Final Results

Slingsby(H.C.)Plc 22 April 2005 H C SLINGSBY PLC Unaudited preliminary announcement for the year to 31 December 2004 Statement by the Chairman It gives me great pleasure to report that the encouraging first half performance that I mentioned in the interim results announcement was maintained for the whole of the year. We have achieved another record pre-tax profit figure of £1.6m, an increase on last year of 32% on a turnover of £19.1m, which was an increase of 8.6% on the previous year. Throughout the year we have enjoyed a consistently improved order intake level, which is particularly pleasing given that there have been challenging external forces such as several interest rate rises and sharp increases in steel and oil prices. Our improved turnover has been driven by our focused marketing strategy with improved targeting of our campaigns and further development of our customer loyalty scheme. We continue to position ourselves as a value added single source provider and have continued to enhance the breadth of our product portfolio. The increased activity has been supported through operational reorganisation within our customer service centre and the development of our marketing team. We have also been satisfied with the progress of our wholly owned subsidiary, Slingsby Mail Order Limited in the Republic of Ireland which commenced trading in March 2004. Considerable progress has been made during the year on both of our ongoing strategic projects, which I mentioned in the company's interim results announcement. We have selected a new business system provider and we are working closely with them towards an implementation of the system in the third quarter of 2005. Running alongside this implementation we are to integrate a best of breed product information management and catalogue design solution. The chosen solutions will provide full multi-channel sales support across our catalogue with particular focus on increased customer relationship management and marketing support along with the facility to produce catalogues / mailers with far greater efficiency. We believe this solution will crucially be flexible enough to evolve with our business over time. With respect to the logistics project, we have signed a conditional agreement for the purchase of a new site which will incorporate the head office administrative function and provide the necessary warehousing facility to enable us to gain greater control of our supply chain and most importantly improve customer service levels. We welcome to the board Mr. Lee Wright who joined us in 2000 and now takes on the role of Marketing Director, having made a significant contribution to the business as Head of Marketing. We wish him every success for the future. Your board has given careful consideration to the appropriateness of having your company's shares listed on the Official List of the UK Listing Authority. The board has concluded that the Alternative Investment Market of London Stock Exchange plc (AIM) is more appropriate for a company of our size. We therefore intend to move the trading of your company's shares to AIM without further delay. The successful implementation of the two strategic projects we are embarking upon this year is the responsibility of all our members of staff. It is their approach that has enabled the group to have such a successful 2004 and will ensure further progress in the coming years. I thank them for their efforts in 2004 and their continuing commitment. The nature of our activities has gradually changed over the past 20 years. We are no longer predominantly a manufacturing business and have now evolved into a marketing led distribution business that has a small niche manufacturing capability. In line with our evolving business direction the company has taken the decision to rationalise its manufacturing and warehousing organisations, to create a single workshop and distribution facility. Whilst being mindful of such factors as the impending general election and the current state of the economic cycle, your group is well positioned at the present time with the order intake being ahead of the comparative figure last year, but I feel it necessary to sound a cautionary note in respect of the strategic projects impacting on the group's overhead costs. The major part of the additional costs is the expenditure on the new business system, which is more pronounced as we had fully written off the previous system some years ago. Other increased charges such as the effect of compliance with Financial Reporting Standard 17 on the retirement benefit scheme costs, additional marketing spend and the rationalisation costs in respect of the manufacturing division also have to be borne in mind. Whilst these costs will be felt this year, I am confident that our overall long term strategy will ensure that the group's prospects continue to be positive. Your board is pleased to recommend a final dividend of 35.0p per share (2003: 30.0p per share). The total dividend for the year is therefore 42.0p per share (2003 35.0p per share). The record date will be 3 June 2005 and the payment date for the final dividend is 1 July 2005. J F Slingsby Chairman 22 April 2005 Registered Office Preston Street Bradford West Yorkshire. BD7 1JF The following financial information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. Full financial statements will be issued to the shareholders on 17 May 2004 and will be available to members of the public at the registered office of the Company from that date and are also available on the company's web site, www.slingsby.com. The information for the year ended 31 December 2003 is an extract from the statutory accounts to that date which have been delivered to the Registrar of Companies. Those accounts included an audit report which was unqualified and which did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 31 December 2004, upon which the auditors have still to report, will be delivered to the Registrar following the Company's Annual General Meeting. The Annual General Meeting will be held on 16 June 2005. Consolidated Profit and Loss Account for the year ended 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Turnover - continuing operations 19,108 17,579 --------- --------- Operating profit - continuing operations 1,451 1,118 Bank interest receivable 169 109 --------- --------- Profit on ordinary activities before taxation 1,620 1,227 Taxation (489) (376) --------- --------- Profit attributable to shareholders 1,131 851 --------- --------- Dividends : Interim paid 70 50 Proposed final 350 300 --------- --------- Earnings per share 113.1 85.1p --------- --------- Earnings per share Basic earnings per share is based upon earnings of £1,131,000 (2003: £851,000) and on 1,000,000 (2003: 1,000,000) ordinary shares in issue during the year. There is no difference between basic earnings per share and diluted earnings per share for both years stated. Group Balance Sheet as at 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Fixed assets: Tangible assets 1,578 1,684 Investments 300 300 --------- --------- 1,878 1,984 --------- --------- Current assets: Stock 1,625 1,526 Debtors 3,657 3,246 Cash at bank and in hand 5,281 4,286 --------- --------- 10,563 9,058 Creditors: Amounts falling due within one year (5,148) (4,493) --------- --------- Net current assets 5,415 4,565 --------- --------- Total assets less current liabilities 7,293 6,549 Provisions for liabilities and charges: Deferred taxation (131) (92) --------- --------- Net assets 7,162 6,457 --------- --------- Capital and reserves: Called up share capital 250 250 Profit and loss account 6,912 6,207 --------- --------- Equity shareholders' funds 7,162 6,457 --------- --------- Consolidated Cash Flow Statement for the year ended 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Operating activities: Net cash inflow from operating activities (Note 1) 1,858 1,261 Returns on investments and servicing of finance: Bank interest received 160 109 Taxation: UK Corporation tax paid (349) (317) Capital expenditure and financial investment: Purchase of tangible fixed assets (394) (248) Sales of tangible fixed assets 76 26 --------- --------- Net cash outflow from capital expenditure and financial investment (318) (222) Equity dividends paid (350) (300) --------- --------- Net cash inflow before use of liquid resources 1,001 531 Management of liquid resources: Increase in short term deposits with banks (900) (500) --------- --------- Increase in cash in the period 101 31 --------- --------- Consolidated Cash Flow Statement Notes for the year ended 31 December 2004 1. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities Unaudited Audited 2004 2003 £'000 £'000 Net cash inflow from operating activities: Operating Profit 1,451 1,118 Depreciation charges 314 335 Profit on sale of tangible fixed assets (27) (1) Increase in stocks (99) (200) Increase in trade debtors (167) (382) Increase in prepayments (96) (133) Increase in trade creditors 285 287 (Decrease)/increase in other taxation and social security (9) 108 Increase in other creditors and accrual 206 129 --------- --------- Net cash inflow from operating activities 1,858 1,261 --------- --------- 2. Reconciliation to Net Cash Year ended Year ended 31/12/04 31/12/03 Unaudited Audited £'000 £'000 Changes during the year Net cash at 1 January 4,286 3,755 Increase in net cash 101 31 Movement in short term deposits 900 500 Exchange adjustment (6) - --------- --------- Net cash 5,281 4,286 --------- --------- Represented by: Liquid resources 4,900 4,000 Cash in hand and at bank 381 286 --------- --------- Net Cash 5,281 4,286 --------- --------- 3. The financial statements, which are unaudited, have been prepared on the basis of the accounting policies set out in the 2003 Annual Report and Accounts. This information is provided by RNS The company news service from the London Stock Exchange

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