17th Jun 2015 15:47
LONDON (Alliance News) - HC Slingsby PLC Wednesday said its pretax losses so far in 2015 are "marginally" worse than those incurred at the same stage last year.
In a statement, the industrial and commercial equipment distributor said sales in the first five months of 2015 were about 3% lower than in the same months of last year.
"Whilst we have seen growth in sales from our website, as well as buoyancy in the overall volume of orders; erosion of value in our higher spend accounts has offset these gains," the company said.
The company the "competitive nature" of the market put pressure on margins, with non-recurring professional fees and other costs relating to its acquisition of ESE Direct Ltd, also played a part in financial performance.
HC Slingsby said it has taken action to address the "unsatisfactory" performance, with Christian Slingsby to stand down from his executive position as sales director to "concentrate on a more customer facing day to day role in the South of England".
Marketing Director Lee Wright will be responsible for managing the sales team, with his title changing to 'Sales and Marketing Director.
The company will be refocusing its marketing budget on "more aggressive new customer acquisition strategies in higher life time value accounts", as well as targeting further cost cuts.
Following news of its acquisition on March 27, ESE Direct's sales fell short of budget and prior year in April and May, meaning it has not generated the profitability and cashflow expected by HC Slingsby.
"ESE operates in a different market sector to the company with a more transient customer base which can lead to volatility in sales. However, the company will continue to keep ESE's performance under close review," HC Slingsby said.
"Initial progress has been made on realising supply chain and cost synergies," HC Slingsby added.
HC Slingsby shares were untraded on Wednesday. The stock last traded at 355.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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