Shares in industrial supplies company, Slingsby (LON: SLNG), surged 72% following the half-year results released on Tuesday.
Sales in June 2020 were 50% higher than a year earlier, leading to an operating profit of £0.5m for the six months to 30 June 2020 – £0.4m higher than the same period a year earlier.
Pre-tax profit was £0.4m compared to a prior year loss before tax of £52,000.
in a statement, Dominic Slingsby the group’s chairman, said: “In my trading update of 19 June 2020, I reported that Group sales in the five months to 31 May 2020 were 3% lower than prior year but that an improved level of gross margin and lower overheads meant that operating profit was higher than the comparable period in 2019. We were cautious regarding the outlook due to the significant uncertainty caused by the Coronavirus and that orders were concentrated on a limited product range.”
“Orders remain focussed on a limited number of products. The Group has managed to largely fulfil demand for these products to enable customers to continue or re-start their operations in accordance with Government Coronavirus guidance.”
“However, we remain cautious that this increase in demand is short term and economic conditions may deteriorate should our customers suffer from lower levels of activity than they experienced prior to the pandemic when Government stimulus measures are withdrawn.”
“We would like to thank our employees for their hard work and adaptability which has enabled the Group to maintain its operations and continue to help its customers through this difficult time,” he added.
Shares in Slingsby (LON: SLNG) are trading 36.8% higher at 171.00 (1123GMT).
