Half Yearly Report

RNS Number : 8537M

Slingsby(H.C.)Plc

21 September 2012

 



21 September 2012

H C Slingsby plc

("the Group")

Report for the half year ended 30 June 2012

Statement by the Chairman

Trading conditions in the first half of the year continued to be challenging, as reflected in our turnover for the period of £7.5m (2011: £7.8m). Operating margin before exceptional items improved to 6.1% (2011: 4.9%), driven by management actions to decrease costs, including reducing staff numbers. The decision taken in September 2011 to source more product lines from the Far East and hold larger quantities of our fast moving lines to facilitate next day delivery also helped us to maintain margin in a very competitive market. The Group incurred exceptional redundancy costs of £0.1m (2011: £nil), resulting in an operating profit post-exceptionals of £0.3m (2011: £0.4m). Pre-tax profit was £0.2m (2011: £0.3m).

Inventory at 30 June 2012 was £2.4m (31 December 2012: £2.3m), the increase being attributable to sourcing more product from the Far East in sufficient quantities to meet requirements for efficient container transportation. The Group recorded a net cash inflow from operations of £0.7m (2011: £0.7m) and had net cash of £3.0m at 30 June 2012 (31 December 2011: £2.4m). Net cash at the period end is stated prior to payment of the final dividend for the year ended 31 December 2011 of £280,000. This was paid to shareholders in July 2012.

The deficit on the Group's defined benefit pension scheme, which is now closed to future accrual, increased to £10.7m (31 December 2011: £8.7m, as measured in accordance with IAS19). This was primarily due to lower bond yields increasing scheme liabilities and, to a lesser extent, weaker equity market returns. The finance expense associated with the pension scheme in the Income Statement rose to £152,000 (2011: £126,000). The Group continues to make monthly payments into the scheme as part of its pension deficit management plan.

Current trading conditions are still tough with no visible signs of recovery. The board nevertheless believes that your Group remains in a reasonable position to take advantage of opportunities for expansion and any upturn in the economy whenever that may occur.

The board recommends an unchanged interim dividend of 4.0p which will be paid on 4 January 2013 to shareholders on the Register at the close of business on 7th December 2012.

J R Waterhouse

Non-Executive Chairman

21 September 2012

Registered Office

Otley Road, Baildon, Shipley BD17 7LW

For further information please contact:

H C Slingsby plc
Dominic Slingsby, Managing Director	01274 535 030
Ray Hudson, Financial Director
Merchant Securities Limited
Joanne Lake/Casper Kaars	0113 366 3153

Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2012

	Note	Half year ended 30/06/12	Half year ended 30/06/11	Year ended 31/12/11
		£'000	£'000	£'000
Turnover		7,535	7,792	15,221
		---------	---------	---------
Operating profit before exceptional item		457	383	633
Exceptional item	2	124	-	-
Operating profit		333	383	633
Finance income		22	19	38
Finance expense		(152)	(126)	(249)
		--------	--------	--------
Profit before taxation		203	276	422
Taxation	3	-	(21)	(102)
		--------	--------	--------
Profit for the period attributable to equity shareholders		203 --------	255 --------	320 --------
Basic and diluted earnings per share		20.3p	25.5p	32.0p
		--------	--------	--------
Proposed interim/final dividend per share		4.0p	4.0p	28.0p
		--------	--------	--------

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 2012

		Half year ended 30/06/12	Half year ended 30/06/11	Year Ended 31/12/11
		£'000	£'000	£'000
Actuarial loss on pension scheme		(2,045)	(167)	(2,188)
Movement in deferred tax relating to pension liability		424	(23)	503
Exchange adjustment		(9)	14	(7)
		--------	--------	--------
Net expense recognised directly in equity		(1,630)	(176)	(1,692)
Profit for the period		203	255	320
		--------	--------	--------
Total (expense)/ income recognised for the period attributable to owners of the parent		(1,427)	79	(1,372)
		--------	--------	--------

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 2012

		30/06/12	30/06/11	31/12/11
		£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		6,465	6,654	6,566
Intangible asset		198	152	117
Deferred tax asset		1,780	852	1,305
		---------	---------	--------
		8,443	7,658	7,988
		---------	---------	--------
Current assets
Inventories		2,442	2,087	2,272
Trade and other receivables		2,497	2,475	2,553
Cash and cash equivalents		2,992	3,575	2,439
		---------	---------	---------
		7,931	8,137	7,264
		---------	---------	---------
Liabilities
Current liabilities
Trade and other payables		(2,880)	(2,793)	(1,995)
Derivative financial liability		(6)	-	-
Current tax liabilities		(173)	(380)	(122)
		---------	---------	---------
		(3,059)	(3,173)	(2,177)
		---------	---------	---------
Net current assets		4,872	4,964	5,147
		---------	---------	---------
Non-current liabilities
Retirement benefit obligation		(10,665)	(6,774)	(8,738)
		---------	---------	---------
Net assets		2,650	5,848	4,397
		---------	---------	---------
Capital and reserves
Called up share capital		250	250	250
Retained earnings		2,387	5,555	4,125
Translation reserve		13	43	22
		---------	---------	---------
Total equity		2,650	5,848	4,397
		---------	---------	---------

The above unaudited consolidated balance sheet should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Changes in Shareholders' Equity

	Share Capital £'000	Retained earnings £'000	Translation reserve £'000	Total equity £'000
At 1 January 2011	250	5,890	29	6,169
Total income recognised for the period	-	65	14	79
Dividends paid	-	(400)	-	(400)
	---------	---------	---------	---------
At 30 June 2011	250	5,555	43	5,848
	---------	---------	---------	---------
At 1 January 2012	250	4,125	22	4,397
Total expense recognised for the period	-	(1,418)	(9)	(1,427)
Dividends paid	-	(320)	-	(320)
	---------	---------	---------	---------
At 30 June 2012	250	2,387	13	2,650
	---------	---------	---------	---------

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 2012

	Note	Half year ended 30/06/12	Half year Ended 30/06/11	Year Ended 31/12/11
		£'000	£'000	£'000
Cash flows from operating activities
Cash generated from/(used in) operations	4	753	702	(81)
UK corporation tax paid		-	-	(265)
		---------	---------	---------
Cash generated from/(used in) operating activities		753	702	(346)
		---------	---------	---------
Cash flows from investing activities
Interest received		14	11	34
Purchase of property, plant and equipment		(180)	(209)	(313)
Proceeds from sales of property, plant and equipment		15	37	51
		---------	---------	---------
Net cash outflow from investing activities		(151)	(161)	(228)
		---------	---------	---------
Cash flows from financing activities
Equity dividends paid		(40)	(400)	(400)
		---------	---------	---------
Net cash outflow from financing activities		(40)	(400)	(400)
		---------	---------	---------
Net increase/(decrease) in cash and cash equivalents		562	141	(974)
Opening cash and cash equivalents		2,439	3,420	3,420
Exchange differences		(9)	14	(7)
		---------	---------	---------
Closing cash and cash equivalents		2,992	3,575	2,439
		---------	---------	---------

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 2012

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 2011 Annual Report and Accounts. The comparative figures for the year ended 31 December 2011 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, which did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The 2011 accounts have been delivered to the Registrar of Companies.  The Company has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing the financial information.

2.      Exceptional item

	Half year ended 30/06/12	Half year Ended 30/06/11	Year Ended 31/12/11
	£'000	£'000	£'000
Redundancy costs	124	-	-
	----------	---------	---------

3.      Taxation

	Half year ended 30/06/12	Half year ended 30/06/11	Year Ended 31/12/11
	£'000	£'000	£'000
Current tax	51	72	80
Deferred tax	(51)	(51)	22
	---------	---------	---------
	-	21	102
	---------	---------	---------

The effective tax rate is nil (2011 half year: 19%, 2011 full year: 26.5%).

4.         Cash generated from/(used in) Operations

	Half year ended 30/06/12	Half year ended 30/06/11	Year Ended 31/12/11
	£'000	£'000	£'000
Profit before taxation	203	276	422
Net finance costs	130	107	211
Depreciation and amortisation	192	224	439
Profit on sale of property, plant and equipment	(7)	(8)	(11)
Difference between pension charge and contributions	(270)	(180)	(360)
Increase in inventories	(170)	(302)	(487)
Decrease in trade and other receivables	64	761	679
Increase/(decrease) in trade and other payables	611	(176)	(974)
	---------	---------	---------
Cash generated from/(used in) operating activities	753	702	(81)
	---------	---------	---------

Dividends payable of £280,000 were included in trade and other payables at the 30 June 2012 (2011: Nil both at the half year and year end).

 

END

 

 

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