H C Slingsby reports H1 operating profit despite sales decline

LONDON - Industrial and commercial equipment supplier H C Slingsby plc reported an operating profit before tax and exceptional items of £0.11 million for the six months ended June 30, 2025, up from £0.08 million in the same period last year, despite a 3% decline in sales.

The company recorded a loss before tax of £0.09 million for the period, an improvement from the £0.25 million loss reported in the first half of 2024, according to the unaudited half-year report released Tuesday.

The operating profit was achieved despite lower sales and slightly reduced gross margins, as the company managed to offset these factors with reduced overhead costs. However, an exceptional item of £42,000 related to a Formal Sale Process under the Takeover Code, which ran from February to April 2025, impacted the bottom line.

Interest costs of £0.16 million, primarily associated with the company’s defined benefit pension scheme, also contributed to the pre-tax loss.

The Group reported net assets of £4.0 million as of June 30, 2025, a slight increase from £3.92 million at the end of December 2024. The company made deficit reduction contributions totaling £175,000 to its pension scheme during the first half of the year.

Net debt stood at £0.3 million at the end of June 2025, down from £0.6 million at December 31, 2024, but higher than the £0.1 million reported a year earlier.

The Board has decided not to declare an interim dividend, citing the net loss and uncertain outlook.

In the report, Chairman Andrew Kitchingman described the market as "highly competitive" and expressed caution about the outlook for the remainder of the financial year, noting concerns about increased corporate costs from rises in the National Minimum Wage, Employers’ National Insurance, and changes to business rates.

The information was disclosed in a press release statement that corrected figures in an earlier announcement regarding exceptional items.

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