12th Jun 2019 15:00
(Alliance News) - HC Slingsby PLC said Wednesday sales in the five months to May were higher than the year before, but the company is "cautious" in its outlook for the rest of the half due to Brexit uncertainty.
In the industrial equipment supplier's annual results, published on May 10, the company said sales in the three months to March 31 were 5.0% higher than the corresponding period a year prior.
In the three month period, HC Slingsby said "adverse movements" in the company's margins and increased overheads resulted in operating profit coming in lower than the year before.
For the five months to May 31, the company's sales were 3.5% ahead of the corresponding period a year prior.
HC Slingsby said the lower sales growth in the five-month period compared to the three-month period reflects lower levels of growth in April and May.
"The trends in group margin and overheads experienced in the first quarter of 2019 have continued in the second quarter and, as a result, operating profit in the four months to the end of April 2019 have remained lower when compared with the same period to April 2018," the company said.
HC Slingsby continued: "The group has suffered variability in its level of order intake since the decision to extend the Brexit date, which was an event the group and a portion of its customer base had planned for. The effect on short term demand from the unwinding of these plans, together with the additional economic uncertainty created by the Brexit extension, means that we are cautious regarding the outlook for the results for the six months to June 30."
At May 31, the company had net debt of GBP1.3 million compared to GBP1.4 million the year before.
"The group continues to operate within its existing banking facilities and considers that it has 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 company added.
Shares in HC Slingsby were untraded Wednesday, but last closed at 97.5 pence each.
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