Shares slump as Slingsby’s losses widen

THE share price of HC Slingsby slumped by more than 20% yesterday after its chairman warned it would take all of the staff’s “experience and ingenuity” to return the company to profit.

Losses have widened at the industrial products company, which has also announced the departure of sales and marketing director Lee Wright just one month after managing director Dominic Slingsbsy stepped down to become operations director.

 Executive chairman John Waterhouse told the stock market that continuing trading losses “are not acceptable” and that “urgent action” is necessary to return the company to profitability.

Shipley-based Slingsby reported a pre-tax loss for the year to the end of December of £632,000, compared to £453,000 a year earlier.

It said sales in the autumn showed “some improvement” before falling away in the last two months of the year.

Revenue grew to £17.1m from £12.6m in the period, boosted by revenue from ESE Direct, the rival it acquired in March 2015.

Following its announcement to the stock market, the company’s share price fell by more than one-fifth to 155p. It had traded above 400p in April 2015.

Mr Waterhouse added: “Your board recognises that continuing trading losses are not acceptable and that urgent action is necessary to return your company to profitability.

“We shall seek a new managing director but in the meantime I have taken responsibility for the group as interim executive chairman until the new managing director is in post. We shall in the meantime also seek one or more new non-executive directors to strengthen the board and help our recovery. When the new board is complete I expect to retire from the company.”

HC Slingsby’s products are used across a wide range of industries including factories, supermarkets, hospitals, airlines, nurseries and schools.

The group’s catalogue features a range of over 35,000 essential products for the workplace.