REG - Slingsby(H.C.)Plc - Report for the half year ended 30 June 2024
06/08/2024 07:00
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RNS Number : 2611Z Slingsby(H.C.)Plc 06 August 2024
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.
6 August 2024
H C Slingsby plc
("Slingsby" or "the Company")
Report for the half year ended 30 June 2024
Statement by the Chairman
Trading
In my statement in the trading update of 19 June 2024, I reported that Group
sales in the five months to 31 May 2024 were 4% lower than prior year and that
Group sales in May 2024 were 12% lower than that achieved in May 2023. This
trend in sales continued in June 2024 such that Group sales in the six months
to 30 June 2024 were 6% lower than in the same period last year. The
directors consider that the lower level of sales is due to customers reducing
or deferring spending following cost increases caused by factors such as the
increase in the minimum wage, lower sales of seasonal products and uncertainty
caused by the General Election. This lower level of sales, together with
higher overhead costs, led to an unaudited operating profit before tax and
exceptional item of £0.1m compared to £0.3m in the six months ended 30 June
2023.
An exceptional item in the sum of £0.2m relates to the costs of the
retirement of Dominic Slingsby. The exceptional item together with interest
costs of £0.14m relating to the Company's defined benefit pension scheme,
resulted in an unaudited loss before tax of £0.25m in the six months to 30
June 2024 compared to an unaudited profit before tax of £0.13m in the
comparable period in 2023.
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 recent lower levels of sales and order intake,
the uncertainty caused by the change in government and the risk that the UK
economy could re-enter recession as unemployment rises. There is also the
potential for credit related issues should customers become insolvent.
Balance sheet
The Group had net assets of £3.98m at 30 June 2024 (£4.41m at 30 June 2023)
compared to net assets of £4.25m at 31 December 2023. The reduction in net
assets from 30 June 2023 is due to an increase in the pension scheme deficit
and the net losses incurred. The Company made deficit reduction
contributions totalling £133,000 in the six months to 30 June 2024 in line
with the agreement with the pension scheme's Trustee.
Cashflow
The Group had net debt of £0.1m at 30 June 2024 (net cash of £0.4m at 30
June 2023) compared to net cash of £0.2m at 31 December 2023. The net cash
outflow in the six months to 30 June 2024 of £0.3m is mainly due to capital
expenditure. 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 a
further Non-Executive Director which the Board is continuing to explore.
Dividend
Due to the net loss incurred, the uncertain outlook and the agreement with the
pension scheme Trustee, 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/George Payne
020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half year ended 30
June 2024
Half year Half year Year
ended ended ended
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 10,766 11,458 22,642
--------- --------- ---------
Operating profit before exceptional items 78 329 630
Exceptional item 3 (200) - -
Finance income 8 - 12
Finance costs (138) (132) (285)
-------- -------- --------
(Loss)/profit before taxation (252) 197 357
Taxation 2 1 (68) (124)
-------- -------- --------
(Loss)/profit for the period attributable to equity shareholders (251) 129 233
-------- -------- --------
Basic and diluted weighted average earnings per share
(24.0p) 12.3p 22.2p
-------- -------- --------
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 2024
Half year Half year Year
ended ended ended
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
(Loss)/profit for the period (251) 129 233
-------- -------- --------
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations (19) (49) (408)
Movement in deferred tax relating to retirement
benefit obligation 5 12 102
-------- -------- --------
Other comprehensive expense (14) (37) (306)
-------- -------- --------
Total comprehensive (expense)/income recognised for the period attributable to
equity shareholders
(265) 92 (73)
-------- -------- --------
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 2024
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 5,441 5,357 5,355
Intangible assets 243 315 293
Goodwill 700 700 700
Deferred tax asset 1,448 1,369 1,443
--------- --------- --------
7,832 7,741 7,791
--------- --------- --------
Current assets
Inventories 2,565 2,695 2,643
Trade and other receivables 3,179 3,285 2,961
Cash and cash equivalents 2,449 2,464 2,449
Derivative financial asset 3 - -
--------- --------- ---------
8,196 8,444 8,053
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (2,866) (3,307) (2,708)
Bank borrowings (2,526) (2,031) (2,244)
Lease obligations (21) (20) (21)
Derivative Financial Liability - (7) (2)
Current tax liabilities (91) (154) (91)
--------- --------- ---------
(5,504) (5,519) (5,066)
--------- --------- ---------
Net current assets 2,692 2,925 2,987
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (5,793) (5,475) (5,772)
Lease obligations (82) (103) (92)
Deferred tax liabilities (668) (677) (668)
--------- --------- ---------
Net assets 3,981 4,411 4,246
--------- --------- ---------
Capital and reserves
Share capital 262 262 262
Share premium 24 24 24
Retained earnings 3,695 4,125 3,960
--------- --------- ---------
Total equity 3,981 4,411 4,246
--------- --------- ---------
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 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
--------- --------- --------- ---------
At 1 January 2024 262 24 3,960 4,246
Total comprehensive loss recognised for the period - - (265) (265)
--------- --------- --------- ---------
At 30 June 2024 262 24 3,695 3,981
--------- --------- --------- ---------
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
2024
Half year Half year Year
ended ended ended
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Cash flows from operating activities
Cash (used in)/generated from operations 4 (63) 611 656
UK corporation tax paid - - (114)
Interest paid - (3) (1)
--------- --------- ---------
Cash (used in)/generated from operating activities (63) 608 541
--------- --------- ---------
Cash flows from investing activities
Interest received 8 2 12
Purchase of property, plant and equipment (255) (74) (201)
Purchase of intangible assets (17) (125) (170)
Proceeds from sales of property, plant and equipment 58 6 23
--------- --------- ---------
Net cash outflow from investing activities (206) (191) (336)
--------- --------- ---------
Cash flows from financing activities
Capital element of lease payments (13) (10) (26)
Increase/(decrease) in overdraft 282 (186) 27
--------- --------- ---------
Net cash generated from/(used in) financing activities 269 (196) 1
--------- --------- ---------
Net increase in cash and cash equivalents - 221 206
Opening cash and cash equivalents 2,449 2,243 2,243
--------- --------- ---------
Closing cash and cash equivalents 2,449 2,464 2,449
--------- --------- ---------
Notes to the Interim Report for the half year ended 30 June 2024
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 2023 Annual Report and
Accounts. The comparative figures for the year ended 31 December 2023 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 2023 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
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Current tax - 52 102
Deferred tax (1) 16 22
--------- --------- ---------
(1) 68 124
--------- --------- ---------
The effective tax rate is 25%.
3. Exceptional items Half year Half year Year
ended ended ended
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Costs relating to Dominic Slingsby's retirement 200 - -2
--------- --------- ---------
200 - -4
--------- --------- ---------
Cash generated from/(used in) operations
4.
Half year Half year Year
ended ended ended
30/06/24 30/06/23 31/12/23
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
(Loss)/profit before tax (252) 197 357
Net finance costs 130 135 273
Depreciation and amortisation 209 194 390
Defined benefit pension scheme contributions paid (133) (200) (405)
Profit on sale of property, plant and equipment (29) (6) (23)
Decrease/(increase) in inventories 78 (12) 40
Decrease/(increase) in trade and other receivables (221) (323) 1
Increase in trade and other payables 155 626 23
--------- --------- ---------
Cash (used in)/generated from operating activities (63) 611 656
--------- --------- ---------
Cash generated from/(used in) operations
Half year
Half year
Year
ended
ended
ended
30/06/24
(Unaudited)
30/06/23
(Unaudited)
31/12/23
(Audited)
£'000
£'000
£'000
(Loss)/profit before tax
(252)
197
357
Net finance costs
130
135
273
Depreciation and amortisation
209
194
390
Defined benefit pension scheme contributions paid
(133)
(200)
(405)
Profit on sale of property, plant and equipment
(29)
(6)
(23)
Decrease/(increase) in inventories
78
(12)
40
Decrease/(increase) in trade and other receivables
(221)
(323)
1
Increase in trade and other payables
155
626
23
---------
---------
---------
Cash (used in)/generated from operating activities
(63)
611
656
---------
---------
---------
4. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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