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:

________________________ CONSOLIDATED INCOME STATEMENT_________________________

for the year ended 31 March 2026

__________________STATEMENT OF FINANCIAL POSITION_____________________

31 March 2026

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

__________________________STATEMENTS OF CASHFLOWS _____________________________

                                                     for the year ended 31 March 2026

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).

4.     Income taxes

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

Tax reconciliation

5.     Dividends

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.