The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.  With the publication of this announcement, this information is now considered to be in the public domain.

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6 August 2024

H C Slingsby plc

("Slingsby" or "the Company")

Report for the half year ended 30 June 2024

Statement by the Chairman

Trading

In my statement in the trading update of 19 June 2024, I reported that Group sales in the five months to 31 May 2024 were 4% lower than prior year and that Group sales in May 2024 were 12% lower than that achieved in May 2023.  This trend in sales continued in June 2024 such that Group sales in the six months to 30 June 2024 were 6% lower than in the same period last year.  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.  This lower level of sales, together with higher overhead costs, led to an unaudited operating profit before tax and exceptional item of £0.1m compared to £0.3m in the six months ended 30 June 2023.

An exceptional item in the sum of £0.2m relates to the costs of the retirement of Dominic Slingsby.  The exceptional item together with interest costs of £0.14m relating to the Company's defined benefit pension scheme, resulted in an unaudited loss before tax of £0.25m in the six months to 30 June 2024 compared to an unaudited profit before tax of £0.13m in the comparable period in 2023.

The market continues to be highly 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 levels of sales and order intake, the uncertainty caused by the change in government and the risk that the UK economy could re-enter recession as unemployment rises. There is also the potential for credit related issues should customers become insolvent.

Balance sheet

The Group had net assets of £3.98m at 30 June 2024 (£4.41m at 30 June 2023) compared to net assets of £4.25m at 31 December 2023.  The reduction in net assets from 30 June 2023 is due to an increase in the pension scheme deficit and the net losses incurred.  The Company made deficit reduction contributions totalling £133,000 in the six months to 30 June 2024 in line with the agreement with the pension scheme's Trustee. 

Cashflow

The Group had net debt of £0.1m at 30 June 2024 (net cash of £0.4m at 30 June 2023) compared to net cash of £0.2m at 31 December 2023.  The net cash outflow in the six months to 30 June 2024 of £0.3m is mainly due to capital expenditure.  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.

Board Composition

The Board continues to believe that it would benefit from the appointment of a further Non-Executive Director which the Board is continuing to explore.

Dividend

Due to the net loss incurred, the uncertain outlook and the agreement with the pension scheme Trustee, the Board has decided not to declare an interim dividend.

People

We would like to thank our employees for their hard work during continued challenging times.

​Andrew Kitchingman

Non-Executive Chairman

For further information please contact:

H C Slingsby plc

Andrew Kitchingman Non-Executive Chairman                             01274 535 030

Morgan Morris, Group Chief Executive

Allenby Capital Limited (Nominated Advisor and Broker)

Alex Brearley/George Payne                                                         020 3328 5656

Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2024

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 2024

The above unaudited consolidated statement of comprehensive income and expense should be read in conjunction with the accompanying notes.

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Unaudited Consolidated Balance Sheet as at 30 June 2024

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

Unaudited Consolidated Statement of Changes in Shareholders' Equity

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 2024

Notes to the Interim Report for the half year ended 30 June 2024

4.  Availability of Interim Report

The Interim Report will be available on the Company's website www.slingsby.com.