Slingsby to slip into the red as sector cuts spending

WORKPLACE equipment provider HC Slingsby warned it will make an annual loss this year following a notable fall in public sector spending.

The company, which is based at Baildon, near Bradford, said it made a pre-tax loss of £32,000 in the six months to June 30, down from a pre-tax profit of £203,000 the previous half year.

Turnover in the first half fell to £6.9m, down from £7.5m the year before.

Hide Ad
Hide Ad

The group said that lower levels of trading were made worse by the sizeable decrease in public sector spending as Government cutbacks reduce the amount of money civil servants have to spend.

Slingsby said it has failed to see any significant upturn in trading during the second half and warned that if this trend continues for the remainder of the year, the directors believe the company will incur a pre-tax loss for the year.

Last year, Slingsby saw pre-tax profit fall from £422,000 to £102,000 and turnover dipped to £14.6m from £15.2m.

Chairman John Waterhouse said: “Our cash position remains strong and we continue to invest in our new enterprise system and website project which are expected to go live before the end of the year.

Hide Ad
Hide Ad

“We believe that the new website will enable dynamic pricing and provide online customers with a far better user experience.”

Slingsby, which dates back to 1893, manufactures and distributes more than 35,000 products for the workplace; from handling and lifting and premises equipment to retail and office supplies.

Its database includes everything from vacuum cleaners to chairs, cupboards, shelves, flipcharts, dummy CCTV cameras and First Aid kits.

Mr Waterhouse said that in view of the half year results and the lack of any significant upturn in trading in the second half to date, the group is to halve its interim dividend from 4.0p to 2.0p.

Hide Ad
Hide Ad

The group said that the deficit on the company’s defined benefit pension scheme, which is now closed to future accrual, reduced to £9.2m from £9.8m.

The improvement was largely due to the rise in corporate bond yields over the period which resulted in a decrease in the value of the liabilities.

Other contributory factors were the effect of the recovery plan contributions paid into the scheme and investment returns being higher than assumed.

Slingsby has embarked upon a major project to update its enterprise system and integrate the website into its operating system.

Hide Ad
Hide Ad

A supplier has been appointed and all departments are fully involved in the implementation plan.

Slingsby said that orders received through the website have continued to increase over the year, highlighting the importance of this investment.

The group has a market capitalisation of £4.38m and net gearing of 62.75 per cent.

Its range includes materials handling, access, storage and shelving, office, safety and security, janitorial, mailroom and packaging, workshop and maintenance, environmental and waste management, premises, signs and labels, and flooring. Its services include container trucks, lift tables and pallet trucks, trailers, barrows and tilt trucks.

Related topics: