SLINGSBY (H.C.) PLC — Earnings Release 2012

Apr 19, 2013

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RNS Number : 8154C

Slingsby(H.C.)Plc

19 April 2013

H C SLINGSBY PLC

("Slingsby" or the "Company" or the "Group")

Unaudited Preliminary Announcement for the year ended 31 December 2012

Statement by the Chairman

Following a difficult first half, a quiet summer resulted in full year sales of £14.6m (2011: £15.2m), operating profit of £360k (2011: £633k) and operating profit before exceptional item of £489k (2011: £633k). Profit before tax was £102k (2011: £422k).

The group recorded a net cash inflow from operations of £1.0m (2011: outflow £0.1m), primarily due to the timing of a payment run close to the period end. Stock levels remain similar to the prior year and our next day delivery service continues to be valued by our customers. Net cash was £2.8m at 31 December 2012 (2011: £2.4m).

The deficit on the defined benefit scheme, which is closed to future accrual, was £9.8m (2011: £8.7m). However, the deficit has reduced from the £10.7m reported at 30 June 2012 due to the impact of higher contributions, a favourable change in financial assumptions together with an actuarial gain due to a better than expected return on scheme assets. The Company continues to make monthly payments into the scheme as part of an ongoing pension deficit management plan.

The major project to update the enterprise system and integrate the website into our operating system is progressing. A supplier has been appointed and all departments are fully involved in the implementation plan. Orders received through the website have continued to increase over the year, highlighting the importance of this investment.

The trading conditions experienced in the second half have continued into the new financial year and there is no visibility as to the timing of any upturn. However, the board continues to invest in the future to ensure that to the extent that market conditions allow, the group can capitalise on its brand awareness.

On behalf of the board I wish to thank our loyal employees who continue to serve the company well in difficult times.

In view of trading conditions and the IT investment plans, the board recommends a reduced final dividend of 15.0p per share (2011: 28.0p). The total dividend is therefore 19.0p (2011: 32.0p). The record date will be 31 May 2013 and the payment date will be 5 July 2013.

John Waterhouse

Non-Executive Chairman

19 April 2013

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
Sanlam Securities UK Limited	Tel:  0113 366 3153
David Worlidge Casper Kaars

Unaudited Consolidated Income Statement for the year ended 31 December 2012

	Note	Year ended 31 December 2012 £'000	Year ended 31 December 2011 £'000
Turnover		14,588	15,221
Operating profit before exceptional item		489	633
Exceptional item	2	129	-
Operating profit		360	633
Finance income		43	38
Finance expense		(301)	(249)
Profit before taxation		102	422
Taxation		70	(102)
Profit for the year attributable to equity shareholders		172	320
Basic and diluted earnings per share		17.2p	32.0p

The results set out above derive entirely from continuing operations.

Unaudited Consolidated Statement of Recognised Income and Expense for the year ended 31 December 2012

		Year ended 31 December 2012 £'000	Year ended 31 December 2011 £'000
Actuarial loss on pension scheme		(1,339)	(2,188)
Movement in deferred tax relating to retirement benefit obligation		46	503
Exchange adjustment		(7)	(7)
Net expense recognised directly in equity		(1,300)	(1,692)
Profit for the year		172	320
Total recognised expense for the year attributable to equity shareholders		(1,128)	(1,372)

Unaudited Consolidated Balance Sheet as at 31 December 2012

	Note	31 December 2012 £'000	31 December 2011 £'000
Assets
Non-current assets
Property, plant and equipment		6,358	6,566
Intangible asset Deferred tax asset		202  1,419	117  1,305
		7,979	7,988
Current assets
Inventories		2,270	2,272
Trade and other receivables		2,443	2,553
Cash and cash equivalents		2,836	2,439
		7,549	7,264
Liabilities
Current liabilities
Trade and other payables		(2,722)	(1,995)
Derivative financial liability		(7)	-
Current tax liabilities		(12)	(122)
		(2,741)	(2,117)
Net current assets		4,808	5,147
Non-current liabilities
Retirement benefit obligation	3	(9,838)	(8,738)
Net assets		2,949	4,397
Capital and reserves
Called up share capital		250	250
Retained earnings		2,684	4,125
Translation reserve		15	22
Total equity		2,949	4,397

Unaudited Consolidated Cash Flow Statement for the year ended 31 December 2012

		Year ended 31 December 2012 £'000	Year ended 31 December 2011 £'000
	Note
Cash flows from operating activities
Cash generated from/(used in) operations	4	1,041	(81)
UK corporation tax paid		(108)	(265)
Cash generated from/(used in) operating activities		933	(346)
Cash flows from investing activities
Interest received		40	34
Purchase of property, plant and equipment		(275)	(313)
Proceeds from sales of property, plant and equipment		26	51
Net cash outflow from investing activities		(209)	(228)
Cash flows from financing activities
Equity dividends paid	5	(320)	(400)
Net cash outflow from financing activities		(320)	(400)
Net increase/(decrease) in cash and cash equivalents		404	(974)
Opening cash and cash equivalents		2,439	3,420
Exchange differences		(7)	(7)
Closing cash and cash equivalents		2,836	2,439

Statement of Changes in Shareholders' Equity

	Share capital £'000	Retained earnings £'000	Translation reserve £'000	Total equity £'000
1 January 2011	250	5,890	29	6,169
Total recognised expense for the year	-	(1,365)	(7)	(1,372)
Dividends paid	-	(400)	-	(400)
1 January 2012	250	4,125	22	4,397
Total recognised expense for the year	-	(1,121)	(7)	(1,128)
Dividends paid	-	(320)	-	(320)
31 December 2012	250	2,684	15	2,949

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 2012

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.

The financial statements for the year ended 31 December 2012, upon which the auditors have still to report, will be issued to shareholders on 24 May 2013 and will be available to members of the public at the registered office of the Company and on the Company's website www.slingsby.com from that date. The statutory accounts for the year ended 31 December 2012 will be delivered to the Registrar following the Company's Annual General Meeting.

The Annual General Meeting will be held at 10.00 am on 21 June 2013 at the Marriot Hollins Hall Hotel, Hollins Hill, Baildon, Shipley BD17 7QW.

2.         Exceptional item

	Year ended 31 December 2012 £'000	Year ended December 2011 £'000
Redundancy costs	129	-

3.         Retirement benefit obligation

	Year ended 31 December 2012 £'000	Year ended December 2011 £'000
Present value of funded obligation	21,669	19,812
Fair value of scheme assets	(11,831)	(11,074)
Net liability in balance sheet	(9,838)	(8,738)

4.         Cash generated from/(used in) operations

	Year ended 31 December 2012 £'000	Year ended December 2011 £'000
Profit before tax	102	422
Net finance costs	258	211
Depreciation and amortisation	381	439
Profit on sale of property, plant and equipment	(9)	(11)
Difference between pension charge and contributions	(540)	(360)
Decrease/(Increase) in inventories	2	(487)
Decrease in trade and other receivables	114	679
Increase/(Decrease) trade and other payables	733	(974)
Cash generated from/(used in) operations	1,041	(81)

5.             Dividends

The interim and final dividends for the 2011 financial year of 4.0p and 28.0p, totalling £320,000 were paid and deducted from reserves in the year ended 31 December 2012. The dividends for the 2010 financial year totalling £400,000 were paid and deducted from reserves in 2011.

This information is provided by RNS

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