Slingsby hit with 'significant cost increases' across product range
Industrial and commercial equipment distributor Slingsby warned on Wednesday that it had continued to experience "significant cost increases" across its product range as well as higher shipping costs and delays.
Slingsby said on Wednesday that group sales in the three months ended 31 March were up 8% year-on-year, offsetting the impact of a fall in group gross profit margins and also leading to a flat unaudited pre-tax profit of £100,000.
However, for the four months to 30 April, sales were up 6% but the AIM-listed group cautioned that the downward trend in gross profit margins meant that pre-tax profits remained at £100,000 - short of the £200,000 reported at the same time a year earlier.
Slingsby stated the market was still "competitive" and that it was “cautious” regarding the outlook, principally due to the "significant uncertainty" caused by Covid-19.
"Whilst the group's sales grew in 2020 due to demand for coronavirus-related products, the group has not experienced the same level of orders in April and May 2021 that it did during 2020. It is unclear as to the impact that the virus will have on demand going forward," said Slingsby.
"The group continues to experience significant cost increases across its product range as well as higher shipping costs and delays. These increases impacted on gross margin in the first four months of 2021 and the directors consider the impact on gross margins is likely to persist for the remainder of the year."
As of 0850 BST, Slingsby shares had slumped 25.93% to 200.0p.