Cautious approach from Samuel Heath despite profit and sales hike

BIRMINGHAM-based bathroom fittings manufacturer Samuel Heath & Sons has reported an increase in both profit before tax and sales in its preliminary results for the year ended March 31.
The firm recorded a profit before taxation of £610,000 (2013: £450,000) on sales up by 8.9% to £10,979,000 (2013: £10,083,000).
Operating profit was also up at £698,000 (2013: £350,000).
But the firm said it is taking a cautious approach because of uncertainties around the world and has therefore disposed of all of its holdings, resulting in a profit on cost of £58,000. It is now keeping its cash reserves on deposit.
Chairman Sam Heath said: “We experienced considerable success with most of the new lines launched during the year and there was improvement in some, but by no means all, of our markets. We should emphasise that trading has certainly not regained the position of pre-crisis level.
“You would think from the daily news that we would be looking forward to a strong year ahead. So far in this trading period our sales have been below that achieved in the same trading period last year.
“In addition, the current strength of Sterling compared to many world currencies, will have a detrimental effect on our sales revenue and profits, which are earned from overseas. It would seem that the caution seen in the markets could well be correct.
“We must therefore add our own note of caution for the coming year, as it would seem that the turbulent trading conditions, which we have experienced in the last few years, are not yet at an end.”