REG - Slingsby(H.C.)Plc - Trading Update

H C SlingsbyAnnouncement

21/06/2022 07:00

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RNS Number : 5347P  Slingsby(H.C.)Plc  21 June 2022

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of
this announcement, this information is now considered to be in the public
domain.

 

21 June 2022

H C SLINGSBY PLC

("Slingsby", "the Group" or the "Company")

 

Trading Update

 

HC Slingsby PLC, one of the market leaders in the distribution of industrial
and commercial equipment, issues the following trading update in respect of
the five months ended 31 May 2022 in advance of the Annual General Meeting
which is to be held at 10.00 a.m. today.

 

In the Chairman's Statement accompanying the Annual Report and Accounts for
the year ended 31 December 2021, it was reported that Group sales were 4 per
cent. higher in the three months to 31 March 2022 compared with the
corresponding period in 2021.  This improvement in sales offset the impact of
a fall in Group gross profit margin and had led to an unaudited profit before
tax of £0.16m compared with £0.14m in the same period in the prior year.

 

Group sales in the five months to 31 May 2022 were 8 per cent. higher when
compared to the same period in the prior year.  The trend in Group gross
profit margin experienced in the first quarter of 2022 has continued in the
second quarter and, as a result, unaudited profit before tax in the five
months to the end of May 2022 is £0.17m.  Unaudited profit before tax in the
five months to 31 May 2021 was £0.07m.

 

The market remains competitive and the Group remains cautious regarding the
outlook. This is particularly the case due to the significant uncertainty
remaining from the aftermath of Coronavirus, the impact that high inflation
may have on the UK economy and the conflict in the Ukraine.  It is unclear as
to the impact that these factors will have on demand going forward.

 

The Group continues to experience significant cost increases across its
product range as well as higher shipping costs and delays.  These increases
impacted on gross margin in the first five months of 2022 and the Directors
consider the impact on gross margins is likely to persist for the remainder of
the year.

 

Cash Position

 

The Group had unaudited net cash of £0.5 million as at 31 May 2022 compared
to £0.6 million as at 31 May 2021 and £0.3 million as at 31 December 2021.
The Group's banking facilities remain in place and the Group continues to make
payments to the defined benefit pension scheme in accordance with the
agreement reached with the scheme's trustee in December 2019.

 

For further information, please contact:

 

 H C Slingsby PLC                                                      Tel: 01274 535 030
 Dominic Slingsby, Interim Executive Chairman and Operations Director
 Morgan Morris, Group Chief Executive
 Allenby Capital Limited                                               Tel: 020 3328 5656
 David Worlidge / George Payne

 

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