TIDMSLNG
RNS Number : 9737W
Slingsby(H.C.)Plc
07 August 2018
H C Slingsby plc ("Slingsby" or "the Company")
Report for the half year ended 30 June 2018
Statement by the Chairman
Trading
In my trading update of 19 June 2018, I reported that Group
sales were 1% lower than prior year, overheads were increased and
so performance was marginally lower in the five months to 31 May
2018. Lower levels of order intake during June 2018 led us to be
cautious on the outlook for the results for the six months to 30
June 2018.
Group sales in the six months to 30 June 2018 were 2% below
prior year resulting in a profit before tax of GBP76,000 compared
to a prior year profit before tax of GBP123,000. The reduction in
sales was mainly due to large orders delivered in the first half of
2017 not recurring in 2018.
We are pleased that the Group has sustained the profitable
trading performance from 2017 (prior to the non-cash asset
impairment). We do however remain cautious regarding the outlook
due to the volatility that we have experienced in the recent past
and the competitive nature of the marketplace.
Balance sheet
Group net assets have increased to GBP1.8m at 30 June 2018 from
GBP0.4m at 31 December 2017. This is mostly due to a reduction in
the liability relating to the defined benefit pension scheme from
GBP8.6m to GBP7.2m despite the Company having not paid any deficit
reduction contributions in the period. The retirement benefit
obligation decreased during the six months to 30 June 2018 as a
result of changes in assumptions regarding interest rates and
inflation although this was offset by a reduction in the level of
pension scheme assets.
We remain in discussion with the trustees of the Company Pension
Scheme and the relevant authorities regarding a long term solution
to the pension scheme deficit and continue to pay the running costs
previously agreed with the trustees. Until these discussions
regarding the defined benefit pension scheme are concluded, the
quantum and timing of future deficit reduction payments in this
regard are uncertain.
Cashflow
The Group had net debt of GBP1.24m at 30 June 2018 (GBP1.65m at
30 June 2017) which represents an improvement from the position at
31 December 2017 of GBP1.58m. The Group continues to operate within
its existing banking facilities and the Directors continue to
believe that the Group has additional funding options available
should the need arise.
Dividend
The Board has decided not to declare an interim dividend.
People
The sustained profitable trading performance is the result of
the continued hard work by all our employees across the Group whom
I would like to thank.
Dominic Slingsby
Interim Executive Chairman and Operations Director 7 August
2018
For further information please contact:
H C Slingsby plc
Dominic Slingsby, Interim Executive Chairman 01274 535 030
Morgan Morris, Group Chief Executive
Allenby Capital Limited
David Worlidge/Nicholas Chambers 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2018
Half year Half year Year
ended ended ended
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 9,725 9,936 19,240
--------- --------- ---------
Operating profit before exceptional
items 210 291 557
Exceptional items 2 - - (1,221)
--------- --------- ---------
Operating profit/(loss) 210 291 (664)
Finance costs (134) (168) (331)
-------- -------- --------
Profit/(Loss) before taxation 76 123 (995)
Taxation 3 8 (6) (62)
-------- -------- --------
Profit/(Loss) for the period attributable 84 117 (1,057)
to equity shareholders -------- -------- --------
Basic and diluted profit/(loss)
per share 8.4p 11.7p (105.7p)
-------- -------- --------
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 2018
Half year Half year Year
ended ended ended
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit/(Loss) for the period 84 117 (1,057)
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations 1,565 326 1,276
Movement in deferred tax relating to
retirement
benefit obligation (266) (152) (246)
Items that may be subsequently
reclassified to profit or loss
Exchange adjustment - 5 8
-------- -------- --------
Other comprehensive income 1,299 179 1,038
-------- -------- --------
Total comprehensive income/(expense)
recognised for the period attributable
to equity shareholders 1,383 296 (19)
-------- -------- --------
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 2018
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 4,469 5,753 4,472
Intangible assets 754 1,003 877
Goodwill 2,409 2,409 2,409
Deferred tax asset 1,221 1,604 1,464
--------- --------- --------
8,853 10,769 9,222
--------- --------- --------
Current assets
Inventories 1,803 1,830 1,823
Trade and other receivables 2,906 2,618 2,376
Cash and cash equivalents 1,390 1,012 996
Current tax asset - 21 -
Derivative financial asset 26 3 -
--------- --------- ---------
6,125 5,484 5,195
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (3,006) (2,938) (2,389)
Bank borrowings (2,629) (2,662) (2,575)
Finance lease obligations (3) (44) (30)
Derivative financial instruments - - (7)
--------- --------- ---------
(5,638) (5,644) (5,001)
--------- --------- ---------
Net current assets / (liabilities) 487 (160) 194
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (7,153) (9,430) (8,610)
Finance lease obligations - (15) (7)
Deferred tax liabilities (420) (465) (415)
--------- --------- ---------
Net assets 1,767 699 384
--------- --------- ---------
Capital and reserves
Share capital 250 250 250
Retained earnings 1,517 422 134
Translation reserve - 27 -
--------- --------- ---------
Total equity 1,767 699 384
--------- --------- ---------
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 equity
Capital earnings reserve GBP'000
GBP'000 GBP'000 GBP'000
At 1 January 2017 250 131 22 403
Total comprehensive income recognised
for the period - 291 5 296
--------- --------- --------- ---------
At 30 June 2017 250 422 27 699
--------- --------- --------- ---------
At 1 January 2018 250 134 - 384
Total comprehensive income recognised
for the period - 1,383 - 1,383
--------- --------- --------- ---------
At 30 June 2018 250 1,517 - 1,767
--------- --------- --------- ---------
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 2018
Half year Half year Year
ended ended ended
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 4 499 184 334
UK corporation tax received - 4 25
Interest paid (26) (39) (70)
--------- --------- ---------
Cash generated from operating activities 473 149 289
--------- --------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (115) (33) (88)
Purchase of intangible assets - (20) (20)
Proceeds from sales of property, plant
and equipment 16 2 9
--------- --------- ---------
Net cash outflow from investing
activities (99) (51) (99)
--------- --------- ---------
Cash flows from financing activities
Capital element of finance lease
repayments (35) (22) (44)
Proceeds from borrowing (7) 65 (39)
--------- --------- ---------
Net cash (used in)/generated from
financing activities (42) 43 (83)
--------- --------- ---------
Net increase in cash and cash equivalents 332 141 107
Opening cash and cash equivalents (366) (479) (479)
Exchange differences - 5 5
--------- --------- ---------
Closing cash and cash equivalents (34) (333) (367)
--------- --------- ---------
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
2018
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 2017 Annual Report and Accounts except
that the company has adopted IAS 15 'Revenue from Contracts with
Customers'. The comparative figures for the year ended 31 December
2017 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 2017
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
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Asset impairment - - 1,221
---------- --------- ---------
- - 1,221
---------- --------- ---------
The asset impairment relates to the company's freehold property.
3. Taxation Half year Half year Year
ended ended ended
30/06/18 30/06/17 31/12/17
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax 10 (21) 40
Deferred tax (18) 27 22
--------- --------- ---------
(8) 6 62
--------- --------- ---------
The effective tax rate is nil.
4. Cash generated from operations
Half year Half year Year
ended ended ended
30/06/17 30/06/16 31/12/16
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit/(Loss) before tax 76 123 (995)
Net finance costs 134 168 331
Depreciation and amortisation 230 243 480
Asset impairment - - 1,221
Profit on sale of property, plant
and equipment (3) (2) (4)
Pension deficit contributions - - -
Decrease/(Increase) in inventories 20 (19) (12)
(Increase)/Decrease in trade and
other receivables (555) (101) 143
Increase/(Decrease) in trade and
other payables 597 (228) (830)
--------- --------- ---------
Cash generated from operating activities 499 184 334
--------- --------- ---------
5. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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END
IR SSWFIMFASEDA
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August 07, 2018 02:00 ET (06:00 GMT)
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