Last checked at 20 Sep 2013 07:00
H C Slingsby plc ("the Company")
Report for the half year ended 30 June 2013
20 September 2013
Statement by the Chairman
In our trading statement issued at the AGM on 21 June 2013 I stated that the Board's expectations were for a small pre-tax loss for the first half of 2013 and this is now confirmed with a pre-tax loss of £32,000, compared with a pre-tax profit of £203,000 for the six months ended 30 June 2012. Turnover for the six months ended 30 June 2013 was £6.9 million (six months ended 30 June 2012: £7.5 million). As stated in the AGM statement, the lower levels of trading in the period were exacerbated by a notable decrease in public sector spend in the period up to 31 March 2013.
The Company has not experienced any significant upturn in the level of trading in the second half and if this trend continues for the remainder of the year, the Directors believe the Company will incur a pre-tax loss for the year.
Our cash position remains strong and we continue to invest in our new enterprise system and website project which are expected to go live before the end of the year. We believe that the new website will enable dynamic pricing and provide online customers with a far better user experience.
The deficit on the Company's defined benefit pension scheme, which is now closed to future accrual, reduced to £9.2 million as measured in accordance with IAS19R (31 December 2012: £9.8 million). The improvement is largely due to the rise in corporate bond yields over the period which has resulted in a decrease in the value of the liabilities. Other contributory factors were the effect of the recovery plan contributions paid into the scheme and investment returns being higher than assumed. These factors were offset by the effect of increased inflationary expectations. The finance expense associated with the pension scheme in the Income Statement rose to £206,000 on IAS19R (six months ended 30 June 2012: £152,000 on IAS19 compared to £199,000 on IAS19R). The increase in finance expense is mainly due to a requirement to use more conservative assumptions under IAS19R compared to IAS19 (which was used previously). The deficit in the pension scheme is unaffected by the changes introduced by IAS19R.
In view of these results and the lack of any significant upturn in the level of trading in the second half to date, the Board has declared an interim dividend of 2.0p (six months ended June 2012: 4.0p) which will be paid on 3 January 2014 to shareholders on the Register at the close of business on 6 December 2013.
J R Waterhouse
Non-Executive Chairman
For further information please contact:
H C Slingsby plc | |
Dominic Slingsby, Managing Director | 01274 535 030 |
Ray Hudson, Financial Director
| |
Sanlam Securities UK Limited | |
David Worlidge | 020 7628 2200 |
Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2013
Half year | Half year | Year | ||
ended | Ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
Note | £'000 | £'000 | £'000
| |
Turnover | 6,913 | 7,535 | 14,588 | |
--------- | --------- | --------- | ||
Operating profit before exceptional item | 155 | 457 | 489 | |
Exceptional item | 2 | - | (124) | (129) |
--------- | --------- | --------- | ||
Operating profit | 155 | 333 | 360 | |
Finance income | 19 | 22 | 43 | |
Finance expense | (206) | (152) | (301) | |
-------- | -------- | -------- | ||
(Loss)/Profit before taxation | (32) | 203 | 102 | |
Taxation | 3 | 6 | - | 70 |
-------- | -------- | -------- | ||
(Loss)/Profit for the period attributable to equity Shareholders | (26) -------- | 203 -------- | 172 -------- | |
Basic and diluted earnings per share | (2.6p) | 20.3p | 17.2p | |
-------- | -------- | -------- | ||
Interim/total dividend per share | 2.0p | 4.0p | 19.0p | |
-------- | -------- | -------- | ||
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 2013
Half year | Half year | Year | ||
ended | Ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
£'000 | £'000 | £'000 | ||
Actuarial gain/(loss) on pension scheme | 590 | (2,045) | (1,339) | |
Movement in deferred tax relating to retirement benefit obligation |
(136) |
424 |
46 | |
Exchange adjustment | 14 | (9) | (7) | |
-------- | -------- | -------- | ||
Net income/(expense) recognised directly in equity | 468 | (1,630) | (1,300) | |
(Loss)/Profit for the period | (26) | 203 | 172 | |
-------- | -------- | -------- | ||
Total income/(expense) recognised for the period attributable to equity shareholders |
442 |
(1,427) |
(1,182) | |
-------- | -------- | -------- | ||
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 2013
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
£'000 | £'000 | £'000 | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 6,251 | 6,465 | 6,358 | |
Intangible asset | 379 | 198 | 202 | |
Deferred tax asset | 1,293 | 1,780 | 1,419 | |
--------- | --------- | -------- | ||
7,923 | 8,443 | 7,979 | ||
--------- | --------- | -------- | ||
Current assets | ||||
Inventories | 2,089 | 2,442 | 2,270 | |
Trade and other receivables | 2,258 | 2,497 | 2,443 | |
Cash and cash equivalents | 2,767 | 2,992 | 2,836 | |
--------- | --------- | --------- | ||
7,114 | 7,931 | 7,549 | ||
--------- | --------- | ---------
| ||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | (2,636) | (2,880) | (2,722) | |
Derivative financial liability | - | (6) | (7) | |
Current tax liabilities | (16) | (173) | (12) | |
--------- | --------- | --------- | ||
(2,652) | (3,059) | (2,741) | ||
--------- | --------- | --------- | ||
Net current assets | 4,462 | 4,872 | 4,808 | |
--------- | --------- | --------- | ||
Non-current liabilities | ||||
Retirement benefit obligation | (9,184) | (10,665) | (9,838) | |
--------- | --------- | --------- | ||
Net assets | 3,201 | 2,650 | 2,949 | |
--------- | --------- | ---------
| ||
Capital and reserves | ||||
Called up share capital | 250 | 250 | 250 | |
Retained earnings | 2,922 | 2,387 | 2,684 | |
Translation reserve | 29 | 13 | 15 | |
--------- | --------- | --------- | ||
Total equity | 3,201 | 2,650 | 2,949 | |
--------- | --------- | --------- |
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 £'000 | Retained earnings £'000 | Translation reserve £'000 | Total equity £'000 | |
At 1 January 2012 | 250 | 4,125 | 22 | 4,397 |
Total comprehensive expense recognised for the period |
- |
(1,418) |
(9) |
(1,427) |
Dividends paid | - | (320) | - | (320) |
--------- | --------- | --------- | --------- | |
At 30 June 2012 | 250 | 2,387 | 13 | 2,650 |
--------- | --------- | --------- | --------- | |
At 1 January 2013 | 250 | 2,684 | 15 | 2,949 |
Total comprehensive income recognised for the period |
- |
428 |
14 |
442 |
Dividends paid | - | (190) | - | (190) |
--------- | --------- | --------- | --------- | |
At 30 June 2013 | 250 | 2,922 | 29 | 3,201 |
--------- | --------- | --------- | --------- |
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 2013
Half year | Half year | Year | ||
ended | ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
Note | £'000
| £'000
| £'000
| |
Cash flows from operating activities | ||||
Cash generated from operations | 4 | 155 | 753 | 1,041 |
UK corporation tax paid | - | - | (108) | |
--------- | --------- | --------- | ||
Cash generated from operating activities | 155 | 753 | 933 | |
--------- | --------- | --------- | ||
Cash flows from investing activities | ||||
Interest received | 19 | 14 | 40 | |
Purchase of property, plant and equipment | (228) | (180) | (275) | |
Proceeds from sales of property, plant and equipment | 11 | 15 | 26 | |
--------- | --------- | --------- | ||
Net cash outflow from investing activities | (198) | (151) | (209) | |
--------- | --------- | --------- | ||
Cash flows from financing activities | ||||
Equity dividends paid | (40) | (40) | (320) | |
--------- | --------- | --------- | ||
Net cash outflow from financing activities | (40) | (40) | (320) | |
--------- | --------- | ---------
| ||
Net (decrease)/increase in cash and cash equivalents | (83) | 562 | 404 | |
Opening cash and cash equivalents | 2,836 | 2,439 | 2,439 | |
Exchange differences | 14 | (9) | (7) | |
--------- | --------- | --------- | ||
Closing cash and cash equivalents | 2,767 | 2,992 | 2,836 | |
--------- | --------- | --------- | ||
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 2013
1. | Interim Financial Information
| |||
The unaudited 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 2012 Annual Report and Accounts. The comparative figures for the year ended 31 December 2012 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 2012 accounts have been delivered to the Registrar of Companies. The Company has chosen not to adopt IAS 34 'Interim Financial Statements' but has adopted IAS 19R: 'Amendments to IAS 19 Employee benefits' in preparing the financial information.
| ||||
2. | Exceptional item | Half year | Half year | Year |
ended | ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
£'000 | £'000 | £'000 | ||
Redundancy costs | - | 124 | 129 | |
---------- | --------- | --------- | ||
3. | Taxation | Half year | Half year | Year |
ended | ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
£'000 | £'000 | £'000 | ||
Current tax | 4 | 51 | (2) | |
Deferred tax | (10) | (51) | (68) | |
--------- | --------- | --------- | ||
(6) | - | (70) | ||
--------- | --------- | --------- | ||
The effective tax rate is nil. | ||||
4. |
Cash generated from Operations | |||
Half year | Half year | Year | ||
ended | ended | Ended | ||
30/06/13 (Unaudited) | 30/06/12 (Unaudited) | 31/12/12 (Audited) | ||
£'000 | £'000 | £'000 | ||
(Loss)/Profit before tax | (32) | 203 | 102 | |
Net finance costs | 187 | 130 | 258 | |
Depreciation and amortisation | 187 | 192 | 381 | |
Profit on sale of property, plant and equipment | (1) | (7) | (9) | |
Difference between pension charge and contributions | (270) | (270) | (540) | |
Decrease/(Increase) in inventories | 181 | (170) | 2 | |
Decrease in trade and other receivables | 185 | 64 | 114 | |
(Decrease)/Increase in trade and other payables | (282) | 611 | 733 | |
--------- | --------- | --------- | ||
Cash generated from operating activities | 155 | 753 | 1,041 | |
--------- | --------- | --------- | ||
Dividends payable of £150,000 were included in trade and other payables at 30 June 2013 (2012: £280,000).
5. | Availability of Interim Report
The Interim Report will be available on the Company's website www.slingsby.com. |