AGM statement

19 June 2024

H C SLINGSBY PLC

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

AGM statement

HC Slingsby PLC, one of the market leaders in the distribution of industrial and commercial equipment, issues the following trading update in respect of the five months ended 31 May 2024 in advance of the Annual General Meeting which is to be held at 10.00 a.m. today.

In the Chairman's Statement accompanying the Annual Report and Audited Financial Statements for the year ended 31 December 2023, it was reported that Group sales were 5 per cent. lower in the three months to 31 March 2024 compared with the corresponding period in 2023.  This decline in sales and the costs associated with the retirement of Dominic Slingsby of £0.2m, led to an unaudited loss before tax of £0.14m compared with an unaudited profit before tax of £0.12m in the same period in the prior year.

Group sales in the five months to 31 May 2024 were 4 per cent. lower when compared to the same period in the prior financial year.  Whilst this is an improvement on the sales decline against prior year reported for Q1 2024, April 2023 represented a weak comparative sales performance due to the timing of Easter.  Group sales in May 2024 were 12% down on that achieved in May 2023.  The directors consider that the lower level of sales is due to customers reducing or deferring spending following cost increases caused by factors such as the increase in the minimum wage, lower sales of seasonal products and uncertainty caused by the General Election.  The reduction in sales and increases in overhead costs have resulted in an unaudited loss before tax for the five months to the end of May 2024 of £0.22m (after the costs associated with the retirement of Dominic Slingsby of £0.2m).  The unaudited profit before tax for the five months to 31 May 2023 was £0.13m.

The market remains competitive and the Group remains cautious regarding the outlook for the remainder of the financial year. This is particularly the case given the recent lower level of order intake, the uncertainty caused by the General Election and the risk that the UK economy could re-enter recession as unemployment rises.  The impact that these factors will have on demand going forward is difficult to forecast.

Cash Position

The Group had unaudited net cash of approximately £0.23 million as at 31 May 2024 compared to £0.15 million as at 31 May 2023 and £0.21 million as at 31 December 2023. The Group's banking facilities remain in place and the Group continues to make payments to the defined benefit pension scheme in accordance with the agreement reached with the scheme's trustee in March 2024.

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