Half-year Report

SAMUEL HEATH & SONS plc

("Samuel Heath" or "the Company")

UNAUDITED HALF-YEAR REPORT

Half year ended 30 September 2025

CHAIR'S STATEMENT

For the half year ended 30 September 2025, sales came in at £7.69m representing an increase of £147k (1.9%) compared to the six months ended 30 September 2024. However, the order intake has been below budget since June 2025 which will affect trading in the second half of the year (as discussed below). Operating profit was £489k compared to £481k in the six months to 30 September 2024, an £8k increase.

The increase in national insurance contributions and minimum wage affect a labour-intensive business like ours considerably, but we are pleased to have increased profit before tax by £103k to £542k (£439k six months to 30 September 2024) during the first half of this year. Tariffs on our sales to the USA are reflected in our turnover, however this cost has been fully passed on to our customers.

Cash and cash equivalents at 30 September 2025 increased by £454k to £2.62m, from £2.17m as at

31 March 2025. Working capital was largely unchanged overall, although management of stock reduced inventory by £209k. Plant expenditure of £34k was incurred to support production efficiency and productivity. Product development costs of £175k (£150k six months to 30 September 2024) were also incurred and capitalised.

The Company's contribution to the defined benefit pension scheme stood at £nil (six months to 30 September 2024: £nil).

The pension scheme surplus was £701k (£526k net of deferred tax) valued under the IAS 19 rules. The scheme continues to be heavily invested in fixed income securities to match movements in assets and liabilities and minimise risk. The status is being regularly monitored to be able to take advantage of a possible buy-out opportunity should it arise. Currently, a significant premium would be required, and it is not believed that a buy-out will be affordable in the near future.

Looking to the second half of the year, the Board has concerns about the economic environment in its two key markets. As mentioned, the order intake from June 2025 has been significantly below budget. Although the UK has secured a USA tariff level at the lower end of the scale, our brassware is only part of a bathroom and other product costs have risen as much as 50%, causing overall construction costs to increase substantially. Many customers have pressed on regardless, but we have seen some pausing of projects while assessments are made of the budget revisions required. In the UK, current and pending changes to inheritance tax and income tax in November 2025's budget has led to some of our clients moving overseas and others waiting to see what happens next. This has led to a degree of caution especially in the London market. The double effects of tariffs and tax increases have led the Company to take action and reduce headcount and costs in anticipation of a tougher second half year and into the next financial year.

The Company is pleased to report that the introduction of four key new finishes, including Anthracite and Old Brass, has met with expectations and are selling well. Events such as Milan and Wow!house in Chelsea Harbour have helped increase our profile with premium interior designers and we feel well placed to mitigate the worst of the events mentioned above to a degree. However, we are expecting sales to be weaker in the second half of the year which will have an impact on our final year profit. Next year will see the launch of our Octelle collection, which is a collaboration with the esteemed interior designer, Laura Hammett which we expect to gain us new sales in our key markets.

Anthony Buttanshaw

Chair

26 November 2025

Dividend

As a result of the uncertain trading conditions, the directors recommend the same interim dividend as last year at 4.5p per share (2024: 4.5p). The interim dividend will be paid on 20 March 2026 to shareholders on the register at the close of business on 13 February 2026. The ex-dividend date for this payment is 12 February 2026.

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, please contact:

Samuel Heath & Sons Plc

Simon Latham, Company Secretary                               

0121 766 4200

Cairn Financial Advisers LLP

Sandy Jamieson / James Western

020 7213 0880                                  

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Parent Company

CONSOLIDATED CASH FLOW STATEMENT                        

NOTES TO THE INTERIM FINANCIAL REPORT

1.             BASIS OF PREPARATION OF INTERIM REPORT

As permitted, IAS34 'Interim Financial Reporting' has not been applied in this interim report. The information for the period ended 30 September 2025 is not audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The statutory accounts for the year ended 31 March 2025 were given an unqualified audit report and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The interim accounts for the half year ended 30 September 2024 were also unaudited.

2.             ACCOUNTING POLICIES

Basis of accounting

The report has been prepared on a going concern basis in accordance UK-adopted International Accounting Standards.

The group has not availed itself of early adoption options in standards and interpretations.

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2025. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements.

The retirement benefit scheme surplus recognised in these interim accounts reflects the estimated change in the surplus at 30 September 2025 from the movements in discount rates and inflation during the six months.

3.             DIVIDENDS

A final dividend for the financial year 2025 of 8.5625p per share (2024: 8.5625p) was paid during the period.

An Interim dividend for the financial year 2026 of 4.5p per share is proposed (2025: 4.5p), payable on 20 March 2026.

4.            EARNINGS PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £542,000 (2024: profit £411,000) by the average number of ordinary shares in issue during the period 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.

5.           OTHER OPERATING INCOME

Income was recognised for the financial year 2025 through the gaining of tax credits under the Research and Development tax regime.

Income has been accounted for under the accruals method.

NOTES TO THE INTERIM FINANCIAL REPORT (cont.)

6.         RETIREMENT BENEFIT SCHEME

The values used in the Financial Statements are valued using IAS 19, which shows a surplus of £701k (shown in the balance sheet as £526k net of deferred tax). However, the Director's support the goal of a Buyout for the Scheme which is likely to result in a premium being paid to the insurance company. This would mean that the Directors do not expect this asset to be realised or ultimately distributable.

Contributions for the year to 31 March 2026 have been agreed at nil (2025: £300,000).

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.