Sales fall at industrial equipment provider as its customers face rising costs
Industrial equipment supplier, HC Slingsby, says its sales in the nine months to 30 September 2024 were 8% lower when compared to the same period in the prior financial year.
In a trading update for this period released today, the Baildon-based business notes group sales in quarter three 2024 were down 11% on that achieved in quarter three 2023.
The firm attributes this to customers cutting or deferring spending following cost increases caused by factors such as the increase in the minimum wage, lower sales of seasonal products and uncertainty around the impact of future tax and regulatory changes.
It adds the decline in sales and increases in overhead costs have resulted in an unaudited loss before tax for the nine months to the end of September 2024 of £0.53m (after the costs associated with the retirement of a director of £0.2m and interest costs of £0.20m relating to the company’s defined benefit pension scheme).
In comparison, the firm made an unaudited profit before tax for the nine months to 30 September 2023 of £0.27m.
A spokesman for HC Slingsby said: “The market remains competitive and the group remains cautious regarding the outlook for the remainder of the financial year.
“This is particularly the case given the recent lower level of sales and volatility in order intake which makes demand going forward difficult to forecast.
“The directors will keep the group’s cost base under review as appropriate.”
The group had unaudited net debt of approximately £0.36m as of 30 September 2024 compared to net debt of approximately £0.08m as of 30 June 2024 and net cash of £0.21m as of 31 December 2023.
