Final Results & Notice of AGM

HEATH (SAMUEL) & SONS PLC

25 July 2025

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2025 AND NOTICE OF AGM

CHAIR'S STATEMENT

Trading

I am pleased to report that despite revenues being 3% down, we were able to improve our operating profit appreciably through a careful review of costs. Sales for the year ended at £14.769m compared to £15.237m in 2024, a decrease of £468k. The reduction was due to the factors mentioned at the half year: namely worsened economic conditions partly caused by the UK budget and the US Presidential elections. Our gross profit margin for the year came in at 46.3% (46.6% in 2024).

Management reviewed production staffing levels, sales & marketing activity and other costs which, together with a reduction in energy bills, helped improve operating profit to £1.026m (6.9% return on sales) compared to £832k (5.5%) last year an increase of £226k. Profit after tax was £888k (2024: £768k). Selling and distribution costs reduced by 6.6% and administrative overheads decreased by 6.5% compared to prior year.

Cash and cash equivalents at 31 March 2025 increased by £485k to £2.169m, from £1.684m at 31 March 2024.

Net Assets increased to £12.30m (2024: £12.18m), net of the £150k reduction in pension surplus discussed below.

The pension scheme remains in surplus and Company contributions were reduced by £609k to £300k (2024: £909k) after agreement with the scheme's trustees. Although the asset values have reduced in value in line with the markets, the discount rate has remained strong, reducing liabilities. In IAS19 accounting terms, a surplus has been recorded of £823k (2024: £1.02m); however, the Directors wish to highlight, as previously, that it is both their and the Trustees' aim to move the scheme to a Buyout once it is viable and affordable to do so. Therefore, any surplus recognised is unlikely ever to become distributable. The latest balance, net of the related deferred tax liability, is a surplus of £617k compared to £767k in 2024, a reduction of £150k.

Outlook

The start of the new financial year in April 2025 saw the imposition of tariffs by the US administration which created volatility in a key export market, as well as weakening the dollar in relation to sterling. The Company has however been successful in passing on in full the current 10% tariff level. Employment costs have risen higher than initially forecast due to the unexpected lowering of the national insurance threshold. We are also seeing evidence of the UK luxury market being affected by tax changes impacting on high net-worth individuals and families.

On the positive, the Company's continued product development, both in new finishes and specific fittings, is helping us outperform in a difficult market overall. In 2025, we have commenced new marketing ventures, such as joining the Fuorisalone Design Week at the Brera Design District in Milan and a collaboration with a high profile British interior designer at Wow!house in the Design Centre at Chelsea Harbour. We also organised VIP events for specifiers in North America, all of which are helping us reach a wider customer base. Further new markets are under development and should contribute new sales this financial year.

Despite changes at the macro level the Board is cautiously optimistic for the current year.

The directors recommend maintaining the final dividend at 8.5625p, which will be paid on 26 September 2025 to shareholders registered as at 22 August 2025, the ex-dividend date for the payment is 21 August 2025. This will bring the total declared for the year (Interim and Final) to 13.0625p per share or £331k (2024: £305k).

Anthony Buttanshaw

Non-Executive Chair

24 July 2025

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information:

________________________ CONSOLIDATED INCOME STATEMENT_________________________

for the year ended 31 March 2025

__________________STATEMENT OF FINANCIAL POSITION_____________________

31 March 2025

_____________ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY __________________

for the year ended 31 March 2025

__________________________STATEMENTS OF CASHFLOWS _____________________________

for the year ended 31 March 2025

NOTES TO THE PRELIMINARY ANNOUNCEMENT

1. Basis of preparation

The Group has prepared its consolidated financial statements for the year ended 31 March 2025 in accordance with UK-adopted International Accounting Standards. The accounting policies applied are consistent with those included in the financial statements of the Group for the year ended 31 March 2024.

The financial information contained in this preliminary announcement does not constitute the Group's statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The annual report and financial statements for the year ended 31 March 2025 were approved by the Board of Directors on 24 July 2025 along with this preliminary announcement. The annual report and financial statements will be delivered to the Registrar of Companies after the Annual General Meeting.

The statutory accounts of Samuel Heath & Sons PLC for the year ended 31 March 2024 have been delivered to the Registrar of Companies. The auditor's reports on the statutory accounts for the years ended 31 March 2025 and 31 March 2024 were unqualified and did not contain a statement under section 498 of the Companies Act 2006.

2. Key areas of judgment and sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The Group has evaluated the estimates and assumptions that have been made in relation to the carrying amounts of assets and liabilities in these financial statements.

The key accounting judgements and sources of estimation uncertainty with a significant risk of causing a material adjustment to assets and liabilities in the next 12 months include the following:

Pensions - movements in equity markets, interest rates and life expectancy could materially affect the level of surpluses and deficits in the defined benefit pension scheme. The key assumptions used to value pension assets and liabilities are set out in note 23 "Retirement benefit scheme". Where a surplus on a defined benefit scheme arises, the rights of the Trustees to prevent the Group obtaining a refund of that surplus in the future are considered in determining whether it is necessary to restrict the amount of the surplus that is recognised. The Retirement benefit scheme is in surplus at 31 March 2025. The directors have made the judgement that these amounts meet the requirements of recoverability and a gross surplus of £823k (£617k net) has been recognised.

Valuation of property, plant and equipment - the Group reviews the value, useful economic lives and residual values attributed to assets on an on-going basis to ensure they are appropriate. Changes in market value, economic lives or residual values could impact the carrying value and charges to the income statement in future periods.

Provisions - using information available at the balance sheet date, the Directors make judgements based on experience on the level of provision required against assets. Provisions are initially determined by evaluating the expected sales of each inventory line over the subsequent 12-month period. No provision is made for inventory expected to be sold within this timeframe. Where no sales are anticipated, a 100% provision is made. The Directors subsequently review the initial provisions and adjust them manually, particularly in cases involving inventory acquired within the past 12 months, or where a minimum order quantity is greater than the expected use over a 12-month period. The stock provision at year end was £3.240m (2024: £3.287m).

Research and development - the Group reviews the projects worked on during the year and capitalises the costs of those projects deemed to generate profits in future years, £350,000 was capitalised in the year (2024: £354,000). The Company takes full advantage of available taxation support.

4. Income taxes

Corporation tax is calculated at 25% (2024: 25%) of the estimated assessable profit for the year.

Tax reconciliation

5. Dividends

The directors are recommending a final dividend for 2025 of 8.5625 pence per share amounting to £218,000. The proposed final dividend is subject to approval at the Annual General Meeting and hence 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 £888,000 (2024: £768,000) by the average number of ordinary shares in issue during the year being 2,534,322 (2024: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

7. Notice of annual general meeting

Notice is hereby given that the 2025 Annual General Meeting of the Company will be held at the registered office of the Company, Leopold Street, Birmingham, on 11 September 2025 at 12.00 noon.

8. Posting of accounts

The report and accounts are being posted to shareholders today where requested, and are available on the Company's website, at www.samuel-heath.com/investor-relations. 

Note: 

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.