Industrial equipment supplier hit by price rises and shipping delays

Baildon-based HC Slingsby, which distributes industrial and commercial equipment, says its sales in the six months to 30 June 2021 were 5% lower than in the same period in 2020.

In its report for the half year ended 30 June 2021, the business records revenues of £10m in 2021, compared to £10.5m the previous year.

The listed business made an unaudited profit before tax of £0.1m for this period in 2021 compared to £0.4m in 2020.

Slingsby says it had net cash of £0.8m at 30 June 2021 (net debt of £0.4m at 30 June 2020) compared to £0.3m at 31 December 2020.

The Group adds it continues to operate within its existing banking facilities and its directors continue to believe the business has additional funding options available should the need arise.

Dominic Slingsby, interim executive chairman and operations director, said: “We were cautious regarding the outlook due to continued uncertainty caused by the coronavirus pandemic. 

“Whilst the Group’s sales grew in 2020 due to demand for virus related products, the same level of order intake that was experienced in 2020 had not recurred in 2021. 

“In addition, the Group has experienced significant cost price increases across its product range as well as higher shipping costs and delays which impacted on gross margin.

“The market remains competitive and it remains unclear what impact the pandemic will have on demand going forward.

“The downward trend in gross margin is likely to persist for the remainder of the year and there is also heightened potential for credit related issues should customers become insolvent.

“Due to the uncertain outlook, the Board has decided not to declare an interim dividend.”

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