__________________STATEMENT OF FINANCIAL POSITION_____________________

31 March 2024

The prior year deferred tax liability has been reclassified to non-current in line with IAS 1 guidance.

_____________ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY __________________

for the year ended 31 March 2024

__________________________STATEMENTS OF CASHFLOWS _____________________________

                                                          for the year ended 31 March 2024

NOTES TO THE PRELIMINARY ANNOUNCEMENT

1.     Basis of preparation

The Group has prepared its consolidated financial statements for the year ended 31 March 2024 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 2023.

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 2024 were approved by the Board of Directors on 7 August 2024 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 2023 have been delivered to the Registrar of Companies. The auditor's reports on the statutory accounts for the years ended 31 March 2024 and 31 March 2023 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 2024. The directors have made the judgement that these amounts meet the requirements of recoverability and a surplus of £1.02m 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, including inventory where the provision is reviewed against expected future stock usage, the stock provision at year end was £3.287m (2023: £2.688m).

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, £355,000 was capitalised in the year (2023: £311,000). The Company takes full advantage of available taxation support.

4.     Income taxes

Corporation tax is calculated at 25% (2023: 19%) of the estimated assessable profit for the year.

Tax reconciliation

5.     Dividends

The directors are recommending a final dividend for 2024 of 8.5625 pence per share amounting to £217,000. 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 £768,000 (2023: £931,000) by the average number of ordinary shares in issue during the year being 2,534,322 (2023: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

7.     Exceptional items

There were no exceptional costs for 2023.

8.     Notice of annual general meeting

Notice is hereby given that the 2024 Annual General Meeting of the Company will be held at the registered office of the Company, Leopold Street, Birmingham, on 5 September 2024 at 12.00 noon.

9.     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.