HC Slingsby reports improvement in sales over first quarter but 'significant uncertainty' remains

The full year operating profit, before exceptional items, in 2022, was £0.63m on sales of £21.6m.

Last year, group sales increased by 9 per cent, which together with an improved gross margin, led to a profit before taxation and exceptional items of £0.49m. Group sales in the first quarter of 2023 increased by 5 per cent, when compared with the same period the year before.

On March 30 2023, Slingsby acquired certain assets of Stakrak Limited, which trades primarily through the websites Stakrak, GasCageDirect and SecurityCagesDirect.

In a statement, the company said: “The increase in group sales is principally due to the group passing cost price increases which occurred across its product ranges on to customers. This action resulted in the improvement in gross margin in 2022.

The statement said that “significant uncertainty” remains caused by the continuing conflict in 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,’’ the statement added.

“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. The group has faced numerous challenges in recent years which were overcome due to the positive attitude and hard work of our employees.”