Heath(Samuel) & Sons PLC 06 December 2005 SAMUEL HEATH & SONS PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 CHAIRMAN'S STATEMENT. The profit for the first six months of our trading year to September 30th of £489,000 was, in our opinion, satisfactory. This was despite the fact that we did not quite hit our sales budget. Trade is not easy, but we are fortunate to have many loyal customers throughout the world. In recent years, we have adopted a conservative distribution policy due to the uncertainties of the marketplace and a strong programme of investment in machinery and new products. Despite this, the Company has generated cash, and we now think it is right to pass out cash to shareholders by way of increased dividends. We are therefore proposing an interim dividend of 11.0 pence per share as against 5.0 pence per share. I have explained many times that, in this day and age, many factories like ourselves do not have order books of more than three to five days. It is therefore extremely difficult to predict the future. However, up to the time of this announcement, it has been a case of more of the same, and there has not been a fall-off in demand for the majority of our products. This could of course change. GROUP PROFIT & LOSS ACCOUNT The results of the group for the half year ended 30th September 2005 which have been neither audited nor reviewed by our external auditors were as follows: Half-year Half -year Year ended ended ended 30 September 30 September 31 March 2005 2004 (restated) 2005 (restated) £'000 £'000 £'000 TURNOVER 5,674 5,752 11,375 ============ ============ ============ GROUP PROFIT before taxation 489 301 683 Deduct: Estimated corporation tax 140 80 146 ------------ ------------ ------------ GROUP PROFIT after taxation 349 221 537 Deduct: Dividends 216 216 255 ------------ ------------ ------------ 133 5 282 ============ ============ ============ * EARNINGS per 10p Share - Basic & Diluted 13.7p 8.7p 21.1p * EARNINGS per Share Before Exceptional Item 13.7p 8.7p 30.9p ============ ============ ============ RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS. Profit for Period 349 221 537 Dividends (216) (216) (255) ------------ ------------ ------------ 133 5 282 Opening Shareholders' Funds 7,726 7,444 7,444 ------------ ------------ ------------ Closing Shareholders' Funds 7,859 7,449 7,726 ============ ============ ============ * Earnings per share are based upon 2,546,818 ordinary shares, being the average number of ordinary shares in issue during this half year (2004: £221,000 related to 2,546,818 ordinary shares). An interim dividend of 11.0 pence per share is proposed (2004: 5.0 pence per share) and will be payable on 31st March 2006 with a record date of 3rd March 2006 and will be accounted for in the year to 31st March 2006. GROUP BALANCE SHEET Unaudited at At 30 September 31 March 2005 2005 (as restated) £'000 £'000 Tangible Fixed Assets 2,873 2,757 ============ ============ Current Assets 6,729 6,607 Creditors (1,363) (1,258) ------------ ------------ Net Current Assets 5,366 5,349 ============ ============ Total Assets Less Current Liabilities 8,239 8,106 Provision for Liabilities and Charges (380) (380) ------------ ------------ 7,859 7,726 ============ ============ CAPITAL AND RESERVES Called up Share Capital 255 255 Other Reserves 7,604 7,471 ------------ ------------ 7,859 7,726 ============ ============ The results for the year ended 31st March 2005 are an abridged version of the group's full accounts for that year which received an unqualified auditors' report and have been filed with the Registrar of Companies. The results for the year ended 31st March 2005 have been adjusted for the effects of FRS 21 as proposed dividends are now accounted for in the period declared and paid. A copy of this announcement will be sent to all ordinary Shareholders. Further copies are available to members of the public from the Company's registered office. The interim financial statements have been prepared in accordance with applicable accounting standards. The accounting policies applied are those set out in the Annual Report and Accounts for the year ended 31st March 2005 except that proposed dividends are now accounted for in accordance with FRS 21. GROUP CASH FLOW STATEMENT Half-year ended Year ended 30th September 2005 31st March 2005 £000s £000s £000s £000s Operating profit 427 577 Depreciation charges and loss/surplus on disposals 223 438 Pension scheme charge 6 12 Decrease in stocks 59 46 Decrease in debtors 22 189 Decrease in creditors (27) (121) ----------- ----------- Net cash inflow from operating activities 710 1,141 Returns on investments and servicing of finance Interest received 62 106 ----------- ----------- Net cash inflow from returns on investments and servicing of finance 62 106 Taxation U.K. Corporation Tax paid (7) (191) Capital expenditure Purchase of tangible fixed assets (355) (285) Sale of tangible fixed assets 15 44 ----------- ----------- Net cash outflow for capital expenditure (340) (241) Management of liquid resources Increase in short-term deposits (289) (317) Equity dividends paid (216) (344) ----------- ----------- Increase/(decrease) in cash (80) 154 =========== =========== Analysis of net funds At 31st At 31st At 30th March Cash March Cash September 2004 Flow 2005 Flow 2005 £000's £000's £000's £000's £000's Bank balances (207) 154 (53) (80) (133) Short-term deposits 2,298 317 2,615 289 2,904 ---------- ---------- ---------- ---------- ---------- Cash at bank per balance sheet 2,091 471 2,562 209 2,771 ========== ========== ========== ========== ========== On behalf of the Board S B Heath Chairman This information is provided by RNS The company news service from the London Stock Exchange