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.  With the publication of this announcement, this information is now considered to be in the public domain.

4 August 2022

H C Slingsby plc

("Slingsby" or "the Company")

Report for the half year ended 30 June 2022

Statement by the Chairman

Trading

In my trading update of 21 June 2022, I reported that Group sales in the five months to 31 May 2022 were 8% higher than prior year but that gross margin was lower, meaning that unaudited profit before tax was £0.17m compared to £0.07m in the prior year.  We were cautious regarding the outlook due to the significant uncertainty remaining from the aftermath of the coronavirus pandemic, the impact that high inflation may have on the UK economy and the ongoing conflict in the Ukraine.  

I am pleased to report that Group sales in the six months to 30 June 2022 were 10% higher than in the same period in 2021.  This increase in sales offset the continuation in the trend regarding gross margin and higher overhead costs and led to an unaudited profit before tax of £0.24m in the six months ended 30 June 2022 compared to an unaudited profit before tax of £0.1m in the same period in 2021.

The market remains competitive, and it remains unclear what impact the aforementioned factors will have on demand going forward.  The Group continues to experience cost inflation across most areas of its business (goods, freight and overheads) and there is a risk that the UK economy will enter recession in H2 2022.  There is also heightened potential for credit related issues should customers become insolvent.

Balance sheet

The Group had net assets of £4.68m at 30 June 2022 (£1.96m at 30 June 2021) compared to net assets of £2.26m at 31 December 2021.  This improvement is mostly due to a decrease in the liability relating to the defined benefit pension scheme of £2.2m (after associated deferred tax).  The retirement benefit obligation decreased during the six months to 30 June 2022 due to an increase in the discount rate used by the scheme actuary.  This has the impact of decreasing scheme liabilities, which outweighed a decrease in the value of scheme assets.  The Company made deficit reduction contributions totalling £159,000 in the six months to 30 June 2022 in line with the agreement with the scheme's Trustee.

Cashflow

The Group had net cash of £0.5m at 30 June 2022 (£0.8m at 30 June 2021) compared to £0.3m at 31 December 2021.  The Group continues to operate within its existing banking facilities and the Directors continue to believe that the Group has additional funding options available should the need arise.

Dividend

Due to the uncertain outlook, the Board has decided not to declare an interim dividend.  It remains the Board's intention to re-commence dividend payments to shareholders as soon as it is prudent to do so.

People

We would like to thank our employees for their hard work and flexibility during continued challenging times.

Dominic Slingsby

Interim Executive Chairman and Operations Director

For further information please contact:

H C Slingsby plc

Dominic Slingsby, Interim Executive Chairman                            01274 535 030

Morgan Morris, Group Chief Executive

Allenby Capital Limited (Nominated Adviser and Broker)

David Worlidge/George Payne                                                   020 3328 5656

Unaudited Condensed Consolidated Income Statement for the half year ended 30 June 2022

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 2022

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 2022

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

Unaudited Consolidated Statement of Changes in Shareholders' Equity

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 2022

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 2022

4.  Availability of Interim Report

The Interim Report will be available on the Company's website www.slingsby.com.