TIDMSLNG
RNS Number : 4337J
Slingsby(H.C.)Plc
09 September 2016
H C Slingsby plc ("Slingsby" or "the Company")
Report for the half year ended 30 June 2016
Statement by the Chairman
At the Annual General Meeting on 30 June 2016, John Waterhouse
was not re-elected by shareholders as Chairman of the Board. As a
result, I was appointed as Interim Executive Chairman until such
time as a suitable candidate is appointed.
Turnover for the six months ended 30 June 2016 increased to
GBP9.3million as a result of the acquisition on 27 March 2015 of
ESE Direct Limited ("ESE") and hence ESE's results were only
included for 3 months of the comparable period. Group sales on a
comparable basis were 2.7% below prior year with sales growth at
ESE being offset by a decline at the Slingsby business.
As reported in our trading statement on 30 June 2016, the
competitive nature of the market has impacted on margins and this,
together with the reduced level of sales, led to a Group operating
loss before exceptional items of GBP0.16million against a profit of
GBP0.01million in the prior year.
ESE generated operating profits of GBP0.1million in the six
months ended 30 June 2016 and remains cash generative. Group profit
before exceptional items, interest, depreciation and amortisation
was GBP0.1m in the six months ended 30 June 2016.
Trading remains volatile (and was particularly so either side of
the Brexit vote) and management remains focussed on realising
synergies across the Group and on initiatives to improve the sales
performance and our commercial proposition. Costs have also been
reduced and the Group IT system is being installed at ESE.
The Company has an obligation to fund its defined benefit
pension scheme and contributions to this scheme totalled GBP500,000
in the 2015 calendar year, which were paid in equal monthly
contributions. This, together with the scheme's running costs of
approximately GBP160,000 per annum, represents a major commitment
for the Group to meet.
Since the vote to leave the European Union was announced and in
common with many other schemes, the outlook for pension commitments
has worsened and could lead to the Company paying an increased
amount into the scheme in the longer term. Following this change of
circumstances, the Company is working with the pension scheme
trustee to look at options for a longer term solution to these
pension commitments. Whilst this takes place, the Company has
agreed with the trustee that it will suspend deficit reduction
monthly payments to the scheme from 1 July 2016 until at least the
end of the year.
The directors continue to search for a new Non-Executive
director and are confident that an appointment will be made in the
near future.
In view of the trading performance, the Board has decided not to
declare an interim dividend.
Dominic Slingsby
Interim Executive Chairman and Operations Director
9 September 2016
For further information please contact:
H C Slingsby plc
Dominic Slingsby, Interim Executive Chairman 01274 535 030
Allenby Capital Limited
David Worlidge/Richard Short 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2016
Half year Half year Year
ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 9,276 7,725 17,061
--------- --------- ---------
Operating (loss)/profit
before exceptional items (162) 14 (10)
Exceptional items 2 (85) (255) (281)
--------- --------- ---------
Operating loss (247) (241) (291)
Finance income - 1 1
Finance costs (177) (168) (342)
-------- -------- --------
Loss before taxation (424) (408) (632)
Taxation 3 (23) 69 194
-------- -------- --------
Loss for the period attributable (447) (339) (438)
to equity shareholders -------- -------- --------
Basic and diluted loss
per share (44.7p) (33.9p) (43.8p)
-------- -------- --------
The results set out above derive entirely from continuing
operations.
The above unaudited condensed consolidated income statement
should be read in conjunction with the accompanying notes.
Unaudited Consolidated Statement of Comprehensive Income and
Expense for the half year ended 30 June 2016
Half year Half year Year
Ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Loss for the period (447) (339) (438)
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations (566) (709) 242
Movement in deferred tax relating
to retirement
benefit obligation 102 142 (213)
Items that may be subsequently
reclassified to profit
or loss
Exchange adjustment 25 (20) (13)
-------- -------- --------
Other comprehensive (expense)/income (439) (587) 16
-------- -------- --------
Total comprehensive expense
recognised for the period attributable
to equity shareholders (886) (926) (422)
-------- -------- --------
The above unaudited consolidated statement of comprehensive
income and expense should be read in conjunction with the
accompanying notes.
Unaudited Consolidated Balance Sheet as at 30 June 2016
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 5,986 6,182 6,102
Intangible assets 1,195 1,382 1,279
Goodwill 2,409 2,379 2,409
Deferred tax asset 1,527 1,815 1,446
--------- --------- --------
11,117 11,758 11,236
--------- --------- --------
Current assets
Inventories 1,819 1,861 1,778
Trade and other receivables 2,717 2,505 2,340
Cash and cash equivalents 456 333 192
Derivative financial asset 24 - 11
--------- --------- ---------
5,016 4,699 4,321
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (3,230) (3,300) (2,968)
Bank borrowings (2,415) (1,647) (1,685)
Finance lease obligations (44) (20) (44)
Derivative financial instruments - (7) -
Current tax liabilities - (17) -
Other loan (40) - -
--------- --------- ---------
(5,729) (4,991) (4,697)
--------- --------- ---------
Net current liabilities (713) (292) (376)
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (8,483) (9,075) (8,033)
Finance lease obligations (45) (44) (66)
Deferred tax liabilities (459) (548) (458)
--------- --------- ---------
Net assets 1,417 1,799 2,303
--------- --------- ---------
Capital and reserves
Share capital 250 250 250
Retained earnings 1,151 1,565 2,062
Translation reserve 16 (16) (9)
--------- --------- ---------
Total equity 1,417 1,799 2,303
--------- --------- ---------
The above unaudited consolidated balance sheet should be read in
conjunction with the accompanying notes.
Unaudited Consolidated Statement of Changes in Shareholders'
Equity
Share Retained Translation Total
Capital earnings reserve equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2015 250 2,531 4 2,785
Total comprehensive expense
recognised for the period - (906) (20) (926)
Dividends paid - (60) - (60)
--------- --------- --------- ---------
At 30 June 2015 250 1,565 (16) 1,799
--------- --------- --------- ---------
At 1 January 2016 250 2,062 (9) 2,303
Total comprehensive income
/ (expense) recognised
for the period - (911) 25 (886)
--------- --------- --------- ---------
At 30 June 2016 250 1,151 16 1,417
--------- --------- --------- ---------
The above unaudited consolidated statement of changes in
shareholders' equity should be read in conjunction with the
accompanying notes.
Unaudited Consolidated Statement of Cash Flows for the half year
ended 30 June 2016
Half Half year Year
year
ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash (used in)/generated
from operations 4 (390) (439) 171
UK corporation tax received - 88 93
Interest paid (21) (12) (38)
--------- --------- ---------
Cash (used in)/generated
from operating activities (411) (363) 226
--------- --------- ---------
Cash flows from investing
activities
Interest received - 1 1
Purchase of property, plant
and equipment (35) (40) (198)
Purchase of intangible assets (32) (15) (26)
Proceeds from sales of property,
plant and equipment - 93 112
Acquisition of subsidiary,
net of cash acquired (30) (2,884) (3,585)
--------- --------- ---------
Net cash outflow from investing
activities (97) (2,845) (3,696)
--------- --------- ---------
Cash flows from financing
activities
Equity dividends paid - (20) (60)
Capital element of finance
lease repayments (22) (6) (20)
New finance leases - - 130
Proceeds from borrowing 121 1,274 1,202
--------- --------- ---------
Net cash generated from
financing activities 99 1,248 1,252
--------- --------- ---------
Net decrease in cash and cash
equivalents (409) (1,960) (2,218)
Opening cash and cash equivalents (291) 1,940 1,940
Exchange differences 25 (20) (13)
--------- --------- ---------
Closing cash and cash equivalents (675) (40) (291)
--------- --------- ---------
The above unaudited consolidated statement of cash flows should
be read in conjunction with the accompanying notes.
Notes to the Interim Report for the half year ended 30 June
2016
1. Interim Financial Information
The unaudited condensed consolidated interim
financial information does not constitute statutory
accounts within the meaning of Section 434 of
the Companies Act 2006. The interim financial
statements, which are unaudited and have not
been reviewed by the Company's auditors, have
been prepared in accordance with the policies
set out in the 2015 Annual Report and Accounts.
The comparative figures for the year ended 31
December 2015 do not constitute full financial
statements and have been abridged from the full
accounts for the year ended on that date, on
which the auditors gave an unqualified report,
which did not contain an emphasis of matter paragraph
and did not contain any statement under Section
498 of the Companies Act 2006. The 2015 accounts
have been delivered to the Registrar of Companies.
The Company has chosen not to adopt IAS 34 'Interim
Financial Statements'.
2. Exceptional items Half year Half year Year
ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Redundancy and compensation
costs 85 61 88
Acquisition of ESE - 194 193
---------- --------- ---------
85 255 281
---------- --------- ---------
The restructuring costs include salaries in lieu
of notice, redundancy pay, holiday pay, social
security costs and related legal expenditure.
The costs relating to ESE include professional
fees associated with the acquisition.
3. Taxation Half year Half year Year
ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax - - (49)
Deferred tax 23 (69) (145)
--------- --------- ---------
23 (69) (194)
--------- --------- ---------
The effective tax rate is nil.
4. Cash (used in)/generated from operations
Half year Half year Year
Ended ended ended
30/06/16 30/06/15 31/12/15
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Loss before tax (424) (408) (632)
Net finance costs 177 167 341
Depreciation and amortisation 268 252 530
Profit on sale of property,
plant and equipment - (84) (99)
Pension deficit contributions (270) (260) (500)
(Increase)/Decrease in
inventories (42) 150 232
(Increase)/Decrease in
trade and other receivables (390) (155) 29
Increase/(Decrease) in
trade and other payables 291 (101) 270
--------- --------- ---------
Cash (used in)/generated
from operating activities (390) (439) 171
--------- --------- ---------
5. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSWSUUFMSEEU
(END) Dow Jones Newswires
September 09, 2016 05:32 ET (09:32 GMT)
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