234)

(Increase)/decrease in trade and other receivables

           (279)


            (33)


272

Increase/(decrease) in trade and other payables

           57   


             124


             195


 





Cash generated from operations

           (208) 


            593


           1,798

 

 





Taxation paid

-


                -


-


 





Net cash from operating activities

(208)


            593


           1,798

 

 






 





Cash flow from investing activities

 





Payments to acquire property, plant and equipment

(390)


            (93)


            (444)

Proceeds from the sale of property, plant and equipment

1


               -


             11

Payments to acquire intangible assets

             (110)


               (29)


            (306)

Net finance income/(costs)

           -     


               10


          12


 





Net cash outflow from investing activities

(499)


           (112)


           (727)


 





 

 






 





Cash flow from financing activities

 





Payment for right of use assets

(31)


(30)


(46)

Proceeds from new loans (note 6)

-


950


950

Loans repaid

-


-


(950)

Dividends paid

(193)


(174)


(314)


 





Net cash outflow from financing activities

(224)


746


(360)


 





 

 

 

 





Net increase in cash and cash equivalents

(931)


1,227


           711

 

Effect of exchange rate differences on cash or cash equivalents

-


-


17

Cash and cash equivalents at beginning of period

4,410


          3,682


         3,682







Cash and cash equivalents at end of period

3,479


          4,909


          4,410








 






 





 

 

 

NOTES TO THE INTERIM FINANCIAL REPORT

 

 

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 2022 is not audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The statutory accounts for the year ended 31 March 2022 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 2021 were also unaudited.

2.             ACCOUNTING POLICIES

Basis of accounting

The report has been prepared on a going concern basis in accordance UK-adopted International Accounting Standards.

 

The group has not availed itself of early adoption options in standards and interpretations.

 

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2022. 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 2022 from the movements in discount rates and inflation during the six months.

3.             DIVIDENDS

 

A final dividend for the financial year 2022 of 7.5625p per share (2021: 6.875p) was paid during the period.

 

An Interim dividend for the financial year 2023 of 5.5p per share is proposed (2022: 5.5p), payable on 25 March 2023.

4.            EARNINGS/(LOSS) PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £488,000 (2021: profit £651,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2021: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

5.           OTHER OPERATING INCOME - GRANT FUNDING

                Income has been received from government grants providing support during the Coronavirus pandemic:

               

Half year ended 30 September


Half year ended 30 September


Year    ended 31 March


2022


2021


2022


Unaudited


Unaudited


Audited


£'000


£'000


£'000

 

 


 



 

 





              Job Retention Scheme

-


 15


15


 





              Total other operating income

-


            15


15

 

 





               

Income has been accounted for under the accruals method.

 

 

 

 

 

NOTES TO THE INTERIM FINANCIAL REPORT

 

 

6.         BORROWINGS

 

At the end of April 2021, the Company drew down a loan under the Coronavirus Business Interruption Loan Scheme (CBILS), for the value of £950,000, which under the standard terms is interest free for 12 months, with no penalty for early repayment.

This loan was repaid in full in March 2022.

7.         RETIREMENT BENEFIT SCHEME

 

The retirement benefit scheme is valued in part using yield rates, as indicated by government bonds. Towards the end of September 2022, the rate of these bonds increased significantly, causing the valuation of the scheme to move from a liability to become an asset.

 

However, based on a review of the scheme deeds it is not clear whether the Company has an unconditional right to a refund and therefore for the purposes of the interim financial statements the surplus has not been recognised as an asset in accordance with the requirements of IAS 19 and IFRIC 14. In addition, the Directors believe that the gilt yields at 30 September 2022 are not likely to persist and indeed they have subsequently reduced. A future movement (reduction) in bond yields may return the scheme to a deficit position.

 

At 30 September 2022 the scheme had no exposure to Liability Driven Investments.

 

 

 

Note: 

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority. 

 

 

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