Slingsby takes action to reverse losses
WORKPLACE supplies group H C Slingsby has made major changes to its business after falling to a loss last year.
The Baildon-based group, founded in 1893 by Harry Crowther Slingsby as a truck and trolley manufacturer, now distributes more than 35,000 products for industrial and commercial uses ranging from handling and lifting equipment to retail and office supplies.
The company made a pre-tax loss of £249,000 on sales of £14m in the year to the end of December 2013 which it blamed on “fierce price competition” and a lack of upturn in its markets.
Chairman John Waterhouse said that the company had taken action including cutting its workforce by 20% and taking out a layer of management as well as closing its manufacturing unit and sub-contracting the manufacture of in-house designed products.
He said sales in the first three months of 2014 were 11% down from last year with margins continuing to be under pressure from aggressive pricing by competitors. In addition, exceptional restructuring costs of approximately £180,000 have been incurred in the current year.
He added: “The full benefit of our cost reductions will not take effect until June and will result in reduced monthly overhead costs which, even on the current depressed level of sales, would improve the company’s monthly operating performance going forward in the second half of 2014. The board believes this will provide a secure platform for recovery as our initiatives to increase sales take effect.”
The group had £2.3m of cash on its balance sheet at the year end and is to pay a 10p dividend.
