TIDMSLNG
RNS Number : 9893L
Slingsby(H.C.)Plc
18 May 2022
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended. Upon
the publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
H C SLINGSBY PLC
("Slingsby" or the "Company" or the "Group")
Audited Results for the year ended 31 December 2021
Statement by the Chairman
Board Composition
Following the Board changes in 2016, I remain as Interim
Executive Chairman and during 2018 Morgan Morris was appointed
Group Chief Executive. The Board continues to believe that it would
benefit from the appointment of new Non-Executive Directors. Whilst
this process should now be possible following the release of
restrictions relating to the Coronavirus and the agreement with
regard to the pension scheme detailed below, the Company's
inability to obtain Directors' and Officers' insurance cover in
respect of claims relating to the pension scheme has deterred
suitable candidates. The Board will continue to explore solutions
to this issue, with the objective remaining to appoint new
Non-Executive Directors at the earliest opportunity.
Results
In the half year statement, I reported an operating profit of
GBP0.16m on sales of GBP9.95m. The full year operating profit
(before exceptional items) was GBP0.4m (2020: GBP1.3m) on sales of
GBP19.8m (2020: GBP21.8m). Group sales decreased by around 9%,
which together with a reduction in gross margin, led to a profit
before taxation and exceptional items of GBP0.3m (2020: GBP1.1m).
The decrease in Group sales is principally due to a decline in
demand for Coronavirus related products compared to the 2020 year.
The decline in gross margin was due to increases in the cost of
goods across the product range and in freight charges. Profit
before tax of GBP0.8m in 2021 (2020: GBP1.1m) included an
exceptional item of GBP0.53m relating to the increase in value of
the freehold property at Baildon.
ESE Direct Limited ("ESE") contributed GBP6.4m of sales (2020:
GBP5.9m) and profit before tax and management charges of GBP0.53m
(2020: GBP0.51m). ESE's sales recovered as ESE added more
virus-related products to the range and its customer base was more
active during 2021, following the Government enforced lockdowns in
2020.
Group earnings before interest, tax, depreciation, amortisation
and exceptional items ("EBITDA") in the year ended 31 December 2021
were GBP0.9m (2020: GBP1.7m). The Group had net cash (after
overdraft balances included in trade and other payables) as at 31
December 2021 of GBP0.3m (2020: GBP0.3m).
Dividend
Despite the agreement reached with the Trustee of the defined
benefit pension scheme enabling the recommencement of dividends,
the Board does not recommend a final dividend for the year ended
2021 (2020: GBPnil). This is due to the considerable uncertainty
facing the Group at present which is discussed in more detail
below.
Under the agreement with the pension scheme, dividends are
limited in their quantum to GBP60,000 plus 50% of net cashflow over
GBP150,000.
Pension Scheme
The Company paid GBP0.36m (2020: GBP0.30m) in deficit reduction
contributions during 2021 including an additional payment of
GBP45,000 based on the Group's cash generation in the year. The
Company also continues to contribute GBP0.16m towards the scheme's
running costs.
At 31 December 2021, the pension scheme deficit decreased by
GBP0.24m to GBP7.9m (2020: GBP8.2m). This improvement in the
pension scheme position together with the profit generated in the
year, increased the Group's net assets to GBP2.3m (2020:
GBP1.2m)
Recent Trading
Group sales in Q1 of 2022 against the same period in 2021
increased by 4%. This improvement in sales offset the impact of a
fall in gross margin leading to an unaudited profit before tax in
Q1 2022 of GBP0.16m compared to GBP0.14m in the same period in
2021.
The market remains competitive, and the Board is cautious
regarding outlook. This is particularly the case due to the
significant uncertainty that remains caused by Coronavirus and the
conflict in the Ukraine It is unclear as to the impact that either
of these events will have on demand going forward.
In addition, due to inflationary and supply pressures, the Group
continues to experience significant cost increases across its
product range and in its shipping costs. These increases impacted
the gross margin in 2021 and have continued into 2022. Supply chain
issues, both in terms of supply of components and availability of
transport persist, impacting on customer service levels and in some
instances lost sales opportunities.
Finally, I would like to thank our staff across the Group for
their efforts in 2021. The Coronavirus pandemic, whilst having a
lesser impact on operations as 2021 progressed, still presented the
Group with operational and organisational challenges which were
overcome due to the attitude and hard work of our employees.
D.S.Slingsby
Interim Executive
Chairman
18 May 2022
For further information, please contact:
H C Slingsby PLC Tel: 01274 535 030
Dominic Slingsby, Interim Executive
Chairman
Morgan Morris, Group Chief Executive
Allenby Capital Limited (Nominated Tel: 020 3328 5656
Adviser & Broker)
David Worlidge / George Payne
Consolidated Income Statement for the year ended 31 December
2021
Note 2021 2020
GBP'000 GBP'000
Revenue 19,824 21,806
---------- ----------
-------------------------------------- ----- ----------- ---------------
Operating profit before exceptional
items 410 1,263
Exceptional items 2 530 -
-------------------------------------- ----- ----------- ---------------
Operating profit 940 1,263
Finance costs (118) (154)
---------- ----------
Profit before taxation 822 1,109
Taxation (255) (163)
---------- ----------
Profit for the year attributable to
owners of the parent 567 946
---------- ----------
Basic and diluted earnings per share 4 54.0p 92.3p
---------- ----------
Consolidated Statement of Comprehensive Income and Expense for
the year ended 31 December 2021
2021 2020
GBP'000 GBP'000
Profit for the year 567 946
Items that will not be classified
to profit or loss:
Re-measurements of post-employment
benefit obligation (3) (1,784)
Movement in deferred tax relating
to retirement benefit obligation 491 339
---------- ----------
Other comprehensive income/(expense) 488 (1,445)
---------- ----------
Total comprehensive income/(expense)
for the year attributable to equity
shareholders 1,055 (499)
---------- ----------
Consolidated Balance Sheet as at 31 December 2021
Note 2021 2020
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 5,377 5,084
Intangible assets 386 518
Goodwill 700 700
Deferred tax asset 1,985 1,553
-------- ----------
8,448 7,855
-------- ----------
Current assets
Inventories 2,330 2,234
Trade and other receivables 2,764 2,632
Derivative financial asset 7 -
Cash and cash equivalents 1,999 1,781
-------- ----------
7,100 6,637
-------- ----------
Liabilities
Current liabilities
Trade and other payables (4,593) (4,454)
Derivative financial liability - (7)
Finance lease obligations (32) (34)
--------- ---------
(4,625) (4,495)
-------- ----------
Net current assets 2,475 2,142
-------- ----------
Non-current liabilities
Lease obligations - (32)
Retirement benefit obligation 3 (7,938) (8,175)
Deferred tax liabilities (722) (582)
-------- ----------
Net assets 2,263 1,208
-------- ----------
Capital and reserves
Share capital 262 262
Share Premium 24 24
Retained earnings 1,977 922
-------- ----------
Total equity 2,263 1,208
-------- ----------
Consolidated Cash Flow Statement for the year ended 31 December
2021
2021 2020
GBP'000 GBP'000
Note
Cash flows from operating activities
Cash generated from operations 5 331 1,594
Interest paid 1 (13)
UK corporation tax paid (150) (41)
-------- --------
Cash generated from operating activities 182 1,540
-------- --------
Cash flows from investing activities
Purchase of property, plant and equipment (100) (108)
Proceeds from sales of property, plant
and equipment 28 6
Purchase of intangible assets (3) (18)
-------- --------
(75) (120)
Net cash used in investing activities -------- --------
Cash flows from financing activities
Capital element of lease payments (36) (36)
Proceeds from share issue - 36
Repayment of borrowings - (1,034)
Increase in overdraft 147 117
-------- --------
Net cash generated from / (used in)
financing activities 111 (917)
-------- --------
Net increase in cash and cash equivalents 218 503
Opening cash and cash equivalents 1,781 1,278
-------- --------
Closing cash and cash equivalents 1,999 1,781
-------- --------
Consolidated Statement of Changes in Shareholders' Equity
Share capital Share Retained Total equity
GBP'000 premium earnings GBP'000
GBP'000 GBP'000
1 January 2020 250 - 1,421 1,671
Profit for the year - - 946 946
Other comprehensive expense
for the year - - (1,445) (1,445)
---------- --------- ---------- ----------
Total comprehensive expense
for the year - - (499) (499)
---------- --------- ---------- ----------
Issue of shares 12 24 - 36
---------- --------- ---------- ----------
1 January 2021 262 24 922 1,208
Profit for the year - - 567 567
Other comprehensive income
for the year - - 488 488
Total comprehensive income ---------- --------- ----------
for the year - --------- 1,055 1,055
---------- --------- ---------- ----------
31 December 2021 262 24 1,977 2,263
---------- --------- ---------- ----------
Notes to the Preliminary Results for the year ended 31 December
2021
1. The preliminary financial information does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006 for the financial year ended 31 December
2021 but has been extracted from those accounts. The annual
accounts for the year ended 31 December 2021 have been prepared
in accordance with UK adopted International Accounting Standards.
The financial information included in this preliminary announcement
does not include all the disclosures required in accounts
prepared in accordance with UK adopted International Accounting
Standards and accordingly it does not itself comply with
UK adopted International Accounting Standards.
The accounting policies used in the preparation of these
preliminary results have remained unchanged from those set
out in the statutory accounts for the year ended 31 December
2020. They are also consistent with those in the full accounts
for the year ended 31 December 2021 which have yet to be
published.
The auditors have reported on the accounts for the year ended
31 December 2021 and their opinion was unqualified, did not
include any matters to which the auditor drew attention by
way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The comparative information included in this preliminary
announcement has been extracted from the statutory accounts
for the year ended 31 December 2020. The auditors have also
reported on these accounts and their opinion was unqualified,
did not include any matters to which the auditor drew attention
by way of emphasis and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2020 have
been delivered to the Registrar of Companies and those for
the financial year ended 31 December 2021 will be delivered
following the Company's annual general meeting.
2. Exceptional item 2021 2020
GBP'000 GBP'000
Property impairment reversal 530 -
------------ ------------
530 -
------------ ------------
3. Retirement benefit obligation
2021 2020
GBP'000 GBP'000
Present value of funded obligation 25,061 25,182
Fair value of scheme assets (17,123) (17,007)
------------ ------------
Net liability in balance sheet 7,938 8,175
------------ ------------
4. Earnings per share
Basic profit per share is based upon a profit of GBP567,000
(2020: GBP946,000) and on 1,050,000 (2020: 1,025,000) ordinary
shares in issue during the year.
There is no difference between basic profit per share and
diluted loss per share for both years as there are no potentially
dilutive shares in issue.
5. Cash generated from operating activities
2021 2020
GBP'000 GBP'000
Profit before tax 822 1,109
Net finance costs 118 154
Depreciation and amortisation 461 430
Defined benefit pension scheme contributions
paid (357) (304)
Property impairment reversal (530) -
Profit on sale of property, plant and
equipment (17) (6)
Increase in inventories (107) (90)
Increase in trade and other receivables (137) (231)
Increase in trade and other payables 78 532
------------ ------------
Cash generated from operating activities 331 1,594
------------ ------------
6. Dividends
No dividends were paid or declared during 2020 or 2021 and
the Directors are not proposing any final dividend be payable
in respect of the year ended 31 December 2021.
7. Availability of Report and Accounts
The financial statements for the year ended 31 December 2021,
containing a notice of the Annual General Meeting will be
posted to shareholders shortly and will be available on the
Company's website www.slingsby.com/investor-relations.
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END
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May 18, 2022 10:18 ET (14:18 GMT)
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