Heath sees rise in pre-tax profits

BIRMINGHAM-based bathroom fittings manufacturer Heath (Samuel) & Sons has announced an increase in full year pre-tax profit due to rising income.

However, it has forecast a difficult 2011, which it said had started slowly and was showing every sign of continuing, especially in the UK.

The firm said pre-tax profit rose to £550,000 in the last financial year, compared with £336,000 in the previous year.

Revenue increased from £9.529m to £9.832m and earnings per share rose from 9.2p to 16.7p.

Chairman Sam Heath said the results were “a move in the right direction, despite far from easy trading conditions”.

He added: “After the improvement in profits, it would be good to be able to give an upbeat forecast for the coming year.

“We are not able to do that. As we have budgeted, the year has started extremely slowly with uncertainty in practically all of our markets, most particularly in our biggest, the UK.

“If copper and zinc prices continue at least to stabilize, this could help, but there is very little else to cheer us.

“However our net assets remain strong amounting to £6,350,000 (2010: £6,037,000).

“We therefore propose a same again final dividend of 6.25p per share, making a total of 11.75p for the year.”

During the year, the firm said it had updated its computer system, which it believed would deliver long term benefits.

This, plus the cost of financing the much increased price of brass, saw total cash and financial assets reduce from £2,268,000 to £2,058,000.

Mr Heath also said director David Coplestone had announced he was to step down from the board at the August AGM.

Mr Coplestone has been involved with the company for 43 years, 27 of them in a senior executive position.

He became deputy managing director and Mr Heath said his contribution to the firm was incalculable.