Profits up at listed industrial equipment distributor

Baildon-based industrial equipment supplier, Slingsby, has reported lower sales but increased profits in it latest trading update.

The business has published a report for the five months ended 31 May 2020, in advance of its Annual General Meeting later this morning.

It says that while Group sales were 4% lower in the three months to 31 March 2020 compared with the equivalent 2019 period, improved Group gross profit margin and lower overheads means operating profit is ahead of the same period in the previous year.

The update adds: “Group sales in the five months to 31 May 2020 were 3% lower when compared to the same period in the prior year.  

“The trends in Group 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 2020 has remained higher when compared with the same period to May 2019.

“The market remains competitive and the Group remains cautious regarding the outlook. This is particularly the case due to the significant uncertainty caused by Coronavirus.

“Orders are concentrated on a limited product range and it is unclear as to the impact that the virus will have on demand going forward.

“There is also heightened potential for credit related issues should companies become insolvent. Furthermore, demand could be impacted as we approach the end of the Brexit transition period.”

Slingsby had net debt of £0.95m as at 31 May 2020 compared to £1.3m as at 31 May 2019 and £1.1m as at 31 December 2019.

The Group says it is operating within its existing banking facilities and has additional funding options available should the need arise.