TIDMHSM
RNS Number : 0488F
Heath(Samuel) & Sons PLC
12 November 2020
SAMUEL HEATH & SONS plc
("the Company")
INTERIM REPORT
Half year ended 30 September 2020
CHAIRMAN'S STATEMENT
This has been the most extraordinary half year in my rather
lengthy business career. Regrettably there is still not yet a clear
outcome by any means.
Our trading performance for the six months until September 30th
was quite a lot better than feared but still only produced a small
profit of GBP6k before exceptional items (2019: GBP363k), on sales
of GBP4.850m (2019: GBP6.920m). As I mentioned in my annual report,
without any doubt this was greatly aided by the Government's
furlough scheme. This was imaginative and effective. It helped us
on all sides of the business, but particularly on the sales side.
However, as it was coming to an end, we had to make some difficult
decisions to protect the future of the Company. This resulted in
considerable redundancy payments, shown in the accounts as
exceptional. This brought our total half year results to a loss of
GBP224k before taxation (2019: profit GBP363k).
You cannot run a business like ours successfully for long
without a considerable sales team, focussed marketing activities
and continual research and development. We have therefore brought
these back into play for the second half of the year. This is
clearly not without risk.
There are differing views on the next six months. We have the
U.S. election which could affect a manufacturer at the luxury end
of the market, the unknown outcome of the talks with the EU, and,
by far the worst of all, the return in volume of the Coronavirus.
Anybody offering a forecast in these circumstances would be
extremely unwise.
This leaves the question of the dividend. Apart from the ethical
question of whether we should pay out dividends when in receipt of
Government money, notwithstanding the millions we have paid over
the years in taxes, there is more importantly the possible cash
requirements of the Company over the next six months. We have
therefore decided not to pay an interim dividend but hope to return
to normality next year.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Sam Heath
Chairman
11 November 2020
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
Unaudited Interim Financial Report
For the Half Year ended 30 September
2020
CONSOLIDATED INCOME STATEMENT
Half year Half year Year
ended 30 ended 30 ended 31
September September March
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 4,850 6,920 13,887
Cost of sales (3,062) (3,598) (6,798)
Gross profit 1,788 3,322 7,089
Selling and distribution costs (1,344) (1,776) (3,543)
Administrative expenses (940) (1,067) (2,012)
Other operating income - grant (note 596 - -
6)
Operating profit 100 479 1,534
Finance income 14 9 25
Finance cost (108) (125) (191)
Profit before taxation and exceptional
items 6 363 1,368
Exceptional item (note 5) (230) - -
(Loss)/profit before taxation (224) 363 1,368
Taxation 43 (69) (299)
(Loss)/profit for the period (181) 294 1,069
Basic and diluted (loss)/earnings
per ordinary share (note 4) (7.1p) 11.6p 42.2p
=========== ================= ==================
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year Half year Year ended
ended 30 ended 30 31 March
September September
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (181) 294 1,069
Items that will not be reclassified
to profit or loss:
Actuarial gain/(loss) on defined benefit
pension scheme (1,239) 204 291
Deferred tax on actuarial loss/(gain) 218 (34) (55)
Deferred tax rate change - - 125
Revaluation of property, plant and
equipment - - 182
Deferred taxation on revaluation of
assets - - (23)
(1,021) 170 520
Total comprehensive income for the
period (1,202) 464 1,589
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September At 30 At 31
September March
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 135 74 151
Property, plant and equipment 3,541 3,519 3,635
Deferred tax assets 1,103 972 887
4,779 4,565 4,673
Current assets
Inventories 3,869 3,883 4,230
Trade and other receivables 1,689 2,216 2,370
Cash and cash equivalents 3,424 3,100 3,016
---------------- ---------------- -----------------
8,982 9,199 9,616
---------------- ---------------- -----------------
Total assets 13,761 13,764 14,289
---------------- ---------------- -----------------
Current liabilities
Trade and other payables (1,772) (1,665) (1,868)
Right of use lease liabilities (53) (57) (58)
Current tax payable (36) (239) (79)
(1,861) (1,961) (2,005)
Non-current liabilities
Right of use lease liabilities (26) (75) (46)
Retirement benefit scheme (7,413) (7,050) (6,575)
---------------- ---------------- -----------------
(7,439) (7,125) (6,621)
---------------- ---------------- -----------------
Total liabilities (9,300) (9,086) (8,626)
---------------- ---------------- -----------------
Net assets 4,461 4,678 5,663
================ ================ =================
Equity
Called up share capital 254 254 254
Capital redemption reserve 109 109 109
Revaluation reserve 1,308 1,224 1,349
Retained earnings 2,790 3,091 3,951
Equity shareholders' funds 4,461 4,678 5,663
================ ================ =================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital redemption Revaluation Retained Total equity
capital reserve reserve earnings
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31 March 2019 254 109 1,277 2,748 4,388
--------- ------------------- ------------ --------------- ---------------
Total transactions with
owners
Equity dividends paid - - - (174) (174)
--------- ------------------- ------------ --------------- ---------------
Profit for the period - - - 294 294
Other comprehensive income
for the period - - - 170 170
Reclassification of depreciation
on revaluation - - (53) 53 -
--------- ------------------- ------------ --------------- ---------------
Total comprehensive income
for the period - - (53) 517 464
--------- ------------------- ------------ --------------- ---------------
Balance at 30 September
2019 254 109 1,224 3,091 4,678
--------- ------------------- ------------ --------------- ---------------
Total transactions with
owners
Equity dividends paid - - - (140) (140)
--------- ------------------- ------------ --------------- ---------------
Profit for the period - - - 775 775
Other comprehensive income
for the period - - 159 191 350
Reclassification of depreciation
on revaluation - - (34) 34 -
--------- ------------------- ------------ --------------- ---------------
Total comprehensive income
for the period - - 125 1,000 1,125
--------- ------------------- ------------ --------------- ---------------
Balance at 31 March 2020 254 109 1,349 3,951 5,663
--------- ------------------- ------------ --------------- ---------------
Total transactions with - - - - -
owners
Equity dividends paid
--------- ------------------- ------------ --------------- ---------------
Loss for the period - - - (181) (181)
Other comprehensive income
for the period - - - (1,021) (1,021)
Reclassification of depreciation
on revaluation - - (41) 41 -
--------- ------------------- ------------ --------------- ---------------
Total comprehensive income
for the period - - (41) (1,161) (1,202)
Balance at 30 September
2020 254 109 1,308 2,790 4,461
CONSOLIDATED CASH FLOW STATEMENT
Half year Half year Year ended
ended 30 ended 30 31 March
September September
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
(Loss)/profit for the period before
taxation (224) 363 1,368
Adjustments for:
Depreciation 155 192 405
Amortisation 16 8 16
Loss/(profit) on disposal of property,
plant and equipment - 3 (3)
Net finance cost/(income) (14) 7 (25)
Defined benefit pension scheme expenses 98 137 228
Contributions to defined benefit pension
scheme (500) (266) (783)
Operating cash flow before movements
in working capital (469) 444 1,206
Changes in working capital:
Decrease/(increase) in inventories 361 106 (241)
Decrease/(increase) in trade and other
receivables 658 46 (84)
(Decrease)/increase in trade and other
payables (65) 23 79
Cash generated from operations 485 619 960
Taxation paid - - (180)
Net cash from operating activities 485 619 780
Cash flow from investing activities
Payments to acquire property, plant
and equipment (61) (510) (502)
Proceeds from the sale of property,
plant and equipment - 19 14
Payments to acquire intangible assets - - (85)
Net finance income 14 (5) 25
(47) (496) (548)
Cash flow from financing activities
Payment for right of use assets (30) (2) (55)
Dividends paid - (174) (314)
(30) (176) (369)
Net increase in cash and cash equivalents 408 (53) (137)
Cash and cash equivalents at beginning
of period 3,016 3,153 3,153
Cash and cash equivalents at end of
period 3,424 3,100 3,016
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 2020 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 2020 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 2019 were also unaudited.
2. ACCOUNTING POLICIES
Basis of accounting
The report has been prepared on a going concern basis in
accordance with International Financial Reporting Standards and
interpretations issued by the International Financial Reporting
Interpretations Committee as adopted by the European Union.
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 2020. 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 2020 from the movements in discount rates and inflation
during the six months.
3. DIVIDS
No Interim dividend is proposed (paid 20 March 2020: 5.5p).
4. (LOSS)/EARNINGS PER SHARE
The basic and diluted (loss)/earnings per share are calculated
by dividing the relevant loss after taxation of GBP181,000 (30
September 2019: profit GBP294,000) by the average number of
ordinary shares in issue during the period being 2,534,322 (2019:
2,534,322). The number of shares used in the calculation is the
same for both basic and diluted earnings.
5. EXCEPTIONAL ITEM
The exceptional item for the 6 months to 30 September 2020
relates to restructuring costs within the business.
6. OTHER OPERATING INCOME - GRANT FUNDING
Income has been received from government grants providing
support during the Coronavirus pandemic:
JRS GBP571,000
Borough Hammersmith & Fulham GBP 25,000
Income has been accounted for under the accruals method.
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END
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November 12, 2020 02:00 ET (07:00 GMT)
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