TIDMSLNG
RNS Number : 2445J
Slingsby(H.C.)Plc
20 August 2021
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.
20 August 2021
H C Slingsby plc
("Slingsby" or "the Company")
Report for the half year ended 30 June 2021
Statement by the Chairman
Trading
In my trading update of 9 June 2021, I reported that Group sales
in the four months to 30 April 2021 were 6% higher than prior year
but that gross margin was lower, meaning that unaudited profit
before tax was GBP0.1m compared to GBP0.2m in the prior year. We
were cautious regarding the outlook due to continued uncertainty
caused by the coronavirus pandemic. Whilst the Group's sales grew
in 2020 due to demand for virus related products, the same level of
order intake that was experienced in 2020 had not recurred in 2021.
In addition, the Group has experienced significant cost price
increases across its product range as well as higher shipping costs
and delays which impacted on gross margin.
Group sales in the six months to 30 June 2021 were 5% lower than
in the same period in 2020. This fall in sales together with a
continuation in the trend regarding gross margin, led to an
unaudited profit before tax of GBP0.1m in 2021 compared to an
unaudited profit before tax of GBP0.4m in the same period in
2020.
The market remains competitive and it remains unclear what
impact the pandemic will have on demand going forward. The downward
trend in gross margin is likely to persist for the remainder of the
year and there is also heightened potential for credit related
issues should customers become insolvent.
Balance sheet
The Group had net assets of GBP1.96m at 30 June 2021 compared to
net assets of GBP1.21m at 31 December 2020. This improvement is due
to a decrease in the liability relating to the defined benefit
pension scheme of GBP0.7m (after associated deferred tax). The
retirement benefit obligation decreased during the six months to 30
June 2021 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
GBP199,000 in the six months to 30 June 2021, in line with the
agreement with the scheme's Trustee.
Cashflow
The Group had net cash of GBP0.8m at 30 June 2021 (net debt of
GBP0.4m at 30 June 2020) compared to GBP0.3m at 31 December 2020.
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 is 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 which has enabled the Group to continue its operations
during a challenging 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 / George Payne 020 3328 5656
Unaudited Condensed Consolidated Income Statement for the half
year ended 30 June 2021
Half year Half year Year
ended ended ended
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 9,950 10,455 21,806
--------- --------- ---------
Operating profit 156 505 1,263
Finance costs (61) (81) (154)
-------- -------- --------
Profit before taxation 95 424 1,109
Taxation 2 (26) (38) (163)
-------- -------- --------
Profit for the period attributable to 69 386 946
equity shareholders -------- -------- --------
Basic and diluted weighted average
earnings per share 6.6p 38.6p 92.3p
-------- -------- --------
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 2021
Half year Half year Year
ended ended ended
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit for the period 69 386 946
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations 842 (883) (1,784)
Movement in deferred tax relating to
retirement
benefit obligation (160) 150 339
-------- -------- --------
Other comprehensive income/(expense) 682 (733) (1,445)
-------- -------- --------
Total comprehensive income/(expense)
recognised for the period attributable
to equity shareholders 751 (347) (499)
-------- -------- --------
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 2021
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 4,962 5,089 5,084
Intangible assets 453 650 518
Goodwill 700 700 700
Deferred tax asset 1,367 1,239 1,553
--------- --------- --------
7,482 7,678 7,855
--------- --------- --------
Current assets
Inventories 2,164 2,456 2,224
Trade and other receivables 2,658 3,046 2,632
Cash and cash equivalents 2,076 1,696 1,781
Derivative financial asset 2 7 -
--------- --------- ---------
6,900 7,205 6,637
--------- --------- ---------
Liabilities
Current liabilities
Trade and other payables (3,172) (3,534) (2,948)
Bank borrowings (1,275) (2,126) (1,506)
Derivative financial obligations - - (7)
Lease obligations (34) (32) (34)
Current tax liabilities (150) - -
--------- --------- ---------
(4,631) (5,692) (4,495)
--------- --------- ---------
Net current assets 2,269 1,513 2,142
--------- --------- ---------
Non-current liabilities
Retirement benefit obligation (7,194) (7,359) (8,175)
Lease obligations (15) (50) (32)
Deferred tax liabilities (583) (458) (582)
--------- --------- ---------
Net assets 1,959 1,324 1,208
--------- --------- ---------
Capital and reserves
Share capital 262 250 262
Share premium 24 - 24
Retained earnings 1,673 1,074 922
--------- --------- ---------
Total equity 1,959 1,324 1,208
--------- --------- ---------
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 premium Retained Total equity
Capital GBP'000 earnings GBP'000
GBP'000 GBP'000
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
--------- --------- --------- ---------
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
--------- --------- --------- ---------
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 2021
Half year Half year Year
ended ended ended
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 3 590 787 1,594
UK corporation tax paid - - (41)
Interest received/(paid) 1 (12) (13)
--------- --------- ---------
Cash generated from operating activities 591 775 1,540
--------- --------- ---------
Cash flows from investing activities
Purchase of property, plant and
equipment (44) (30) (108)
Purchase of intangible assets (3) (12) (18)
Proceeds from sales of property, plant
and equipment - - 6
--------- --------- ---------
Net cash outflow from investing
activities (47) (42) (120)
--------- --------- ---------
Cash flows from financing activities
Capital element of lease payments (18) (18) (36)
Proceeds from share issue - - 36
Proceeds from/(repayment of) borrowing - 510 (1,034)
(Decrease)/Increase in overdraft (231) (807) 117
--------- --------- ---------
Net cash used in financing activities (249) (315) (917)
--------- --------- ---------
Net increase in cash and cash equivalents 295 418 503
Opening cash and cash equivalents 1,781 1,278 1,278
--------- --------- ---------
Closing cash and cash equivalents 2,076 1,696 1,781
--------- --------- ---------
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
2021
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 2020 Annual Report and Accounts.
The comparative figures for the year ended 31 December 2020 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
2020 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
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Current tax - 24 150
Deferred tax 26 14 13
--------- --------- ---------
26 38 163
--------- --------- ---------
The effective tax rate is 27%.
3. Cash generated from operations
Half year Half year Year
ended ended ended
30/06/21 30/06/20 31/12/20
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit before tax 95 424 1,109
Net finance costs 61 81 154
Depreciation and amortisation 234 210 430
Defined benefit pension scheme
contributions paid (199) (150) (304)
Profit on sale of property, plant
and equipment - - (6)
Decrease/(Increase) in inventories 60 (322) (90)
Decrease in trade and other receivables (27) (652) (231)
Increase in trade and other payables 366 1,196 532
--------- --------- ---------
Cash generated from operating activities 590 787 1,594
--------- --------- ---------
4. Availability of Interim Report
The Interim Report will be available on the Company's website
www.slingsby.com.
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END
IR SFAESUEFSEEA
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