Slingsby H.c Regulatory News (SLNG)

30 Sep 2005 16:39

Slingsby(H.C.)Plc30 September 2005 H C SLINGSBY PLC Report for the half year ended 30 June 2005 Statement by the Chairman It is satisfying for me to report that the group has produced a first halfpre-tax profit of £766,000 which exceeds last years record interim figure of£680,000 (as restated). This is particularly pleasing given that we have managedto absorb additional expenditure in terms of rationalisation costs for themanufacturing division, increased pension scheme charge and a higher marketingspend. However, we have yet to feel the effect of the additional costs in termsof the business move and also the new business system when it is commissioned inthe latter part of the year. This is the first accounting period in which we have adopted the InternationalFinancial Reporting Standards (17 and 21). The adoption of FRS17 'RetirementBenefits' and FRS 21 'Events After The Balance Sheet Date' and the effect on thefinancial statements are stated in note 5 of this report. FRS17 requires the group to account for pension costs under a different basis tothe previous SSAP 24 methodology and in particular results in the recognition ofthe FRS17 pension deficit of £2,295,000 at 30 June 2005 within the balancesheet. The impact of adopting FRS17 has previously been disclosed in the Notesto the Accounts of the Annual Report. In line with the majority of UK companies,the board are reviewing the pension element of our remuneration policy as aresult of the new pension legislation. FRS21 requires the group to recognise dividends in the period that they aredeclared. Therefore, the dividends of £350,000 that were declared at the AnnualGeneral Meeting on 16 June 2005 have been charged to the profit and loss accountin the period ended 30 June 2005. In addition to adopting the accounting standards in the current year the groupis also required to restate comparative financial information to show the effecthad the accounting standards been in place at those dates. Consequently, allcomparatives in the financial information are stated after the adjustmentsrequired by the new accounting standards have been made. The effect of these changes on the net assets at 31 December 2004 has been toreduce them from the £7,162,000 reported in the 2004 Report and Accounts to£5,189,000, as detailed in note 5. This is a change in accounting rather than achange in the financial position of the business at that date. Our ongoing strategic projects have continued to progress. We have completed thepurchase for £4.4m, of a new site located in Baildon, which is 4 miles from ourcurrent premises. We anticipate that our warehousing facility and what remainsof our manufacturing division will be relocated by the end of the year. Weenvisage that the refurbishment of the office accommodation will be completed bymid 2006 and the head office administrative function will then be relocated.With respect to the disposal of our current site, negotiations are at anadvanced stage. The implementation of our new business system is now scheduledfor the final quarter of the year. Your board is pleased to recommend an interim dividend of 7.0p (2004: 7.0p).This will be paid on 5 January 2006 to shareholders registered on 2 December2005. J F SlingsbyChairman 30 September 2005 Registered OfficePreston Street, Bradford, West Yorkshire BD7 1JF Consolidated Profit and Loss Account for the half year ended 30 June 2005 Restated Restated Half year Half year Year ended ended ended 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000Turnover 10,221 9,435 19,108 --------- -------- ---------Operating profit 712 657 1,383 Interest receivable 83 73 169 Other finance expense (29) (50) (100) -------- -------- --------Profit on ordinary activities before taxation 766 680 1,452 Taxation (174) (250) (570) -------- -------- --------Profit attributable to shareholders 592 430 882 Dividends (350) (300) (370) -------- -------- --------Retained profit 242 130 512 -------- -------- --------Basic and diluted earnings per share 59.2p 43.0p 88.2p -------- -------- --------Proposed interim dividend per share 7.0p 7.0p -------- -------- The results set out above derive entirely from continuing operations. Statement of Group Total Recognised Gains and Losses for the half year ended 30June 2005 Restated Restated Half year Half year Year ended ended ended 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000Profit for the financial period 592 430 882Actuarial loss on pension scheme (325) 219 437 Exchange adjustment 26 - (6) -------- -------- --------Total gains recognised for the period 293 649 1,313 -------- --------Prior year adjustment - FRS17 - recognition of FRS17 pension liability (2,077) - Reversal of SSAP24 pension prepayment (246) ---------Total loss recognised since last annual report (2,030) --------- Group Balance Sheet as at 30 June 2005 Restated Restated 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000Fixed Assets Tangible assets 5,978 1,638 1,578 Investments - 300 300 --------- --------- -------- 5,978 1,938 1,878 --------- --------- --------Current assets Stock 1,554 1,592 1,625 Debtors 3,939 3,124 3,305 Cash at bank and in hand 721 4,958 5,281 --------- --------- --------- 6,214 9,674 10,211 Creditors: Amounts failing due within one year. (4,664) (5,127) (4,798) --------- --------- ---------Net current assets 1,550 4,547 5,413 --------- --------- ---------Total assets less current liabilities 7,528 6,485 7,291 Provisions for liabilities and charges Deferred taxation (101) (84) (25) --------- --------- ---------Net assets excluding pension liability 7,427 6,401 7,266 Pension liability (2,295) (2,225) (2,077) --------- --------- ---------Net assets including pension liability 5,132 4,176 5,189 --------- --------- ---------Capital and reserves Called up share capital 250 250 250 Profit and loss account 4,882 3,926 4,939 --------- --------- ---------Equity shareholders' funds 5,132 4,176 5,189 --------- --------- --------- Consolidated Cash Flow Statement for the half year ended 30 June 2005 Half year Half year Year ended ended ended 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000 Note Net cash (outflow)/inflow from operating 1 (451) 749 1,858activities Returns on investments and servicing of financeInterest Received 94 68 160 TaxationUK Corporation tax paid - - (349) Capital expenditure and financial investment Purchase of tangible fixed assets (4,470) (116) (394)Sales of tangible fixed assets 22 21 76 300 - -Sale of investment --------- --------- ---------Net cash outflow from capitalexpenditure and financial investment (4,148) (95) (318) Equity dividends paid (70) (50) (350) --------- --------- ---------Net cash (outflow)/inflow before useof liquid resources (4,575) 672 1,001 Management of liquid resources(Increase)/decrease in short termdeposits with banks 4,900 100 (900) --------- --------- ---------(Decrease)/increase in cash in the period 2 325 772 101 --------- --------- --------- Notes to the Report for the half year ended 30 June 2005 1. Reconciliation of operating profit to net cash inflow from operatingactivities Restated Restated Half year Half year Year ended ended ended 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000Operating profit 712 657 1,383Depreciation 149 158 314Profit on sale of tangible fixed assets (2) (4) (27)Decrease/(increase) in stocks 71 (66) (99)(Increase) in trade debtors (340) (68) (167)(Increase) in prepayments (441) (52) (28)(Decrease)/increase in trade creditors (247) 44 285(Decrease)/increase in other taxation and socialsecurity (234) 11 (9)(Decrease)/increase in other creditors andaccruals (119) 69 206 --------- --------- ---------Net cash (outflow)/inflow from operatingactivities (451) 749 1,858 --------- --------- --------- 2. Reconciliation to net cash Half year Half year Year ended ended ended 30/06/05 30/06/04 31/12/04 Unaudited Unaudited Audited £'000 £'000 £'000 Changes during the yearNet cash at 1 January 5,281 4,286 4,286Increase in net cash 325 772 101Movement in short term deposits (4,900) (100) 900Exchange adjustment 15 - (6) --------- --------- ---------Net Cash 721 4,958 5,281 --------- --------- --------- 3. The financial information contained in this interim statementdoes not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. Theinterim financial statements, which are unaudited, have been prepared on thebasis of the accounting policies set out in the 2004 Annual Report and Accountsexcept for the adoption of FRS17 and FRS21. 4. The comparative figures for the year ended 31 December 2004do not constitute full financial statements and have been abridged from the full accounts for the yearended on that date, on which the auditors gave an unqualified report, and whichare adjusted for new accounting policies adopted in the period. The 2004accounts have been delivered to the Registrar of Companies. 5. Reconciliation of movement in Group equity shareholders'funds The group has adopted FRS 17 'Retirement Benefits' and FRS 21 'Events After theBalance Sheet Date'. The adoption of these standards represent a change inaccounting policy and the comparative figures have, therefore, been restated byway of a prior year adjustment. The FRS 17 prior year adjustment comprises a debit to equity shareholders' fundsat 1 January 2005 of £246,000 in respect of the SSAP 24 pension provision and anadjustment to provide for the net FRS 17 pension liability of £2,077,000 asrecognised in the statement of total recognised gains and losses in accordancewith FRS 17. In addition, the profit and loss account for the year ended 31December 2004 and for the half year ended 30 June 2004 previously included aSSAP 24 pension charge of £274,000 and £140,000 respectively. In accordance withthe requirements of FRS 17 the profit and loss accounts for these periods havebeen restated to reverse the SSAP 24 pension charge and to charge the FRS 17current service cost and net return on pension scheme assets totalling £442,000for the year ended 2004 and £221,000 for the half ended 30 June 2004. The FRS 21 prior year adjustment comprises a credit to equity shareholders'funds at 1 January 2005 of £350,000 in respect of the proposed dividendpreviously charged in the year ended 31 December 2004. In accordance with FRS21, dividends are now recognised in the period that they are approved and theprofit and loss account for the year ended 2004 has therefore been restated. The group equity shareholders' funds reported in the Annual Report 2004amounting to £7,162,000 at 31 December 2004 have been adjusted to £5,189,000 asdetailed in note below in accordance with UK accounting standards dealing thetreatment of prior year adjustments. £'000Group equity shareholders' funds as previously reportedin the Annual Report 2004 7,162FRS21 dividend adjustment 350Recognition of FRS17 pension deficit (2,077)Reversal of SSAP24 pension provision (246) ---------Group equity shareholders' funds as restated at 31 December 2004 5,189 --------- This information is provided by RNS The company news service from the London Stock Exchange