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 | +44 (0)121 772 2303 |
Cairn Financial Advisers LLP | +44 (0)20 7213 0880 |
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 |
Samuel Heath & Sons plc published this content on 12 July 2017 and is solely responsible for the information contained herein.
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