Last checked at 26 Sep 2008 07:00
26 September 2008
H C Slingsby plc
Report for the half year ended 30 June 2008
Statement by the Chairman
It is pleasing to report that despite the tough economic climate, the Group has achieved a pre-tax profit for the six months ended 30 June 2008 of £826,000 (2007: £726,000).
After an encouraging first quarter, the effects of the current conditions became apparent and to date, turnover is only marginally ahead of the previous year, with overheads as a proportion of turnover remaining broadly the same.
The re-vamped main catalogue has just been launched and whilst it is too early to gauge the effect we feel that the new look will enable customers to find products quicker and easier than before.
Included within the tax charge of £729,000 is a one-off, non cash deferred tax movement of £486,000 relating to the phasing out of industrial buildings allowances.
Your Board is pleased to recommend an increased interim dividend of 8.0p (2007: 7.0p). This will be paid on 5 January 2009 to shareholders on the Register at the close of business on 5 December 2008.
J R Waterhouse
Chairman
26 September 2008
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 Consolidated Income Statement for the half year ended 30 June 2008
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Turnover | 10,449 | 9,942 | 19,562 | |
| --------- | --------- | --------- | ||
| Operating profit | 813 | 742 | 1,571 | |
| -------- | -------- | -------- | ||
| Finance income | 75 | 46 | 109 | |
| Finance expense | (62) | (62) | (132) | |
| -------- | -------- | -------- | ||
| Profit before taxation | 826 | 726 | 1,548 | |
| Taxation | (729) | (229) | (534) | |
| -------- | -------- | -------- | ||
| Profit for the period attributable to equity shareholders | 97 | 497 | 1,014 | |
| Basic and diluted earnings per share | 9.7p | 49.7p | 101.4p | |
| -------- | -------- | -------- | ||
| Proposed interim dividend per share | 8.0p | 7.0p | 7.0p | |
| -------- | -------- | -------- | ||
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 2008
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Actuarial (loss)/gain on pension scheme | (898) | 794 | 843 | |
| Movement in deferred tax relating to pension liability | 251 | (221) | (312) | |
| Exchange adjustment | 7 | (9) | - | |
| -------- | -------- | -------- | ||
| Net (expense)/income recognised directly in equity | (640) | 564 | 531 | |
| Profit for the period | 97 | 497 | 1,014 | |
| -------- | -------- | -------- | ||
| Total (expense)/income recognised for the period attributable to equity shareholders | (543) | 1,061 | 1,545 | |
| -------- | -------- | -------- | ||
Unaudited Group Balance Sheet as at 30 June 2008
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Assets | ||||
| Non-current assets | ||||
| Property, plant and equipment | 7,122 | 7,038 | 7,055 | |
| Intangible asset | 82 | 409 | 246 | |
| Deferred tax asset | - | 399 | 219 | |
| --------- | --------- | -------- | ||
| 7,204 | 7,846 | 7,520 | ||
| --------- | --------- | -------- | ||
| Current assets | ||||
| Inventories | 1,582 | 1,352 | 1,453 | |
| Trade and other receivables | 3,446 | 3,568 | 3,289 | |
| Cash and cash equivalents | 4,077 | 2,626 | 2,652 | |
| --------- | --------- | --------- | ||
| 9,105 | 7,546 | 7,394 | ||
| --------- | --------- | --------- | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | (4,639) | (3,707) | (3,102) | |
| Current tax liabilities | (330) | (207) | (168) | |
| Obligations under finance leases | (66) | (390) | (251) | |
| --------- | --------- | --------- | ||
| (5,035) | (4,304) | (3,521) | ||
| --------- | --------- | --------- | ||
| Net current assets | 4,070 | 3,242 | 3,873 | |
| --------- | --------- | --------- | ||
| Non-current liabilities | ||||
| Pension liabilities | (3,721) | (2,988) | (2,868) | |
| Deferred tax liability | (41) | - | - | |
| Obligations under finance leases | - | (59) | - | |
| --------- | --------- | --------- | ||
| (3,762) | (3,047) | - | ||
| --------- | --------- | --------- | ||
| Net assets | 7,512 | 8,041 | 8,525 | |
| --------- | --------- | --------- | ||
| Capital and reserves | ||||
| Called up share capital | 250 | 250 | 250 | |
| Retained earnings | 7,248 | 7,793 | 8,268 | |
| Translation reserve | 14 | (2) | 7 | |
| --------- | --------- | --------- | ||
| Total equity | 7,512 | 8,041 | 8,525 | |
| --------- | --------- | --------- |
Unaudited Consolidated Cash Flow Statement for the half year ended 30 June 2008
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| Note | £'000 | £'000 | £'000 | |
| Cash flows from operating activities | ||||
| Cash generated from operations | 4 | 1,918 | 1,503 | 2,466 |
| Interest received | 71 | 45 | 102 | |
| Interest paid on finance leases | (22) | (33) | (55) | |
| UK corporation tax paid | (56) | (275) | (530) | |
| --------- | --------- | --------- | ||
| Cash generated from operating activities | 1,911 | 1,240 | 1,983 | |
| --------- | --------- | --------- | ||
| Cash flows from investing activities | ||||
| Purchase of property, plant and equipment | (251) | (263) | (488) | |
| Proceeds from sales of property, plant and equipment | 13 | 15 | 62 | |
| --------- | --------- | --------- | ||
| Net cash used in investing activities | (238) | (248) | (426) | |
| --------- | --------- | --------- | ||
| Cash flows from financing activities | ||||
| Equity dividends paid | (70) | (50) | (400) | |
| Capital element of finance leases | (185) | (175) | (373) | |
| --------- | --------- | --------- | ||
| Net cash used in financing activities | (255) | (225) | (773) | |
| --------- | --------- | --------- | ||
| Net increase in cash and cash equivalents | 1,418 | 767 | 784 | |
| Opening cash and cash equivalents | 2,652 | 1,868 | 1,868 | |
| Exchange differences | 7 | (9) | - | |
| --------- | --------- | --------- | ||
| Closing cash and cash equivalents | 4,077 | 2,626 | 2,652 | |
| --------- | --------- | --------- | ||
Notes to the Interim Report for the half year ended 30 June 2008
| 1. | Interim Financial Information |
| The financial information contained in this interim statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The interim financial statements, which are unaudited, 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 2007 Annual Report and Accounts. The comparative figures for the year ended 31 December 2007 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. The 2007 accounts have been delivered to the Registrar of Companies. |
| 2. | Taxation | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Current tax | 218 | 174 | 390 | |
| Deferred tax | 511 | 55 | 144 | |
| --------- | --------- | --------- | ||
| 729 | 229 | 534 | ||
| --------- | --------- | --------- | ||
| Included within the tax charge for the period 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% (2007 half year: 31.5%, 2007 full year: 34.5%). | ||||
| 3. | Statement of changes in shareholders' equity | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Total recognised (expense)/income for the period | (543) | 1,061 | 1,545 | |
| Dividends | (470) | (400) | (400) | |
| --------- | --------- | --------- | ||
| Net movement in Shareholders' equity | (1,013) | 661 | 7,380 | |
| Opening Shareholders' equity | 8,525 | 7,380 | 1,145 | |
| --------- | --------- | --------- | ||
| Closing Shareholders' equity | 7,512 | 8,041 | 8,525 | |
| --------- | --------- | --------- | ||
| 4. | Reconciliation of operating profit to net cash inflow from operating activities | |||
| Half year | Half year | Year | ||
| ended | ended | ended | ||
| 30/06/08 | 30/06/07 | 31/12/07 | ||
| £'000 | £'000 | £'000 | ||
| Operating profit | 813 | 742 | 1,571 | |
| Depreciation | 339 | 336 | 683 | |
| (Profit)/loss on sale of property, plant and equipment | (4) | 3 | (19) | |
| Difference between pension charge and contributions | (91) | (97) | (191) | |
| (Increase)/decrease in inventories | (130) | 231 | 131 | |
| (Increase)/decrease in trade and other receivables | (152) | (180) | 94 | |
| Increase in trade and other payables | 1,143 | 468 | 197 | |
| --------- | --------- | --------- | ||
| Net cash inflow from operating activities | 1,918 | 1,503 | 2,466 | |
| --------- | --------- | --------- | ||