LONDON (ShareCast) - (Sharecast News) - Industrial and commercial equipment distributor HC Slingsby said on Friday that full-year operating profits had grown year-on-year in 2019 thanks to improved profit margins and lower overheads.
HC Slingsby said although group sales in the five months ended 31 May were 3% lower when compared to the same period a year earlier, trends in gross profit margin and overheads had continued in the second quarter of 2020, meaning operating profits were again higher year-on-year.

The AIM-listed group said the market remained "competitive" and said it was "cautious" regarding the outlook, principally due to the "significant uncertainty" caused by Covid-19.

"Orders are concentrated on a limited product range and it is unclear as to the impact that the virus will have on demand going forward," said Slingsby, which also pointed to potential credit-related issues should clients become insolvent and the end of the Brexit transition period as further causes for concern.

Slingsby had net debt of £950,000 as of 31 May, down from £1.3m a year earlier and said it was operating within its existing banking facilities.

As of 0830 BST, Slingsby shares had shot up 17.04% to 79p.

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