RNS Number : 2561H
Heath(Samuel) & Sons PLC
12 July 2012
HEATH (Samuel) & SONS PLC
12th JULY 2012
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2012
CHAIRMAN'S STATEMENT
I have pleasure in reporting an increased profit before tax for the year of £632,000 (2011: £550,000) on sales of £9,782,000 down 0.5% on last year.
Had I been writing this report at the end of January, and not after the end of March, it would have been very different and the results much more in line with my forecasts at the time of the interim report.
It was to the great credit of our sales and marketing team that they obtained every order available to us throughout the world in far from easy trading climates. It was equally to the credit of those on the manufacturing side of the business that they were able to respond to the increased, and it has to be said rather unexpected, demand when it did come towards the end of the trading year.
The future, as so often these days, is extremely difficult to assess. Because there is no clear pattern to the increased business we have experienced in the last few months, we have again budgeted cautiously. We have taken into account the turmoil in some of our markets around the world, not the least being the uncertainties in the U.K. one, still our largest.
Our net assets remain strong amounting to £5,246,000 (2011: £6,350,000). We therefore propose a same again final dividend of 6.25p per share, making a total of 11.75p for the year.
Sam Heath
Chairman
11th July 2012
For further information:
Samuel Heath & Sons Plc
John Park - Company Secretary
0121 772 2303
Zeus Capital Limited
0161 831 1512
Ross Andrews/Nick Cowles
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2012
Note
2012
2011
£000
£000
Continuing operations
Revenue
9,782
9,832
Cost of sales
(4,936)
(4,990)
Gross profit
4,846
4,842
Distribution costs
(2,840)
(2,987)
Administrative expenses
(1,450)
(1,371)
Operating profit
556
484
Gain on sale of financial assets
16
51
Finance income
594
606
Finance costs
(534)
(591)
Profit before taxation
632
550
Taxation
4
(117)
(127)
Profit for the year
515
423
Basic and diluted earnings per ordinary share
6
20.3p
16.7p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2012
2011
£000
£000
Profit for year
515
423
Actuarial (loss)/gain on defined benefit pension scheme
(1,712)
345
Deferred taxation on actuarial loss/gain
365
(114)
Gain/(loss) on available for sale financial assets
28
(45)
Cash flow hedges
(2)
2
Other comprehensive income
(1,321)
188
Total comprehensive income for the year
(806)
611
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2012
2012 £000
2011£000
Non current assets
Intangible assets
260
207
Property, plant and equipment
1,948
2,135
Deferred tax asset
696
411
2,904
2,753
Current assets
Inventories
2,615
2,547
Trade and other receivables
1,873
1,903
Derivative financial instruments
-
2
Available for sale financial assets
1,540
1,505
Cash and cash equivalents
477
553
Total current assets
6,505
6,510
Total assets
9,409
9,263
Current liabilities
Trade and other payables
(1,092)
(1,167)
Current tax payable
(62)
(87)
Total current liabilities
(1,154)
(1,254)
Non current liabilities
Retirement benefit scheme
(2,901)
(1,521)
Deferred tax liability
(108)
(138)
Total non current liabilities
(3,009)
(1,659)
Total liabilities
(4,163)
(2,913)
Net assets
5,246
6,350
Equity
Called up share capital
254
254
Capital redemption reserve
109
109
Retained earnings
4,883
5,987
Equity shareholders' funds
5,246
6,350
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2012
Share capital
Capital redemption reserve
Retained earnings
Total Equity
£000
£000
£000
£000
Balance at 31st March 2010
254
109
5,674
6,037
Equity dividends paid
-
-
(298)
(298)
Profit for year
-
-
423
423
Other comprehensive income for the year
-
-
188
188
Balance at 31st March 2011
254
109
5,987
6,350
Equity dividends paid
-
-
(298)
(298)
Profit for year
-
-
515
515
Other comprehensive income for the year
-
-
(1,321)
(1,321)
Balance at 31st March 2012
254
109
4,883
5,246
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2012
Note
2012
2011
£000
£000
Net cash inflow from operating activities
7
390
357
Cash flow from investing activities
Purchases of property, plant and equipment
(235)
(319)
Proceeds from sale of property, plant and equipment
46
6
Purchase of intangible assets
(60)
(42)
Purchase of available for sale financial assets
(465)
(602)
Proceeds from sale of available for sale financial assets
474
302
Interest received
72
79
Net cash outflow from investing activities
(168)
(576)
Net cash outflow from financing activities
Equity dividends paid
5
(298)
(298)
Net cash outflow from financing activities
(298)
(298)
Decrease in cash and cash equivalents
(76)
(517)
Cash and cash equivalents at beginning of period
553
1,070
Cash and cash equivalents at end of period
477
553
1 Adoption of new and revised Standards
The Group has adopted all of the new and revised Standards and Interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB that are relevant to its operations and effective for accounting periods beginning on 1st April 2011. The adoption of the following IFRSs has not impacted upon the financial statements:
Amendment to IAS 24 - Related Party Disclosures
Amendment to IFRIC 14 - Payments of a minimum funding requirement
IFRIC 19 - Extinguishing Financial liabilities with Equity Instruments
Improvements to IFRS 2010
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective:
Amendments to IFRS 7 - Financial Instrument Disclosures
IFRS 9 - Financial Instruments
IFRS 10 - Consolidated Financial Statements
IFRS 11 - Joint Arrangements
IFRS 12 - Disclosure of Interest in Other Entities
IFRS 13 - Fair Value Measurement
IAS 19 - Employee Benefits
IAS 12 - Deferred Tax
Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income
Amendments to IAS 32 - Financial Instruments Presentation
Improvements to IFRS 2011
2 Accounting policies
Basis of preparation of preliminary financial information
The financial statements, upon which this financial information is based, have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS).
This financial information does not constitute the Company's statutory accounts as defined in Section 434 of the Companies Act 2006 and has been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31 March 2012. Statutory accounts for 2011 have been delivered to the Registrar of Companies, and those for 2012 will be delivered in due course following the company's Annual General Meeting. The auditors have reported on the 2011 accounts and their report was unqualified, did not include references to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
The Annual Report and Financial Statements will be posted to shareholders shortly and thereafter will be available from the Company's registered office, and from the Company's website www.samuel-heath.com.
The financial statements have been prepared under the historical cost basis except for the valuation of Available for Sale Assets which have been revalued to market value.
3 Critical accounting and key sources of estimation
Critical judgements in applying the entity's accounting policies
In the process of applying the entity's accounting policies, which are described above, the directors have made the following judgements that have the most significant effect on the amounts recognised in the financial statements.
Income taxes
The Group is subject to income taxes in the United Kingdom. Judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
The recoverable amounts of the Group's deferred tax assets have been determined based on the Board's estimates of future taxable profits and income and tax rates.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Valuation of intangible assets
Intangible assets are initially valued at their cost and then evaluated periodically for impairment. For purposes of valuation an intangible asset is considered impaired if its carrying value is less than the expected net cash flow from the asset.
Valuation of inventories
Determining the valuation of inventories requires an estimation of the obsolescence provision required to write down items to their realisable value.
Retirement benefit scheme deficit
The valuation of expected returns on assets and the present value of the liabilities of the scheme are determined by assumptions and estimates made by the directors based on the current information to hand. Therefore amounts are open to fluctuations in the future due to unforeseen changes or additional factors that come to light following the year end.
4. Income taxes
2012 £000
2011 £000
Current taxes
67
112
Deferred taxes
50
15
Total income taxes
117
127
Corporation tax is calculated at 26% (2011: 28%) of the estimated assessable profit for the year.
Tax rate reconciliation
2012 £000
2011 £000
Profit for the year
632
550
Corporation tax charge thereon at 26% (2011: 28%)
164
154
Adjusted for the effects of:
Depreciation in excess of capital allowances
13
11
Marginal relief
(20)
(19)
Prior year adjustments
1
18
Research and development claim
(16)
(9)
Capitalisation of research and development expenditure
(16)
(12)
Loan relationships
10
(9)
Other adjustments
(19)
(7)
Total income taxes
117
127
Effective tax rate
18.5%
23.1%
5. Dividends
2012
2011
£ 000
£ 000
Final dividend for the year ended 31st March 2011 of 6.25 pence per share (2010: 6.25 pence per share)
158
158
Interim dividend for the year ended 31st March 2012 of 5.50 pence per share (2011: 5.50 pence per share)
140
140
298
298
In addition to the dividends paid during the year the directors are recommending a final dividend for 2012 of 6.25 pence per share amounting to £158,000. The proposed final dividend is subject to approval at the Annual General Meeting (see note 8) and 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 £515,000 (2011: £423,000) by the average number of ordinary shares in issue during the year being 2,534,322 (2011: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.
7. Notes to the cash flow statement
2012
2011
£000
£000
Operating profit
556
484
Depreciation, amortisation and impairment
411
428
Gain on disposal of property, plant and equipment
(29)
(3)
Operating cash flows before movements in working capital
938
909
Increase in inventories
(68)
(142)
Decrease/(increase) in receivables
37
(254)
(Decrease)/increase in payables
(74)
236
Pension contributions
(350)
(255)
Cash generated by operations
483
494
Income tax paid
(93)
(137)
Net cash flow from operating activities
390
357
Cash and cash equivalents (which are presented as a single class of assets on the face of the Statement of Financial Position) comprise cash at bank and other short-term highly liquid investments with a maturity of three months or less.
8. Notice of annual general meeting
Notice is hereby given that the 2012 Annual General Meeting of the Company will be held at the registered office of the Company, Leopold Street, Birmingham, on 17th August 2012 at 12.00 noon. The final Ordinary Share dividend of 6.25 pence, if approved, will be payable on 24th August 2012 to ordinary shareholders registered at close of business on 3rd August 2012.
This information is provided by RNS
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