UK MRO reseller Slingsby has said revenue for the first four months of 2023 was 3% higher than the corresponding period last year.
This indicates a slowdown during the month of April: for the first quarter (January-March), Slingsby’s top line was trending 5% up on 2022. While the company said gross profit margin at the start of 2023 was up versus last year, the benefits of this are being more than offset by higher overheads. As a result, pre-tax profit for the four months to the end of April was £0.1 million, about half of that reported 12 months ago.
“The market remains competitive and the group remains cautious regarding the outlook for the remainder of the financial year,” Slingsby said in a trading update ahead of its annual general meeting. “This is particularly the case given the significant uncertainty remaining caused by the continuing conflict in Ukraine, the risk of a recession in the group’s main UK market and given that the longer-term impacts of coronavirus and Brexit are not yet fully known.”
It added: “Inflationary pressures remain, leading to cost price increases across the product range and in overheads. This increased level of overheads in the first four months of 2023 is considered by the directors likely to persist for the remainder of the year.”