Slingsby reports volatile trading, drops interim divi
Source - SMW
HC Slingsby said trading remains volatile, particularly so either side of the Brexit referendum, and management remains focused on realising synergies across the Group and on initiatives to improve the sales performance and our commercial proposition.
"In view of the trading performance, the Board has decided not to declare an interim dividend," said interim executive chairman Dominic Slingsby.
"Costs have also been reduced and the Group IT system is being installed at ESE," he said. "The Company has an obligation to fund its defined benefit pension scheme and contributions to this scheme totalled £500,000 in the 2015 calendar year, which were paid in equal monthly contributions.
"This, together with the scheme's running costs of approximately £160,000 per annum, represents a major commitment for the Group to meet.
"Since the vote to leave the European Union was announced and in common with many other schemes, the outlook for pension commitments has worsened and could lead to the Company paying an increased amount into the scheme in the longer term.
"Following this change of circumstances, the Company is working with the pension scheme trustee to look at options for a longer term solution to these pension commitments.
"Whilst this takes place, the Company has agreed with the trustee that it will suspend deficit reduction monthly payments to the scheme from 1 July 2016 until at least the end of the year. "The directors continue to search for a new Non-Executive director and are confident that an appointment will be made in the near future."
At 10:48am: (LON:SLNG) Slingsby H C PLC share price was 0p at 125p