Last checked at 25 Sep 2009 14:34
25 September 2009
H C Slingsby plc ("the Company")
Report for the half year ended 30 June 2009
Statement by the Chairman
As referred to in our 24 June 2009 trading statement, activity levels during the first half of 2009 were significantly lower than in the corresponding period last year, with sales for the half year of £8.3m (2008: £10.4m).
A one-off gain of £739,000 on the closure to future accrual of our defined benefit pension scheme was partly offset by redundancy costs of £96,000 and an increase in the annual charge for pension contributions of £111,000. Together, these contributed to a reported pre-tax profit of £840,000 (2007: £826,000). Excluding the one-off gain relating to the pension scheme and the redundancy costs, underlying pre-tax profit for the half year was £197,000 (2008: £826,000).
Current order levels remain subdued, but with the recent launch of the new website and release of our September catalogue, the Company is well-placed to benefit from any improvement in trading conditions as the UK economy starts to recover from recession.
Your Company continues to maintain a strong balance sheet, with net cash of £3.0m (2008: £4.1m). In view, however, of current trading including the continuing lack of visibility over forward orders, the Board remains cautious and therefore recommends an interim dividend of 4.0p (2008: 8.0p). This will be paid on 4 January 2010 to shareholders on the register at the close of business on 4 December 2009.
J R Waterhouse
Non-Executive Chairman
25 September 2009
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 2009
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Turnover | 8,277 | 10,449 | 19,640 | |
| --------- | --------- | --------- | ||
| Operating profit before exceptional items | 337 | 813 | 1,580 | |
| Exceptional items | 2 | 643 | - | - |
| -------- | -------- | -------- | ||
| Operating profit | 980 | 813 | 1,580 | |
| Finance income | 27 | 75 | 136 | |
| Finance expense | (167) | (62) | (110) | |
| -------- | -------- | -------- | ||
| Profit before taxation | 840 | 826 | 1,606 | |
| Taxation | (246) | (729) | (776) | |
| -------- | -------- | -------- | ||
| Profit for the period attributable to equity shareholders | 594 -------- | 97 -------- | 830 -------- | |
| Basic and diluted earnings per share | 59.4p | 9.7p | 83.0p | |
| -------- | -------- | -------- | ||
| Proposed interim/final dividend per share | 4.0p | 8.0p | 8.0p | |
| -------- | -------- | -------- | ||
The results set out above derive entirely from continuing operations.
Unaudited Statement of Consolidated Recognised Income and Expense for the half year ended 30 June 2009
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Actuarial loss on pension scheme | (1,817) | (898) | (2,917) | |
| Movement in deferred tax relating to pension liability | 509 | 251 | 817 | |
| Exchange adjustment | (29) | 7 | 51 | |
| -------- | -------- | -------- | ||
| Net expense recognised directly in equity | (1,337) | (640) | (2,049) | |
| Profit for the period | 594 | 97 | 830 | |
| -------- | -------- | -------- | ||
| Total expense recognised for the period attributable to equity shareholders | (743) | (543) | (1,219) | |
| -------- | -------- | -------- | ||
Unaudited Group Balance Sheet as at 30 June 2009
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Assets | ||||
| Non-current assets | ||||
| Property, plant and equipment | 7,070 | 7,122 | 7,143 | |
| Intangible asset | - | 82 | - | |
| Deferred tax asset | 977 | - | 616 | |
| --------- | --------- | -------- | ||
| 8,047 | 7,204 | 7,759 | ||
| --------- | --------- | -------- | ||
| Current assets | ||||
| Inventories | 1,584 | 1,582 | 1,732 | |
| Trade and other receivables | 2,459 | 3,446 | 3,051 | |
| Cash and cash equivalents | 2,987 | 4,077 | 3,029 | |
| --------- | --------- | --------- | ||
| 7,030 | 9,105 | 7,812 | ||
| --------- | --------- | --------- | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | (2,548) | (4,639) | (2,797) | |
| Current tax liabilities | (111) | (330) | (253) | |
| Obligations under finance leases | - | (66) | - | |
| --------- | --------- | --------- | ||
| (2,659) | (5,035) | (3,050) | ||
| --------- | --------- | --------- | ||
| Net current assets | 4,371 | 4,070 | 4,762 | |
| --------- | --------- | --------- | ||
| Non-current liabilities | ||||
| Pension liabilities | (6,827) | (3,721) | (5,687) | |
| Deferred tax liability | - | (41) | - | |
| --------- | --------- | --------- | ||
| (6,827) | (3,762) | (5,687) | ||
| --------- | --------- | --------- | ||
| Net assets | 5,591 | 7,512 | 6,834 | |
| --------- | --------- | --------- | ||
| Capital and reserves | ||||
| Called up share capital | 250 | 250 | 250 | |
| Retained earnings | 5,313 | 7,248 | 6,526 | |
| Translation reserve | 28 | 14 | 58 | |
| --------- | --------- | --------- | ||
| Total equity | 5,591 | 7,512 | 6,834 | |
| --------- | --------- | --------- |
Unaudited Consolidated Cash Flow Statement for the half year ended 30 June 2009
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| Note | £'000 | £'000 | £'000 | |
| Cash flows from operating activities | ||||
| Cash generated from operations | 5 | 491 | 1,918 | 1,646 |
| Interest received | 31 | 71 | 129 | |
| Interest paid on finance leases | - | (22) | (45) | |
| UK corporation tax paid | (237) | (56) | (274) | |
| --------- | --------- | --------- | ||
| Cash generated from operating activities | 285 | 1,911 | 1,456 | |
| --------- | --------- | --------- | ||
| Cash flows from investing activities | ||||
| Purchase of property, plant and equipment | (220) | (251) | (449) | |
| Proceeds from sales of property, plant and equipment | 7 | 13 | 40 | |
| --------- | --------- | --------- | ||
| Net cash used in investing activities | (213) | (238) | (409) | |
| --------- | --------- | --------- | ||
| Cash flows from financing activities | ||||
| Equity dividends paid | (80) | (70) | (470) | |
| Capital element of finance leases | - | (185) | (251) | |
| --------- | --------- | --------- | ||
| Net cash used in financing activities | (80) | (255) | (721) | |
| --------- | --------- | --------- | ||
| Net increase in cash and cash equivalents | (8) | 1,418 | 326 | |
| Opening cash and cash equivalents | 3,029 | 2,652 | 2,652 | |
| Exchange differences | (34) | 7 | 51 | |
| --------- | --------- | --------- | ||
| Closing cash and cash equivalents | 2,987 | 4,077 | 3,029 | |
| --------- | --------- | --------- | ||
Notes to the Interim Report for the half year ended 30 June 2009
| 1. | Interim Financial Information | |||
| The financial information contained in this interim statement 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 under International Financial Reporting Standards ("IFRS") as endorsed by the EU, on the basis of the accounting policies set out in the 2008 Annual Report and Accounts. The comparative figures for the year ended 31 December 2008 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 2008 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 | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Pension curtailment gain | 739 | - | - | |
| Redundancy costs | (96) | - | - | |
| --------- | --------- | --------- | ||
| 643 | - | - | ||
| --------- | --------- | --------- | ||
| 3. | Taxation | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Current tax | 98 | 218 | 357 | |
| Deferred tax | 148 | 511 | 419 | |
| --------- | --------- | --------- | ||
| 246 | 729 | 776 | ||
| --------- | --------- | --------- | ||
| Included within the tax charge for 2008 is a deferred tax charge of £486,000 in relation to the impact of the phasing out of industrial buildings allowances. This substantial deferred tax charge arises as there is currently a balance of approximately £1.75m of expenditure on industrial buildings for which no tax relief will now be available in future periods. The effective tax rate excluding this one off adjustment is 29.4% (2008 half year: 31.5%, 2008 full year: 34.5%). | ||||
| 4. | Statement of changes in shareholders' equity | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Total recognised expense for the period | (743) | (543) | (1,221) | |
| Dividends | (500) | (470) | (470) | |
| --------- | --------- | --------- | ||
| Net movement in shareholders' equity | (1,243) | (1,013) | (1,691) | |
| Opening shareholders' equity | 6,834 | 8,525 | 8,525 | |
| --------- | --------- | --------- | ||
| Closing shareholders' equity | 5,591 | 7,512 | 6,834 | |
| --------- | --------- | --------- | ||
| 5. | Reconciliation of operating profit to net cash inflow from operating activities | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/09 | 30/06/08 | 31/12/08 | ||
| £'000 | £'000 | £'000 | ||
| Operating profit | 980 | 813 | 1,580 | |
| Depreciation | 221 | 339 | 612 | |
| Loss/(profit) on sale of property, plant and equipment | 2 | (4) | (1) | |
| Difference between pension charge and contributions | (844) | (91) | (189) | |
| Decrease/(increase) in inventories | 148 | (130) | (279) | |
| Decrease/(increase) in trade and other receivables | 588 | (152) | 245 | |
| (Decrease)/increase in trade and other payables | (604) | 1,143 | (322) | |
| --------- | --------- | --------- | ||
| Net cash inflow from operating activities | 491 | 1,918 | 1,646 | |
| --------- | --------- | --------- | ||