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Government stimulus measures are withdrawn.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.
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END
IR SFSFMWESSELA
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August 18, 2020 02:00 ET (06:00 GMT)
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