Slingsby board still cautious after improvement in trading

Industrial and commercial equipment distributor HC Slingsby updated the market on its trading for the five months ended 31 May on Tuesday, as its investors gathered for its annual general meeting.

The AIM-traded firm had reported in its annual results for the year ended 31 December that group sales were 6% lower in the three months to 31 March, as it faced strong comparatives in 2017 due to several large orders delivered in that period.

On Tuesday, it said group sales in the five months to 31 May were 1% lower than in the prior year, following stronger-than-prior year sales performances in April and May.

“Although the group has slightly improved the level of gross margin in the five months period to 31 May, overheads have increased slightly and as a result profit before tax in the five months is marginally below the comparable last year,” the board said in its statement.

“However, disappointing levels of order intake across the group so far during June lead the directors to remain cautious regarding the outlook for the results for the six months to 30 June.”

Slingsby had net debt of £1.4m at 31 May, compared to £1.8m a year earlier.

The group said it was continuing to operate within its existing banking facilities, with additional funding options available should the need arise.

“Uncertainty remains regarding the quantum and timing of future payments to the defined benefit pension scheme,” the board noted.