19th Jun 2020 10:27
(Alliance News) - HC Slingsby PLC on Thursday reported profit growth over the past five months amid tight cost control and improved margin, but warned that Brexit and coronavirus may hurt demand going forward.
Ahead of its annual general meeting, the industrial and commercial equipment distributor said sales were 4% lower in the three months to the end of March compared with a year prior.
Meanwhile, gross profit margin improved and overheads were lower, leading to operating profit being higher than the prior year.
Slingsby said sales in the five months to May 31 were 3% lower year-on-year, but the trends in gross profit margin and overheads experienced in the first quarter of 2020 have continued in the second quarter and, as a result, operating profit in the five months to the end of May has remained higher when compared with the year before.
Looking ahead, the Shipley, Yorkshire-based company said the market remains competitive and it remains cautious regarding its outlook.
Slingsby said orders are concentrated on a limited product range, and it is unclear what impact Covid-19 will have on demand going forward.
It also warned that demand could be hurt closer to the end of the Brexit transition period.
The company said it had net debt of GBP950,000 as at the end of May compared to GBP1.3 million a year prior and GBP1.1 million as at the end of 2019.
AIM-listed Slingsby shares were trading 17% higher in London on Friday at 79.00 pence each.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Slingsby H.c