Final Results

RNS Number : 7001B

Slingsby(H.C.)Plc

20 April 2012

 

H C SLINGSBY PLC

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

Unaudited Preliminary Announcement for the year ended 31 December 2011

Statement by the Chairman

The year under review was characterised by challenging conditions. There was a marked slowdown in activity levels in late April and May 2011 and the trading environment then remained subdued for the rest of the year. Against this backdrop, sales and profit before taxation were £15.2m (2010: £16.7m) and £0.4m (2010: £1.1m) respectively.

The Group recorded a net cash outflow from operations of £0.1m (2010: £1.3m inflow), reflecting the lower trading levels and a change in supply chain strategy towards holding higher levels of our faster moving lines in stock to facilitate next day delivery and better purchase prices. Net cash was £2.4m at 31 December 2011 (2010: £3.4m).

The deficit on the Group's defined benefit scheme (as measured in accordance with ISA19) increased to £8.7m (2010: £6.7m), driven primarily by lower bond yields increasing scheme liabilities and weaker equity market returns, reducing scheme assets in turn. The Company is making monthly payments into the scheme as part of an ongoing pension deficit management plan. The scheme closed to future accrual in 2009.

The Company continues to invest in information technology, establishing links with suppliers and customers. Recognising the vital importance of an easy to use web site fully integrated with our main business processes, we have decided to invest in a replacement enterprise system and we are currently at the stage of requirement analysis with the preferred supplier.

Activity during the first three months of 2012 has continued at a similar level to the second half of 2011 and therefore we have taken action after the year end to reduce overheads. Whilst the board remains very cautious about the possibility of any upturn, we believe that the Group's positive cash position puts us in a good position to take advantage of opportunities as and when the economic climate improves.

On behalf of the board I wish to thank our loyal staff who have once again served the Company well in a difficult year.

The board is recommending a final dividend of 28.0p (2011: 35.0p). The total dividend is therefore 32.0p (2011: 40.0p). The record date will be 1 June 2012 and the payment date 3 July 2012. 

John Waterhouse

Non-Executive Chairman

20 April 2012

Registered Office

Otley Road

Baildon, Shipley

West Yorkshire BD17 7LW

For further information, please contact:

H C Slingsby PLC	Tel:  [phone]
Dominic Slingsby, Managing Director Ray Hudson, Financial Director
Merchant Securities Limited	Tel:  [phone]
Joanne Lake Casper Kaars

Unaudited Consolidated Income Statement

for the year ended 31 December 2011

	Note	Year ended 31 December 2011	Year ended 31 December 2010
		£'000	£'000
Turnover		15,221	16,652
Operating profit		633	1,259
Finance income		38	38
Finance expense		(249)	(215)
Profit before taxation		422	1,082
Taxation		(102)	(365)
Profit for the year attributable to equity shareholders		320	717
Basic and diluted earnings per share		32.0p	71.7p

The results set out above derive entirely from continuing operations.

Unaudited Statement of Consolidated Recognised Income and Expense

for the year ended 31 December 2011

		Year ended 31 December 2011	Year ended 31 December 2010
		£'000	£'000
Actuarial loss on pension scheme		(2,188)	(394)
Movement in deferred tax relating to retirement benefit obligation		503	42
Exchange adjustment		(7)	(9)
Net expense recognised directly in equity		(1,692)	(361)
Profit for the year		320	717
Total recognised (expense)/income for the year attributable to equity shareholders		(1,372)	356

Unaudited Group Balance Sheet

as at 31 December 2011

	Note	31 December 2011	31 December 2010
		£'000	£'000
Assets
Non-current assets
Property, plant and equipment		6,566	6,642
Intangible asset		117	202
Deferred tax asset		1,305	824
		7,988	7,668
Current assets
Inventories		2,272	1,785
Trade and other receivables		2,553	3,233
Cash and cash equivalents		2,439	3,420
		7,264	8,438
Liabilities
Current liabilities
Trade and other payables		(1,995)	(2,960)
Derivative financial liability		-	(8)
Current tax liabilities		(122)	(308)
		(2,117)	(3,276)
Net current assets		5,147	5,162
Non-current liabilities
Retirement benefit obligation	2	(8,738)	(6,661)
Net assets		4,397	6,169
Capital and reserves
Called up share capital		250	250
Retained earnings		4,125	5,890
Translation reserve		22	29
Total equity		4,397	6,169

Unaudited Consolidated Cash Flow Statement

for the year ended 31 December 2011

	Note	Year ended 31 December 2011	Year ended 31 December 2010
		£'000	£'000
Cash flows from operating activities
Cash generated from operations	3	(81)	1,344
Interest received		34	28
UK corporation tax paid		(265)	(49)
Net cash (outflow)/inflow from operating activities		(312)	1,323
Cash flows from investing activities
Purchase of property, plant and equipment		(313)	(394)
Proceeds from sales of property, plant and equipment		51	65
Net cash used in investing activities		(262)	(329)
Cash flows from financing activities
Equity dividends paid		(400)	(340)
Net cash used in financing activities		(400)	(340)
Net (decrease)/increase in cash and cash equivalents		(974)	654
Opening cash and cash equivalents		3,420	2,775
Exchange differences		(7)	(9)
Closing cash and cash equivalents		2,439	3,420

Statement of Changes in Shareholders' Equity

Group	Share Capital	Retained earnings	Translation reserve	Total equity
	£'000	£'000	£'000	£'000
1 January 2010	250	5,865	38	6,153
Total recognised income for the year	-	365	(9)	356
Dividends paid	-	(340)	-	(340)
1 January 2011	250	5,890	29	6,169
Total recognised expense for the year	-	(1,365)	(7)	(1,372)
Dividends	-	(400)	-	(400)
31 December 2011	250	4,125	22	4,397

The translation reserve comprises foreign exchange differences arising from the translation of the financial statements of foreign operations.

Notes to the Unaudited Preliminary Announcement for the year ended 31 December 2011

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 2006 applicable to companies reporting under IFRS.  The preliminary announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information included in this preliminary announcement does not include all the disclosures required by IFRS or the Companies Act 2006 and accordingly it does not itself comply with IFRS or the Companies Act 2006. This announcement has been agreed with the Company's auditors for release.

The financial statements for the year ended 31 December 2011, upon which the auditors have still to report, will be issued to shareholders on 23 May 2012 and will be available to members of the public at the registered office of the Company and on the Company's website www.slingsby.com from that date. The statutory accounts for the year ended 31 December 2011 will be delivered to the Registrar following the company's Annual General Meeting.

The Annual General Meeting will be held at 10.00 am on 22 June 2012 at the Marriot Hollins Hall Hotel, Hollins Hill, Baildon, Shipley, BD17 7QW.

2.         Retirement benefit obligation

	Year ended 31 December 2011	Year ended 31 December 2010
	£'000	£'000
Present value of funded obligation	19,812	17,998
Fair value of scheme assets	(11,074)	(11,337)
Net Liability in balance sheet	(8,738)	(6,661)

3.          Reconciliation of operating profit to net cash inflow from operating activities

	Year ended 31 December 2011	Year ended 31 December 2010
	£'000	£'000
Operating profit	633	1,259
Depreciation and amortisation	439	455
Profit on sale of property, plant and equipment	(11)	(18)
Difference between pension charge and contributions	(360)	(360)
Increase in inventories	(487)	(399)
Decrease/(increase) in trade and other receivables	679	(546)
(Decrease)/increase in trade and other payables	(974)	953
Net cash (outflow)/inflow from operating activities	(81)	1,344

4.         Dividends

The interim and final dividends for the 2010 financial year of 5.0p and 35.0p, totalling £400,000 were paid and deducted from reserves in the year. The dividends for the 2009 financial year totalling £340,000 were paid and deducted from reserves in 2010.

 

END

 

 

FR ILMJTMBIBBLT