Sales rise at listed industrial equipment supplier, but uncertainty remains
HC Slingsby, which distributes industrial and commercial equipment, says its sales in the four months to 30 April 2021 were 6% higher compared to the same period in the prior year.
In a trading update for this period released today, the Baildon-based business adds its unaudited pre-tax profits for these four months was £0.1m. Unaudited pre-tax profits in the four months to 30 April 2020 was £0.2m.
Slingsby notes the market remains competitive and the Group remains cautious regarding the outlook, particularly due to the significant uncertainty caused by Coronavirus.
It cautions that whilst the Group’s sales grew in 2020 due to demand for Coronavirus related products, the business has not experienced the same level of orders in April and May 2021 that it did during 2020.
The update adds: “It is unclear as to the impact the virus will have on demand going forward. There is also heightened potential for credit related issues should customers become insolvent.
“The Group continues to experience significant cost increases across its product range as well as higher shipping costs and delays.
“These increases impacted on gross margin in the first four months of 2021 and the directors consider the impact on gross margins is likely to persist for the remainder of the year.”
Slingsby had unaudited net cash of £0.9m as at 30 April 2021 compared to £1.2m net debt as at 30 April 2020 and £0.3m net cash as at 31 December 2020.