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Share Name Share Symbol Market Type Share ISIN Share Description
Slingsby (h.c.) Plc LSE:SLNG London Ordinary Share GB0008138009 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 250.00 200.00 300.00 250.00 250.00 250.00 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 19.6 2.9 233.5 1.1 3

Slingsby(H.C.)Plc Half-year Report

18/08/2020 7:00am

UK Regulatory (RNS & others)


Slingsby (h.c.) (LSE:SLNG)
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TIDMSLNG

RNS Number : 3756W

Slingsby(H.C.)Plc

18 August 2020

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.

18 August 2020

H C Slingsby plc

("Slingsby" or "the Company")

Report for the half year ended 30 June 2020

Statement by the Chairman

Trading

In my trading update of 19 June 2020, I reported that Group sales in the five months to 31 May 2020 were 3% lower than prior year but that an improved level of gross margin and lower overheads meant that operating profit was higher than the comparable period in 2019. We were cautious regarding the outlook due to the significant uncertainty caused by the Coronavirus and that orders were concentrated on a limited product range.

The Group received a high level of orders during June 2020 and whilst fulfilment of these orders was challenging, the Group reported sales in June 2020 which were 50% higher than in June 2019. As a result, sales for the six months to 30 June 2020 were 5% higher compared with the same period in the prior year. This higher level of sales, combined with improved gross margin, led to an operating profit for the six months to 30 June 2020 of GBP0.5m (2019: GBP0.1m). The Group's profit before tax was GBP0.4m compared to a prior year loss before tax of GBP52,000.

Orders remain focussed on a limited number of products. The Group has managed to largely fulfil demand for these products to enable customers to continue or re-start their operations in accordance with Government Coronavirus guidance. However, we remain cautious that this increase in demand is short term and economic conditions may deteriorate should our customers suffer from lower levels of activity than they experienced prior to the pandemic when Government stimulus measures are withdrawn.

Balance sheet

The Group had net assets of GBP1.32m at 30 June 2020 compared to net assets of GBP1.67m at 31 December 2019. This reduction is due to an increase in the liability relating to the defined benefit pension scheme of GBP0.7m (after associated deferred tax). The retirement benefit obligation increased during the six months to 30 June 2020 due to the fall in the discount rate used by the scheme actuary caused by the continued low interest rate environment. This has the impact of increasing scheme liabilities, which outweighed an increase in the value of scheme assets. The Company made deficit reduction contributions totalling GBP150,000 in the six months to 30 June 2020 in line with the agreement with the scheme's Trustee.

Cashflow

The Group had net debt of GBP0.4m at 30 June 2020 (GBP1.3m at 30 June 2019) compared to GBP1.1m at 31 December 2019. Stock levels at 30 June 2020 were GBP0.3m higher than at 31 December 2019 (GBP0.2m higher than at 30 June 2019) due to the Group's sourcing strategy in response to increased customer demand for products relating to the Coronavirus. 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. The Group continues to utilise appropriate Government schemes to assist with cashflow.

Dividend

Due to the agreement reached with the Trustee of the defined benefit pension scheme, the Board is unable to declare an interim dividend.

People

We would like to thank our employees for their hard work and adaptability which has enabled the Group to maintain its operations and continue to help its customers through this difficult time.

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/James Hornigold                                               020 3328 5656 
 
 
 

Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2020

 
                                                   Half year      Half year         Year 
                                                       ended          ended        ended 
                                                    30/06/20       30/06/19     31/12/19 
                                                 (Unaudited)    (Unaudited)    (Audited) 
                                         Note        GBP'000        GBP'000      GBP'000 
 Revenue                                              10,455          9,946       19,568 
                                                   ---------      ---------    --------- 
 Operating profit before exceptional 
  items                                                  505             93          446 
 Exceptional items                        2                -              -        2,726 
                                                   ---------      ---------    --------- 
 Operating profit                                        505             93        3,172 
 
 Finance costs                                          (81)          (145)        (285) 
                                                    --------       --------     -------- 
 Profit/(Loss) before taxation                           424           (52)        2,887 
 Taxation                                 3             (38)             21        (552) 
                                                    --------       --------     -------- 
 Profit/(Loss) for the period attributable               386           (31)        2,335 
  to equity shareholders                            --------       --------     -------- 
 Basic and diluted profit/(loss) 
  per share                                            38.6p         (3.1p)       233.5p 
                                                    --------       --------     -------- 
 
 

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 2020

 
                                                      Half year      Half year         Year 
                                                          ended          ended        ended 
                                                       30/06/20       30/06/19     31/12/19 
                                                    (Unaudited)    (Unaudited)    (Audited) 
                                                        GBP'000        GBP'000      GBP'000 
 
 Profit/(Loss) for the period                               386           (31)        2,335 
 Items that will not be reclassified 
  to profit or loss 
 Remeasurements of post-employment 
  benefit obligations                                     (883)        (1,979)      (1,069) 
 Movement in deferred tax relating to 
  retirement 
  benefit obligation                                        150            337          103 
                                                       --------       --------     -------- 
 Other comprehensive expense                              (733)        (1,642)        (887) 
 
                                                       --------       --------     -------- 
 Total comprehensive (expense)/income 
  recognised for the period attributable 
  to equity shareholders                                  (347)        (1,673)        1,448 
                                                       --------       --------     -------- 
 
 
 
 
 

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 2020

 
                                                     30/06/20       30/06/19     31/12/19 
                                                  (Unaudited)    (Unaudited)    (Audited) 
                                                      GBP'000        GBP'000      GBP'000 
 Assets 
 Non-current assets 
 Property, plant and equipment                          5,089          4,588        5,296 
 Intangible assets                                        650            720          610 
 Goodwill                                                 700          1,734          700 
 Deferred tax asset                                     1,239          1,775        1,115 
                                                    ---------      ---------     -------- 
                                                        7,678          8,817        7,721 
                                                    ---------      ---------     -------- 
 Current assets 
 Inventories                                            2,456          2,276        2,134 
 Trade and other receivables                            3,046          2,612        2,401 
 Cash and cash equivalents                              1,696          1,397        1,278 
  Current tax asset                                         -              -            - 
  Derivative financial asset                                7              6            - 
                                                    ---------      ---------    --------- 
                                                        7,205          6,291        5,813 
                                                    ---------      ---------    --------- 
 Liabilities 
 Current liabilities 
 Trade and other payables                             (3,534)        (2,765)    (2,306) 
  Bank borrowings                                     (2,126)        (2,698)     (2,423) 
  Derivative financial obligations                          -              -       (8) 
  Lease obligations                                      (32)           (31)       (32) 
                                                    ---------      ---------    --------- 
                                                      (5,692)        (5,494)      (4,769) 
                                                    ---------      ---------    --------- 
 Net current assets                                     1,513            797        1,044 
                                                    ---------      ---------    --------- 
 Non-current liabilities 
 Retirement benefit obligation                        (7,359)       (10,539)      (6,558) 
  Lease obligations                                      (50)           (82)         (66) 
 Deferred tax liabilities                               (458)          (443)        (470) 
                                                    ---------      ---------    --------- 
 
 Net assets/(liabilities)                               1,324        (1,450)        1,671 
                                                    ---------      ---------    --------- 
 Capital and reserves 
 Share capital                                            250            250          250 
 Retained earnings                                      1,074        (1,700)        1,421 
                                                    ---------      ---------    --------- 
 Total equity                                           1,324        (1,450)        1,671 
                                                    ---------      ---------    --------- 
 
 
 
 

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   Total equity 
                                             Capital    earnings        GBP'000 
                                             GBP'000     GBP'000 
 
 At 1 January 2019                               250        (27)            223 
 Total comprehensive income recognised 
  for the period                                   -     (1,673)        (1,673) 
 
                                           ---------   ---------      --------- 
 At 30 June 2019                                 250     (1,700)        (1,450) 
                                           ---------   ---------      --------- 
 
 At 1 January 2020                               250       1,421          1,671 
 Total comprehensive expense recognised 
  for the period                                   -       (347)          (347) 
                                           ---------   ---------      --------- 
 At 30 June 2020                                 250       1,074          1,324 
                                           ---------   ---------      --------- 
 

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 2020

 
                                                       Half year      Half year         Year 
                                                           ended          ended        ended 
                                                        30/06/20       30/06/19     31/12/19 
                                                     (Unaudited)    (Unaudited)    (Audited) 
                                             Note        GBP'000        GBP'000      GBP'000 
 Cash flows from operating activities 
 Cash generated from operations               4              787             32          404 
 UK corporation tax received                                   -              -         (57) 
 Interest paid                                              (12)           (23)         (36) 
                                                       ---------      ---------    --------- 
 Cash generated from operating activities                    775              9          311 
                                                       ---------      ---------    --------- 
 Cash flows from investing activities 
 Purchase of property, plant and 
  equipment                                                 (30)          (158)        (212) 
 Purchase of intangible assets                              (12)              -         (83) 
 Proceeds from sales of property, plant 
  and equipment                                                -              9           20 
                                                       ---------      ---------    --------- 
 Net cash outflow from investing 
  activities                                                (42)          (149)        (275) 
                                                       ---------      ---------    --------- 
 Cash flows from financing activities 
 
   Capital element of operating/finance 
   lease repayments                                         (18)           (15)       (36) 
 Proceeds from borrowing                                     510            526          397 
 Decrease in overdraft                                     (807)          (432)        (577) 
                                                       ---------      ---------    --------- 
 Net cash (used in)/generated from 
  financing activities                                     (315)             79        (216) 
                                                       ---------      ---------    --------- 
 Net increase/(decrease) in cash and cash 
  equivalents                                                418           (61)        (180) 
 
 Opening cash and cash equivalents                         1,278          1,458        1,458 
 
                                                       ---------      ---------    --------- 
 Closing cash and cash equivalents                         1,696          1,397        1,278 
                                                       ---------      ---------    --------- 
 

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 2020

 
 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 2019 Annual Report and Accounts. 
          The comparative figures for the year ended 31 December 2019 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, but did contain an emphasis 
          of matter paragraph in respect of the Group's ability to continue 
          as a going concern due to the significant uncertainty caused 
          by Coronavirus. They did not contain any statement under Section 
          498 of the Companies Act 2006. The 2019 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 
                                                         30/06/20       30/06/19          31/12/19 
                                                      (Unaudited)    (Unaudited)         (Audited) 
                                                          GBP'000        GBP'000           GBP'000 
 
         Settlement gain                                                                  3,069 
   Goodwill impairment provision                                -              -           (1,034) 
  Property impairment reversal                                  -              -           691 
                                                       ----------      ---------         --------- 
                                                                -              -             2,726 
                                                       ----------      ---------         --------- 
         The settlement gain relates to the reduction in pension scheme 
          liabilities (net of assets transferred) following two executive 
          members transferring out of the scheme with the agreement of 
          the scheme Trustee. 
 
          The goodwill impairment provision relates to a reduction in the 
          carrying value of ESE Direct Limited. 
 
          The property impairment reversal reflects the increased value 
          of the Group's freehold property following a recent re-valuation. 
          The property's value was previously impaired by GBP1.22m in 2017. 
 3.      Taxation                                       Half year      Half year              Year 
                                                            ended          ended             ended 
                                                         30/06/20       30/06/19          31/12/19 
                                                      (Unaudited)    (Unaudited)         (Audited) 
                                                          GBP'000        GBP'000           GBP'000 
 
  Current tax                                                  24              -                41 
  Deferred tax                                                 14           (21)               511 
                                                        ---------      ---------         --------- 
                                                               38           (21)               552 
                                                        ---------      ---------         --------- 
         The effective tax rate is 9%. 
 
   4.      Cash generated from operations 
                                                        Half year      Half year              Year 
                                                            ended          ended             ended 
                                                         30/06/20       30/06/19          31/12/19 
                                                      (Unaudited)    (Unaudited)         (Audited) 
                                                          GBP'000        GBP'000           GBP'000 
 
  Profit/(Loss) before tax                                    424           (52)             2,887 
  Net finance costs                                            81            145               285 
  Depreciation and amortisation                               210            205               414 
         Defined benefit pension scheme 
          contributions paid                                (150)              -             (125) 
   Property impairment reversal                                 -              -             (691) 
         Settlement gain related to defined 
          benefit pension scheme 
   Exceptional impairment provision                             -              -           (3,069) 
   Profit on sale of property, plant 
    and equipment                                               -              -             1,034 
                                                                -            (4)               (8) 
  Increase in inventories                                   (322)          (329)             (186) 
  (Increase)/Decrease in trade and 
   other receivables                                        (652)           (27)               189 
  Increase/(Decrease) in trade and 
   other payables                                           1,196             94             (326) 
                                                        ---------      ---------         --------- 
  Cash generated from operating activities                    787             32               404 
                                                        ---------      ---------         --------- 
 
 
 
 
 

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 London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR SFSFMWESSELA

(END) Dow Jones Newswires

August 18, 2020 02:00 ET (06:00 GMT)

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