REG - Slingsby(H.C.)Plc - AGM statement

H C SlingsbyAnnouncement

19/06/2024 07:00

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RNS Number : 9428S  Slingsby(H.C.)Plc  19 June 2024

 

19 June 2024

H C SLINGSBY PLC

("Slingsby", "the Group" or the "Company")

 

AGM statement

 

HC Slingsby PLC, one of the market leaders in the distribution of industrial
and commercial equipment, issues the following trading update in respect of
the five months ended 31 May 2024 in advance of the Annual General Meeting
which is to be held at 10.00 a.m. today.

 

In the Chairman's Statement accompanying the Annual Report and Audited
Financial Statements for the year ended 31 December 2023, it was reported that
Group sales were 5 per cent. lower in the three months to 31 March 2024
compared with the corresponding period in 2023.  This decline in sales and
the costs associated with the retirement of Dominic Slingsby of £0.2m, led to
an unaudited loss before tax of £0.14m compared with an unaudited profit
before tax of £0.12m in the same period in the prior year.

 

Group sales in the five months to 31 May 2024 were 4 per cent. lower when
compared to the same period in the prior financial year.  Whilst this is an
improvement on the sales decline against prior year reported for Q1 2024,
April 2023 represented a weak comparative sales performance due to the timing
of Easter.  Group sales in May 2024 were 12% down on that achieved in May
2023.  The directors consider that the lower level of sales is due to
customers reducing or deferring spending following cost increases caused by
factors such as the increase in the minimum wage, lower sales of seasonal
products and uncertainty caused by the General Election.  The reduction in
sales and increases in overhead costs have resulted in an unaudited loss
before tax for the five months to the end of May 2024 of £0.22m (after the
costs associated with the retirement of Dominic Slingsby of £0.2m).  The
unaudited profit before tax for the five months to 31 May 2023 was £0.13m.

 

The market remains competitive and the Group remains cautious regarding the
outlook for the remainder of the financial year. This is particularly the case
given the recent lower level of order intake, the uncertainty caused by the
General Election and the risk that the UK economy could re-enter recession as
unemployment rises.  The impact that these factors will have on demand going
forward is difficult to forecast.

 

Cash Position

 

The Group had unaudited net cash of approximately £0.23 million as at 31 May
2024 compared to £0.15 million as at 31 May 2023 and £0.21 million as at 31
December 2023. The Group's banking facilities remain in place and the Group
continues to make payments to the defined benefit pension scheme in accordance
with the agreement reached with the scheme's trustee in March 2024.

 

For further information, please contact:

 

 H C Slingsby PLC                                        Tel: 01274 535 030
 Andrew Kitchingman, Non-Executive Chairman
 Morgan Morris, Group Chief Executive

 Allenby Capital Limited (Nominated adviser and Broker)  Tel: 020 3328 5656
 Alex Brearley / George Payne (Corporate Finance)
 Amrit Nahal (Sales and Corporate Broking)

 

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