H.C. Slingsby Reports Decrease in First-Half Profit

Overview

The London-listed commercial and industrial workplace supplies manufacturer, H.C. Slingsby, has announced a decline in pretax profit for the first half of the year. The company attributes this decrease to higher costs and states that it will not be declaring a dividend due to the uncertain outlook. Despite these challenges, H.C. Slingsby highlights a 4% increase in sales compared to the previous year.

Financial Performance

• Pretax profit for the first half of the year amounted to £197,000, down from £244,000 in the same period last year.
• Revenue saw a slight rise to £11.5 million, compared to £11 million in the previous year.

Operational Challenges

H.C. Slingsby experienced disruptions in its operations during the month of June, as one of its main logistics partners faced insolvency proceedings. This led to increased freight costs and negatively impacted gross margins. The company anticipates that these effects may persist for the remainder of the year, despite implementing mitigating measures.

Uncertain Economic Environment

The company acknowledges ongoing inflationary pressures, particularly in relation to overheads. It expects these pressures to persist throughout the year. Additionally, H.C. Slingsby raises concerns about potential credit-related issues that may arise if customers become insolvent in the current economic climate.