Bathroom fittings firm taps into growth

Birmingham-based bathroom fittings manufacturer Samuel Heath has announced a rise in full year revenue and profits.

For the year to March 31, 2017, the company said revenue grew to £13.053m (2016: £12.584) and pre-tax profit was £1.234m (2016: £947k).  Operating profit was £1.444m (2016: £1.156m).

Chairman Sam Heath said: “During the year, we thought it wise to have a revaluation of our land and buildings as well as our plant and machinery.  This valuation showed a surplus of £1.389m (net of deferred tax).

“The figures were helped considerably by the devaluation of sterling, increasing our margins on most of our export business which accounts for 42% of our sales.  This was of course offset in part by the increased costs of all our imported raw materials and other purchases, a large percentage of which come from Europe or are priced in American dollars.  Nevertheless, it is very pleasing to see a significant increase in performance.”

It has been a year of significant change for the business with major upheavals at board level.

While the untimely death last August of finance director Paul Turner, aged just 49, overshadowed everything, the firm has also seen the retirement of senior non-executive director Martin Legge, while manufacturing director Neil Bosworth has opted for early retirement. He leaves in September.

Mr Bosworth joined the business straight from school and Mr Heath said he had excelled in a variety of positions before taking up his present role in 1996, joining the board in 2003.

“Moving forward, it is a great pleasure to welcome Simon Latham to the board as Financial Director. He is already contributing considerably,” said Mr Heath.

“After a very eventful year we are going into another one which is likely to be just as interesting.  Along with a lot of other businesses, the effects at the moment of Brexit are not as feared, although it has to be said that even last year our UK business was marginally down.  Our order book is fairly healthy.  However, I still believe that there are likely to be some clouds on the horizon.  Whether they arrive in this financial year, it is very difficult to forecast.

“Meanwhile, the improving asset position allows us to pay the deferred interim dividend of 5.5p, as well as holding the final dividend at 6.875p, the same level as last year.”