TIDMSLNG
RNS Number : 2486N
Slingsby(H.C.)Plc
08 May 2018
H C SLINGSBY PLC
("Slingsby" or the "Company" or the "Group")
Audited Results for the year ended 31 December 2017
Statement by the Chairman
Board Composition
Following the Board changes in 2016, I remain as Interim
Executive Chairman. We continue to seek to appoint a non-executive
chairman and to search for an additional new non-executive
director. Although we have identified a number of highly suitable
candidates, this is proving to be more protracted than anticipated
due to the ongoing uncertainty regarding the pension fund
commitments.
Results
In the half year statement, I reported an operating profit of
GBP0.29m on sales of GBP9.9m. The full year operating profit
(before exceptional items) was GBP0.56m (2016: operating loss of
GBP0.26m) on sales of GBP19.2m (2016: GBP18m). The Group increased
sales by 7% and reduced overheads leading to a profit before
taxation and exceptional items of GBP0.2m (2016: loss of GBP0.6m).
This represents a significant turnaround and would have resulted in
a profit before taxation being reported for the first time since
2012.
However, during December 2017, we commissioned a valuation of
the freehold property at Baildon. This valuation was GBP1.22m lower
than the carrying amount of the property held on the balance sheet
and accordingly we decided that it was appropriate to impair the
property. This impairment is shown as an exceptional item in the
profit and loss account. This non-cash charge is disappointing to
report as it results in a loss before tax of
GBP1m (2016: GBP0.7m) which does not reflect the much improved
performance of the Group.
ESE Direct Limited ("ESE") contributed GBP6.8m of sales (2016:
GBP6.5m) and profit before tax and management charges of GBP0.4m
(2016: GBP0.2m). The improved profitability of ESE reflects an
increase in sales and also a reduction in overheads and an
improvement in the margin from actions to further integrate the
businesses.
Group earnings before interest, tax, depreciation and
amortisation ("EBITDA") in the year ended 31 December 2017 was
GBP1m (2016: GBP0.27m) before exceptional items. Net debt at 31
December 2017 was GBP1.6m (2016: GBP1.7m).
Dividend
In view of the loss in 2017 and the uncertainty around the
pension fund commitments, the Board is unable to recommend a final
dividend for the year (2016: GBPnil).
Pension Scheme
We remain in discussion with the Trustee of the defined benefit
pension scheme regarding a long term solution to the deficit.
During 2017, the Company made no deficit reduction payments (2016:
GBP0.27m). At 31 December 2017, the pension scheme deficit
decreased by GBP1m to GBP8.6m (2016: GBP9.6m). This improvement in
the pension scheme position together with the pre-exceptional
profit before taxation has mitigated the impact on the balance
sheet of the freehold property impairment, such that Group net
assets remain almost unchanged from the position at 31 December
2016.
As discussions regarding the pension position are ongoing and
whilst during this time the Company is not paying deficit reduction
contributions, there is uncertainty as to the quantum and timing of
future payments to the scheme.
Recent Trading
In Q1 of 2017, the Group benefitted from several unusually large
orders which were received in 2016. These large orders have not
recurred in 2018 and as such Group sales in the 3 months to 31
March 2018 are 6% below prior year. Group sales growth in Q1 of
2017 against the same period in 2016 was 10% providing a strong
comparative. Group sales in Q1 of 2018 are 3% higher compared with
the same period in 2016. Group order intake for the four months to
30 April 2018 is 1% up on the prior year.
The market remains competitive and whilst we consider that the
Group is on a stronger footing due to the changes in marketing
strategy, which includes a renewed focus on product development,
and from synergies realised, we are cautious regarding the
outlook.
Finally, I would like to thank our staff across the Group for
their efforts in 2017. Our performance to date in 2018 continues to
provide grounds for optimism but we must maintain our focus to
build on what has been achieved.
D. S. Slingsby
Interim Executive Chairman
8 May 2018
For further information, please contact:
H C Slingsby PLC Tel: 01274 535 030
Dominic Slingsby, Interim Executive
Chairman
Morgan Morris, Group Chief Executive
Allenby Capital Limited Tel: 020 3328 5656
David Worlidge/Nicholas Chambers
Audited Consolidated Income Statement for the year ended 31
December 2017
Note 2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Revenue 19,240 18,044
---------- ----------
-------------------------------------------- ----- ----------- ---------------
Operating profit/(loss) before exceptional
items 557 (261)
Exceptional items 2 (1,221) (102)
-------------------------------------------- ----- ----------- ---------------
Operating loss (664) (363)
Finance costs (331) (369)
---------- ----------
Loss before taxation (995) (732)
Taxation (62) 76
---------- ----------
Loss for the year attributable to
owners of the parent (1,057) (656)
---------- ----------
Basic and diluted loss per share 4 (105.7p) (65.6p)
---------- ----------
Audited Consolidated Statement of Comprehensive Income and
Expense for the year ended 31 December 2017
2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Loss for the year (1,057) (656)
Items that will not be classified
to profit or loss:
Re-measurements of post-employment
benefit obligation 1,276 (1,555)
Movement in deferred tax relating
to retirement benefit obligation (246) 280
Items that may be subsequently reclassified
to profit or loss:
Exchange adjustment 8 31
---------- ----------
Other comprehensive income/(expense) 1,038 (1,244)
---------- ----------
Total comprehensive expense for the year
attributable
to equity shareholders (19) (1,900)
-------- ----------
Audited Consolidated Balance Sheet as at 31 December 2017
Note 2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 4,472 5,838
Intangible assets 877 1,108
Goodwill 2,409 2,409
Deferred tax asset 1,464 1,733
-------- ----------
9,222 11,088
-------- ----------
Current assets
Inventories 1,823 1,811
Trade and other receivables 2,376 2,525
Cash and cash equivalents 996 632
-------- ----------
5,195 4,968
-------- ----------
Liabilities
Current liabilities
Trade and other payables (4,964) (5,517)
Derivative financial liability (7) (13)
Finance lease obligations (30) (44)
--------- ---------
(5,001) (5,574)
-------- ----------
Net current assets/(liabilities) 194 (606)
-------- ----------
Non-current liabilities
Finance lease obligations (7) (37)
Retirement benefit obligation 3 (8,610) (9,626)
Deferred tax liabilities (415) (416)
-------- ----------
Net assets 384 403
-------- ----------
Capital and reserves
Share capital 250 250
Retained earnings 134 131
Translation reserve - 22
-------- ----------
Total equity 384 403
-------- ----------
Audited Consolidated Cash Flow Statement for the year ended 31
December 2017
2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Note
Cash flows from operating activities
Cash generated from/(used in) operations 5 334 (84)
Interest payable (70) (61)
UK corporation tax received 25 23
-------- --------
Cash generated from/(used in) operating
activities 289 (122)
-------- --------
Cash flows from investing activities
Purchase of property, plant and equipment (88) (98)
Acquisition of subsidiary (net of
cash acquired) - (30)
Purchase of intangible assets (20) (40)
Proceeds from sales of property, plant
and equipment 9 51
-------- --------
(99) (117)
Net cash used in investing activities -------- --------
Cash flows from financing activities
Capital element of finance lease payments (44) (57)
New finance leases - 27
Proceeds from borrowing (39) 50
-------- --------
Net cash (used in)/generated from
financing activities (83) 20
-------- --------
Net increase/(decrease) in cash and
cash equivalents 107 (219)
Opening cash and cash equivalents (479) (291)
Exchange differences 5 31
-------- --------
Closing cash and cash equivalents (367) (479)
-------- --------
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 2016 250 2,062 (9) 2,303
Loss for the year - (656) - (656)
Other comprehensive (expense)/income
for the year - (1,275) 31 (1,244)
---------- ---------- ---------- ----------
Total comprehensive (expense)/income
for the year - (1,931) 31 (1,900)
---------- ---------- ---------- ----------
1 January 2017 250 131 22 403
Loss for the year - (1,057) - (1,057)
Other comprehensive income
for the year - 1,030 8 1,038
Transfer - 30 (30) -
Total comprehensive income/( --------- -------- ----------
expense) for the year ---------- 3 (22) (19)
---------- ---------- ---------- ----------
31 December 2017 250 134 - 384
---------- ---------- ---------- ----------
The translation reserve comprises foreign exchange differences
arising from the translation of the financial statements of foreign
operations.
Notes to the Audited Results for the year ended 31 December
2017
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 2017 and 31 December 2016, but
has been extracted from those accounts. The annual
accounts for the years ended 31 December 2016 and
31 December 2017 have been prepared in accordance
with International Financial Reporting Standards
("IFRS") and IFRIC interpretations as adopted by
the EU. The financial information included in this
preliminary announcement does not include all the
disclosures required in accounts prepared in accordance
with IFRS and accordingly it does not itself comply
with IFRS.
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 2016. They are also consistent
with those in the full accounts for the year ended
31 December 2017 which have yet to be published.
Statutory accounts for 2016 have been delivered to
the Registrar of Companies and those for the financial
year ended 31 December 2017 will be delivered following
the Company's annual general meeting. The auditors
have reported on the accounts for the years ended
31 December 2016 and 31 December 2017 and their opinions
were unqualified, did not include any matters to
which the auditor drew attention by way of emphasis
and did not contain statements under section 498(2)
or (3) of the Companies Act 2006.
2. Exceptional item 2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Redundancy and compensation costs - (102)
Impairment of property, plant and equipment (1,221) -
------------ ------------
(1,221) (102)
------------ ------------
3. Retirement benefit obligation
2017 2016
Present value of funded obligation (Audited) (Audited)
GBP'000 GBP'000
Fair value of scheme assets 26,666 26,792
Net liability in balance sheet (18,056) (17,166)
------------ ------------
8,610 9,626
------------ ------------
4. Loss per share
Basic loss per share is based upon losses of GBP1,057,000
(2016: GBP656,000) and on 1,000,000 (2016: 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
2017 2016
(Audited) (Audited)
GBP'000 GBP'000
Loss before tax (995) (732)
Net finance costs 331 369
Depreciation and amortisation 480 527
Asset impairment 1,221 -
Profit on sale of property, plant and
equipment (4) (5)
Pension deficit contributions - (270)
Increase in inventories (12) (33)
Decrease/(increase) in trade and other
receivables 143 (169)
(Decrease)/increase in trade and other
payables (830) 229
------------ ------------
Cash generated from/(used in) operating
activities 334 (84)
------------ ------------
6. Dividends
No dividends were paid or declared during 2016 or
2017.
7. Availability of Report and Accounts
The financial statements for the year ended 31 December
2017, will be issued to shareholders on 21 May 2018
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
2017 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 19 June
2018 at HC Slingsby plc, Otley Road, Baildon, Shipley,
BD17 7LW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AFMMTMBMMBRP
(END) Dow Jones Newswires
May 08, 2018 02:00 ET (06:00 GMT)
Slingsby (h.c.) (LSE:SLNG)
Historical Stock Chart
From Apr 2024 to May 2024
Slingsby (h.c.) (LSE:SLNG)
Historical Stock Chart
From May 2023 to May 2024