Half Yearly Report

RNS Number : 2292T

Slingsby(H.C.)Plc

24 September 2010

 



H C Slingsby plc ("the Company")

Report for the half year ended 30 June 2010

Statement by the Chairman

I am pleased to report an improved trading position on the first half of last year. Although turnover has marginally increased by 1.6%, the action taken last year to reduce overheads has resulted in a significant increase in operating profit before exceptional items of £697,000 (2009: £337,000).

Last year there was an exceptional gain due to the closure of the company's defined benefit plan of £739,000 partly offset by redundancy costs of £96,000 which helped the pre-tax profit figure reach £840,000.

We continue to invest in information technology including development of our electronic trading capability with customers and suppliers. Further enhancements to our website are also in progress.

Your company continues to have a strong balance sheet and despite the difficult global economic conditions, the Board remains positive that the company is well placed to take advantage of any upturn.

We recommend an improved interim dividend of 5.0p (2009: 4.0p). This will be paid on 4 January 2011 to shareholders on the Register at the close of business on 3 December 2010.

J R Waterhouse

Non-Executive Chairman

24 September 2010

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 Condensed Consolidated Income Statement for the half year ended 30 June 2010

		Half year	Half year	Year
		ended	ended	ended
		30/06/10	30/06/09	31/12/09
	Note	£'000	£'000	£'000
Turnover		8,414	8,277	15,833
		---------	---------	---------
Operating profit before exceptional items		697	337	707
Exceptional items	2	-	643	592
		--------	--------	--------
Operating profit		697	980	1,299
Finance income		15	27	42
Finance expense		(108)	(167)	(334)
		--------	--------	--------
Profit before taxation		604	840	1,007
Taxation	3	(179)	(246)	(192)
		--------	--------	--------
Profit for the period attributable to equity shareholders		425  --------	594  --------	815  --------
Basic and diluted earnings per share		42.5p	59.4p	81.5p
		--------	--------	--------
Proposed interim/final dividend per share		5.0p	4.0p	30.0p
		--------	--------	--------

The results set out above derive entirely from continuing operations.

The above unaudited condensed consolidated income statement should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Comprehensive Income and Expense for the half year ended 30 June 2010

		Half year	Half year	Year
		ended	ended	ended
		30/06/10	30/06/09	31/12/09
		£'000	£'000	£'000
Actuarial loss on pension scheme		(444)	(1,817)	(1,355)
Movement in deferred tax relating to pension liability		125	509	379
Exchange adjustment		(21)	(29)	(20)
		--------	--------	--------
Net expense recognised directly in equity		(340)	(1,337)	(996)
Profit for the period		425	594	815
		--------	--------	--------
Total income/(expense) recognised for the period attributable to equity shareholders		85	(743)	(181)
		--------	--------	--------

The above unaudited consolidated statement of comprehensive income and expense should be read in conjunction with the accompanying notes.

Unaudited Consolidated Balance Sheet as at 30 June 2010

		30/06/10	30/06/09	31/12/09
		£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		6,676	6,957	6,792
Intangible asset		215	113	180
Deferred tax asset		975	977	861
		---------	---------	--------
		7,866	8,047	7,833
		---------	---------	--------
Current assets
Inventories		1,494	1,584	1,387
Trade and other receivables		2,687	2,459	2,671
Derivative forward asset Cash and cash equivalents		-  3,457	-  2,987	1  2,775
		---------	---------	---------
		7,638	7,030	6,834
		---------	---------	---------
Liabilities
Current liabilities
Trade and other payables		(2,492)	(2,548)	(2,030)
Current tax liabilities		(330)	(111)	(72)
		---------	---------	---------
		(2,822)	(2,659)	(2,102)
		---------	---------	---------
Net current assets		4,816	4,371	4,732
		---------	---------	---------
Non-current liabilities
Retirement benefit obligation		(6,784)	(6,827)	(6,412)
		---------	---------	---------
		(6,784)	(6,827)	(6,412)
		---------	---------	---------
Net assets		5,898	5,591	6,153
		---------	---------	---------
Capital and reserves
Called up share capital		250	250	250
Retained earnings		5,631	5,313	5,865
Translation reserve		17	28	38
		---------	---------	---------
Total equity		5,898	5,591	6,153
		---------	---------	---------

The above unaudited consolidated balance sheet should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Changes in Shareholders' Equity

	Share capital	Retained earnings	Translation reserve	Total equity
	£'000	£'000	£'000	£'000
At 1 January 2009	250	6,526	58	6,834
Total expense recognised for the period	-	(713)	(30)	(743)
Dividends paid	-	(500)	-	(500)
	---------	---------	---------	--------
At 30 June 2009	250	5,313	28	5,591
	---------	---------	---------	--------
At 1 January 2010	250	5,865	38	6,153
Total income/(expense) recognised for the period	-	106	(21)	85
Dividends paid	-	(340)	-	(340)
	---------	---------	---------	--------
At 30 June 2010	250	5,631	17	5,898
	---------	---------	---------	--------

The above unaudited consolidated statement of changes in shareholders' equity should be read in conjunction with the accompanying notes.                                                                                  

Unaudited Consolidated Statement of Cash Flows for the half year ended 30 June 2010

		Half year	Half year	Year
		ended	ended	Ended
		30/06/10	30/06/09	31/12/09
	Note	£'000	£'000	£'000
Cash flows from operating activities
Cash generated from operations	4	796	491	793
Interest received		9	31	50
UK corporation tax received/(paid)		91	(237)	(237)
		---------	---------	---------
Cash generated from operating activities		896	285	606
		---------	---------	---------
Cash flows from investing activities
Purchase of property, plant and equipment		(160)	(220)	(352)
Proceeds from sales of property, plant and equipment		7	7	14
		---------	---------	---------
Net cash used in investing activities		(153)	(213)	(338)
		---------	---------	---------
Cash flows from financing activities
Equity dividends paid		(40)	(80)	(500)
		---------	---------	---------
Net cash used in financing activities		(40)	(80)	(500)
		---------	---------	---------
Net increase/(decrease) in cash and cash equivalents		703	(8)	(232)
Opening cash and cash equivalents		2,775	3,029	3,029
Exchange differences		(21)	(34)	(22)
		---------	---------	---------
Closing cash and cash equivalents		3,457	2,987	2,775
		---------	---------	---------

The above unaudited consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the Interim Report for the half year ended 30 June 2010

1.	Interim Financial Information
	The condensed consolidated interim financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The interim financial statements, which are unaudited and have not been reviewed by the Company's auditors, have been prepared in accordance with the policies set out in the 2009 Annual Report and Accounts. The comparative figures for the year ended 31 December 2009 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, which did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The 2009 accounts have been delivered to the Registrar of Companies.  The Company has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing the financial information.
2.	Exceptional Items
		Half year	Half year	Year
		ended	ended	ended
		30/06/10	30/06/09	31/12/09
		£'000	£'000	£'000
	Pension curtailment gain	-	739	739
	Redundancy costs	-	(96)	(147)
		---------	---------	---------
		-	643	592
		---------	---------	---------
3.	The pension curtailment gain in 2009 arose as a result of the closure of the defined benefit scheme in March 2009. Taxation
		Half year	Half year	Year
		ended	ended	ended
		30/06/10	30/06/09	31/12/09
		£'000	£'000	£'000
	Current tax	168	98	58
	Deferred tax	11	148	134
		---------	---------	---------
		179	246	192
		---------	---------	---------
	The effective tax rate is 29.7% (2009 half year: 29.4%, 2009 full year: 29.6%).
4.	Reconciliation of operating profit to net cash inflow from operating activities
		Half year	Half year	Year
		ended	ended	ended
		30/06/10	30/06/09	31/12/09
		£'000	£'000	£'000
	Operating profit	697	980	1,299
	Depreciation	226	221	448
	(Profit)/loss on sale of property, plant and equipment	(3)	2	-
	Difference between pension charge and contributions	(180)	(844)	964
	(Increase)/decrease in inventories	(107)	148	345
	(Increase)/decrease in trade and other receivables	(17)	588	371
	Increase/(Decrease) in trade and other payables	180	(604)	(706)
		---------	---------	---------
	Net cash inflow from operating activities	796	491	793
		---------	---------	---------

 

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