Interim Results

RNS Number : 3641E

Slingsby(H.C.)Plc

26 September 2008

 



26 September 2008

H C Slingsby plc

Report for the half year ended 30 June 2008

Statement by the Chairman

It is pleasing to report that despite the tough economic climate, the Group has achieved a pre-tax profit for the six months ended 30 June 2008 of £826,000 (2007: £726,000).

After an encouraging first quarter, the effects of the current conditions became apparent and to date, turnover is only marginally ahead of the previous year, with overheads as a proportion of turnover remaining broadly the same.

The re-vamped main catalogue has just been launched and whilst it is too early to gauge the effect we feel that the new look will enable customers to find products quicker and easier than before. 

Included within the tax charge of £729,000 is a one-off, non cash deferred tax movement of £486,000 relating to the phasing out of industrial buildings allowances.

Your Board is pleased to recommend an increased interim dividend of 8.0p (2007: 7.0p). This will be paid on 5 January 2009 to shareholders on the Register at the close of business on 5 December 2008.

J R Waterhouse

Chairman

26 September 2008

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 Consolidated Income Statement for the half year ended 30 June 2008

		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
Turnover		10,449	9,942	19,562
		---------	---------	---------
Operating profit		813	742	1,571
		--------	--------	--------
Finance income		75	46	109
Finance expense		(62)	(62)	(132)
		--------	--------	--------
Profit before taxation		826	726	1,548
Taxation		(729)	(229)	(534)
		--------	--------	--------
Profit for the period attributable to equity shareholders		97	497	1,014
Basic and diluted earnings per share		9.7p	49.7p	101.4p
		--------	--------	--------
Proposed interim dividend per share		8.0p	7.0p	7.0p
		--------	--------	--------

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 2008

		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
Actuarial (loss)/gain on pension scheme		(898)	794	843
Movement in deferred tax relating to pension liability		251	(221)	(312)
Exchange adjustment		7	(9)	-
		--------	--------	--------
Net (expense)/income recognised directly in equity		(640)	564	531
Profit for the period		97	497	1,014
		--------	--------	--------
Total (expense)/income recognised for the period attributable to equity shareholders		(543)	1,061	1,545
		--------	--------	--------

Unaudited Group Balance Sheet as at 30 June 2008

		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		7,122	7,038	7,055
Intangible asset		82	409	246
Deferred tax asset		-	399	219
		---------	---------	--------
		7,204	7,846	7,520
		---------	---------	--------
Current assets
Inventories		1,582	1,352	1,453
Trade and other receivables		3,446	3,568	3,289
Cash and cash equivalents		4,077	2,626	2,652
		---------	---------	---------
		9,105	7,546	7,394
		---------	---------	---------
Liabilities
Current liabilities
Trade and other payables		(4,639)	(3,707)	(3,102)
Current tax liabilities		(330)	(207)	(168)
Obligations under finance leases		(66)	(390)	(251)
		---------	---------	---------
		(5,035)	(4,304)	(3,521)
		---------	---------	---------
Net current assets		4,070	3,242	3,873
		---------	---------	---------
Non-current liabilities
Pension liabilities		(3,721)	(2,988)	(2,868)
Deferred tax liability		(41)	-	-
Obligations under finance leases		-	(59)	-
		---------	---------	---------
		(3,762)	(3,047)	-
		---------	---------	---------
Net assets		7,512	8,041	8,525
		---------	---------	---------
Capital and reserves
Called up share capital		250	250	250
Retained earnings		7,248	7,793	8,268
Translation reserve		14	(2)	7
		---------	---------	---------
Total equity		7,512	8,041	8,525
		---------	---------	---------

Unaudited Consolidated Cash Flow Statement for the half year ended 30 June 2008

		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
	Note	£'000	£'000	£'000
Cash flows from operating activities
Cash generated from operations	4	1,918	1,503	2,466
Interest received		71	45	102
Interest paid on finance leases		(22)	(33)	(55)
UK corporation tax paid		(56)	(275)	(530)
		---------	---------	---------
Cash generated from operating activities		1,911	1,240	1,983
		---------	---------	---------
Cash flows from investing activities
Purchase of property, plant and equipment		(251)	(263)	(488)
Proceeds from sales of property, plant and equipment		13	15	62
		---------	---------	---------
Net cash used in investing activities		(238)	(248)	(426)
		---------	---------	---------
Cash flows from financing activities
Equity dividends paid		(70)	(50)	(400)
Capital element of finance leases		(185)	(175)	(373)
		---------	---------	---------
Net cash used in financing activities		(255)	(225)	(773)
		---------	---------	---------
Net increase in cash and cash equivalents		1,418	767	784
Opening cash and cash equivalents		2,652	1,868	1,868
Exchange differences		7	(9)	-
		---------	---------	---------
Closing cash and cash equivalents		4,077	2,626	2,652
		---------	---------	---------

Notes to the Interim Report for the half year ended 30 June 2008

1.

Interim Financial Information

The financial information contained in this interim statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The interim financial statements, which are unaudited, 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 2007 Annual Report and Accounts. The comparative figures for the year ended 31 December 2007 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. The 2007 accounts have been delivered to the Registrar of Companies.

2.	Taxation
		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
	Current tax	218	174	390
	Deferred tax	511	55	144
		---------	---------	---------
		729	229	534
		---------	---------	---------
	Included within the tax charge for the period 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% (2007 half year: 31.5%, 2007 full year: 34.5%).

3.	Statement of changes in shareholders' equity
		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
	Total recognised (expense)/income for the period	(543)	1,061	1,545
	Dividends	(470)	(400)	(400)
		---------	---------	---------
	Net movement in Shareholders' equity	(1,013)	661	7,380
	Opening Shareholders' equity	8,525	7,380	1,145
		---------	---------	---------
	Closing Shareholders' equity	7,512	8,041	8,525
		---------	---------	---------

4.	Reconciliation of operating profit to net cash inflow from operating activities
		Half year	Half year	Year
		ended	ended	ended
		30/06/08	30/06/07	31/12/07
		£'000	£'000	£'000
	Operating profit	813	742	1,571
	Depreciation	339	336	683
	(Profit)/loss on sale of property, plant and equipment	(4)	3	(19)
	Difference between pension charge and contributions	(91)	(97)	(191)
	(Increase)/decrease in inventories	(130)	231	131
	(Increase)/decrease in trade and other receivables	(152)	(180)	94
	Increase in trade and other payables	1,143	468	197
		---------	---------	---------
	Net cash inflow from operating activities	1,918	1,503	2,466
		---------	---------	---------

 

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