24th Apr 2015 10:06
LONDON (Alliance News) - HC Slingsby PLC Friday reported a wider loss for 2014, as revenue declined and it booked restructuring costs as it moved to cut overheads in reaction to the weak trading, and while sales have improved so far in 2015, they remain fragile.
The AIM-listed workplace equipment distributor reported a pretax loss of GBP453,000 for 2014, compared with the GBP249,000 loss it reported in 2013, as revenue declined to GBP12.6 million from GBP14.0 million, and it booked GBP193,000 in restructuring costs.
The company had already reported a trading loss in the first half of the year and Chairman John Waterhouse said: "Sales in the autumn did improve before falling away sharply in the last two months of the year. However the severe action taken in the first quarter to reduce overheads took full effect in the second half and helped restrict the pre-tax trading loss for the second six months to GBP72,000".
"Sales so far in 2015 have improved after a slow start but remain fragile. However we have seen encouraging year-on-year increased sales from our website reflective of our investment in this area. Slingsby has recognised the constant need to drive value along with its well established service offering and has therefore invested further in its pricing proposition. This stronger offer will keep Slingsby competitive in a market place where price visibility is so readily accessible," he added.
Last month, Slingsby bought Norwich-based peer ESE Direct Ltd, which recorded a pretax profit of GBP0.35 million on sales of GBP6.5 million in 2014. It paid GBP3.3 million net of surplus cash.
"The acquisition provides us with an opportunity to diversify our brand portfolio enabling the more effective targeting of different sub-sets of customers with alternative service propositions and varying pricing strategies. We also see significant synergies between ESE and Slingsby, particularly in leveraging our supply chains," Waterhouse said.
Despite the investment in ESE Direct, Slingsby said it would pay a final dividend for 2014 of 4 pence, down from 10p a year earlier, bringing the total dividend for the year to 6p, half the level it paid in 2013.
HC Slingsby shares were down 3.0% at 400.00p Friday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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