TIDMSLNG
RNS Number : 5494J
Slingsby(H.C.)Plc
20 August 2019
20 August 2019
H C Slingsby plc
("Slingsby" or "the Company")
Report for the half year ended 30 June 2019
Statement by the Chairman
Trading
In my trading update of 12 June 2019, I reported that Group
sales in the five months to 31 May 2019 were 3.5% higher than prior
year but that adverse movements in gross margin and overheads meant
that operating profit was lower than the comparable period in 2018.
Variability in order intake experienced since the decision to
extend the Brexit date, the unwinding of customers' plans for this
event and the economic uncertainty created, led us to be cautious
regarding the short-term outlook.
While Group sales for the six months to 30 June 2019 were 2%
higher compared with the prior year, operating profit fell by
GBP117,000 to GBP93,000 (2018: GBP210,000) due to adverse movements
in gross margin and overheads. The Group's loss before tax was
GBP52,000 compared to a prior year profit before tax of GBP76,000
and is after GBP122,000 of finance costs relating to the company's
defined benefit pension scheme (2018: GBP108,000).
We remain cautious regarding the outlook due to the continued
variability in order intake, economic uncertainty and the
competitive nature of the marketplace.
Balance sheet
The Group has net liabilities of GBP1.45m at 30 June 2019 from
net assets of GBP0.22m at 31 December 2018. This is largely due to
an increase in the liability relating to the defined benefit
pension scheme of GBP1.6m (after associated deferred tax). The
retirement benefit obligation increased during the six months to 30
June 2019 as a result of a change in the assumption regarding
interest rates, although this was partly offset by an increase in
the level of pension scheme assets despite the company making no
deficit reduction contributions.
We remain in discussion with the trustees of the Company Pension
Scheme and the relevant authorities regarding a long term solution
to the pension scheme deficit and continue to pay the running costs
previously agreed with the trustees of GBP160,000 per annum. Until
these discussions regarding the defined benefit pension scheme are
concluded, the quantum and timing of future deficit reduction
payments in this regard are uncertain.
Cashflow
The Group had net debt of GBP1.30m at 30 June 2019 (GBP1.24m at
30 June 2018) compared to GBP1.15m at 31 December 2018. Stock
levels at 30 June 2019 were GBP0.3m higher than at 31 December 2018
(GBP0.5m higher than at 30 June 2018) due to the Group's Brexit
preparations and sourcing strategy. 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
The Board has decided not to declare an interim dividend.
People
Whilst our profit performance is reduced from that in the prior
year, I would like to thank our employees across the Group for
their continued hard work.
Dominic Slingsby
Interim Executive Chairman and Operations Director
For further information please contact:
H C Slingsby plc
Dominic Slingsby, Interim Executive Chairman 01274 535 030
Morgan Morris, Group Chief Executive
Allenby Capital Limited
David Worlidge/Nicholas Chambers 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2019
Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 9,946 9,725 19,817
--------- --------- ---------
Operating profit before exceptional
items 93 210 520
Exceptional items 2 - - (891)
--------- --------- ---------
Operating profit/(loss) 93 210 (371)
Finance costs (145) (134) (262)
-------- -------- --------
(Loss)/profit before taxation (52) 76 (633)
Taxation 3 21 8 (29)
-------- -------- --------
(Loss)/profit for the period attributable (31) 84 (662)
to equity shareholders -------- -------- --------
Basic and diluted (loss)/profit
per share (3.1p) 8.4p (66.2p)
-------- -------- --------
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 2019
Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (31) 84 (662)
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations (1,979) 1,565 604
Movement in deferred tax relating to
retirement
benefit obligation 337 (266) (103)
-------- -------- --------
Other comprehensive (expense)/income (1,642) 1,299 501
-------- -------- --------
Total comprehensive (expense)/income
recognised for the period attributable
to equity shareholders (1,673) 1,383 (161)
-------- -------- --------
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 2019
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 4,588 4,469 4,578
Intangible assets 720 754 641
Goodwill 1,734 2,409 1,734
Deferred tax asset 1,775 1,221 1,434
--------- --------- --------
8,817 8,853 8,387
--------- --------- --------
Current assets
Inventories 2,276 1,803 1,947
Trade and other receivables 2,612 2,906 2,576
Cash and cash equivalents 1,397 1,390 1,458
Current tax asset - - -
Derivative financial asset 6 26 14
--------- --------- ---------
6,291 6,125 5,995
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (2,765) (3,006) (2,658)
Bank borrowings (2,698) (2,629) (2,603)
Operating lease obligations (31) (3) -
--------- --------- ---------
(5,494) (5,638) (5,261)
--------- --------- ---------
Net current assets 797 487 734
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (10,539) (7,153) (8,438)
Operating lease obligations (82) - -
Deferred tax liabilities (443) (420) (460)
--------- --------- ---------
Net (liabilities)/assets (1,450) 1,767 223
--------- --------- ---------
Capital and reserves
Share capital 250 250 250
Retained earnings (1,700) 1,517 (27)
--------- --------- ---------
Total equity (1,450) 1,767 223
--------- --------- ---------
The above unaudited consolidated balance sheet should be read in
conjunction with the accompanying notes.
Unaudited Consolidated Statement of Changes in Shareholders'
Equity
Share Retained Translation Total equity
Capital earnings reserve GBP'000
GBP'000 GBP'000 GBP'000
At 1 January 2018 250 134 - 384
Total comprehensive income recognised
for the period - 1,383 - 1,383
--------- --------- --------- ---------
At 30 June 2018 250 1,517 - 1,767
--------- --------- --------- ---------
At 1 January 2019 250 (27) - 223
Total comprehensive expense recognised
for the period - (1,673) - (1,673)
--------- --------- --------- ---------
At 30 June 2019 250 (1,700) - (1,450)
--------- --------- --------- ---------
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 2019
Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 4 32 499 893
UK corporation tax received - - (60)
Interest paid (23) (26) (45)
--------- --------- ---------
Cash generated from operating activities 9 473 788
--------- --------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (158) (115) (358)
Purchase of intangible assets - - -
Proceeds from sales of property, plant
and equipment 9 16 41
--------- --------- ---------
Net cash outflow from investing
activities (149) (99) (317)
--------- --------- ---------
Cash flows from financing activities
Capital element of operating/finance
lease repayments (15) (35) (37)
Proceeds from/(repayment of) borrowing 526 (7) (575)
(Decrease)/Increase in overdraft (432) 62 603
--------- --------- ---------
Net cash generated from/(used in)
financing activities 79 20 (9)
--------- --------- ---------
Net (decrease)/increase in cash and cash
equivalents (61) 394 462
Opening cash and cash equivalents 1,458 996 996
--------- --------- ---------
Closing cash and cash equivalents 1,397 1,390 1,458
--------- --------- ---------
The above unaudited consolidated statement of cash flows should
be read in conjunction with the accompanying notes.
Notes to the Interim Report for the half year ended 30 June
2019
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 prepared in accordance with
the policies set out in the 2018 Annual Report and Accounts except
that the company has adopted IFRS 16 'Leases'. The comparative
figures for the year ended 31 December 2018 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, which did not contain an emphasis
of matter paragraph and did not contain any statement under Section
498 of the Companies Act 2006. The 2018 accounts have been delivered
to the Registrar of Companies. The Company has chosen not to
adopt IAS 34 'Interim Financial Statements'.
2. Exceptional items Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
GMP Equalisation - - 216
Asset impairment - - 675
---------- --------- ---------
- - 891
---------- --------- ---------
The asset impairment relates to the company's freehold property.
3. Taxation Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax - 10 57
Deferred tax (21) (18) (28)
--------- --------- ---------
(21) (8) 29
--------- --------- ---------
The effective tax rate is nil.
4. Cash generated from operations
Half year Half year Year
ended ended ended
30/06/19 30/06/18 31/12/18
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
(Loss)/profit before tax (52) 76 (633)
Net finance costs 145 134 262
Depreciation and amortisation 205 230 463
Asset impairment - - 675
Profit on sale of property, plant
and equipment (4) (3) (16)
Exceptional charge for GMP equalisation - - 216
(Increase)/decrease in inventories (329) 20 (124)
(Increase)/Decrease in trade and
other receivables (27) (555) (214)
Increase/(Decrease) in trade and
other payables 94 597 264
--------- --------- ---------
Cash generated from operating activities 32 499 893
--------- --------- ---------
5. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
This information is provided by RNS, the news service of the
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END
IR SFEFMUFUSEIA
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