Slingsby(H.C.)Plc
27 April 2007
H C SLINGSBY PLC (the 'Company')
Unaudited Preliminary announcement for the year ended 31 December 2006
Statement by the Chairman
I wish to open my statement by expressing thanks for the dedicated service of my
predecessor, J F (Jimmie) Slingsby, who sadly passed away in March after serving
the company with distinction for over 53 years. Your Board intends to build on
the strong foundations his leadership created within the business.
I am pleased to report that the Company achieved a better second half of the
year, with pre-tax profits for the full year of £1.1m (2005: £3.6m), up from
£361,000 at the half year-end. 2005 saw a profit on sale of assets of £2.3m,
which boosted the pre-tax profit figure and the dividend. The 2006 profit on
disposal of fixed assets of £144,000 relates mainly to the sale of the Glasgow
branch.
The review of overhead expenditure and rationalisation plan implemented last
year has been key to our improved performance in the second half of the year. We
have improved profitability as a result of both the measures taken and the
operating efficiencies arising from relocation to our new site.
After some initial difficulties, our new IT system is now also operating
effectively and we look forward to continued improvement of service levels
across our business. During the year, we also successfully completed an update
of our brand image and core values. We now have far greater consistency and
clarity across our communications, providing a robust platform for adding
further value.
On behalf of the Board, I wish to place on record our thanks and appreciation to
all our employees for their dedication and teamwork throughout the year and in
particular ensuring that the move to our new site went smoothly.
The 2007 year has started satisfactorily but there remains considerable
uncertainty in the market and trading is inconsistent. Your Board remains
cautious but is pleased to recommend a final dividend of 35.0p per share (2006:
38.0p). The total dividend for the year is therefore 40.0p per share (2005:
45.0p). The record date will be 1 June 2007 and the payment date for the final
dividend will be 4 July 2007.
J R Waterhouse
Non-Executive Chairman
27 April 2007
Registered Office
Otley Road
Baildon, Shipley
West Yorkshire BD17 7LW
The following extracts are not full financial statements for the Company, as
defined by section 240 of the Companies Act 1985. Full financial statements
will be issued to the shareholders on 23 May 2007 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 2006, upon which the
auditors have still to report, will be delivered to the Registrar following the
Company's Annual General Meeting.
The information for the year ended 31 December 2005 is an extract from the
statutory accounts to that date, which have been delivered to the Registrar of
Companies. Those accounts included an audit report which was unqualified and
which did not contain a statement under Section 237(2) or (3) of the Companies
Act 1985.
The Annual General Meeting will be held on 21 June 2007.
H C Slingsby plc
Unaudited Consolidated Profit and Loss Account for the year ended 31 December 2006
2006 2005
£'000 £'000
Turnover - continuing operations 19,044 19,886
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Operating profit - before exceptional item 1,085 1,468
Exceptional item (42) (128)
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Operating profit 1,043 1,340
Profit on disposal of fixed assets 144 2,287
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Profit on ordinary activities before interest and taxation 1,187 3,627
Bank interest receivable 89 96
Interest payable (89) (50)
Other finance costs (67) (57)
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Profit on ordinary activities before taxation 1,120 3,616
Taxation (363) (449)
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Profit attributable to shareholders 757 3,167
Dividends (450) (420)
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Retained profit 307 2,747
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Basic and diluted earnings per share 75.7p 316.7p
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Proposed final dividend per share 35.0p 38.0p
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Earnings per share
Basic earnings per share is based upon earnings of £757,000 (2005: £3,167,000)
and on 1,000,000 (2005: 1,000,000) ordinary shares in issue during the year.
There are no potentially dilutive shares in issue.
H C Slingsby plc
Unaudited Statement of Group Total Recognised Gains and Losses for the Year Ended 31 December 2006
2006 2005
£'000 £'000
Profit for the financial year 757 3,167
Actuarial gain/(loss) on pension scheme 283 (1,198)
Movement in deferred tax relating to pension asset
(85) 359
Exchange adjustment 9 4
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Total gains recognised for the year 964 2,332
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H C Slingsby plc
Unaudited Group Balance Sheet as at 31 December 2006
2006 2005
£'000 £'000
Fixed assets:
Tangible assets 7,555 6,538
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7,555 6,538
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Current assets:
Stock 1,583 1,623
Debtors 3,387 4,105
Cash at bank and in hand 1,868 4,056
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6,838 9,784
Creditors: Amounts falling due within one year (3,570) (5,485)
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Net current assets 3,268 4,299
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Total assets less current liabilities 10,823 10,837
Creditors: Amounts falling due after more than one year (251) (613)
Provisions for liabilities and charges:
Deferred taxation (202) (174)
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Net assets excluding pension liability 10,370 10,050
Pension fund liability (2,685) (2,879)
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Net assets including pension liability 7,685 7,171
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Capital and reserves:
Called up share capital 250 250
Profit and loss account 7,435 6,921
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Equity shareholders' funds 7,685 7,171
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H C Slingsby plc
Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2006
2006 2005
£'000 £'000
Operating activities:
Net cash inflow from operating activities (Note 1) 671 995
Returns on investments and servicing of finance:
Bank interest received 90 106
Bank interest payable (121) (18)
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Net cash (outflow)/inflow from returns on investments and servicing of finance
(31) 88
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Taxation:
UK Corporation tax paid (323) (450)
Capital expenditure and financial investment:
Purchase of tangible fixed assets (1,881) (5,046)
Sales of tangible fixed assets 197 3,380
Sale of investment - 300
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Net cash outflow from capital expenditure
and financial investment (1,684) (1,366)
Equity dividends paid (450) (420)
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Net cash outflow before use of liquid resources and financing (1,817) (1,153)
Management of liquid resources:
Decrease in short term deposits with banks 1,730 1,900
Financing
Capital element of finance lease payments (380) (76)
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(Decrease)/increase in cash in the year (467) 671
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H C Slingsby plc
Unaudited Consolidated Cash Flow Statement Notes for the year ended 31 December 2006
1. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
2006 2005
£'000 £'000
Net cash inflow from operating activities:
Operating profit 1,043 1,340
Depreciation charges 677 394
Difference between pension charge and contributions (61) (109)
Decrease in stocks 40 2
Decrease/(increase) in trade debtors 661 (808)
Decrease/(increase) in prepayments 60 (151)
(Decrease)/increase in trade creditors (1,360) 197
Increase/(decrease) in other taxation and social security 52 (128)
(Decrease)/increase in other creditors and accruals (441) 258
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Net cash inflow from operating activities 671 995
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2. Reconciliation to Net Cash
2006 2005
£'000 £'000
Changes during the year
Net cash at 1 January 4,056 5,281
(Decrease)/increase in net cash (467) 671
Movement in short term deposits (1,730) (1,900)
Exchange adjustment 9 4
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Net cash 1,868 4,056
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Represented by:
Liquid resources 1,270 3,000
Cash in hand and at bank 598 1,056
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Net Cash 1,868 4,056
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3. The financial statements, which are unaudited, have been prepared on the
basis of the accounting policies set out in the 2005 Annual Report and Accounts.
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