TIDMSLNG
RNS Number : 2822I
Slingsby(H.C.)Plc
04 August 2023
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended. With
the publication of this announcement, this information is now
considered to be in the public domain.
4 August 2023
H C Slingsby plc
("Slingsby" or "the Company")
Report for the half year ended 30 June 2023
Statement by the Chairman
Trading
In my statement in the trading update of 15 June 2023, I
reported that Group sales in the four months to 30 April 2023 were
3% higher than prior year at a higher gross margin. However
overhead costs had increased, leading to an unaudited profit before
tax of GBP0.1m compared to GBP0.19m in the four months ending 30
April 2022. We were cautious regarding the outlook for the business
due to significant uncertainty remaining mainly caused by the
continuing conflict in Ukraine, the risk of a recession in the
Group's main UK market and the longer term impacts of Coronavirus
and Brexit not yet being fully known.
Group sales in the six months to 30 June 2023 ("H1") are 4%
higher than in the same period in 2022. The trends in gross margin
and overheads have continued in the second quarter and as a result
unaudited profit before tax was GBP0.20m in the six months ended 30
June 2023 compared to an unaudited profit before tax of GBP0.24m in
the same period in 2022. The H1 profit is after GBP0.13m (2022:
GBP0.07m) of finance costs which relate to interest charges on the
pension scheme deficit.
In June 2023 we were notified that one of our main logistics
partners had ceased trading, subsequently entering insolvency
proceedings. This caused some disruption to operations and
increased freight costs during that month because alternative
transport options came at a higher cost. This had a modest impact
upon gross margin in June and an effect on gross margin could
persist during the remainder of the year, despite the Company
implementing mitigating initiatives which are ongoing.
The market continues to be highly competitive, and it remains
unclear what impact the aforementioned factors will have on demand
going forward. Inflationary pressures remain, particularly in
regards to overheads and this is considered by the Directors likely
to persist for the remainder of the year. In the current economic
environment, there is also heightened potential for credit related
issues should customers become insolvent.
Balance sheet
The Group had net assets of GBP4.41m at 30 June 2023 (GBP4.68m
at 30 June 2022) compared to net assets of GBP4.32m at 31 December
2022. The reduction in net assets from 30 June 2022 is due to an
increase in the pension scheme deficit outweighing profits
generated. The Company made deficit reduction contributions
totalling GBP200,000 in the six months to 30 June 2023 in line with
the agreement with the pension scheme's Trustee. The triennial
review carried out by the scheme actuary is underway and a new
schedule of contributions is required to be agreed between the
Company and the scheme Trustee before 31 March 2024. This causes
the potential for uncertainty regarding the Group's future cash
flows.
Cashflow
The Group had net cash of GBP0.4m at 30 June 2023 (GBP0.5m at 30
June 2022) compared to GBP0.03m at 31 December 2022. 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.
Board Composition
The Board continues to believe that it would benefit from the
appointment of new Non-Executive Directors. The Board is continuing
to explore solutions to the issue with the objective remaining to
appoint new Non-Executive Directors and a Non-Executive
Chairman.
Statement by the Chairman (continued)
Dividend
Due to the uncertain outlook, the Board has decided not to
declare an interim dividend.
People
We would like to thank our employees for their hard work and
flexibility during continued challenging times.
Dominic Slingsby
Interim Executive Chairman and Operations Director
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 (Nominated Advisor and Broker)
Alex Brearley/George Payne 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2023
Half year Half year Year
ended ended ended
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 11,458 10,977 21,564
--------- --------- ---------
Operating profit before exceptional
items 329 316 627
Exceptional items - - -
Finance costs (132) (72) (142)
-------- -------- --------
Profit before taxation 197 244 485
Taxation 2 (68) (62) (105)
-------- -------- --------
Profit for the period attributable to 129 182 380
equity shareholders -------- -------- --------
Basic and diluted weighted average
earnings per share 12.3p 17.3p 36.2p
-------- -------- --------
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 2023
Half year Half year Year
ended ended ended
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit for the period 129 182 380
-------- -------- --------
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations (49) 2,985 2,235
Movement in deferred tax relating to
retirement
benefit obligation 12 (746) (559)
-------- -------- --------
Other comprehensive (expense)/income (37) 2,239 1,676
-------- -------- --------
Total comprehensive income recognised
for the period attributable to
equity shareholders 92 2,421 2,056
-------- -------- --------
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 2023
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 5,357 5,332 5,418
Intangible assets 315 319 249
Goodwill 700 700 700
Deferred tax asset 1,369 1,216 1,373
--------- --------- --------
7,741 7,567 7,740
--------- --------- --------
Current assets
Inventories 2,695 2,806 2,683
Trade and other receivables 3,285 3,120 2,962
Cash and cash equivalents 2,464 2,229 2,243
Derivative financial asset - 3 -
--------- --------- ---------
8,444 8,158 7,888
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (3,307) (3,579) (2,687)
Bank borrowings (2,031) (1,764) (2,217)
Lease obligations (20) (15) (20)
Derivative Financial Liability (7) - -
Current tax liabilities (154) (96) (103)
--------- --------- ---------
(5,519) (5,454) (5,027)
--------- --------- ---------
Net current assets 2,925 2,704 2,861
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (5,475) (4,865) (5,492)
Lease obligations (103) - (113)
Deferred tax liabilities (677) (722) (677)
--------- --------- ---------
Net assets 4,411 4,684 4,319
--------- --------- ---------
Capital and reserves
Share capital 262 262 262
Share premium 24 24 24
Retained earnings 4,125 4,398 4,033
--------- --------- ---------
Total equity 4,411 4,684 4,319
--------- --------- ---------
The above unaudited consolidated balance sheet should be read in
conjunction with the accompanying notes .
Unaudited Consolidated Statement of Changes in Shareholders'
Equity
Share Share Retained Total
Capital premium earnings equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2022 262 24 1,977 2,263
Total comprehensive income recognised
for the period - - 2,421 2,421
--------- --------- --------- ---------
At 30 June 2022 262 24 4,398 4,684
--------- --------- --------- ---------
At 1 January 2023 262 24 4,033 4,319
Total comprehensive income recognised
for the period - - 92 92
--------- --------- --------- ---------
At 30 June 2023 262 24 4,125 4,411
--------- --------- --------- ---------
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 2023
Half year Half year Year
ended ended ended
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used in) operations 3 611 228 (27)
UK corporation tax paid - - (49)
Interest paid (3) - -
--------- --------- ---------
Cash generated from operating activities 608 228 (76)
--------- --------- ---------
Cash flows from investing activities
Interest received 2 - -
Purchase of property, plant and
equipment (74) (101) (211)
Purchase of intangible assets (125) - (22)
Proceeds from sales of property, plant
and equipment 6 9 24
--------- --------- ---------
Net cash outflow from investing
activities (191) (92) (209)
--------- --------- ---------
Cash flows from financing activities
Capital element of lease payments (10) (17) (35)
(Decrease)/increase in overdraft (186) 111 564
--------- --------- ---------
Net cash (used in)/generated from
financing activities (196) 94 529
--------- --------- ---------
Net increase in cash and cash equivalents 221 230 244
Opening cash and cash equivalents 2,243 1,999 1,999
--------- --------- ---------
Closing cash and cash equivalents 2,464 2,229 2,243
--------- --------- ---------
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
2023
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 presented and prepared in accordance
with the policies set out in the 2022 Annual Report and Accounts.
The comparative figures for the year ended 31 December 2022 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. They did not contain
any statement under Section 498 of the Companies Act 2006. The
2022 accounts have been delivered to the Registrar of Companies.
The Company has chosen not to adopt IAS 34 'Interim Financial
Statements'.
2. Taxation Half year Half year Year
ended ended ended
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax 52 40 96
Deferred tax 16 22 9
--------- --------- ---------
68 62 105
--------- --------- ---------
The effective tax rate is 25%.
3. Cash generated from/(used in) operations
Half year Half year Year
ended ended ended
30/06/23 30/06/22 31/12/22
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit before tax 197 244 485
Net finance costs 135 72 142
Depreciation and amortisation 194 215 464
Defined benefit pension scheme
contributions paid (200) (159) (352)
Property impairment reversal - - -
Profit on sale of property, plant
and equipment (6) (9) (24)
Increase in inventories (12) (476) (353)
Increase in trade and other receivables (323) (352) (192)
Increase/(decrease) in trade and
other payables 626 693 (197)
--------- --------- ---------
Cash generated from/(used in) operating
activities 611 228 (27)
--------- --------- ---------
4. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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END
IR FLFIDTEIVIIV
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