20th Jul 2022 10:41
(Alliance News) - Samuel Heath & Sons PLC shares jumped on Wednesday after the company reported a surge in annual profit, due to a recovery in orders.
Shares were trading 15% higher at 680.00 pence each on Wednesday morning in London.
The Birmingham-based hardware and bathroom appliances manufacturer reported a pretax profit of GBP2.0 million in the year which ended March 31. This was more than tripled from GBP620,000 the year before.
Samuel Heath & Sons recorded revenue growth of 22% to GBP14.0 million from GBP11.5 million.
The company attributed this to a "significant" jump in orders in July, as customer projects put on hold during the lockdown started back up again.
"The order flow then reduced through much of the remainder of 2021, picking up again in December and continuing through the quarter to March 2022," Chair AR Buttanshaw said.
Samuel Heath & Sons increased its final dividend by 10% to 7.5625 pence from 6.875p the year before.
It said that is it currently recording "strong" sales momentum but warned of substantial cost increases.
"Increases in global energy costs, freight costs, and commodity prices are all impinging on margins. Supply chain disruption is an area where we have particular concerns, so we have been taking action to mitigate the effects," Buttanshaw continued.
Overall, the company said it was "cautious" about the outturn for financial 2023.
By Abby Amoakuh; [email protected]
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