WORKPLACE products group H C Slingsby, which saw losses rise again last year, needs “urgent action” to restore profitability, according to its interim boss.

The Baildon-based firm has seen a recent shake-up of senior management and continues to struggle against falling sales in a tough marketplace after seeing losses rise to £630,000 after acquisition and restructuring costs from £450.000 a year earlier.

Executive chairman John Waterhouse, who is in temporary charge after former managing director Dominic Slingsby stood down in April to become operations director, said Slingsby would need further significant changes in the way it does business to respond to market challenges.

Lee Wright, sales and marketing director, also resigned from the board earlier this month.

In the year ended December 31, Slingsby’s sales fell away in the final two months, although overall sales rose to £17.1 million, against £12.6 million in 2014.

The latest figure included a £4.8 million contribution by Norwich-based industrial equipment supplier ESE Direct Limited, which was acquired in March 2015,

In view of the continuing loss in 2015, the board is not recommending a final dividend payment. In 2014 investors received 6p a share.

Mr Waterhouse said sales in the first quarter of 2016 were 3.3 per cent down on the same period last year, with signs that the decline was slowing down.

Whilst ESE’s performance since acquisition had fallen short of initial expectations, Mr Waterhouse said he expected that recent management changes and resulting synergies would improve its profit contribution in 2016.

In a statement to shareholders he states: “The market continues to be extremely competitive and we have to recognise that we have to respond to that challenge with further significant changes in the way we do business.

“ Your board recognises that continuing trading losses are not acceptable and that urgent action is necessary to return your company to profitability.

“These are difficult times for your company as we strive to adapt to meet the challenges of today’s market and I ask that shareholders show their support for the board’s recovery plan by re-electing all the directors offering themselves for re-election at the Annual General Meeting on 30 June.”

A new managing director is being sought, along with one or two more non-executive directors to strengthen the board. Mr Waterhouse said he intends to retire once the new board is in place.

Dominic Slingsby was the fourth generation Slingsby to run the business, founded by his great grandfather Harry Crowther Slingsby in 1893.