TIDMSLNG
RNS Number : 3308Z
Slingsby(H.C.)Plc
26 May 2016
H C SLINGSBY PLC
("Slingsby" or the "Company" or the "Group")
Audited Preliminary Announcement for the year ended 31 December
2015
Statement by the Chairman
In my 2015 half year statement I reported a pre-tax trading loss
(before exceptional items) of GBP0.15m on sales of GBP7.7m. Sales
in the autumn did show some improvement before falling away in the
last two months of the year. The full year pre-tax trading loss
(before exceptional items) was GBP0.35m (2014: GBP0.26m) on sales
of GBP17.1m (2014: GBP12.6m). Together with the exceptional
restructuring cost and costs associated with the acquisition of ESE
of GBP281,000, the full year pre-tax loss for 2015 was GBP0.63m
(2014: GBP0.45m).
On 27 March 2015, we announced the acquisition of ESE Direct
Limited ("ESE"), a supplier of industrial and commercial equipment
operating in the same sector as Slingsby and based in Norwich. The
consideration was GBP3.4m net of surplus cash on acquisition. This
was financed through a combination of cash and asset backed
finance.
ESE contributed GBP4.8m of turnover and GBP0.13m profit before
tax to the group following its acquisition (prior to amortisation
of intangible assets arising on acquisition). Whilst ESE's
performance since acquisition has fallen short of initial
expectations, we expect that recent management changes and the
realisation of synergies will improve profit contribution in
2016.
Sales in the first quarter of 2016 for the Slingsby business are
3.3% down on the corresponding period in 2015 but there are some
signs that the decline against the prior year has slowed. The
market continues to be extremely competitive and we have to
recognise that we have to respond to that challenge with further
significant changes in the way we do business.
Your Board recognises that continuing trading losses are not
acceptable and that urgent action is necessary to return your
company to profitability. On 19 April 2016, Dominic Slingsby stood
down as Managing Director of Slingsby to take up the post of
Operations Director. On behalf of all shareholders I thank him for
his many years of service as Managing Director.
Lee Wright, Sales and Marketing Director, has also resigned from
the Board on 19 May 2016 and I thank him for his many years of
service as a director.
We shall seek a New Managing Director but in the meantime I have
taken responsibility for the group as Interim Executive Chairman
until the new Managing Director is in post. We shall in the
meantime also seek one or more new Non-Executive Directors to
strengthen the Board and help our recovery. When the new Board is
complete I expect to retire from the Company.
On behalf of the Board I would once again like to thank all our
loyal staff in both Bradford and in Norwich after another difficult
year. All their experience and ingenuity will be required to turn
your company back into profit.
In view of the continuing loss in 2015, the Board is unable to
recommend a final dividend for the year (2014: 6p).
These are difficult times for your Company as we strive to adapt
to meet the challenges of today's market and I ask that
shareholders show their support for the Board's recovery plan by
re-electing all the Directors offering themselves for re-election
at the Annual General Meeting on 30 June.
John Waterhouse
Executive Chairman
25 May 2016
For further information, please contact:
H C Slingsby PLC Tel: 01274 535 030
John Waterhouse, Executive
Chairman
Morgan Morris, Financial
Director
Allenby Capital Limited Tel: 020 3328 5656
David Worlidge/James
Thomas
Audited Consolidated Income Statement for the year ended 31
December 2015
Note 2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Revenue 17,061 12,587
---------- ----------
-------------------------------- ----- ----------- ---------------
Operating (loss)/profit before
exceptional items (10) 92
Exceptional items 2 (281) (193)
-------------------------------- ----- ----------- ---------------
Operating loss (291) (101)
Finance income 1 7
Finance costs (342) (359)
---------- ----------
Loss before taxation (632) (453)
Taxation 194 154
---------- ----------
Loss for the year attributable
to owners of the parent (438) (299)
---------- ----------
Basic and diluted loss per
share 4 (43.8p) (29.9p)
---------- ----------
Audited Consolidated Statement of Comprehensive Income and
Expense for the year ended 31 December 2015
2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Loss for the year (438) (299)
Items that will not be classified
to profit or loss:
Re-measurements of post-employment
benefit obligation 242 (583)
Movement in deferred tax
relating to retirement benefit
obligation (213) 116
Items that may be subsequently
reclassified to profit or
loss:
Exchange adjustment (13) (17)
---------- ----------
Other comprehensive income/(expense) 16 (484)
---------- ----------
Total comprehensive expense for
the year attributable
to equity shareholders (422) (783)
-------- ----------
Audited Consolidated Balance Sheet as at 31 December 2015
Note 2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 6,102 5,952
Intangible assets 1,279 473
Goodwill 2,409 --
Deferred tax asset 1,446 1,694
-------- ----------
11,236 8,119
-------- ----------
Current assets
Inventories 1,778 1,951
Trade and other receivables 2,340 1,840
Cash and cash equivalents 192 1,940
Derivative financial asset 11 4
Current tax asset -- 88
-------- ----------
4,321 5,823
-------- ----------
Liabilities
Current liabilities
Trade and other payables (4,653) (2,083)
Finance lease obligations (44) --
--------- ---------
(4,697) (2,083)
-------- ----------
Net current (liabilities)/assets (376) 3,740
-------- ----------
Non-current liabilities
Finance lease obligations (66) --
Retirement benefit obligation 3 (8,033) (8,471)
Deferred tax liabilities (458) (603)
-------- ----------
Net assets 2,303 2,785
-------- ----------
Capital and reserves
Share capital 250 250
Retained earnings 2,062 2,531
Translation reserve (9) 4
-------- ----------
Total equity 2,303 2,785
-------- ----------
Audited Consolidated Cash Flow Statement for the year ended 31
December 2015
2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Note
Cash flows from operating
activities
Cash generated from/(used
in) operations 5 171 (169)
Interest payable (38) --
UK corporation tax received 93 28
-------- --------
Cash generated from/(used
in) operating activities 226 (141)
Cash flows from investing
activities
Interest received 1 15
Purchase of property, plant
and equipment (198) (112)
Acquisition of subsidiary (3,585) --
(net of cash acquired)
Purchase of intangible assets (26) (35)
Proceeds from sales of property,
plant and equipment 112 25
-------- --------
Net cash used in investing
activities (3,696) (107)
Cash flows from financing
activities
Equity dividends paid 6 (60) (120)
Capital element of finance (20) --
lease payments
New finance leases 130 --
Proceeds from borrowing 1,202 --
-------- --------
Net cash generated from/(used
in) financing activities 1,252 (120)
-------- --------
Net decrease in cash and
cash equivalents (2,218) (368)
Opening cash and cash equivalents 1,940 2,325
Exchange differences (13) (17)
-------- --------
Closing cash and cash equivalents (291) 1,940
-------- --------
Audited Consolidated Statement of Changes in Shareholders'
Equity
Share Retained Translation Total
capital earnings reserve equity
GBP'000 GBP'000 GBP'000 GBP'000
1 January 2014 250 3,417 21 3,688
Loss for the year - (299) -- (299)
Other comprehensive
expense for the year - (467) (17) (484)
---------- ---------- ---------- ----------
Total comprehensive
expense for the year - (766) (17) (783)
Dividends paid - (120) - (120)
---------- ---------- ---------- ----------
1 January 2015 250 2,531 4 2,785
Loss for the year - (438) - (438)
Other comprehensive
income/(expense) for
the year - 29 (13 16
Total comprehensive --------- -------- ----------
expense for the year ---------- (409) (13) (422)
Dividends paid - (60) - (60)
---------- ---------- ---------- ----------
31 December 2015 250 2,062 (9) 2,303
---------- ---------- ---------- ----------
The translation reserve comprises foreign exchange differences
arising from the translation of the financial statements of foreign
operations.
Notes to the Audited Preliminary Announcement for the year ended
31 December 2015
1. The preliminary financial information
does not constitute statutory accounts
within the meaning of Section 434 of
the Companies Act 2006 for the financial
years ended 31 December 2015 and 31 December
2014, but has been derived from those
accounts. These financial statements
have been prepared in accordance with
International Financial Reporting Standards
("IFRS") and IFRSIC interpretations as
adopted by the EU and with those parts
of the Companies Act 2006 applicable
to companies reporting under IFRS. The
financial information included in this
preliminary announcement does not include
all the disclosures required by IFRS
or the Companies Act 2006 and accordingly
it does not itself comply with IFRS or
the Companies Act 2006.
The accounting policies used in the preparation
of this preliminary announcement have
remained unchanged from those set out
in the statutory accounts for the year
ended 31 December 2014. They are also
consistent with those in the full accounts
for the year ended 31 December 2015 which
have yet to be published.
Statutory accounts for 2014 have been
delivered to the Registrar of Companies
and those for the financial year ended
31 December 2015 will be delivered following
the Company's annual general meeting.
The auditors have reported on those accounts
and their opinion was unqualified and
did not contain statements under section
498(2) or (3) of the Companies Act 2006.
2. Exceptional item 2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Redundancy and compensation
costs (88) (193)
Acquisition of ESE (193) --
------------ ------------
(281) (193)
------------ ------------
Costs relating to the acquisition
of ESE relate to legal, accounting
and advisory services together
with bank facility costs.
3. Retirement benefit obligation
2015 2014
Present value of funded obligation (Audited) (Audited)
GBP'000 GBP'000
Fair value of scheme assets 21,993 22,397
Net liability in balance sheet (13,960) (13,926)
------------ ------------
8,033 8,471
------------ ------------
4. Loss per share
Basic loss per share is based upon losses
of GBP438,000 (2014: GBP299,000) and
on 1,000,000 (2014: 1,000,000) ordinary
shares in issue during the year.
There is no difference between basic
loss per share and diluted loss per share
for both years as there are no potentially
dilutive shares in issue.
5. Cash generated from/(used in)
operating activities
2015 2014
(Audited) (Audited)
GBP'000 GBP'000
Loss before tax (632) (453)
Net finance costs 341 352
Depreciation and amortisation 530 424
Profit on sale of property,
plant and equipment (99) (7)
Pension deficit contributions (500) (540)
Decrease/(increase) in inventories 232 (53)
Decrease in trade and other
receivables 29 549
Increase/(decrease) in trade
and other payables 270 (441)
------------ ------------
Cash generated from/(used in)
operating activities 171 (169)
------------ ------------
6. Dividends
The interim dividend for 2014 and final
dividends for the 2014 financial year
of 2.0p and 4.0p, totalling GBP60,000
were paid and deducted from reserves
in the year ended 31 December 2015. The
interim dividend for 2013 and the final
dividend for the 2013 financial year
totalling GBP120,000 were paid and deducted
from reserves in 2014.
7. Availability of Report and Accounts
The financial statements for the year
ended 31 December 2015, will be issued
to shareholders on 26 May 2016 and will
be available to members of the public
at the registered office of the Company
and on the Company's website www.slingsby.com
from that date. The statutory accounts
for the year ended 31 December 2015 will
be delivered to the Registrar following
the Company's Annual General Meeting.
The Annual General Meeting will be held
at 10.00 am on 30 June 2016 at the Marriot
Hollins Hall Hotel, Hollins Hill, Baildon,
Shipley, BD17 7QW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SELFWIFMSEEI
(END) Dow Jones Newswires
May 26, 2016 05:45 ET (09:45 GMT)
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