Slingsby(H.C.)Plc
25 April 2008
H C SLINGSBY PLC (the 'Company')
Unaudited Preliminary Announcement for the year ended 31 December 2007
Statement by the Chairman
The year has been one of consolidation following the significant changes in
2006, during which we relocated to modern premises and implemented a new IT
system.
I am therefore pleased to report a successful year with pre-tax profit of
£1.55m, a substantial increase on the 2006 result of £1.1m (which included an
exceptional profit of £102k). The significant improvement in profitability was
the result of a £0.5m increase in turnover and actions taken at the end of 2006
to reduce overheads and improve operating efficiencies following the relocation.
Our new IT system has enabled us to conduct more sophisticated analysis of
customer and product demand and therefore improve targeting of our marketing
effort and focus on greater stocking of higher demand products with next day
delivery on many items. E-trading via our improved web site has also grown
significantly.
Our staff have continued to respond to a competitive marketplace and on behalf
of the board I wish to thank them for their efforts.
2008 has started well and first quarter results are in line with our
expectations. One of our key areas of focus this year is on restructuring our
Customer Service Centre to further improve the levels of service we give our
customers. To help fulfil this objective, we continue to invest in our IT
infrastructure.
Despite the generally negative economic sentiment, your Board is cautiously
optimistic that we can build on last year's success and is pleased to recommend
a final dividend of 40.0p per share (2006: 35.0p). The total dividend is
therefore 47.0p (2006: 40.0p). The record date will be 6 June 2008 and the
payment date will be 4 July 2008.
J R Waterhouse
Non-Executive Chairman
25 April 2008
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 2007
Year ended Year ended
31/12/07 31/12/06
£'000 £'000
Note
Turnover 19,562 19,044
-------- --------
Operating profit before exceptional items 1,571 1,058
Exceptional items 2 - 102
-------- --------
Operating profit 1,571 1,160
-------- --------
Finance income 109 89
Finance expense (132) (156)
-------- --------
Profit before taxation 1,548 1,093
Taxation (534) (356)
-------- --------
Profit for the period attributable to equity shareholders 1,014 737
-------- --------
Basic and diluted earnings per share 101.4p 73.7p
-------- --------
The results set out above derive entirely from continuing operations.
Unaudited Statement of Consolidated Recognised Income and Expense for the year
ended 31 December 2007
Year ended Year ended
31/12/07 31/12/06
£'000 £'000
Actuarial gain on pension scheme 843 282
Movement in deferred tax relating to retirement benefit (312) (85)
obligation
Exchange adjustment - 9
-------- --------
Net income recognised directly in equity 531 206
Profit for the year 1,014 737
-------- --------
Total income recognised for the year attributable to equity 1,545 943
shareholders
-------- --------
Unaudited Group Balance Sheet as at 31 December 2007
31/12/07 31/12/06
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 7,055 6,982
Intangible assets 246 573
Deferred tax asset 219 675
-------- --------
7,520 8,230
-------- --------
Current assets
Inventories 1,453 1,583
Trade and other receivables 3,289 3,387
Cash and cash equivalents 2,652 1,868
-------- --------
7,394 6,838
-------- --------
Liabilities
Current liabilities
Trade and other payables (3,102) (2,905)
Current tax liabilities (168) (308)
Obligations under finance leases (251) (373)
-------- --------
(3,521) (3,586)
-------- --------
Net current assets 3,873 3,252
-------- --------
Non-current liabilities
Retirement benefit obligation (2,868) (3,851)
Obligations under finance leases - (251)
-------- --------
(2,868) (4,102)
-------- --------
Net assets 8,525 7,380
-------- --------
Capital and reserves
Called up share capital 250 250
Retained earnings 8,268 7,123
Translation reserve 7 7
-------- --------
Total equity 8,525 7,380
-------- --------
Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2007
Year ended Year ended
31/12/07 31/12/06
Note
Cash flows from operating activities
Cash generated from operations 3 2,466 671
Interest received 102 90
Interest paid on finance leases (55) (121)
UK corporation tax paid (530) (323)
-------- --------
Cash generated from operating activities 1,983 317
-------- --------
Cash flows from investing activities
Purchase of property, plant and equipment (488) (1,881)
Proceeds from sales of property, plant and equipment 62 197
-------- --------
Net cash used in investing activities (426) (1,684)
Cash flows from financing activities
Equity dividends paid (400) (450)
Capital element of finance leases (373) (380)
-------- --------
Net cash used in financing activities (773) (830)
-------- --------
Net increase/(decrease) in cash and cash equivalents 784 (2,197)
Opening cash and cash equivalents 1,868 4,056
Exchange differences - 9
-------- --------
Closing cash and cash equivalents 2,652 1,868
-------- --------
Notes to the unaudited Preliminary Announcement for the year ended 31 December 2007
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 1985 applicable to companies reporting under IFRS. The
group's accounting policies under IFRS and information on the transition from UK GAAP were
presented in our Report for the half year ended 30 June 2007, which was released on 28
September 2007. The preliminary announcement does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The financial information included in this
preliminary announcement does not include all the disclosures required by IFRS or the
Companies Act 1985 and accordingly it does not itself comply with IFRS or the Companies Act
1985. This announcement has been agreed with the company's auditors for release.
The financial statements for the year ended 31 December 2007, upon which the auditors have
still to report, will be issued to shareholders on 21 May 2008 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 2007 will be delivered to the Registrar following the
Company's Annual General Meeting.
The information for the year ended 31 December 2006 has been amended for the adoption of IFRS.
The statutory accounts for the year ended 31 December 2006, which have been delivered to the
Registrar of Companies, included an audited 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 19 June 2008.
2. Exceptional Items
The exceptional item in 2006 related to profit on the disposal of our Glasgow property of
£144,000 offset by redundancy costs of £42,000 incurred in connection with the restructuring
of the branch network.
3. Reconciliation of operating profit to net cash inflow from operating activities
Year Year
ended ended
31/12/07 31/12/06
£'000 £'000
Operating profit 1,571 1,160
Depreciation and amortisation 683 677
Profit on sale of property, plant and equipment (19) (144)
Difference between pension charge and contributions (191) (61)
Decrease in inventories 131 40
Decrease in trade and other receivables 94 732
Increase/(decrease) in trade and other payables 197 (1,733)
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Net cash inflow from operating activities 2,466 671
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4. Dividends
The interim and final dividends for the 2006 financial year of 5p and 35p, totalling £400,000,
were paid and deducted from reserves in the year. The dividends for the 2005 financial year
totalling £450,000 were paid and deducted from reserves in 2006.
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