Last checked at 24 Apr 2015 07:00
H C SLINGSBY PLC
("Slingsby" or the "Company" or the "Group")
Unaudited Preliminary Announcement for the year ended 31 December 2014
Statement by the Chairman
In my 2014 half year statement I reported a pre-tax trading loss (before exceptional items) of £0.19m on sales of £6.4m. Sales in the autumn did improve before falling away sharply in the last two months of the year. However the severe action taken in the first quarter to reduce overheads took full effect in the second half and helped restrict the pre-tax trading loss for the second six months to £72,000. Hence the full year trading loss (before exceptional items) was £0.26m (2013: £0.25m). Together with the exceptional restructuring cost of £193,000, the full year pre-tax loss for 2015 was £0.45m. The balance sheet remained strong with cash at £1.94m.
Sales so far in 2015 have improved after a slow start but remain fragile. However we have seen encouraging year-on-year increased sales from our website reflective of our investment in this area. Slingsby has recognised the constant need to drive value along with its well established service offering and has therefore invested further in its pricing proposition. This stronger offer will keep Slingsby competitive in a market place where price visibility is so readily accessible.
On 27 March 2015, we announced the acquisition of ESE Direct Limited ("ESE"), a supplier of industrial and commercial equipment operating in the same sector as Slingsby and based in Norwich. In the year ended 31 December 2014 ESE had sales of £6.5m and declared a pre-tax profit of £0.35m. Earnings before interest, tax, depreciation and amortisation ("EBITDA") and before directors' pension costs were £0.53m. The consideration was £3.3m net of surplus cash on acquisition. This was financed through a combination of cash and asset backed finance.
The acquisition provides us with an opportunity to diversify our brand portfolio enabling the more effective targeting of different sub-sets of customers with alternative service propositions and varying pricing strategies. We also see significant synergies between ESE and Slingsby, particularly in leveraging our supply chains. ESE sell at a different level of the market and have grown significantly primarily through on-line sales. We will combine the strengths of both companies while continuing to trade with their separate branding. Mike Wyard, previously Finance Director of ESE, has been appointed as Managing Director of ESE and will report to Dominic Slingsby.
Ray Hudson resigned as Finance Director at the end of the year and the Board thanks him for his many years' service with the Company. Morgan Morris has joined the Board as Interim Finance Director and brings a variety of experience at this senior level. He has made an immediate contribution, particularly to the ESE acquisition.
On behalf of the Board I would like to thank all our loyal staff after the most difficult year in Slingsby's long history. I also want to welcome the staff of ESE to the Slingsby family.
Despite the significant investment in our acquisition of ESE the Board is still recommending a final dividend of 4p (2013: 10p) payable on 6 July 2015 to shareholders on the register at 8 June 2015. The total dividend for 2014 is therefore 6p (2013: 12p).
John Waterhouse
Non-Executive Chairman
24 April 2015
For further information, please contact:
H C Slingsby PLC | Tel: 01274 535 030 |
Dominic Slingsby, Managing Director Morgan Morris, Financial Director
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Sanlam Securities UK Limited | Tel: 020 7628 2200 |
David Worlidge/James Thomas
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H C SLINGSBY PLC (the "Company")
Unaudited Consolidated Income Statement for the year ended 31 December 2014
Note | 2014 (Unaudited) £'000 | 2013 (Audited) £'000
| |
Turnover | 12,587 | 13,965 | |
---------- | ----------
| ||
Operating profit before exceptional items | 92 | 137 | |
Exceptional items | 2 | (193) | - |
Operating (loss)/profit | (101) | 137 | |
Finance income | 7 | 26 | |
Finance expense | (359) | (412) | |
---------- | ---------- | ||
Loss before taxation | (453) | (249) | |
Taxation | 154 | 154 | |
---------- | ---------- | ||
Loss for the year attributable to equity shareholders | (299) | (95) | |
---------- | ---------- | ||
Basic and diluted loss per share | 4 | (29.9p) | (9.5p) |
---------- | ---------- |
The results set out above derive entirely from continuing operations.
Unaudited Consolidated Statement of Comprehensive Income and Expense for the year ended 31 December 2014
2014 (Unaudited) £'000
| 2013 (Audited) £'000
| ||
Remeasurements of post-employment benefit obligation | (583) | 1,641 | |
Movement in deferred tax relating to retirement benefit obligation |
116 |
(623) | |
Exchange adjustment | (17) | 6 | |
---------- | ---------- | ||
Net (expense)/income recognised directly in equity | (484) | 1,024 | |
Loss for the year | (299) | (95) | |
----------
| ---------- | ||
Total recognised (expense)/income for the year attributable to equity shareholders |
(783) |
929 | |
-------- | ---------- | ||
Unaudited Consolidated Balance Sheet as at 31 December 2014
Note | 2014 (Unaudited) £'000
| 2013 (Audited) £'000
| |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 5,952 | 6,130 | |
Intangible assets Deferred tax asset |
| 473 1,091 | 595 910 |
-------- | ---------- | ||
7,516 | 7,635 | ||
-------- | ---------- | ||
Current assets | |||
Inventories | 1,951 | 1,897 | |
Trade and other receivables | 1,840 | 2,401 | |
Cash and cash equivalents Derivative financial asset | 1,940 4 | 2,325 - | |
Current tax asset | 88 | 28 | |
-------- | ---------- | ||
5,823 | 6,651 | ||
-------- | ----------
| ||
Liabilities | |||
Current liabilities | |||
Trade and other payables | (2,083) | (2,503) | |
Derivative financial liability | - | (26) | |
--------- | --------- | ||
(2,083) | (2,529) | ||
-------- | ---------- | ||
Net current assets | 3,740 | 4,122 | |
-------- | ---------- | ||
Non-current liabilities | |||
Retirement benefit obligation | 3 | (8,471) | (8,069) |
-------- | ---------- | ||
Net assets | 2,785 | 3,688 | |
--------
| ----------
| ||
Capital and reserves | |||
Called up share capital | 250 | 250 | |
Retained earnings | 2,531 | 3,417 | |
Translation reserve | 4 | 21 | |
-------- | ---------- | ||
Total equity | 2,785 | 3,688 | |
-------- | ---------- | ||
Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2014
2014 (Unaudited) £'000 | 2013 (Audited) £'000 | ||
Note | |||
Cash flows from operating activities | |||
Cash (used in)/generated from operations | 5 | (169) | 166 |
UK corporation tax received | 28 | - | |
-------- | -------- | ||
Cash (used in)/generated from operating activities | (141) | 166 | |
Cash flows from investing activities | |||
Interest received | 15 | 44 | |
Purchase of property, plant and equipment | (112) | (64) | |
Purchase of intangible assets | (35) | (484) | |
Proceeds from sales of property, plant and equipment | 25 | 11 | |
-------- | -------- | ||
Net cash used in investing activities
| (107) | (493)
| |
Cash flows from financing activities | |||
Equity dividends paid | 6 | (120) | (190) |
-------- | -------- | ||
Net cash used in financing activities | (120) | (190) | |
-------- | -------- | ||
Net decrease in cash and cash equivalents | (368) | (517) | |
Opening cash and cash equivalents | 2,325 | 2,836 | |
Exchange differences | (17) | 6 | |
-------- | -------- | ||
Closing cash and cash equivalents | 1,940 | 2,325 | |
-------- | -------- |
Unaudited Statement of Changes in Shareholders' Equity
| Share capital £'000 | Retained earnings £'000 | Translation reserve £'000 | Total equity £'000 |
1 January 2013 | 250 | 2,684 | 15 | 2,949 |
Total recognised income for the year | - | 923 | 6 | 929 |
Dividends paid | - | (190) | - | (190) |
---------- | ---------- | ---------- | ---------- | |
1 January 2014 | 250 | 3,417 | 21 | 3,688 |
Total recognised expense for the year | - | (766) | (17) | (783) |
Dividends paid | - | (120) | - | (120) |
---------- | ---------- | ---------- | ---------- | |
31 December 2014 | 250 | 2,531 | 4 | 2,785 |
---------- | ---------- | ---------- | ---------- |
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 2014
1. | The unaudited preliminary results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRSIC 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 2014, upon which the auditors have still to report, will be issued to shareholders on 18 May 2015 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 2014 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 18 June 2015 at the Marriot Hollins Hall Hotel, Hollins Hill, Baildon, Shipley, BD17 7QW.
| |||
2. | Exceptional item | 2014 (Unaudited) | 2013 (Audited) | |
£'000
| £'000
| |||
Redundancy costs | (193) | - | ||
------------ | ------------ | |||
3. | Retirement benefit obligation | 2014 | 2013 | |
| (Unaudited) £'000 | (Audited) £'000 | ||
Present value of funded obligation | 22,397 | 20,649 | ||
Fair value of scheme assets | (13,926) | (12,580) | ||
------------ | ------------ | |||
Net liability in balance sheet | 8,471 | 8,069 | ||
------------ | ------------ | |||
4. | Loss per share | |||
Basic loss per share is based upon losses of £299,000 (2013: £95,000) and on 1,000,000 (2013: 1,000,000) ordinary shares in issue during the year.
There is no difference between basic loss per share and diluted loss per share for both years as there are no potentially dilutive shares in issue. | ||||
5.
| Cash (used in)/generated from operations | |||
2014 (Unaudited) | 2013 (Audited) | |||
£'000
| £'000
| |||
Loss before tax | (453) | (249) | ||
Net finance costs | 352 | 386 | ||
Depreciation and amortisation | 424 | 369 | ||
Profit/(loss) on sale of property, plant and equipment | (7) | 11 | ||
Pension deficit contributions | (540) | (540) | ||
(Increase)/decrease in inventories | (53) | 373 | ||
Decrease in trade and other receivables | 549 | 23 | ||
Decrease in trade and other payables | (441) | (207) | ||
------------ | ------------ | |||
Cash generated from operating activities | (169) | 166 | ||
------------ | ------------ | |||
6. | Dividends | |||
The interim dividend for 2014 and final dividends for the 2013 financial year of 2.0p and 10.0p, totalling £120,000 were paid and deducted from reserves in the year ended 31 December 2014. The interim dividend for 2013 and the final dividend for the 2012 financial year totalling £190,000 were paid and deducted from reserves in 2013. | ||||