It is pleasing to report a very much better year to March 31st, 2016.
The profit before tax was £947,000 (2015: £443,000). It has to be said that this comparison is with a particularly disappointing figure the year before. This applies also to the operating profit of £1,156,000 (2015: £598,000) on revenue of £12,584,000 (2015: £11,198,000).
Our customers insist on shorter delivery times and, as a result of decisions to facilitate these, our inventories increased by £164,000. Nevertheless our cash position improved by £430,000.
Capital expenditure during the year was £422,000 and average numbers of staff increased from 130 to 139.
During the year Mr Martin Legge relinquished the role of Senior Non-executive director and this role has been taken on by Mr Anthony Buttanshaw. Mr Legge remains on the Board.
Quite clearly, our pension fund deficit causes us some concern. It has slightly improved to £6,101,000 (2015:
£6,568,000). A further cut in bank rate is the last thing we would want to worsen the position. During the year payments were made of £311,000. In view of the improved profit, this year's payment will be £511,000.
We are recommending an increase of 10% on our final dividend from 6.25p to 6.875p, making an overall increase in the dividend for the year of 5.4%.
Now for the future. If there is one thing that is bad for our type of business it is uncertainty. While I am writing this, there is certainly plenty of that around, both in the U.K., our largest market, and also in many of our other markets in the world. The feedback from our customers tells us that this is already having considerable effect on the level of new business activity that they are experiencing. It takes much longer for us to feel the impact on this decrease than it did when we were conducting most of our business through the retail trade.
On 23rd June the UK voted in a referendum to leave the European Union. All I can say is that during my considerable time with the Company, we have experienced various extremes of government policies and world situations. During these, we have survived and sometimes prospered.
I can only add that for the first three months of the current financial year we have not suffered. The next nine months could see a very different picture.
Sam Heath Chairman 13th July 2016
Samuel Heath & Sons Plc | |
John Park - Company Secretary | +44 (0)121 772 2303 |
Cairn Financial Advisers LLP | +44 (0)20 7148 7900 |
James Caithie/Jo Turner |
Note | 2016 | 2015 | ||
£000 | £000 | |||
Continuing operations | ||||
Revenue | 4 | 12,584 | 11,198 | |
Cost of sales | (6,528) | (5,873) | ||
Gross profit | 6,056 | 5,325 | ||
Distribution costs | (3,083) | (3,006) | ||
Administrative expenses | (1,817) | (1,721) | ||
Operating profit | 1,156 | 598 | ||
Finance income | 360 | 430 | ||
Finance costs | (569) | (585) | ||
Profit before taxation | 947 | 443 | ||
Taxation | 5 | (178) | (49) | |
Profit for the year | 769 | 394 | ||
Basic and diluted earnings per ordinary share | 7 | 30.3p | 15.5p | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
2016 | 2015 | |||
£000 | £000 | |||
Profit for year | 769 | 394 | ||
Items that will be reclassified to profit or loss: | ||||
Cash flow hedges | (71) | 58 | ||
(71) | 58 | |||
Items that will not be reclassified to profit or loss: | ||||
Actuarial gain/(loss) on defined benefit pension scheme | 411 | (2,888) | ||
Deferred taxation on actuarial (gain)/loss | (205) | 578 | ||
206 | (2,310) | |||
Total comprehensive income/(loss) for the year | 904 | (1,858) |
2016 £000 | 2015 £000 | ||
Non current assets | |||
Intangible assets | 128 | 184 | |
Property, plant and equipment | 1,581 | 1,475 | |
Deferred tax asset | 1,098 | 1,313 | |
2,807 | 2,972 | ||
Current assets | |||
Inventories | 3,321 | 3,157 | |
Trade and other receivables | 2,153 | 2,085 | |
Derivative financial instruments | - | 56 | |
Cash and cash equivalents | 2,078 | 1,648 | |
Total current assets | 7,552 | 6,946 | |
Total assets | 10,359 | 9,918 | |
Current liabilities | |||
Trade and other payables | (1,317) | (1,126) | |
Derivative financial instruments | (15) | - | |
Current tax payable | (147) | (72) | |
Total current liabilities | (1,479) | (1,198) | |
Non current liabilities | |||
Retirement benefit scheme | (6,101) | (6,568) | |
Deferred tax liability | (79) | (58) | |
Total non current liabilities | (6,180) | (6,626) | |
Total liabilities | (7,659) | (7,824) | |
Net assets | 2,700 | 2,094 | |
Equity | |||
Called up share capital | 254 | 254 | |
Capital redemption reserve | 109 | 109 | |
Retained earnings | 2,337 | 1,731 | |
Equity shareholders' funds | 2,700 | 2,094 |
Samuel Heath & Sons plc published this content on 13 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 July 2016 08:43:03 UTC.
Original documenthttp://www.samuel-heath.co.uk/documents/7578/original/preliminary-release-31st-march-2016.pdf
Public permalinkhttp://www.publicnow.com/view/3C81FC9E5EF02DBEEED0CC98BB4319C5D7219506