Last checked at 24 Apr 2009 17:30
H C SLINGSBY PLC (the "Company")
Unaudited Preliminary Announcement for the year ended 31 December 2008
Statement by the Chairman
As reported in our interim statement for the half year ended 30 June 2008, your Company experienced a levelling off in demand after a good first quarter, a trend which continued throughout 2008. Against this difficult background and despite the onset of recession in the UK, it is therefore very pleasing to report that the trading performance for 2008 achieved a pre-tax profit of £1.606m (2007: £1.548m) on sales of £19.640m (2008: £19.562m).
At 31 December 2008, the net deficit on the defined benefit pension scheme had increased by £2.819m to £5.687m (2007: £2.868m), due mainly to the combined effect of a reduction in the value of the scheme's assets and an increase in the assumption relating to average life expectancy which increased the liabilities. With a view to moving away from the risks inherent in providing a defined benefit pension scheme and to help reduce potential fluctuations in the funding position, we closed the scheme in relation to the future accrual of benefits to existing members with effect from 31 March 2009. A defined contribution arrangement has been offered as an alternative to existing members of the Scheme. Agreement has also been reached with the Trustees regarding an appropriate funding rate to address the valuation deficit at 1 January 2008. These changes will give the Company greater control and cost certainty over its future pension provision.
Market conditions continue to be depressed at the present time, though actions have been taken to reduce costs through a rationalisation programme including some redundancies. Having completed this difficult process, we are confident our cost base is in line with expected sales, however, market uncertainty means this will continue to be monitored very closely.
Significant investment in IT infrastructure continues, with emphasis on ERP software development and electronic trading the main areas of focus. Improvements to our 'on-line' proposition and a greater emphasis on e-procurement opportunities within our core customer base are central to our plans. Closer integration with our strategic supply partners and further improvements to our supply chain will facilitate enhanced service levels, enabling us to leverage more value from our existing multi-channel positioning as and when our markets begin to recover.
On behalf of the Board I wish to thank our staff for their continued efforts despite the very difficult climate.
Your Company continues to have a strong balance sheet and remains cash-generative. It is therefore well placed to trade through the current recession and the Board remains confident as to the long term prospects of the Company. We are therefore pleased to recommend a final dividend of 42.0p per share (2007: 40.0p). The total dividend is therefore 50.0p (2007: 47.0p). The record date will be 5 June 2009 and the payment date will be 3 July 2009.
J R Waterhouse
Non-Executive Chairman
24 April 2009
Registered Office
Otley Road
Baildon, Shipley
West Yorkshire BD17 7LW
For further information, please contact:
| H C Slingsby plc | Tel: 01274 535 030 |
| Dominic Slingsby, Managing Director Ray Hudson, Financial Director | |
| Evolution Securities Limited | Tel: 0113 243 1619 |
| Joanne Lake Peter Steel |
H C SLINGSBY PLC (the "Company")
Unaudited Consolidated Income Statement for the year ended 31 December 2008
| Year ended 31/12/08 £'000 | Year ended 31/12/07 £'000 | ||
| Turnover | 19,640 | 19,562 | |
| -------- | -------- | ||
| Operating profit | 1,580 | 1,571 | |
| -------- | -------- | ||
| Finance income | 136 | 109 | |
| Finance expense | (110) | (132) | |
| -------- | -------- | ||
| Profit before taxation | 1,606 | 1,548 | |
| Taxation | (776) | (534) | |
| -------- | -------- | ||
| Profit for the period attributable to equity shareholders | 830 | 1,014 | |
| -------- | -------- | ||
| Basic and diluted earnings per share | 83.0p | 101.4p | |
| -------- | -------- |
The results set out above derive entirely from continuing operations.
Unaudited Statement of Consolidated Recognised Income and Expense for the year ended 31 December 2008
| Year ended 31/12/08 £'000 | Year ended 31/12/07 £'000 | ||
| Actuarial (loss)/gain on pension scheme | (2,917) | 843 | |
| Movement in deferred tax relating to retirement benefit obligation | 817 | (312) | |
| Exchange adjustment | 51 | - | |
| -------- | -------- | ||
| Net (expense)/income recognised directly in equity | (2,049) | 531 | |
| Profit for the year | 830 | 1,014 | |
| -------- | -------- | ||
| Total recognised (expense)/income for the year attributable to equity shareholders | (1,219) | 1,545 | |
| -------- | --------- | ||
Unaudited Group Balance Sheet as at 31 December 2008
| 31/12/08 £'000 | 31/12/07 £'000 | ||
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 7,143 | 7,055 | |
| Intangible assets | - | 246 | |
| Deferred tax asset | 616 | 219 | |
| -------- | -------- | ||
| 7,759 | 7,520 | ||
| -------- | -------- | ||
| Current assets | |||
| Inventories | 1,732 | 1,453 | |
| Trade and other receivables | 3,051 | 3,289 | |
| Cash and cash equivalents | 3,029 | 2,652 | |
| -------- | -------- | ||
| 7,812 | 7,394 | ||
| -------- | -------- | ||
| Liabilities | |||
| Current liabilities | |||
| Trade and other payables | (2,797) | (3,102) | |
| Current tax liabilities | (253) | (168) | |
| Obligations under finance leases | - | (251) | |
| -------- | -------- | ||
| (3,050) | (3,521) | ||
| -------- | -------- | ||
| Net current assets | 4,762 | 3,873 | |
| -------- | -------- | ||
| Non-current liabilities | |||
| Retirement benefit obligation | (5,687) | (2,868) | |
|
|
| ||
| -------- | -------- | ||
| Net assets | 6,834 | 8,525 | |
| -------- | -------- | ||
| Capital and reserves | |||
| Called up share capital | 250 | 250 | |
| Retained earnings | 6,526 | 8,268 | |
| Translation reserve | 58 | 7 | |
| -------- | -------- | ||
| Total equity | 6,834 | 8,525 | |
| -------- | -------- |
Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2008
| Year ended 31/12/08 | Year ended 31/12/07 | ||
| Note | |||
| Cash flows from operating activities | |||
| Cash generated from operations | 2 | 1,646 | 2,466 |
| Interest received | 129 | 102 | |
| Interest paid on finance leases | (45) | (55) | |
| UK corporation tax paid | (274) | (530) | |
| -------- | -------- | ||
| Cash generated from operating activities | 1,456 | 1,983 | |
| -------- | -------- | ||
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (449) | (488) | |
| Proceeds from sales of property, plant and equipment | 40 | 62 | |
| -------- | -------- | ||
| Net cash used in investing activities | (409) | (426) | |
| Cash flows from financing activities | |||
| Equity dividends paid | (470) | (400) | |
| Capital element of finance leases | (251) | (373) | |
| -------- | -------- | ||
| Net cash used in financing activities | (721) | (773) | |
| -------- | -------- | ||
| Net increase in cash and cash equivalents | 326 | 784 | |
| Opening cash and cash equivalents | 2,652 | 1,868 | |
| Exchange differences | 51 | - | |
| -------- | -------- | ||
| Closing cash and cash equivalents | 3,029 | 2,652 | |
| -------- | -------- |
Notes to the unaudited Preliminary Announcement for the year ended 31 December 2008
| 1. | The unaudited preliminary results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRIC interpretations as adopted by the EU and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. The preliminary announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information included in this preliminary announcement does not include all the disclosures required by IFRS or the Companies Act 1985 and accordingly it does not itself comply with IFRS or the Companies Act 1985. This announcement has been agreed with the Company's auditors for release. The financial statements for the year ended 31 December 2008, upon which the auditors have still to report, will be issued to shareholders on 20 May 2009 and will be available to members of the public at the registered office of the Company from that date. The statutory accounts for the year ended 31 December 2008 will be delivered to the Registrar following the Company's Annual General Meeting. The Annual General Meeting will be held on 18 June 2009 at the Hollins Hall Hotel, Hollins Hill, Shipley, Bradford, BD17 7QW. | ||
| 2. | Reconciliation of operating profit to net cash inflow from operating activities | ||
| Year | Year | ||
| ended | ended | ||
| 31/12/08 | 31/12/07 | ||
| £'000 | £'000 | ||
| Operating profit | 1,580 | 1,571 | |
| Depreciation and amortisation | 612 | 683 | |
| Profit on sale of property, plant and equipment | (1) | (19) | |
| Difference between pension charge and contributions | (189) | (191) | |
| (Increase)/decrease in inventories | (279) | 131 | |
| Decrease in trade and other receivables | 245 | 94 | |
| (Decrease)/increase in trade and other payables | (322) | 197 | |
| -------- | --------- | ||
| Net cash inflow from operating activities | 1,646 | 2,466 | |
| -------- | --------- | ||
| 3. | Dividends | ||
| The interim and final dividends for the 2007 financial year of 7p and 40p, totalling £470,000 were paid and deducted from reserves in the year. The dividends for the 2006 financial year totalling £400,000 were paid and deducted from reserves in 2007. | |||