Samuel Heath and Sons : Preliminary Release 31st March 2017 12-07-17

HEATH (Samuel) & SONS PLC 12th JULY 2017 PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2017 CHAIRMAN'S STATEMENT

It is pleasing to report results which show considerable improvement on last year.

Sales revenue was up to £13.053m (2016: £12.584) and profit before tax was £1.234m (2016: £947k). The operating profit was £1.444m (2016: £1.156m).

During the year, we thought it wise to have a revaluation of our land and buildings as well as our plant and machinery. This valuation showed a surplus of £1.389m (net of deferred tax) which is shown in the accounts.

The figures were helped considerably by the devaluation of sterling, increasing our margins on most of our export business which accounts for 42% of our sales. This was of course offset in part by the increased costs of all our imported raw materials and other purchases, a large percentage of which come from Europe or are priced in American dollars. Nevertheless, it is very pleasing to see a significant increase in performance.

On the personnel front as regard the Board, this year has witnessed much change. I reported on 11 August 2016 the sad death of Paul Turner at the very young age of 49.

As announced on 29 September 2016 Martin Legge decided that he finally had to retire. He has given many years' hard work and his financial advice in particular will be missed. I would like to thank him for all those years.

Our very successful Manufacturing Director, Neil Bosworth, has also decided to take early retirement from the Board and is stepping down with effect from 30 September 2017. He joined us straight from school and has excelled in a variety of positions before he took up his present one in 1996, being invited onto the Board in 2003.

Moving forward, it is a great pleasure to welcome Simon Latham to the Board as Financial Director. He is already contributing considerably.

After a very eventful year we are going into another one which is likely to be just as interesting. Along with a lot of other businesses, the effects at the moment of Brexit are not as feared, although it has to be said that even last year our UK business was marginally down. Our order book is fairly healthy. However, I still believe that there are likely to be some clouds on the horizon. Whether they arrive in this financial year, it is very difficult to forecast.

Meanwhile, the improving asset position allows us to pay the deferred interim dividend of 5.5p which I referred to in the interim report on 16 November 2016, as well as holding the final dividend at 6.875p, the same level as last year.

Sam Heath Chairman 12th July 2017

Samuel Heath & Sons Plc
John Park - Company Secretary	[phone]
Cairn Financial Advisers LLP	[phone]
James Caithie/Jo Turner

Note	2017	2016
£000	£000
Continuing operations
Revenue	13,053	12,584
Cost of sales	(6,386)	(6,528)
Gross profit	6,667	6,056
Distribution costs	(3,274)	(3,083)
Administrative expenses	(1,949)	(1,817)
Operating profit	1,444	1,156
Finance income	354	360
Finance costs	(564)	(569)
Profit before taxation	1,234	947
Taxation	(221)	(178)
Profit for the year	1,013	769
Basic and diluted earnings per ordinary share	40.0p	30.3p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31st March 2017
2017	2016
£000	£000
Profit for the year	1,013	769
Items that will be reclassified to profit or loss:
Cash flow hedges	16	(71)
16	(71)
Items that will not be reclassified to profit or loss:
Actuarial (loss)/gain on defined benefit pension scheme	(629)	411
Deferred taxation on actuarial loss/(gain)	46	(205)
Revaluation of property, plant and equipment	1,607	-
Deferred taxation on revaluation of assets	(218)	-
806	206
Total comprehensive income for the year	1,835	904

2017	2016
£000	£000
Non-current assets
Intangible assets	79	128
Property, plant and equipment	3,511	1,581
Investments	-	-
Deferred tax asset	793	1,098
4,383	2,807
Current assets
Inventories	3,789	3,321
Trade and other receivables	2,169	2,153
Cash and cash equivalents	2,079	2,078
8,037	7,552
Total assets	12,420	10,359
Current liabilities
Trade and other payables	(1,400)	(1,317)
Amounts owed to group undertakings	-	-
Derivative financial instruments	-	(15)
Current tax payable	(158)	(147)
(1,558)	(1,479)
Non-current liabilities
Retirement benefit scheme	(6,501)	(6,101)
Deferred tax liability	-	(79)
(6,501)	(6,180)
Total liabilities	(8,059)	(7,659)
Net assets	4,361	2,700
Equity
Called up share capital	254	254
Capital redemption reserve	109	109
Revaluation reserve	1,389	-
Retained earnings	2,609	2,337
Equity shareholders' funds	4,361	2,700