Cautious outlook for industrial equipment supplier amidst ongoing uncertainty
Baildon-based HC Slingsby, which distributes industrial and commercial equipment, has reported revenues of £21.6m in its audited results for the year ended 31 December 2022 (2021: £19.8m).
The business also records pre-tax profits of £485,000 (2021: £822,000) and EBITDA of £1.1m (2021: £0.9m).
In an update today, the company notes: “The market remains competitive, and the Board is cautious regarding the outlook.
“This is particularly the case due to the significant uncertainty that remains caused by the continuing conflict in the Ukraine, the risk of a recession in the Group’s main UK market and that the longer term impacts of the Coronavirus pandemic and Brexit are not yet fully known.
“It is unclear as to the impact that these events will have on demand going forward.
“In addition, inflationary pressures remain leading to cost increases across the product range and in overheads. This could impact on the Group’s gross margin and profits in 2023.
“While supply chain issues have lessened both in terms of supply of components and availability of transport, they remain problematic and impact on customer service levels and in some instances could lead to lost sales opportunities.”
In an update on its most recent trading, Slingsby says group sales in quarter one of 2023 against the same period in 2022 increased by 5%.
This improvement in sales at a higher gross margin was offset by increased overhead costs. This led to an unaudited profit before tax in quarter one 2023 of £0.12m compared to £0.16m in the same period in 2022.