19th Jun 2024 12:06
(Alliance News) - HC Slingsby PLC on Wednesday said a drop in sales meant the firm made a loss in the five months ending May.
The Shipley, England-based industrial and commercial equipment distributor said sales in the first five months of 2024 had fallen 4% from a year prior. This was a slight improvement on the 5% fall in the three months to March, although the company explained that April had a weak prior-year comparative.
In May, the drop was more pronounced, at 12% from the year before.
The company said the sales decline, combined with GBP200,000 in costs associated with the retirement of Dominic Slingsby, led to an unaudited pretax loss of GBP220,000 in the five months to May, compared with a GBP130,000 profit a year prior.
Shares in HC Slingsby fell 3.2% to 300.00 pence in London on Wednesday.
HC Slingsby said 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 in the UK, lower sales of seasonal products, and uncertainty caused by the upcoming UK general election on July 4.
The impact that these factors will have on demand going forward is difficult to forecast, the company added.
"The market remains competitive and the group remains cautious regarding the outlook for the remainder of the financial year," HC Slingsby added.
The firm had a cash position of GBP230,000 at May 31, slightly improved from a year before.
By Jeremy Cutler, Alliance News reporter
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