Last checked at 24 Sep 2010 10:00
H C Slingsby plc ("the Company")
Report for the half year ended 30 June 2010
Statement by the Chairman
I am pleased to report an improved trading position on the first half of last year. Although turnover has marginally increased by 1.6%, the action taken last year to reduce overheads has resulted in a significant increase in operating profit before exceptional items of £697,000 (2009: £337,000).
Last year there was an exceptional gain due to the closure of the company's defined benefit plan of £739,000 partly offset by redundancy costs of £96,000 which helped the pre-tax profit figure reach £840,000.
We continue to invest in information technology including development of our electronic trading capability with customers and suppliers. Further enhancements to our website are also in progress.
Your company continues to have a strong balance sheet and despite the difficult global economic conditions, the Board remains positive that the company is well placed to take advantage of any upturn.
We recommend an improved interim dividend of 5.0p (2009: 4.0p). This will be paid on 4 January 2011 to shareholders on the Register at the close of business on 3 December 2010.
J R Waterhouse
Non-Executive Chairman
24 September 2010
Registered Office
Otley Road, Baildon, Shipley BD17 7LW
For further information please contact:
| H C Slingsby plc |
|
| Dominic Slingsby, Managing Director | 01274 535 030 |
| Ray Hudson, Financial Director
|
|
| Evolution Securities Limited |
|
| Joanne Lake/Peter Steel | 0113 243 1619 |
Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2010
|
|
| Half year | Half year | Year |
|
|
| ended | ended | ended |
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
| Note | £'000 | £'000 | £'000
|
| Turnover |
| 8,414 | 8,277 | 15,833 |
|
|
| --------- | --------- | --------- |
|
Operating profit before exceptional items |
|
697 |
337 |
707 |
| Exceptional items | 2 | - | 643 | 592 |
|
|
| -------- | -------- | -------- |
| Operating profit |
| 697
| 980 | 1,299 |
| Finance income |
| 15 | 27 | 42 |
| Finance expense |
| (108) | (167) | (334) |
|
|
| -------- | -------- | -------- |
| Profit before taxation |
| 604 | 840 | 1,007 |
| Taxation | 3 | (179) | (246) | (192) |
|
|
| -------- | -------- | -------- |
| Profit for the period attributable to equity shareholders | 425 -------- | 594 -------- | 815 -------- | |
| Basic and diluted earnings per share |
| 42.5p | 59.4p | 81.5p |
|
|
| -------- | -------- | -------- |
| Proposed interim/final dividend per share |
| 5.0p | 4.0p | 30.0p |
|
|
| -------- | -------- | -------- |
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 2010
|
|
| Half year | Half year | Year |
|
|
| ended | ended | ended |
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
|
| £'000 | £'000 | £'000
|
| Actuarial loss on pension scheme |
| (444) | (1,817) | (1,355) |
| Movement in deferred tax relating to pension liability | 125 | 509 | 379 | |
| Exchange adjustment |
| (21) | (29) | (20) |
|
|
| -------- | -------- | -------- |
| Net expense recognised directly in equity |
| (340) | (1,337) | (996) |
| Profit for the period |
| 425 | 594 | 815 |
|
|
| -------- | -------- | -------- |
| Total income/(expense) recognised for the period attributable to equity shareholders | 85 | (743) | (181) | |
|
|
| -------- | -------- | -------- |
The above unaudited consolidated statement of comprehensive income and expense should be read in conjunction with the accompanying notes.
Unaudited Consolidated Balance Sheet as at 30 June 2010
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
|
| £'000 | £'000 | £'000 |
| Assets |
|
|
|
|
| Non-current assets |
|
|
|
|
| Property, plant and equipment |
| 6,676 | 6,957 | 6,792 |
| Intangible asset |
| 215 | 113 | 180 |
| Deferred tax asset |
| 975 | 977 | 861 |
|
|
| --------- | --------- | -------- |
|
|
| 7,866 | 8,047 | 7,833 |
|
|
| --------- | --------- | -------- |
| Current assets |
|
|
|
|
| Inventories |
| 1,494 | 1,584 | 1,387 |
| Trade and other receivables |
| 2,687 | 2,459 | 2,671 |
| Derivative forward asset Cash and cash equivalents |
| - 3,457 | - 2,987 | 1 2,775 |
|
|
| --------- | --------- | --------- |
|
|
| 7,638 | 7,030 | 6,834 |
|
|
| --------- | --------- | ---------
|
| Liabilities |
|
|
|
|
| Current liabilities |
|
|
|
|
| Trade and other payables |
| (2,492) | (2,548) | (2,030) |
| Current tax liabilities |
| (330) | (111) | (72) |
|
|
| --------- | --------- | --------- |
|
|
| (2,822) | (2,659) | (2,102) |
|
|
| --------- | --------- | --------- |
| Net current assets |
| 4,816 | 4,371 | 4,732 |
|
|
| --------- | --------- | --------- |
| Non-current liabilities |
|
|
|
|
| Retirement benefit obligation |
| (6,784) | (6,827) | (6,412) |
|
|
| --------- | --------- | --------- |
|
|
| (6,784) | (6,827) | (6,412) |
|
|
| --------- | --------- | --------- |
| Net assets |
| 5,898 | 5,591 | 6,153 |
|
|
| --------- | --------- | ---------
|
| Capital and reserves |
|
|
|
|
| Called up share capital |
| 250 | 250 | 250 |
| Retained earnings |
| 5,631 | 5,313 | 5,865 |
| Translation reserve |
| 17 | 28 | 38 |
|
|
| --------- | --------- | --------- |
| Total equity |
| 5,898 | 5,591 | 6,153 |
|
|
| --------- | --------- | --------- |
The above unaudited consolidated balance sheet should be read in conjunction with the accompanying notes.
Unaudited Consolidated Statement of Changes in Shareholders' Equity
|
| Share capital | Retained earnings | Translation reserve | Total equity |
|
| £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
|
| At 1 January 2009 | 250 | 6,526 | 58 | 6,834 |
| Total expense recognised for the period | - | (713) | (30) | (743) |
| Dividends paid | - | (500) | - | (500) |
|
| --------- | --------- | --------- | -------- |
| At 30 June 2009 | 250 | 5,313 | 28 | 5,591 |
|
| --------- | --------- | --------- | -------- |
|
|
|
|
|
|
| At 1 January 2010 | 250 | 5,865 | 38 | 6,153 |
| Total income/(expense) recognised for the period | - | 106 | (21) | 85 |
| Dividends paid | - | (340) | - | (340) |
|
| --------- | --------- | --------- | -------- |
| At 30 June 2010 | 250 | 5,631 | 17 | 5,898 |
|
| --------- | --------- | --------- | -------- |
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 2010
|
|
| Half year | Half year | Year |
|
|
| ended | ended | Ended |
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
| Note | £'000
| £'000
| £'000
|
| Cash flows from operating activities |
|
|
|
|
| Cash generated from operations | 4 | 796 | 491 | 793 |
| Interest received |
| 9 | 31 | 50 |
| UK corporation tax received/(paid) |
| 91 | (237) | (237) |
|
|
| --------- | --------- | --------- |
| Cash generated from operating activities |
| 896 | 285 | 606 |
|
|
| --------- | --------- | --------- |
| Cash flows from investing activities |
|
|
|
|
| Purchase of property, plant and equipment |
| (160) | (220) | (352) |
| Proceeds from sales of property, plant and equipment | 7 | 7 | 14 | |
|
|
| --------- | --------- | --------- |
| Net cash used in investing activities |
| (153) | (213) | (338) |
|
|
| --------- | --------- | --------- |
| Cash flows from financing activities |
|
|
|
|
| Equity dividends paid |
| (40) | (80) | (500) |
|
|
| --------- | --------- | --------- |
| Net cash used in financing activities |
| (40) | (80) | (500) |
|
|
| --------- | --------- | ---------
|
| Net increase/(decrease) in cash and cash equivalents | 703 | (8) | (232) | |
| Opening cash and cash equivalents |
| 2,775 | 3,029 | 3,029 |
| Exchange differences |
| (21) | (34) | (22) |
|
|
| --------- | --------- | --------- |
| Closing cash and cash equivalents |
| 3,457 | 2,987 | 2,775 |
|
|
| --------- | --------- | --------- |
The above unaudited consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Notes to the Interim Report for the half year ended 30 June 2010
| 1. | Interim Financial Information
| |||
|
| The condensed consolidated interim financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The interim financial statements, which are unaudited and have not been reviewed by the Company's auditors, have been prepared in accordance with the policies set out in the 2009 Annual Report and Accounts. The comparative figures for the year ended 31 December 2009 do not constitute full financial statements and have been abridged from the full accounts for the year ended on that date, on which the auditors gave an unqualified report, which did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The 2009 accounts have been delivered to the Registrar of Companies. The Company has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing the financial information.
| |||
| 2. | Exceptional Items
| |||
|
|
| Half year | Half year | Year |
|
|
| ended | ended | ended |
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
|
| £'000
| £'000 | £'000 |
|
| Pension curtailment gain | - | 739 | 739 |
|
| Redundancy costs | - | (96) | (147) |
|
|
| --------- | --------- | --------- |
|
|
| - | 643 | 592 |
|
|
| ---------
| --------- | ---------
|
|
3. | The pension curtailment gain in 2009 arose as a result of the closure of the defined benefit scheme in March 2009.
Taxation
| |||
|
|
| Half year | Half year | Year |
|
|
| ended | ended | ended |
|
|
| 30/06/10 | 30/06/09 | 31/12/09 |
|
|
| £'000
| £'000 | £'000 |
|
| Current tax | 168 | 98 | 58 |
|
| Deferred tax | 11 | 148 | 134 |
|
|
| --------- | --------- | --------- |
|
|
| 179 | 246 | 192 |
|
|
| --------- | --------- | ---------
|
|
| The effective tax rate is 29.7% (2009 half year: 29.4%, 2009 full year: 29.6%).
| |||
| 4. | Reconciliation of operating profit to net cash inflow from operating activities
| |||
|
| Half year | Half year | Year | |
|
| ended | ended | ended | |
|
| 30/06/10 | 30/06/09 | 31/12/09 | |
|
| £'000
| £'000 | £'000 | |
|
| Operating profit | 697 | 980 | 1,299 |
|
| Depreciation | 226 | 221 | 448 |
|
| (Profit)/loss on sale of property, plant and equipment | (3) | 2 | - |
|
| Difference between pension charge and contributions | (180) | (844) | 964 |
|
| (Increase)/decrease in inventories | (107) | 148 | 345 |
|
| (Increase)/decrease in trade and other receivables | (17) | 588 | 371 |
|
| Increase/(Decrease) in trade and other payables | 180 | (604) | (706) |
|
|
| --------- | --------- | --------- |
|
| Net cash inflow from operating activities | 796 | 491 | 793 |
|
|
| --------- | --------- | --------- |