Last checked at 23 Sep 2011 07:00
23 September 2011
H C Slingsby plc ("the Company")
Report for the half year ended 30 June 2011
Statement by the Chairman
As previously notified, activity levels slowed markedly from late April onwards and the trading environment has become very challenging. This has been reflected in our results for the first half, with turnover of £7,792,000 (2010: £8,414,000) and a pre-tax profit of £276,000 (2010: £604,000).
Activity levels have continued to be depressed since the period end and your Board can see no signs of any immediate upturn. In this light we maintain our focus on controlling costs. We do, however, continue to invest in information technology. We are looking to further enhance our website and to fully integrate it with improved business systems. Together with the continuing strength of the Company's balance sheet, your Board remains confident that the Company will be well placed as and when the economy starts to recover.
We recommend an interim dividend of 4.0p (2010: 5.0p). This will be paid on 4 January 2012 to shareholders on the Register at the close of business on 2 December 2011.
J R Waterhouse
Non-Executive Chairman
23 September 2011
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 2011
Half year | Half year | Year | ||
ended | ended | ended | ||
30/06/11 | 30/06/10 | 31/12/10 | ||
Note | £'000 | £'000 | £'000
| |
Turnover | 7,792 | 8,414 | 16,652 | |
--------- | --------- | --------- | ||
Operating profit | 383
| 697 | 1,259 | |
Finance income | 19 | 15 | 38 | |
Finance expense | (126) | (108) | (215) | |
-------- | -------- | -------- | ||
Profit before taxation | 276 | 604 | 1,082 | |
Taxation | 2 | (21) | (179) | (365) |
-------- | -------- | -------- | ||
Profit for the period attributable to equity shareholders | 255 -------- | 425 -------- | 717 -------- | |
Basic and diluted earnings per share | 25.5p | 42.5p | 71.7p | |
-------- | -------- | -------- | ||
Proposed interim/final dividend per share | 4.0p | 5.0p | 35.0p | |
-------- | -------- | -------- | ||
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 2011
Half year | Half year | Year | ||
ended | ended | Ended | ||
30/06/11 | 30/06/10 | 31/12/10 | ||
£'000 | £'000 | £'000
| ||
Actuarial loss on pension scheme | (167) | (444) | (394) | |
Movement in deferred tax relating to pension liability | (23) | 125 | 42 | |
Exchange adjustment | 14 | (21) | (9) | |
-------- | -------- | -------- | ||
Net expense recognised directly in equity | (176) | (340) | (361) | |
Profit for the period | 255 | 425 | 717 | |
-------- | -------- | -------- | ||
Total income recognised for the period attributable to equity shareholders | 79 | 85 | 356 | |
| -------- | -------- | --------
| |
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 2011
30/06/11 | 30/06/10 | 31/12/10 | ||
£'000 | £'000 | £'000 | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 6,654 | 6,676 | 6,642 | |
Intangible asset | 152 | 215 | 202 | |
Deferred tax asset | 852 | 975 | 824 | |
--------- | --------- | -------- | ||
7,658 | 7,866 | 7,668 | ||
--------- | --------- | -------- | ||
Current assets | ||||
Inventories | 2,087 | 1,494 | 1,785 | |
Trade and other receivables | 2,475 | 2,687 | 3,233 | |
Cash and cash equivalents
| 3,575
| 3,457 | 3,420 | |
--------- | --------- | --------- | ||
8,137 | 7,638 | 8,438 | ||
--------- | --------- | ---------
| ||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables Derivative financial liability | (2,793) - | (2,492) - | (2,960) (8) | |
Current tax liabilities | (380) | (330) | (308) | |
--------- | --------- | --------- | ||
(3,173) | (2,822) | (3,276) | ||
--------- | --------- | --------- | ||
Net current assets | 4,964 | 4,816 | 5,162 | |
--------- | --------- | --------- | ||
Non-current liabilities | ||||
Retirement benefit obligation | (6,774) | (6,784) | (6,661) | |
--------- | --------- | --------- | ||
Net assets | 5,848 | 5,898 | 6,169 | |
--------- | --------- | ---------
| ||
Capital and reserves | ||||
Called up share capital | 250 | 250 | 250 | |
Retained earnings | 5,555 | 5,631 | 5,890 | |
Translation reserve | 43 | 17 | 29 | |
--------- | --------- | --------- | ||
Total equity | 5,848 | 5,898 | 6,169 | |
--------- | --------- | --------- |
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 2010 | 250 | 5,865 | 38 | 6,153 |
Total income recognised for the period | - | 160 | (21) | 85 |
Dividends paid | - | (340) | - | (340) |
--------- | --------- | --------- | --------- | |
At 30 June 2010 | 250 | 5,631 | 17 | 5,898 |
--------- | --------- | --------- | --------- | |
At 1 January 2011 | 250 | 5,890 | 29 | 6,169 |
Total income recognised for the period | - | 65 | 14 | 79 |
Dividends paid | - | (400) | - | (400) |
--------- | --------- | --------- | --------- | |
At 30 June 2011 | 250 | 5,555 | 43 | 5,848 |
--------- | --------- | --------- | --------- |
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 2011
Half year | Half year | Year | ||
ended | ended | Ended | ||
30/06/11 | 30/06/10 | 31/12/10 | ||
Note | £'000
| £'000
| £'000
| |
Cash flows from operating activities | ||||
Cash generated from operations | 3 | 702 | 796 | 1,344 |
Interest received | 11 | 9 | 28 | |
UK corporation tax received/(paid) | - | 91 | (49) | |
--------- | --------- | --------- | ||
Cash generated from operating activities | 713 | 896 | 1,323 | |
--------- | --------- | --------- | ||
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (209) | (160) | (394) | |
Proceeds from sales of property, plant and equipment | 37 | 7 | 65 | |
--------- | --------- | --------- | ||
Net cash used in investing activities | (172) | (153) | (329) | |
--------- | --------- | --------- | ||
Cash flows from financing activities | ||||
Equity dividends paid | (400) | (40) | (340) | |
--------- | --------- | --------- | ||
Net cash used in financing activities | (400) | (40) | (340) | |
--------- | --------- | ---------
| ||
Net increase in cash and cash equivalents | 141 | 703 | 654 | |
Opening cash and cash equivalents | 3,420 | 2,775 | 2,775 | |
Exchange differences | 14 | (21) | (9) | |
--------- | --------- | --------- | ||
Closing cash and cash equivalents | 3,575 | 3,457 | 3,420 | |
--------- | --------- | --------- | ||
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 2011
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 2010 Annual Report and Accounts. The comparative figures for the year ended 31 December 2010 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 2010 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. | Taxation
| |||
Half year | Half year | Year | ||
ended | ended | Ended | ||
30/06/11 | 30/06/10 | 31/12/10 | ||
£'000
| £'000 | £'000 | ||
Current tax | 72 | 168 | 286 | |
Deferred tax | (51) | 11 | 79 | |
--------- | --------- | --------- | ||
21 | 179 | 365 | ||
--------- | --------- | ---------
| ||
The effective tax rate is 19% (2010 half year: 30%, 2010 full year: 34%).
| ||||
3. | Reconciliation of operating profit to net cash inflow from operating activities
| |||
Half year | Half year | Year | ||
ended | ended | ended | ||
30/06/11 | 30/06/10 | 31/12/10 | ||
£'000
| £'000 | £'000 | ||
Operating profit | 383 | 697 | 1,259 | |
Depreciation | 224 | 226 | 455 | |
Profit on sale of property, plant and equipment | (8) | (3) | (19) | |
Difference between pension charge and contributions | (180) | (180) | (360) | |
Increase in inventories | (302) | (107) | (398) | |
Decrease/(Increase) in trade and other receivables | 761 | (17) | (546) | |
(Decrease)/Increase in trade and other payables | (176) | 180 | 953 | |
--------- | --------- | --------- | ||
Net cash inflow from operating activities | 702 | 796 | 1,344 | |
--------- | --------- | ---------
| ||