Final Results, Notice of AGM & Dividend

Heath(Samuel) & Sons PLC

28 July 2026

HEATH (SAMUEL) & SONS PLC

28 July 2026

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2026 AND NOTICE OF AGM

CHAIR'S STATEMENT

Trading

I reported at the half year that we anticipated a tougher second half and this proved to be the case. Revenue for the year to 31 March 2026 was flat at £14.826m (£14.769m in 2025), but this included US tariffs passed on to customers. Business in both our key markets was more difficult, for different reasons. In the USA, tariffs introduced in April, initially at a small advantage over our European competitors and since levelled out, have caused some customers to put projects on hold due to the increase in overall construction costs. In our home market we have seen a pronounced effect of changes to the taxation system on international clients relocating to other countries. In some cases, we have been able to follow this move due to our strong connections with interior designers and distributors overseas, but the overall effect has not been positive. This is on top of the effects of general economic and political uncertainty on the markets.

A slowdown in trade coupled with increased costs, particularly national insurance contributions, have contributed to a more difficult year. A weaker US dollar reduced our margin on sales to North America. Gross profit reduced from £6.839m last year to £6.577m. Tariffs amounting to £384,000 are included in our revenue and the cost is passed on in full (included in selling and distribution costs). PBT was significantly lower at £375,000 compared to £1.163m last year. We incurred exceptional costs of £383,000 during the year, primarily reflecting the implementation of a restructuring programme designed to improve operational effectiveness and position the business for future profitability. In addition to redundancy costs, the exceptional charge includes one-off professional and leadership support on a strategic basis.

I previously reported on the reduction in headcount which we implemented in autumn 2025. Although selling and distribution costs and administrative expenses were higher, the action we have taken will help reduce them this year.

Cash and cash equivalents at 31 March 2026 increased by £633k to £2.802m, from £2.169m as at 31 March 2025. Working capital decreased by £235k (inventory by £701k).

Net Assets increased to £12.97m (2025: £12.30m).

The pension scheme remains in surplus and contributions were reduced by £300k to £0k (2025: £300k). Although the asset values have reduced in value in line with the markets, the discount rate has remained strong. In IAS19 accounting terms a surplus has been recorded of £643k (2025: £823k), however the Directors would highlight, as previously stated, 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. Net of the related deferred tax liability, the latest balance is a surplus of £482k (2025: surplus £617k).

Outlook

The latest events in the Middle East started in the final months of our financial year and have affected a small but important residential market for us in the region as well as creating a degree of uncertainty globally. Looking ahead, we also expect an impact on energy costs, although we are shielded for some of the year ahead by fixed price contracts.

The South-East UK market remains subdued, with our showroom customers reporting footfall and sales down again in 2026 compared to 2025. There is also concern in the UK market about further potential changes to tax policy.

We feel the restructure at the end of 2025 shapes the business well and leaves us in a strong position to build on the positive momentum that should come from our continuing sales and marketing campaigns in our key markets. We invest continually in reaching a wider customer base and events such as Brera Design Week in Milan and Wow!House in Design Centre Chelsea Harbour, together with a strong marketing drive in North America, have proved successful in this regard. We are developing our current products to meet the approval requirements of new markets which will start to add sales where we currently sell little.

Our premium Octelle collection will be available for sale late summer and is already receiving a very positive response.

      Sales and profitability in the first quarter of the current year have shown improvement over the second half of last year. However, orders are down and the summer is expected to be difficult. It is expected that orders will improve again in September but there is much uncertainty looking forward.

I should like to thank the executive directors and the management and staff of the Company for their excellent efforts in a very difficult environment.

The directors recommend maintaining the final dividend at 8.5625p, which will be paid on 28 September 2026 to shareholders registered as at 21 August 2026, the ex-dividend date for the payment is 20 August 2026. This will bring the total declared for the year (Interim and Final) to £331k (2025: £331k).

Anthony Buttanshaw

Non-Executive Chair

27 July 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:

Samuel Heath & Sons Plc
Sarn Lloyd - Company Secretary	+44 (0)121 766 4200
Cairn Financial Advisers LLP	+44 (0)20 7213 0880
Sandy Jamieson/James Western

________________________ CONSOLIDATED INCOME STATEMENT_________________________

for the year ended 31 March 2026

			2026			2025
	Note
			£000			£000
Revenue	3		14,826			14,769
Cost of sales			(8,249)			(7,930)
Gross profit			6,577			6,839
Selling and distribution costs			(3,827)			(3,711)
Administrative expenses			(2,141)			(2,163)
Other operating income			59			61
Operating profit before exceptional items			668			1,026
Exceptional items			(383)			-
Operating profit			285			1026
Finance income			90			137
Profit before taxation			375			1,163
Taxation	4		(171)			(275)
Profit for the year attributable to owners of the Parent Company			204			888
Basic and diluted earnings per ordinary share	6		8.0p			35.0p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2026
			£000			£000
Profit for the year			204			888
Items that will not be reclassified to profit or loss:
Actuarial gain on defined benefit pension scheme			(171)			(531)
Revaluation of Land & Buildings, Plant & Equipment			1,100			-
Deferred taxation on actuarial (loss)/gain			45			133
Deferred taxation on revaluation (loss)/gain			(176)			-
			798			(398)
Total comprehensive income for the year			1,002			490

__________________STATEMENT OF FINANCIAL POSITION_____________________

31 March 2026

		Group Restated				Restated
		2026		2025		2024
		£000		£000		£000
Non-current assets
Intangible assets		1,134		1,059		911
Property, plant and equipment		5,360		4,755		4,733
Retirement benefit scheme		643		823		1,022
		7,137		6,637		6,666
Current assets
Inventories		3,922		4,622		4,842
Trade and other receivables		2,123		1,951		2,071
Derivative financial instruments		-		32		-
Current tax receivable		59		61		-
Cash and cash equivalents		2,802		2,169		1,684
		8,906		8,835		8,597
Total assets		16,043		15,472		15,263
Current liabilities
Trade and other payables		(1,470)		(1,813)		(1,989)
Lease liabilities		(81)		(74)		(60)
		(1,551)		(1,887)		(2,049)
Non-current liabilities
Lease liabilities		(52)		(128)		(25)
Deferred tax liability		(1,467)		(1,155)		(1,014)
		(1,519)		(1,283)		(1,039)
Total liabilities		(3,070)		(3,170)		(3,088)
Net assets		12,973		12,302		12,175
Equity
Called up share capital		254		254		254
Capital redemption reserve		109		109		109
Revaluation reserve		1,968		1,044		1,146
Retained earnings		10,642		10,895		10,666
Total equity attributable to owners of the Parent Company		12,973		12,302		12,175

During the preparation of the financial statements for the year ended 31 March 2026, the Group identified that the deferred tax liability relating to the defined benefit pension surplus had been incorrectly presented as a reduction of the retirement benefit asset in the comparative statement of financial position at 31 March 2025 and 31 March 2024.

In accordance with IAS 12 Income Taxes, deferred tax and liabilities are required to be presented separately from retirement benefit assets. Accordingly, the comparative information has been restated to present the define benefit pension asset on a gross basis, with the related deferred tax liability recognised separately within deferred tax liabilities.

_____________ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY __________________

for the year ended 31 March 2026

	Attributable to owners of the Parent Company
	Share capital	Capital redemption reserve	Revaluation reserve	Retained Earnings	Total Equity
	£000	£000	£000	£000	£000
Balance at 31 March 2024	254	109	1,146	10,666	12,175
Transactions with owners
Equity dividends paid	-	-	-	(331)	(331)
Transfer to retained earnings
Reclassification of depreciation on revaluation	-	-	(70)	70	-
Disposal of revalued asset	-	-	(32)	-	(32)
	-	-	(102)	70	(32)
Profit for the year	-	-	-	888	888
Other comprehensive income for the year	-	-	-	(398)	(398)
Total comprehensive income for the year	-	-	-	490	490
Balance at 31 March 2025	254	109	1,044	10,895	12,302
Total transactions with owners
Equity dividends paid	-	-	-	(331)	(331)
Profit for the year	-	-	-	204	204
Revaluation Land & Buildings, Plant & Equip	-	-	1,100	-	1,100
Other comprehensive income for the year	-	-	(176)	(126)	(302)
Total comprehensive income for the year	-	-	924	78	1,002
Balance at 31 March 2026	254	109	1,968	10,642	12,973

__________________________STATEMENTS OF CASHFLOWS _____________________________

                                                     for the year ended 31 March 2026

			Group
			2026		2025
			£000		£000
Cash flow from operating activities
Profit for the year before taxation			375		1,163
Adjustments for:
Depreciation			574		540
Amortisation			284		227
(Profit) on disposal of property, plant and equipment			-		(36)
Interest charge on capitalised leases			9		2
Interest received			(95)		(107)
Defined benefit pension scheme expenses			55		25
Contributions to defined benefit pension scheme			-		(300)
Fair value gain on derivative financial instruments			-		(32)
Operating cash flows before movements in working capital			1,202		1,482
Changes in working capital:
Decrease in inventories			701		220
(Increase)/decrease in trade and other receivables			(111)		59
(Decrease) in trade and other payables			(355)		(184)
Cash generated from operations			1,437		1,577
Taxation paid			(58)		-
Net cash generated from operating activities			1,379		1,577
Cash flows used in investing activities
Payments to acquire property, plant and equipment			(76)		(402)
Payments to acquire intangible assets			(359)		(375)
Interest Received			95		107
			(340)		(670)
Cash flows from financing activities
Lease payments			(77)		(76)
Dividends paid			(331)		(331)
			(408)		(407)
Net increase in cash and cash equivalents			631		500
Cash and cash equivalents at beginning of year			2,169		1,674
Effect of exchange rate differences on cash and cash equivalents			2		(5)
Cash and cash equivalents at end of year			2,802		2,169

NOTES TO THE PRELIMINARY ANNOUNCEMENT

1.     Basis of preparation

The Group has prepared its consolidated financial statements for the year ended 31 March 2026 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 2026.

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 2026 were approved by the Board of Directors on 23 July 2026 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 2025 have been delivered to the Registrar of Companies. The auditor's reports on the statutory accounts for the years ended 31 March 2026 and 31 March 2025 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, discount 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 24 "Retirement benefit scheme". Where a surplus on a defined benefit scheme arises, the rights of the Trustees to approve 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 2026. The directors have made the judgement that these amounts meet the requirements of recoverability and a surplus of £643k 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. The value of assets carried are set out in note 14 "Property, plant and equipment".

Inventory Impairment- 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 £2,871,000 (2025: £3,240,000).

3.     Revenue by geographic market
			2026 £000		2025 £000
Overseas			7,550		7,348
UK			7,276		7,421
			14,826		14,769

4.     Income taxes

	2026 £000		2025 £000
Current taxes:
Current year	-		-
Adjustments in respect of prior periods	(6)		-
	(6)		-
Deferred taxes:
Origination and reversal of temporary differences	176		306
Adjustments in respect of prior periods	1		(31)
	177		275
Total income taxes	171		275

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

Tax reconciliation

		2026 £000		2025 £000
	Profit for the year	375		1,163
	Corporation tax charge thereon at 25% (2024: 25%)	93		290
	Adjusted for the effects of:
	Prior year adjustments	1		(31)
	Research and development claim	3		5
	Patent Box	-		(42)
	Fixed asset differences	36		39
	Other adjustments	38		14
	Total income taxes	171		275

5.     Dividends

	2026		2025
	£000		£000
Final dividend for the year ended 31 March 2026 of 8.5625 pence per share (2025: 8.5625 pence per share)	218		218
Interim dividend for the year ended 31st March 2026 of 4.50 pence per share (2025: 4.50 pence per share)	113		113
	331		331

The directors are recommending a final dividend for 2026 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 £204,000 (2025: £888,000) by the average number of ordinary shares in issue during the year being 2,534,322 (2025: 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 2026 Annual General Meeting of the Company will be held at the registered office of the Company, Leopold Street, Birmingham, on 03 September 2026 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. 

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