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

H C SlingsbyAnnouncement

15/06/2023 07:00

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RNS Number : 7603C  Slingsby(H.C.)Plc  15 June 2023

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.

 

15 June 2023

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 four months ended 30 April 2023 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 Audited
Financial Statements for the year ended 31 December 2022, it was reported that
Group sales were 5 per cent. higher in the three months to 31 March 2023
compared with the corresponding period in 2022.  This improvement in sales at
a higher gross margin was offset by increased overhead costs leading to an
unaudited profit before tax of £0.12m compared with £0.16m in the same
period in the prior year.

 

Group sales in the four months to 30 April 2023 were 3 per cent. higher when
compared to the same period in the prior financial year, with the timing of
Easter impacting on 2023 sales levels.  The trend in Group gross profit
margin experienced in the first quarter of 2023 has continued in the second
quarter as have trends in respect of overheads, and as a result, unaudited
profit before tax for the four months to the end of April 2023 is £0.1m.
Unaudited profit before tax for the four months to 30 April 2022 was £0.19m.

 

The market remains competitive and the Group remains cautious regarding the
outlook for the remainder of the financial year. This is particularly the case
given the significant uncertainty remaining caused by the continuing conflict
in Ukraine, the risk of a recession in the Group's main UK market and given
that the longer term impacts of Coronavirus and of Brexit are not yet fully
known.  It is unclear as to the impact that these factors will have on demand
going forward.

 

Inflationary pressures remain, leading to cost price increases across the
product range and in overheads.  This increased level of overheads in the
first four months of 2023 is considered by the Directors likely to persist for
the remainder of the year.

 

Cash Position

 

The Group had unaudited net cash of approximately £0.4 million as at 30 April
2023 compared to £0.55 million as at 30 April 2022 and £0.03 million as at
31 December 2022. 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 (Nominated adviser and Broker)                Tel: 020 3328 5656
 Alex Brearley / George Payne

 

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