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

H C SlingsbyAnnouncement

15/10/2024 07:00

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RNS Number : 1267I  Slingsby(H.C.)Plc  15 October 2024

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15 October 2024

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 nine months ended 30 September 2024.

 

In the Chairman's Statement accompanying the Report for the half year ended 30
June 2024, it was reported that Group sales were 6 per cent. lower in the six
months to 30 June 2024 compared with the corresponding period in 2023.  This
decline in sales and the costs associated with the retirement of a director of
£0.2m together with interest costs of £0.14m relating to the Company's
defined benefit pension scheme, led to an unaudited loss before tax of £0.25m
compared with an unaudited profit before tax of £0.13m in the same period in
the prior year.

 

Group sales in the nine months to 30 September 2024 were 8 per cent. lower
when compared to the same period in the prior financial year.  Group sales in
Q3 2024 were down 11 per cent. on that achieved in Q3 2023.  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
around the impact of future tax and regulatory changes.

 

The reduction in sales and increases in overhead costs have resulted in an
unaudited loss before tax for the nine months to the end of September 2024 of
£0.53m (after the costs associated with the retirement of a director of
£0.2m and interest costs of £0.20m relating to the Company's defined benefit
pension scheme).  The unaudited profit before tax for the nine months to 30
September 2023 was £0.27m.

 

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 recent lower level of sales and volatility in order intake which
makes demand going forward difficult to forecast. The directors will keep the
Group's cost base under review as appropriate.

 

Cash Position

 

The Group had unaudited net debt of approximately £0.36 million as at 30
September 2024 compared to net debt of approximately £0.08 million as at 30
June 2024 and net cash of £0.21 million as at 31 December 2023. 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 March 2024.

 

For further information, please contact:

 

 H C Slingsby PLC                                        Tel: 01274 535 030
 Andrew Kitchingman, Non-Executive Chairman
 Morgan Morris, Group Chief Executive

 Allenby Capital Limited (Nominated adviser and Broker)  Tel: 020 3328 5656
 Alex Brearley / George Payne

 Amrit Nahal (Sales and Corporate Broking)

 

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