Last checked at 19 Apr 2013 14:47
H C SLINGSBY PLC
("Slingsby" or the "Company" or the "Group")
Unaudited Preliminary Announcement for the year ended 31 December 2012
Statement by the Chairman
Following a difficult first half, a quiet summer resulted in full year sales of £14.6m (2011: £15.2m), operating profit of £360k (2011: £633k) and operating profit before exceptional item of £489k (2011: £633k). Profit before tax was £102k (2011: £422k).
The group recorded a net cash inflow from operations of £1.0m (2011: outflow £0.1m), primarily due to the timing of a payment run close to the period end. Stock levels remain similar to the prior year and our next day delivery service continues to be valued by our customers. Net cash was £2.8m at 31 December 2012 (2011: £2.4m).
The deficit on the defined benefit scheme, which is closed to future accrual, was £9.8m (2011: £8.7m). However, the deficit has reduced from the £10.7m reported at 30 June 2012 due to the impact of higher contributions, a favourable change in financial assumptions together with an actuarial gain due to a better than expected return on scheme assets. The Company continues to make monthly payments into the scheme as part of an ongoing pension deficit management plan.
The major project to update the enterprise system and integrate the website into our operating system is progressing. A supplier has been appointed and all departments are fully involved in the implementation plan. Orders received through the website have continued to increase over the year, highlighting the importance of this investment.
The trading conditions experienced in the second half have continued into the new financial year and there is no visibility as to the timing of any upturn. However, the board continues to invest in the future to ensure that to the extent that market conditions allow, the group can capitalise on its brand awareness.
On behalf of the board I wish to thank our loyal employees who continue to serve the company well in difficult times.
In view of trading conditions and the IT investment plans, the board recommends a reduced final dividend of 15.0p per share (2011: 28.0p). The total dividend is therefore 19.0p (2011: 32.0p). The record date will be 31 May 2013 and the payment date will be 5 July 2013.
John Waterhouse
Non-Executive Chairman
19 April 2013
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
| |
Sanlam Securities UK Limited | Tel: 0113 366 3153 |
David Worlidge Casper Kaars |
Unaudited Consolidated Income Statement for the year ended 31 December 2012
Note | Year ended 31 December 2012 £'000
| Year ended 31 December 2011 £'000
| |
Turnover | 14,588 | 15,221 | |
Operating profit before exceptional item | 489 | 633 | |
Exceptional item | 2 | 129 | - |
Operating profit | 360 | 633 | |
Finance income | 43 | 38 | |
Finance expense | (301) | (249) | |
Profit before taxation | 102 | 422 | |
Taxation | 70 | (102) | |
Profit for the year attributable to equity shareholders | 172 | 320 | |
Basic and diluted earnings per share | 17.2p | 32.0p | |
The results set out above derive entirely from continuing operations.
Unaudited Consolidated Statement of Recognised Income and Expense for the year ended 31 December 2012
Year ended 31 December 2012 £'000
| Year ended 31 December 2011 £'000
| ||
Actuarial loss on pension scheme | (1,339) | (2,188) | |
Movement in deferred tax relating to retirement benefit obligation |
46 |
503 | |
Exchange adjustment | (7) | (7) | |
Net expense recognised directly in equity | (1,300) | (1,692) | |
Profit for the year | 172 | 320 | |
Total recognised expense for the year attributable to equity shareholders |
(1,128) |
(1,372) | |
Unaudited Consolidated Balance Sheet as at 31 December 2012
Note | 31 December 2012 £'000
| 31 December 2011 £'000
| |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 6,358 | 6,566 | |
Intangible asset Deferred tax asset |
| 202 1,419 | 117 1,305 |
7,979 | 7,988 | ||
Current assets | |||
Inventories | 2,270 | 2,272 | |
Trade and other receivables | 2,443 | 2,553 | |
Cash and cash equivalents | 2,836 | 2,439 | |
7,549 | 7,264 | ||
Liabilities | |||
Current liabilities | |||
Trade and other payables | (2,722) | (1,995) | |
Derivative financial liability | (7) | - | |
Current tax liabilities | (12) | (122) | |
(2,741) | (2,117) | ||
Net current assets | 4,808 | 5,147 | |
Non-current liabilities | |||
Retirement benefit obligation | 3 | (9,838) | (8,738) |
Net assets | 2,949 | 4,397 | |
Capital and reserves | |||
Called up share capital | 250 | 250 | |
Retained earnings | 2,684 | 4,125 | |
Translation reserve | 15 | 22 | |
Total equity | 2,949 | 4,397 | |
Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2012
Year ended 31 December 2012 £'000 | Year ended 31 December 2011 £'000 | ||
Note | |||
Cash flows from operating activities | |||
Cash generated from/(used in) operations | 4 | 1,041 | (81) |
UK corporation tax paid | (108) | (265) | |
Cash generated from/(used in) operating activities | 933 | (346) | |
Cash flows from investing activities | |||
Interest received | 40 | 34 | |
Purchase of property, plant and equipment | (275) | (313) | |
Proceeds from sales of property, plant and equipment | 26 | 51 | |
Net cash outflow from investing activities
| (209) | (228)
| |
Cash flows from financing activities | |||
Equity dividends paid | 5 | (320) | (400) |
Net cash outflow from financing activities | (320) | (400) | |
Net increase/(decrease) in cash and cash equivalents | 404 | (974) | |
Opening cash and cash equivalents | 2,439 | 3,420 | |
Exchange differences | (7) | (7) | |
Closing cash and cash equivalents | 2,836 | 2,439 | |
Statement of Changes in Shareholders' Equity
| Share capital £'000 | Retained earnings £'000 | Translation reserve £'000 | Total equity £'000 |
1 January 2011 | 250 | 5,890 | 29 | 6,169 |
Total recognised expense for the year | - | (1,365) | (7) | (1,372) |
Dividends paid | - | (400) | - | (400) |
1 January 2012 | 250 | 4,125 | 22 | 4,397 |
Total recognised expense for the year | - | (1,121) | (7) | (1,128) |
Dividends paid | - | (320) | - | (320) |
31 December 2012 | 250 | 2,684 | 15 | 2,949 |
The translation reserve comprises foreign exchange differences arising from the translation of the financial statements of foreign operations.
Notes to the Unaudited Preliminary Announcement for the year ended 31 December 2012
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 2006 applicable to companies reporting under IFRS. The preliminary announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information included in this preliminary announcement does not include all the disclosures required by IFRS or the Companies Act 2006 and accordingly it does not itself comply with IFRS or the Companies Act 2006.
The financial statements for the year ended 31 December 2012, upon which the auditors have still to report, will be issued to shareholders on 24 May 2013 and will be available to members of the public at the registered office of the Company and on the Company's website www.slingsby.com from that date. The statutory accounts for the year ended 31 December 2012 will be delivered to the Registrar following the Company's Annual General Meeting.
The Annual General Meeting will be held at 10.00 am on 21 June 2013 at the Marriot Hollins Hall Hotel, Hollins Hill, Baildon, Shipley BD17 7QW.
2. Exceptional item
Year ended 31 December 2012 £'000 | Year ended December 2011 £'000 | |
Redundancy costs | 129 | - |
3. Retirement benefit obligation
Year ended 31 December 2012 £'000 | Year ended December 2011 £'000 | |
Present value of funded obligation | 21,669 | 19,812 |
Fair value of scheme assets | (11,831) | (11,074) |
Net liability in balance sheet | (9,838) | (8,738) |
4. Cash generated from/(used in) operations
Year ended 31 December 2012 £'000 | Year ended December 2011 £'000 | |
Profit before tax | 102 | 422 |
Net finance costs | 258 | 211 |
Depreciation and amortisation | 381 | 439 |
Profit on sale of property, plant and equipment | (9) | (11) |
Difference between pension charge and contributions | (540) | (360) |
Decrease/(Increase) in inventories | 2 | (487) |
Decrease in trade and other receivables | 114 | 679 |
Increase/(Decrease) trade and other payables | 733 | (974) |
Cash generated from/(used in) operations | 1,041 | (81) |
5. Dividends
The interim and final dividends for the 2011 financial year of 4.0p and 28.0p, totalling £320,000 were paid and deducted from reserves in the year ended 31 December 2012. The dividends for the 2010 financial year totalling £400,000 were paid and deducted from reserves in 2011.