9th Jun 2021 09:15
Alliance News) - HC Slingsby PLC said it has scraped out a narrow profit in the first four months of the year.
But in a statement ahead of its annual general meeting on Wednesday, the industrial and commercial equipment distributor warned that increased costs are cutting into its profit margin.
Shares were down 26% to 200.00 pence in London on Wednesday morning following the statement.
HC Slingsby said higher sales offset the impact of lower margins and led to a modest pretax profit in the four months to April 30 of GBP100,000, down from GBP200,000 a year prior.
Sales in the four months to April 30 were 6% higher when compared with the corresponding period in 2020.
The Shipley, England-based firm said it remained cautious regarding its outlook, with the pandemic bringing uncertainty, and the group not experiencing the same level of orders in April and May 2021 that it did during 2020.
HC Slingsby commented that it "continues to experience significant cost increases across its product range" along with higher shipping costs and delays. The increases had reduced margin in the first four months of 2021 and are forecast to persist for the remainder of the year, the company added.
By Will Paige; [email protected]
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