REG - Slingsby(H.C.)Plc - Half-year Report
29/07/2025 07:00
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RNS Number : 8737S Slingsby(H.C.)Plc 29 July 2025
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.
29 July 2025
H C Slingsby plc
("Slingsby", "the Company" or the "Group")
Unaudited report for the half year ended 30 June 2025
Statement by the Chairman
Trading
Sales in the six months to 30 June 2025 fell by 3% compared to the same period
in the prior year. This lower level of sales, at a slightly lower gross
margin, was offset by lower overhead costs, such that the unaudited operating
profit before tax and exceptional item was £0.11m compared to £0.08m in the
six months ended 30 June 2024.
An exceptional item in the six months to 30 June 2025 was £42,000 of costs
relating to the Formal Sale Process under the Takeover Code, which was
commenced in February 2025 and concluded on 1 April 2025. In 2024, there was
an exceptional item relating to the retirement of Dominic Slingsby. The
exceptional item together with interest costs of £0.16m, which mostly relate
to the Company's defined benefit pension scheme, resulted in an unaudited loss
before tax of £0.09m in the six months to 30 June 2025 compared to an
unaudited loss before tax of £0.25m in the comparable period in 2024.
The market continues to be highly competitive, and the Group remains cautious
regarding the outlook for the remainder of the financial year. This is
particularly the case given the increase in corporate costs resulting from the
increases in the National Minimum Wage, Employers' National Insurance and from
changes to business rates. The impact that these factors may have on demand
going forward is difficult to forecast. There also continues to be the
potential for credit related issues should customers become insolvent.
Balance sheet
The Group had net assets of £4.0m at 30 June 2025 (£3.98m at 30 June 2024)
compared to net assets of £3.92m at 31 December 2024. The improvement in
net assets from 30 June 2024 is due to a decrease in the pension scheme
deficit despite the net losses incurred. The Company made deficit reduction
contributions totalling £175,000 in the six months to 30 June 2025 in line
with the agreement with the pension scheme's Trustee.
Cashflow
The Group had net debt of £0.3m at 30 June 2025 (£0.1m at 30 June 2024)
compared to £0.6m at 31 December 2024. 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
Due to the net loss incurred and 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 during continued
challenging times.
Andrew Kitchingman
Non-Executive Chairman
For further information please contact:
H C Slingsby plc
Andrew Kitchingman Non-Executive Chairman
01274 535 030
Morgan Morris, Group Chief Executive
Allenby Capital Limited (Nominated Advisor and Broker)
Alex Brearley/Ashur Joseph (Corporate Finance)
020 3328 5656
Amrit Nahal (Sales and Corporate Broking)
Unaudited Condensed Consolidated Income Statement for the half year ended 30
June 2025
Half year Half year Year
ended ended ended
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 10,480 10,766 20,773
--------- --------- ---------
Operating profit/(loss) before exceptional items 114 78 (123)
Exceptional item 3 (42) (200) (378)
-------- -------- --------
Operating profit/(loss) 72 (122) (501)
Finance income - 8 10
Finance costs (160) (138) (278)
-------- -------- --------
Loss before taxation (88) (252) (769)
Taxation 2 (5) 1 168
-------- -------- --------
Loss for the period attributable to equity shareholders (93) (251) (601)
-------- -------- --------
Basic and diluted weighted average earnings per share
(8.4p) (24.0p) (56.8p)
-------- -------- --------
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 2025
Half year Half year Year
ended ended ended
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Loss for the period (93) (251) (601)
-------- -------- --------
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations 228 (19) 153
Movement in deferred tax relating to retirement
benefit obligation (57) 5 (39)
-------- -------- --------
Other comprehensive income/(expense) 171 (14) 114
-------- -------- --------
Total comprehensive income/(expense) recognised for the period attributable to
equity shareholders
78 (265) (487)
-------- -------- --------
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 2025
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 5,153 5,441 5,270
Intangible assets 288 243 323
Goodwill 700 700 700
Deferred tax asset 834 780 896
--------- --------- --------
6,975 7,164 7,189
--------- --------- --------
Current assets
Inventories 2,548 2,565 2,672
Trade and other receivables 2,943 3,179 2,936
Cash and cash equivalents 2,570 2,449 2,366
Derivative financial asset - 3 19
--------- --------- ---------
8,061 8,196 7,993
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (2,534) (2,866) (2,477)
Invoice financing (526) (176) (755)
Overdraft (2,354) (2,350) (2,164)
Lease obligations (21) (21) (22)
Derivative Financial Liability (17) - -
Current tax liabilities - (91) -
--------- --------- ---------
(5,452) (5,504) (5,418)
--------- --------- ---------
Net current assets 2,609 2,692 2,575
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (5,528) (5,793) (5,777)
Lease obligations (61) (82) (70)
--------- --------- ---------
Net assets 3,995 3,981 3,917
--------- --------- ---------
Capital and reserves
Share capital 276 262 276
Share premium 168 24 168
Retained earnings 3,551 3,695 3,473
--------- --------- ---------
Total equity 3,995 3,981 3,917
--------- --------- ---------
The above unaudited consolidated balance sheet should be read in conjunction
with the accompanying notes.
Unaudited Consolidated Statement of Changes in Shareholders' Equity
Share Capital Share premium £'000 Retained earnings Total equity
£'000 £'000 £'000
At 1 January 2024 262 24 3,960 4,246
Total comprehensive expense recognised for the period
- - (265) (265)
--------- --------- --------- ---------
At 30 June 2024 262 24 3,695 3,981
--------- --------- --------- ---------
At 1 January 2025 276 168 3,473 3,917
Total comprehensive income recognised for the period - - 78 78
--------- --------- --------- ---------
At 30 June 2025 276 168 3,551 3,995
--------- --------- --------- ---------
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
2025
Half year Half year Year
ended ended ended
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Cash flows from operating activities
Cash (used in)/generated from operations 4 348 (63) (475)
UK corporation tax paid - - (83)
Interest paid (4) - (2)
--------- --------- ---------
Cash generated from/(used in) operating activities 344 (63) (560)
--------- --------- ---------
Cash flows from investing activities
Interest received - 8 10
Purchase of property, plant and equipment (77) (255) (262)
Purchase of intangible assets (21) (17) 77
Proceeds from sales of property, plant and equipment 10 58 (155)
--------- --------- ---------
Net cash outflow from investing activities (88) (206) (330)
--------- --------- ---------
Cash flows from financing activities
Proceeds from share issue - - 158
Capital element of lease payments (13) (13) (26)
Increase in invoice financing (229) 755
Increase/(decrease) in overdraft 190 282 (80)
--------- --------- ---------
Net cash (used in)/generated from financing activities (52) 269 807
--------- --------- ---------
Net increase in cash and cash equivalents 204 - (83)
Opening cash and cash equivalents 2,366 2,249 2,249
--------- --------- ---------
Closing cash and cash equivalents 2,570 2,449 2,366
--------- --------- ---------
Notes to the Interim Report for the half year ended 30 June 2025
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 2024 Annual Report and
Accounts. The comparative figures for the year ended 31 December 2024 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 2024 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
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Current tax - - (8)
Deferred tax 5 (1) (160)
--------- --------- ---------
5 (1) (168)
--------- --------- ---------
The effective tax rate is 25%.
3. Exceptional items Half year Half year Year
ended ended ended
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Payment for loss of office for Dominic Slingsby - 200 1992
Equity bonus issued to Morgan Morris - 179
Expenses related to Formal Sales Process 42
--------- --------- ---------
42 200 3784
--------- --------- ---------
Cash generated from/(used in) operations
4.
Half year Half year Year
ended ended ended
30/06/25 30/06/24 31/12/24
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Loss before tax (88) (252) (769)
Net finance costs 160 130 268
Depreciation and amortisation 202 209 466
Defined benefit pension scheme contributions paid (175) (133) (165)
Amounts reimbursed from pension scheme - - 52
Profit on sale of property, plant and equipment (10) (29) (23)
Decrease/(increase) in inventories 124 78 (29)
(Increase)/decrease in trade and other receivables (6) (218) 25
Increase/(decrease) in trade and other payables 105 157 (279)
Decrease/(increase) in derivative financial instruments 36 (5) (21)
--------- --------- ---------
Cash generated from/(used in) operating activities 348 (63) (475)
--------- --------- ---------
Cash generated from/(used in) operations
Half year
Half year
Year
ended
ended
ended
30/06/25
(Unaudited)
30/06/24
(Unaudited)
31/12/24
(Audited)
£'000
£'000
£'000
Loss before tax
(88)
(252)
(769)
Net finance costs
160
130
268
Depreciation and amortisation
202
209
466
Defined benefit pension scheme contributions paid
(175)
(133)
(165)
Amounts reimbursed from pension scheme
-
-
52
Profit on sale of property, plant and equipment
(10)
(29)
(23)
Decrease/(increase) in inventories
124
78
(29)
(Increase)/decrease in trade and other receivables
(6)
(218)
25
Increase/(decrease) in trade and other payables
105
157
(279)
Decrease/(increase) in derivative financial instruments
36
(5)
(21)
---------
---------
---------
Cash generated from/(used in) operating activities
348
(63)
(475)
---------
---------
---------
4. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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