(Alliance News) - HC Slingsby PLC on Friday posted improved full-year revenue but remained cautious about future growth against the backdrop of the pandemic.
Revenue for the year ended December 31 was GBP21.8 million, up 11% from GBP19.6 million the preceding year. Slingsby attributed the increase to higher demand for coronavirus-related products, as customers sought to continue their operations compliantly.
The industrial and commercial equipment distributor said higher revenue, combined with an improvement in gross margin, led to a pretax profit before exceptionals of GBP1.1 million, significantly up on the GBP200,000 seen in 2019.
Including exceptional items, pretax profit fell to GBP1.1 million from GBP2.9 million.
Despite the broadly positive results, Interim Executive Chair Dominic Slingsby cautioned against over-optimism for the remainder of the year: "The market remains competitive and we are cautious regarding the outlook.
"This is particularly the case due to significant uncertainty that remains caused by the Coronavirus. Whilst the group's sales grew in 2020 due to demand for Coronavirus related products, this will not necessarily continue to be the case, particularly for items which are more capital equipment in nature.
"In addition, the group is experiencing significant cost increases particularly for steel, plastic and timber products. We have also experienced exceptionally high shipping costs and delays in receiving goods. These increases impacted on gross margin in the first quarter of 2021 and could continue for the remainder of the year."
As with the previous year, Slingsby said it would not be paying a final dividend.
"However, depending upon trading during 2021 and its level of confidence going forward, the board's intention is to re-commence dividend payments to shareholders as soon as it is practicable and prudent to do so," the firm said.
Shares in HC Slingsby were down 4.3% at 225.00 pence in London on Friday afternoon.
By Will Paige; willpaige@alliancenews.com
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Slingsby H.c (SLNG)