Half Yearly Report

RNS Number : 6982Z

Slingsby(H.C.)Plc

25 September 2009

 



25 September 2009

H C Slingsby plc ('the Company')

Report for the half year ended 30 June 2009

Statement by the Chairman

As referred to in our 24 June 2009 trading statement, activity levels during the first half of 2009 were significantly lower than in the corresponding period last year, with sales for the half year of £8.3m (2008: £10.4m).

A one-off gain of £739,000 on the closure to future accrual of our defined benefit pension scheme was partly offset by redundancy costs of £96,000 and an increase in the annual charge for pension contributions of £111,000.  Together, these contributed to a reported pre-tax profit of £840,000 (2007: £826,000).  Excluding the one-off gain relating to the pension scheme and the redundancy costs, underlying pre-tax profit for the half year was £197,000 (2008: £826,000).

Current order levels remain subdued, but with the recent launch of the new website and release of our September catalogue, the Company is well-placed to benefit from any improvement in trading conditions as the UK economy starts to recover from recession.

Your Company continues to maintain a strong balance sheet, with net cash of £3.0m (2008: £4.1m).  In view, however, of current trading including the continuing lack of visibility over forward orders, the Board remains cautious and therefore recommends an interim dividend of 4.0p (2008: 8.0p).  This will be paid on 4 January 2010 to shareholders on the register at the close of business on 4 December 2009.

J R Waterhouse

Non-Executive Chairman

25 September 2009

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 2009

		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
Turnover		8,277	10,449	19,640
		---------	---------	---------
Operating profit before exceptional items		337	813	1,580
Exceptional items	2	643	-	-
		--------	--------	--------
Operating profit		980	813	1,580
Finance income		27	75	136
Finance expense		(167)	(62)	(110)
		--------	--------	--------
Profit before taxation		840	826	1,606
Taxation		(246)	(729)	(776)
		--------	--------	--------
Profit for the period attributable to equity shareholders		594  --------	97  --------	830  --------
Basic and diluted earnings per share		59.4p	9.7p	83.0p
		--------	--------	--------
Proposed interim/final dividend per share		4.0p	8.0p	8.0p
		--------	--------	--------

The results set out above derive entirely from continuing operations.

Unaudited Statement of Consolidated Recognised Income and Expense for the half year ended 30 June 2009

		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
Actuarial loss on pension scheme		(1,817)	(898)	(2,917)
Movement in deferred tax relating to pension liability		509	251	817
Exchange adjustment		(29)	7	51
		--------	--------	--------
Net expense recognised directly in equity		(1,337)	(640)	(2,049)
Profit for the period		594	97	830
		--------	--------	--------
Total expense recognised for the period attributable to equity shareholders		(743)	(543)	(1,219)
		--------	--------	--------

Unaudited Group Balance Sheet as at 30 June 2009

		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		7,070	7,122	7,143
Intangible asset		-	82	-
Deferred tax asset		977	-	616
		---------	---------	--------
		8,047	7,204	7,759
		---------	---------	--------
Current assets
Inventories		1,584	1,582	1,732
Trade and other receivables		2,459	3,446	3,051
Cash and cash equivalents		2,987	4,077	3,029
		---------	---------	---------
		7,030	9,105	7,812
		---------	---------	---------
Liabilities
Current liabilities
Trade and other payables		(2,548)	(4,639)	(2,797)
Current tax liabilities		(111)	(330)	(253)
Obligations under finance leases		-	(66)	-
		---------	---------	---------
		(2,659)	(5,035)	(3,050)
		---------	---------	---------
Net current assets		4,371	4,070	4,762
		---------	---------	---------
Non-current liabilities
Pension liabilities		(6,827)	(3,721)	(5,687)
Deferred tax liability		-	(41)	-
		---------	---------	---------
		(6,827)	(3,762)	(5,687)
		---------	---------	---------
Net assets		5,591	7,512	6,834
		---------	---------	---------
Capital and reserves
Called up share capital		250	250	250
Retained earnings		5,313	7,248	6,526
Translation reserve		28	14	58
		---------	---------	---------
Total equity		5,591	7,512	6,834
		---------	---------	---------

Unaudited Consolidated Cash Flow Statement for the half year ended 30 June 2009

		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
	Note	£'000	£'000	£'000
Cash flows from operating activities
Cash generated from operations	5	491	1,918	1,646
Interest received		31	71	129
Interest paid on finance leases		-	(22)	(45)
UK corporation tax paid		(237)	(56)	(274)
		---------	---------	---------
Cash generated from operating activities		285	1,911	1,456
		---------	---------	---------
Cash flows from investing activities
Purchase of property, plant and equipment		(220)	(251)	(449)
Proceeds from sales of property, plant and equipment		7	13	40
		---------	---------	---------
Net cash used in investing activities		(213)	(238)	(409)
		---------	---------	---------
Cash flows from financing activities
Equity dividends paid		(80)	(70)	(470)
Capital element of finance leases		-	(185)	(251)
		---------	---------	---------
Net cash used in financing activities		(80)	(255)	(721)
		---------	---------	---------
Net increase in cash and cash equivalents		(8)	1,418	326
Opening cash and cash equivalents		3,029	2,652	2,652
Exchange differences		(34)	7	51
		---------	---------	---------
Closing cash and cash equivalents		2,987	4,077	3,029
		---------	---------	---------

Notes to the Interim Report for the half year ended 30 June 2009

1.	Interim Financial Information
	The financial information contained in this interim statement 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 under International Financial Reporting Standards ('IFRS') as endorsed by the EU, on the basis of the accounting policies set out in the 2008 Annual Report and Accounts. The comparative figures for the year ended 31 December 2008 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 2008 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
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
	Pension curtailment gain	739	-	-
	Redundancy costs	(96)	-	-
		---------	---------	---------
		643	-	-
		---------	---------	---------
3.	Taxation
		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
	Current tax	98	218	357
	Deferred tax	148	511	419
		---------	---------	---------
		246	729	776
		---------	---------	---------
	Included within the tax charge for 2008 is a deferred tax charge of £486,000 in relation to the impact of the phasing out of industrial buildings allowances. This substantial deferred tax charge arises as there is currently a balance of approximately £1.75m of expenditure on industrial buildings for which no tax relief will now be available in future periods. The effective tax rate excluding this one off adjustment is 29.4% (2008 half year: 31.5%, 2008 full year: 34.5%).
4.	Statement of changes in shareholders' equity
		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
	Total recognised expense for the period	(743)	(543)	(1,221)
	Dividends	(500)	(470)	(470)
		---------	---------	---------
	Net movement in shareholders' equity	(1,243)	(1,013)	(1,691)
	Opening shareholders' equity	6,834	8,525	8,525
		---------	---------	---------
	Closing shareholders' equity	5,591	7,512	6,834
		---------	---------	---------
5.	Reconciliation of operating profit to net cash inflow from operating activities
		Half year	Half year	Year
		ended	ended	ended
		30/06/09	30/06/08	31/12/08
		£'000	£'000	£'000
	Operating profit	980	813	1,580
	Depreciation	221	339	612
	Loss/(profit) on sale of property, plant and equipment	2	(4)	(1)
	Difference between pension charge and contributions	(844)	(91)	(189)
	Decrease/(increase) in inventories	148	(130)	(279)
	Decrease/(increase) in trade and other receivables	588	(152)	245
	(Decrease)/increase in trade and other payables	(604)	1,143	(322)
		---------	---------	---------
	Net cash inflow from operating activities	491	1,918	1,646
		---------	---------	---------

 

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