TIDMSLNG
RNS Number : 8377U
Slingsby(H.C.)Plc
04 August 2022
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.
4 August 2022
H C Slingsby plc
("Slingsby" or "the Company")
Report for the half year ended 30 June 2022
Statement by the Chairman
Trading
In my trading update of 21 June 2022, I reported that Group
sales in the five months to 31 May 2022 were 8% higher than prior
year but that gross margin was lower, meaning that unaudited profit
before tax was GBP0.17m compared to GBP0.07m in the prior year. We
were cautious regarding the outlook due to the significant
uncertainty remaining from the aftermath of the coronavirus
pandemic, the impact that high inflation may have on the UK economy
and the ongoing conflict in the Ukraine.
I am pleased to report that Group sales in the six months to 30
June 2022 were 10% higher than in the same period in 2021. This
increase in sales offset the continuation in the trend regarding
gross margin and higher overhead costs and led to an unaudited
profit before tax of GBP0.24m in the six months ended 30 June 2022
compared to an unaudited profit before tax of GBP0.1m in the same
period in 2021.
The market remains competitive, and it remains unclear what
impact the aforementioned factors will have on demand going
forward. The Group continues to experience cost inflation across
most areas of its business (goods, freight and overheads) and there
is a risk that the UK economy will enter recession in H2 2022.
There is also heightened potential for credit related issues should
customers become insolvent.
Balance sheet
The Group had net assets of GBP4.68m at 30 June 2022 (GBP1.96m
at 30 June 2021) compared to net assets of GBP2.26m at 31 December
2021. This improvement is mostly due to a decrease in the liability
relating to the defined benefit pension scheme of GBP2.2m (after
associated deferred tax). The retirement benefit obligation
decreased during the six months to 30 June 2022 due to an increase
in the discount rate used by the scheme actuary. This has the
impact of decreasing scheme liabilities, which outweighed a
decrease in the value of scheme assets. The Company made deficit
reduction contributions totalling GBP159,000 in the six months to
30 June 2022 in line with the agreement with the scheme's
Trustee.
Cashflow
The Group had net cash of GBP0.5m at 30 June 2022 (GBP0.8m at 30
June 2021) compared to GBP0.3m at 31 December 2021. 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
Due to the uncertain outlook, the Board has decided not to
declare an interim dividend. It remains the Board's intention to
re-commence dividend payments to shareholders as soon as it is
prudent to do so.
People
We would like to thank our employees for their hard work and
flexibility during continued challenging times.
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 (Nominated Adviser and Broker)
David Worlidge/George Payne 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2022
Half year Half year Year
ended ended ended
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 10,977 9,950 19,824
--------- --------- ---------
Operating profit before exceptional
items 316 156 410
Exceptional items - - 530
Finance costs (72) (61) (118)
-------- -------- --------
Profit before taxation 244 95 822
Taxation 2 (62) (26) (255)
-------- -------- --------
Profit for the period attributable to 182 69 567
equity shareholders -------- -------- --------
Basic and diluted weighted average
earnings per share 17.3p 6.6p 54.0p
-------- -------- --------
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 2022
Half year Half year Year
ended ended ended
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit for the period 182 69 567
-------- -------- --------
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations 2,985 842 (3)
Movement in deferred tax relating to
retirement
benefit obligation (746) (160) 491
-------- -------- --------
Other comprehensive income 2,239 682 488
-------- -------- --------
Total comprehensive income recognised
for the period attributable to
equity shareholders 2,421 751 1,055
-------- -------- --------
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 2022
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 5,332 4,962 5,377
Intangible assets 319 453 386
Goodwill 700 700 700
Deferred tax asset 1,216 1,367 1,985
--------- --------- --------
7,567 7,482 8,448
--------- --------- --------
Current assets
Inventories 2,806 2,164 2,330
Trade and other receivables 3,120 2,658 2,764
Cash and cash equivalents 2,229 2,076 1,999
Derivative financial asset 3 2 7
--------- --------- ---------
8,158 6,900 7,100
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (3,579) (3,172) (2,884)
Bank borrowings (1,764) (1,275) (1,653)
Lease obligations (15) (34) (32)
Current tax liabilities (96) (150) (56)
--------- --------- ---------
(5,454) (4,631) (4,625)
--------- --------- ---------
Net current assets 2,704 2,269 2,475
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (4,865) (7,194) (7,938)
Lease obligations - (15) -
Deferred tax liabilities (722) (583) (722)
--------- --------- ---------
Net assets 4,684 1,959 2,263
--------- --------- ---------
Capital and reserves
Share capital 262 262 262
Share premium 24 24 24
Retained earnings 4,398 1,673 1,977
--------- --------- ---------
Total equity 4,684 1,959 2,263
--------- --------- ---------
The above unaudited consolidated balance sheet should be read in
conjunction with the accompanying notes .
Unaudited Consolidated Statement of Changes in Shareholders'
Equity
Share Share Retained Total
Capital premium earnings equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 262 24 922 1,208
Total comprehensive income recognised
for the period - - 751 751
--------- --------- --------- ---------
At 30 June 2021 262 24 1,673 1,959
--------- --------- --------- ---------
At 1 January 2022 262 24 1,977 2,263
Total comprehensive income recognised
for the period - - 2,421 2,421
--------- --------- --------- ---------
At 30 June 2022 262 24 4,398 4,684
--------- --------- --------- ---------
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 2022
Half year Half year Year
ended ended ended
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 3 228 590 331
UK corporation tax paid - - (150)
Interest received - 1 1
--------- --------- ---------
Cash generated from operating activities 228 591 182
--------- --------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (101) (44) (100)
Purchase of intangible assets - (3) (3)
Proceeds from sales of property, plant
and equipment 9 - 28
--------- --------- ---------
Net cash outflow from investing
activities (92) (47) (75)
--------- --------- ---------
Cash flows from financing activities
Capital element of lease payments (17) (18) (36)
Increase/(decrease) in overdraft 111 (231) 147
--------- --------- ---------
Net cash generated from/(used in)
financing activities 94 (249) 111
--------- --------- ---------
Net increase in cash and cash equivalents 230 295 218
Opening cash and cash equivalents 1,999 1,781 1,781
--------- --------- ---------
Closing cash and cash equivalents 2,229 2,076 1,999
--------- --------- ---------
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
2022
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 2021 Annual Report and Accounts.
The comparative figures for the year ended 31 December 2021 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
2021 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
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax 40 - 56
Deferred tax 22 26 199
--------- --------- ---------
62 26 255
--------- --------- ---------
The effective tax rate is 25%.
3. Cash generated from operations
Half year Half year Year
ended ended ended
30/06/22 30/06/21 31/12/21
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit before tax 244 95 822
Net finance costs 72 61 118
Depreciation and amortisation 215 234 461
Defined benefit pension scheme
contributions paid (159) (199) (357)
Property impairment reversal - - (530)
Profit on sale of property, plant
and equipment (9) - (17)
(Increase)/decrease in inventories (476) 60 (107)
Increase in trade and other receivables (352) (27) (137)
Increase in trade and other payables 693 366 78
--------- --------- ---------
Cash generated from operating activities 228 590 331
--------- --------- ---------
4. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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END
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