Margins hit by rising costs at industrial equipment supplier

HC Slingsby, which distributes industrial and commercial equipment, reports that it continues to be hit by significant cost increases across its product range as well as higher shipping costs and delays.

In a trading update for the five months ended 31 May 2022, the Baildon-based business adds the increases impacted its gross margin in the first five months of 2022 and it expects this impact to persist for the remainder of the year.

Group sales were 4% higher in the three months to 31 March 2022 compared with the corresponding period in 2021. 

This improvement in sales offset the impact of a fall in Group gross profit margin, resulting in an unaudited profit before tax of £0.16m compared with £0.14m in the same period in the prior year.

Group sales in the five months to 31 May 2022 were 8% higher when compared to the same period in the prior year. 

The trend in Group gross profit margin experienced in the first quarter of 2022 has continued in the second quarter and, as a result, unaudited profit before tax in the five months to the end of May 2022 is £0.17m. Unaudited profit before tax in the five months to 31 May 2021 was £0.07m.

Slingsby’s trading update adds: “The market remains competitive and the Group remains cautious regarding the outlook.

“This is particularly the case due to the significant uncertainty remaining from the aftermath of Coronavirus, the impact that high inflation may have on the UK economy and the conflict in the Ukraine.

“It is unclear as to the impact that these factors will have on demand going forward.”