Final Results

RNS Number : 7228K
Slingsby(H.C.)Plc
23 April 2010
 



HC Slingsby plc ("the Company")

 

Unaudited Preliminary Announcement for the year ended 31 December 2009

Statement by the Chairman

 

As notified in our half yearly report released on 25 September 2009, sales during the first half were substantially below the level of the previous year and this trend continued during the second half of 2009. Sales for the full year of £15.8 million were approximately 19% down on 2008 (£19.6 million). Firm action has been taken to reduce costs, including further redundancies during the second half. Operating profit before exceptional items was £0.71 million (2008: £1.58 million).

 

The closure to future accrual on 31 March 2009 of the Company's defined benefit pension plan ("the Plan") resulted in an exceptional gain of £0.74 million (2008: £nil), partly offset by redundancy costs of £0.15 million (2008: £nil). The Company also incurred actuarial losses of £0.33 million, on the Plan mainly due to a reduction in the assumed inflation-adjusted discount rate reflecting reduced real corporate bond yields. The Company recorded an overall profit before tax of £1.01 million (2008: £1.61 million).

 

Despite the difficult trading conditions, our net cash position remained strong throughout. Closing net cash was £2.77 million (2008: £3.03 million) and the Company remains debt-free. During the year, we incurred capital expenditure of £0.35 million (2008: £0.45 million) primarily on IT, including our updated website which went live in June 2009.  Customer reaction to the new site has been highly positive. We continue to invest in further enhancements to the site as well as other areas of IT, such as the development of electronic trading with key customers and suppliers.

 

Sales during the first quarter of 2010 were at a similar level to 2009. The Company is currently trading in line with the board's expectations and continues to maintain a net cash balance similar to the year-end level. Although the economic climate remains uncertain, your Company is in a strong position to benefit from an improvement in trading conditions when it comes and your board remains optimistic as to the Company's future prospects. On behalf of the board, I wish to thank our loyal staff for their considerable efforts in what has been a very difficult year.

 

Despite the tough economic environment, we are pleased to be able to recommend a final dividend, albeit less than the previous year, of 30.0p (2008: 42.0p). The total dividend is therefore 34.0p (2008: 50.0p). The record date will be 4 June 2010 and the payment date 2 July 2010.

 

John Waterhouse

Non-Executive Chairman

23 April 2010

 

 

Registered Office

Otley Road

Baildon, Shipley

West Yorkshire BD17 7LW

 

 

For further information, please contact:

 

H C Slingsby plc

Tel:  01274 535 030

Dominic Slingsby, Managing Director

Ray Hudson, Financial Director

 


Evolution Securities Limited

Tel:  0113 243 1619

Joanne Lake

Peter Steel


 

 

Unaudited Consolidated Income Statement for the year ended 31 December 2009

 


Note

Year ended

31/12/09

£'000

 

Year ended

31/12/08

£'000

 

Turnover


15,833 

19,640 



--------

--------

 

Operating profit before exceptional items


707 

1,580 

Exceptional items

3

592 



--------

--------

Operating profit


1,299 

 

1,580 

Finance income


42 

136 

Finance expense


(334)

(110)



--------

--------

Profit before taxation


1,007 

1,606 

 

Taxation


(192)

(776)



--------

--------

Profit for the period attributable to equity shareholders


815 

830 



--------

--------

Basic and diluted earnings per share


81.5p

83.0p



--------

--------

 

The results set out above derive entirely from continuing operations.

 

 

Unaudited Statement of Consolidated Recognised Income and Expense for the year ended 31 December 2009

 


Notes

Year ended

31/12/09

£'000

 

Year ended

31/12/08

£'000

 

Actuarial loss on pension scheme


(1,355)

(2,917)

Movement in deferred tax relating to retirement benefit obligation

379 

817 

 

Exchange adjustment


(22)

51 



--------

--------

Net expense recognised directly in equity


(998)

(2,049)

Profit for the year


815 

830 



--------

 

--------

Total recognised expense for the year attributable to equity shareholders

(183)

(1,219)



--------

---------

 

 

Unaudited Group Balance Sheet as at 31 December 2009

 


Notes

31/12/09

£'000

 

31/12/08

£'000

 

Assets




Non-current assets




Property, plant and equipment


6,972 

7,143 

Deferred tax asset


861 

616 



--------

--------



7,833 

7,759 



--------

--------

Current assets




Inventories


1,387 

1,732 

Trade and other receivables


2,672 

3,051 

Cash and cash equivalents


2,775 

3,029 



--------

--------



6,834 

7,812 



--------

--------

 

Liabilities




Current liabilities




Trade and other payables


(2,030)

(2,797)

Current tax liabilities


(72)

(253)



--------

--------



(2,102)

(3,050)



--------

--------

Net current assets


4,732 

4,762 



--------

--------

Non-current liabilities




Retirement benefit obligation


(6,412)

(5,687)



--------

--------

Net assets


6,153 

6,834 



--------

 

--------

 

Capital and reserves




Called up share capital


250 

250 

Retained earnings


5,867 

6,526 

Translation reserve


36 

58 



--------

--------

Total equity


6,153 

6,834 



--------

--------

 

 

Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2009

 


Note

Year ended

31/12/09

£'000

Year ended

31/12/08

£'000

 

Cash flows from operating activities




Cash generated from operations

3

793 

1,646 

Interest received


50 

129 

Interest paid on finance leases


(45)

UK corporation tax paid


(237)

(274)



--------

--------

Cash generated from operating activities


606 

1,456 



--------

--------

Cash flows from investing activities




Purchase of property, plant and equipment


(352)

(449)

Proceeds from sales of property, plant and equipment


14 

40 



--------

--------

Net cash used in investing activities

 


(338)

(409)

 

Cash flows from financing activities




Equity dividends paid


(500)

(470)

Capital element of finance leases


(251)



--------

--------

Net cash used in financing activities


(500)

(721)



--------

--------

Net (decrease)/increase in cash and cash equivalents


(232)

326 

Opening cash and cash equivalents


3,029 

2,652 

Exchange differences


(22)

51 



--------

--------

Closing cash and cash equivalents


2,775 

3,029 



--------

--------

 

 

Statement of Changes in Shareholders' Equity

 

 

 

Group

 

Share

capital

£'000

Retained

earnings

£'000

Translation

Reserve

£'000

Total

Equity

£'000

1 January 2008

250 

8,268 

8,525 

Total recognised income for the year

(1,272)

51 

(1,221)

Dividends paid

(470)

(470)

 

1 January 2009

250 

6,526 

58 

6,834 

Total recognised income for the year

(159)

(22)

(181)

Dividends paid

(500)

(500)


--------

--------

--------

--------

31 December 2009

250 

5,867 

36 

6,153 


--------

--------

--------

--------

 

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 2009

 


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 2009, upon which the auditors have still to report, will be issued to shareholders on 19 May 2010 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 2009 will be delivered to the Registrar following the Company's Annual General Meeting.

 

The Annual General Meeting will be held at 10.00 a.m. on 17 June 2010 at H C Slingsby plc (Head Office), Otley Road, Baildon, Shipley, BD17 7LW.

 

2.

Exceptional items



Year

Year



ended

ended



31/12/09

31/12/08



£'000

 

£'000

 


Pension curtailment gain

739 


Redundancy costs

(147)



--------

---------



592 



--------

---------

 

3.

Reconciliation of operating profit to net cash inflow from operating activities



Year

Year



ended

ended



31/12/09

31/12/08



£'000

 

£'000

 


Operating profit

1,299 

1,580 


Depreciation and amortisation

448 

612 


Profit on sale of property, plant and equipment

(1)


Difference between pension charge and contributions

(964)

(189)


Decrease/(increase) in inventories

345 

(279)


Decrease in trade and other receivables

371 

245 


(Decrease) in trade and other payables

(706)

(322)



--------

---------


Net cash inflow from operating activities

793 

1,646 



--------

---------

 

4.

Dividends


The interim and final dividends for the 2008 financial year of 8.0p and 42.0p respectively, totalling £500,000, were paid and deducted from reserves in the year. The dividends for the 2007 financial year totalling £470,000 were paid and deducted from reserves in 2008.

 

 


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