Slingsby H.c Regulatory News (SLNG)

30 June 2016

H C SLINGSBY PLC

("Slingsby", "the Group" or the "Company")

Trading Update

HC Slingsby PLC, one of the market leaders in the distribution of industrial and commercial equipment today issues the following trading update in respect of the five months ended 31 May 2016 in advance of the Annual General Meeting being held at 10.00am today.

In the Chairman's Statement accompanying our annual results for the year ended 31 December 2015, it was reported that Group sales were 3.3% down in the four months to 30 April 2016 on the corresponding period in 2015 but that there were signs that the rate of decline was slowing. As at 31 May 2016, the decline against the prior year had slowed to 1%.

However, the competitive nature of the market has meant that margins have come under pressure and therefore the Group's operating performance (before exceptional costs) in the five months to 31 May 2016 is behind the same period last year.

In 2015, the Group incurred non-recurring professional fees and other costs relating to the acquisition of ESE Direct Limited. The reduced level of exceptional costs in 2016 means that as at 31 May 2016 the Group's pre-tax loss is lower than that incurred in the prior year. 

However, sales in June 2016 are likely to fall short of those achieved in June 2015 and remain fragile. As such the June 2016 performance is likely to be behind that achieved in the prior year and so the improved pre-tax position at 31 May 2016 could be eroded.

Management remains focussed on realisation of synergies across the Group and initiatives to improve its sales performance and commercial proposition in order to drive an improved H2 result.

The directors have also commenced the process for the appointment of at least one new non-executive director with the aim of complimenting the existing skill set of the board. It is expected that an appointment will be made by 30 September 2016.

Cash Position

The Group had net debt of £1.75m at 31 May 2016 compared to net debt of £1.5m at 31 May 2015. The Group continues to operate within its existing banking facilities and considers that it has additional funding options available should the need arise.

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