Final Results

25 Apr 2008 10:00

Slingsby(H.C.)Plc25 April 2008 H C SLINGSBY PLC (the "Company") Unaudited Preliminary Announcement for the year ended 31 December 2007 Statement by the Chairman The year has been one of consolidation following the significant changes in2006, during which we relocated to modern premises and implemented a new ITsystem. I am therefore pleased to report a successful year with pre-tax profit of£1.55m, a substantial increase on the 2006 result of £1.1m (which included anexceptional profit of £102k). The significant improvement in profitability wasthe result of a £0.5m increase in turnover and actions taken at the end of 2006to reduce overheads and improve operating efficiencies following the relocation. Our new IT system has enabled us to conduct more sophisticated analysis ofcustomer and product demand and therefore improve targeting of our marketingeffort and focus on greater stocking of higher demand products with next daydelivery on many items. E-trading via our improved web site has also grownsignificantly. Our staff have continued to respond to a competitive marketplace and on behalfof the board I wish to thank them for their efforts. 2008 has started well and first quarter results are in line with ourexpectations. One of our key areas of focus this year is on restructuring ourCustomer Service Centre to further improve the levels of service we give ourcustomers. To help fulfil this objective, we continue to invest in our ITinfrastructure. Despite the generally negative economic sentiment, your Board is cautiouslyoptimistic that we can build on last year's success and is pleased to recommenda final dividend of 40.0p per share (2006: 35.0p). The total dividend istherefore 47.0p (2006: 40.0p). The record date will be 6 June 2008 and thepayment date will be 4 July 2008. J R WaterhouseNon-Executive Chairman25 April 2008 Registered OfficeOtley RoadBaildon, ShipleyWest Yorkshire BD17 7LW For further information, please contact: H C Slingsby plc Tel: 01274 535 030Dominic Slingsby, Managing DirectorRay Hudson, Financial Director Evolution Securities Limited Tel: 0113 243 1619Joanne LakePeter Steel Unaudited Consolidated Income Statement for the year ended 31 December 2007 Year ended Year ended 31/12/07 31/12/06 £'000 £'000 NoteTurnover 19,562 19,044 -------- --------Operating profit before exceptional items 1,571 1,058Exceptional items 2 - 102 -------- --------Operating profit 1,571 1,160 -------- --------Finance income 109 89Finance expense (132) (156) -------- --------Profit before taxation 1,548 1,093 Taxation (534) (356) -------- --------Profit for the period attributable to equity shareholders 1,014 737 -------- --------Basic and diluted earnings per share 101.4p 73.7p -------- -------- The results set out above derive entirely from continuing operations. Unaudited Statement of Consolidated Recognised Income and Expense for the yearended 31 December 2007 Year ended Year ended 31/12/07 31/12/06 £'000 £'000 Actuarial gain on pension scheme 843 282Movement in deferred tax relating to retirement benefit (312) (85)obligation Exchange adjustment - 9 -------- --------Net income recognised directly in equity 531 206Profit for the year 1,014 737 -------- -------- Total income recognised for the year attributable to equity 1,545 943shareholders -------- -------- Unaudited Group Balance Sheet as at 31 December 2007 31/12/07 31/12/06 £'000 £'000 AssetsNon-current assetsProperty, plant and equipment 7,055 6,982Intangible assets 246 573Deferred tax asset 219 675 -------- -------- 7,520 8,230 -------- --------Current assetsInventories 1,453 1,583Trade and other receivables 3,289 3,387Cash and cash equivalents 2,652 1,868 -------- -------- 7,394 6,838 -------- -------- LiabilitiesCurrent liabilitiesTrade and other payables (3,102) (2,905)Current tax liabilities (168) (308)Obligations under finance leases (251) (373) -------- -------- (3,521) (3,586) -------- --------Net current assets 3,873 3,252 -------- --------Non-current liabilitiesRetirement benefit obligation (2,868) (3,851)Obligations under finance leases - (251) -------- -------- (2,868) (4,102) -------- --------Net assets 8,525 7,380 -------- -------- Capital and reservesCalled up share capital 250 250Retained earnings 8,268 7,123Translation reserve 7 7 -------- --------Total equity 8,525 7,380 -------- -------- Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2007 Year ended Year ended 31/12/07 31/12/06 NoteCash flows from operating activitiesCash generated from operations 3 2,466 671Interest received 102 90Interest paid on finance leases (55) (121)UK corporation tax paid (530) (323) -------- --------Cash generated from operating activities 1,983 317 -------- --------Cash flows from investing activitiesPurchase of property, plant and equipment (488) (1,881)Proceeds from sales of property, plant and equipment 62 197 -------- --------Net cash used in investing activities (426) (1,684) Cash flows from financing activitiesEquity dividends paid (400) (450)Capital element of finance leases (373) (380) -------- --------Net cash used in financing activities (773) (830) -------- --------Net increase/(decrease) in cash and cash equivalents 784 (2,197)Opening cash and cash equivalents 1,868 4,056Exchange differences - 9 -------- --------Closing cash and cash equivalents 2,652 1,868 -------- -------- Notes to the unaudited Preliminary Announcement for the year ended 31 December 2007 1. The unaudited preliminary results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRIC interpretations as adopted by the EU and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. The group's accounting policies under IFRS and information on the transition from UK GAAP were presented in our Report for the half year ended 30 June 2007, which was released on 28 September 2007. The preliminary announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information included in this preliminary announcement does not include all the disclosures required by IFRS or the Companies Act 1985 and accordingly it does not itself comply with IFRS or the Companies Act 1985. This announcement has been agreed with the company's auditors for release. The financial statements for the year ended 31 December 2007, upon which the auditors have still to report, will be issued to shareholders on 21 May 2008 and will be available to members of the public at the registered office of the Company from that date. The statutory accounts for the year ended 31 December 2007 will be delivered to the Registrar following the Company's Annual General Meeting. The information for the year ended 31 December 2006 has been amended for the adoption of IFRS. The statutory accounts for the year ended 31 December 2006, which have been delivered to the Registrar of Companies, included an audited report which was unqualified and which did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. The Annual General Meeting will be held on 19 June 2008. 2. Exceptional Items The exceptional item in 2006 related to profit on the disposal of our Glasgow property of £144,000 offset by redundancy costs of £42,000 incurred in connection with the restructuring of the branch network. 3. Reconciliation of operating profit to net cash inflow from operating activities Year Year ended ended 31/12/07 31/12/06 £'000 £'000 Operating profit 1,571 1,160Depreciation and amortisation 683 677Profit on sale of property, plant and equipment (19) (144)Difference between pension charge and contributions (191) (61)Decrease in inventories 131 40Decrease in trade and other receivables 94 732Increase/(decrease) in trade and other payables 197 (1,733) -------- ---------Net cash inflow from operating activities 2,466 671 -------- --------- 4. Dividends The interim and final dividends for the 2006 financial year of 5p and 35p, totalling £400,000, were paid and deducted from reserves in the year. The dividends for the 2005 financial year totalling £450,000 were paid and deducted from reserves in 2006. This information is provided by RNS The company news service from the London Stock Exchange