Heath (Samuel) & Sons reports profit growth despite revenue decline

Published 25/07/2025, 09:34
Heath (Samuel) & Sons reports profit growth despite revenue decline

BIRMINGHAM - Samuel Heath & Sons PLC reported an improved operating profit for the year ended March 31, 2025, despite a 3% decline in revenue, according to a press release issued Friday.

The British manufacturer saw sales decrease to £14.77 million from £15.24 million in the previous year, attributed to worsened economic conditions partly caused by the UK budget and US Presidential elections.

Despite lower revenue, the company increased operating profit to £1.03 million, representing a 6.9% return on sales, compared to £832,000 (5.5%) in the previous year. Profit after tax rose to £888,000 from £768,000.

The company achieved these improvements through cost-cutting measures, including reviews of production staffing levels, sales and marketing activity, alongside reduced energy bills. Selling and distribution costs fell by 6.6%, while administrative overheads decreased by 6.5%.

Cash and cash equivalents increased by £485,000 to £2.17 million as of March 31, 2025, while net assets rose to £12.30 million from £12.18 million.

The pension scheme maintained a surplus position, though it decreased to £823,000 from £1.02 million. Company contributions to the scheme were reduced by £609,000 to £300,000 after agreement with trustees.

Looking ahead, the company faces challenges including US tariffs affecting exports and higher employment costs due to changes in the national insurance threshold. However, the board expressed cautious optimism, citing ongoing product development and new marketing initiatives.

The directors recommended maintaining the final dividend at 8.5625 pence per share, payable on September 26, 2025, bringing the total declared dividend for the year to 13.0625 pence per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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