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Holders Technology PLC  -  HDT   

Replacement: 2016 Audited Results

Released 12:16 17-Feb-2017

RNS Number : 2077X
Holders Technology PLC
17 February 2017
 

 

 

 

Holders Technology plc

("Holders Technology" or the "Company")

 

Correction to Preliminary Announcement

 

 

Holders Technology, (AIM: HDT), announces a correction to Preliminary Announcement of 2016 results made earlier this morning. 

 

Some Balance Sheet and Cash Flow Statement figures were incorrectly stated.    The overall results, net assets and cash flow are unaffected.

 

The revised Preliminary Announcement follows

 

 

For further information, contact:

 

Holders Technology plc

01896 758781

Rudi Weinreich, Executive Chairman

 

Victoria Blaisdell, Group Managing Director

 

Paul Geraghty, Group Finance Director

 

 

 

Northland Capital Partners Limited - Nomad & Broker

020 3861 6625

William Vandyk, Director

 

 

Website www.holderstechnology.com

 

 

Holders Technology plc

 

Specialised PCB Materials, LED Components and Lighting Solutions

 

Audited results for the year ended 30 November 2016   

 

 

Holders Technology plc ("Holders Technology" or "the Group") announces its audited results for the year ended 30 November 2016.  Holders Technology supplies specialty laminates and materials for printed circuit board manufacture ("PCB"), and operates as an LED solutions provider to the lighting and industrial markets.                          

 

PCB and LED segments achieved modest revenue growth in the year, and margins were maintained.  PCB overheads were reduced, while LED overheads increased due to additional sales recruitment.  The result before restructuring and impairment costs was somewhat behind 2015.     

 

During the year, PCB divisions were restructured and costs reduced, and the LED Opteon Germany division was closed.  The restructuring costs are shown below.

 

The directors propose to pay a final dividend of 0.25p per share on 23 May 2017.

 

 

Highlights included:                                                                                                                      

               

·     Results compared to 2015:

Group revenue                                           1.7% higher                       

PCB revenue                                                0.4% higher                       

LED revenue                                                5.3% higher                       

Group margins                                            Unchanged

 

·     Operating loss before impairment

and restructuring costs                                                  £191,000

 

·     Operating loss                                                                 £374,000

               

·     Cash balances                                                                  £781,000 (£338,000 higher than 2015)

 

 

Chairman's statement

 

In my statement accompanying the 2015 Annual Report and Accounts I stated that the board was evaluating various options to return Holders Technology Group ("The Group") to profitability. As a result of this review some changes to our management team were made, coupled with a significant restructuring programme and the closure of an unprofitable division.  A number of sales staff have been changed and investments made to enhance our plant and machinery.

 

Inevitably changes of this nature impose a major short term cost but we believe they are essential to achieving our goal of restored profitability.

 

The overall Group result, excluding restructuring costs, was broadly similar to the preceding year with revenue increasing by 1.7% from £11.2 to £11.4m. The 2016 year did not include any revenue from our former Indian joint venture which we exited in 2015 but the impact of the stronger Euro following the EU referendum in June had a significant offsetting impact on the 2016 result. 

 

The Group operating result before impairment and restructuring costs was a loss of £191,000 (2015: operating loss £126,000).  Impairment and restructuring costs increased the operating loss to £374,000 (2015: £151,000).

 

The PCB divisions together had revenues of £8.3m (2015: £8.3m) and achieved an operating profit of £115,000 (2015: loss £3,000) before restructuring costs of £116,000.  Including restructuring and impairment costs, the PCB divisions made an operating loss of £1,000 (2015: loss £28,000).

 

Our German operations remain the predominant element of the Group's PCB sales, the second half of the year saw some benefit from the restructuring programme and the operations were profitable. The UK PCB operations, as anticipated, saw a reduction in revenue but the major changes made within this entity enabled it to achieve a small positive contribution for the year.

 

Total LED revenues amounted to £3.0m (2015: £2.9m).  Combined operating losses before restructuring costs of £67,000 totalled £275,000 (2015: loss of £26,000).  The LED divisions made an operating loss after restructuring costs of £342,000 (2015: £26,000).

 

The various LED elements of our business had very mixed results but taken together they were behind our expectations. While the UK division, Holders Components, achieved growth in both revenue and profitability and Holders Germany maintained its position, NRGstar saw a marked decline as did Opteon Germany.  Action has been taken to change the sales teams in a number of these entities and Opteon Germany has been closed.

 

Last year I reported that the Group faced a potential EU Cross Border Group Relief claim totalling £192,000 and that we had fully provided for this amount in that year's accounts. While some of the claim has been agreed a balance of £126,000 is still subject to further discussion.

 

2016 was a difficult year for the Group but our staff showed commitment and support throughout the year for which we thank them.

 

The Board has a continuing belief in the Group's ability to overcome the difficulties it confronts.  It is heartened by the initial signs of improved PCB performance, and by the customer interest in the new "smart lighting" products added into the LED divisions. Given this belief the Board considers it appropriate to recommend a final dividend of 0.25p for the 2016 year. 

 

 

R W Weinreich 

Executive Chairman

16 February 2017

 

 

Group income statement for the year ended 30 November 2016

 

 

 

 

Note

2016

2015

 

 

 

 

£'000

£'000

 

 

 

 

 

 

Revenue

 

 

 

11,380

11,195

Cost of sales

 

 

 

(8,539)

(8,396)

Gross profit

 

 

 

2,841

2,799

Distribution costs

 

 

 

(399)

(364)

Administrative expenses

 

 

 

(2,749)

(2,652)

Restructuring costs

 

 

 

(183)

-

Impairment costs

 

 

 

-

(25)

Other operating income

 

 

 

116

91

Operating loss

 

 

 

(374)

(151)

Finance income

 

 

 

3

1

Finance expenses

 

 

 

(7)

(16)

Loss before taxation

 

 

 

(378)

(166)

Tax expense

 

 

2

(17)

(195)

Loss for the financial year

 

 

 

(395)

(361)

 

 

 

 

 

 

Basic loss per share

4

(9.72p)

(9.16p)

Diluted loss per share

4

(9.72p)

(9.16p)

Total loss per share

4

(9.72p)

(9.16p)

 

 

Group statement of comprehensive income for the year ended 30 November 2016

 

 

 

 

2016

£'000

2015

£'000

Loss for the year

 

 

(395)

(361)

Items that may be reclassified subsequently to profit or loss:

 

 

 

     Exchange differences on translating foreign operations

 

 

346

(246)

Total comprehensive income and expense for the year

 

 

(49)

(607)

 

 

Statements of changes in equity for the year ended 30 November 2016

 

 

Group 

Share capital

Share premium

Capital redemption reserve

Translation reserve

Retained earnings

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 November 2014

416

1,531

1

34

2,512

4,494

Dividends

-

-

-

-

(20)

           (20)

Employee share-based payment options

-

-

-

-

3

3

Transactions with owners

-

-

-

-

(17)

(17)

Loss for the year

-

-

-

-

(361)

(361)

Exchange differences on translating foreign operations

-

-

-

(246)

-

(246)

Total comprehensive income for the year

-

-

-

(246)

(361)

(607)

Balance at 30 November 2015

416

1,531

1

(212)

2,134

3,870

Dividends

-

-

-

-

(20)

                    (20)

Shares issued

-

59

-

-

-

59

Transactions with owners

-

59

-

-

(20)

39

Loss for the year

-

-

-

-

(395)

(395)

Exchange differences on translating foreign operations

-

-

-

346

-

346

Total comprehensive income for the year

-

-

-

346

(395)

(49)

Balance at 30 November 2016

416

1,590

1

134

1,719

3,860

 

 

 

Company 

Share capital

Share premium

Capital redemption reserve

Retained earnings

Total equity

 

 £'000

£'000

£'000

£'000

£'000

Balance at 1 December 2014

416

1,531

1

51

1,999

Profit/ (loss) and total comprehensive income for the year

-

-

-

138

138

Dividends

-

-

-

(20)

(20)

Share-based payment charge

-

-

-

3

3

Balance at 30 November 2015

416

1,531

1

172

2,120

Profit/ (loss) and total comprehensive income for the year

-

-

-

437

437

Dividends

-

-

-

(20)

(20)

Shares issued

-

59

-

-

59

Share-based payment charge

-

-

-

-

-

 Balance at 30 November 2016

416

1,590

1

589

2,596

 

 

Balance sheets at 30 November 2016

 

 

 

Group

Company

 

 

2016

2015

2016

2015

 

 

£'000

£'000

£'000

£'000

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Goodwill

 

318

316

-

-

Property, plant and equipment

 

400

327

6

4

Investments in subsidiaries

 

-

-

2,291

2,291

Investment in joint venture

 

-

-

-

15

Deferred tax assets

 

9

16

-

-

 

 

727

659

2,297

2,310

Current assets

 

 

 

 

 

Inventories

 

2,365

2,533

-

-

Trade and other receivables

 

1,790

1,556

592

433

Current tax assets

 

-

59

-

-

Cash and cash equivalents

 

781

443

318

25

 

 

4,936

4,591

910

458

Liabilities

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

(1,457)

(975)

(611)

(627)

Current tax liabilities

 

(122)

(213)

-

(21)

 

 

(1,579)

(1,188)

(611)

(648)

Net current assets

 

3,357

3,403

299

(190)

Non-current liabilities

 

 

 

 

 

Retirement benefit liability

 

(219)

(181)

-

-

Deferred tax liabilities

 

(5)

(11)

-

-

 

 

(224)

(192)

-

-

 

 

3,860

3,870

2,596

2,120

Shareholders' equity

 

 

 

 

 

Share capital

 

416

416

416

416

Share premium account

 

1,590

1,531

1,590

1,531

Capital redemption reserve

 

1

1

1

1

Retained earnings

 

1,719

2,134

589

172

Cumulative translation adjustment reserve

 

134

(212)

-

-

 

 

3,860

3,870

2,596

2,120

 

 

Statements of cash flows for the year ended 30 November 2016

 

 

 

Group

Company

 

 

2016

 2015

2016

 2015

 

 

£'000

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

 

Operating loss

 

(374)

(151)

(24)

(92)

Share-based payment charge

 

-

3

-

3

Depreciation

 

74

86

2

8

Decrease/(Increase) in inventories

 

192

(102)

-

-

(Increase)/decrease in trade and other receivables

 

(298)

295

41

17

Increase/(decrease) in trade and other payables

 

824

(86)

(16)

65

Cash generated from operations

 

418

45

3

1

Corporation tax paid

 

(48)

(7)

(1)

(1)

Net cash generated from operations

 

370

38

2

-

Cash flows from investing activities

 

 

 

 

 

Purchase of property, plant and equipment

 

(110)

(161)

(4)

(4)

Proceeds from sale of property, plant and equipment

-

3

-

-

Proceeds from joint venture

22

-

50

-

Dividends received from Group undertakings

-

-

200

-

Interest received

 

3

1

6

4

Net cash (used in)/generated from investing activities

(85)

(157)

252

-

Cash flows from financing activities

 

 

 

 

 

Interest paid

 

(7)

(16)

-

-

Proceed from sale of shares

 

59

-

59

-

Equity dividends paid

 

(20)

(20)

(20)

(20)

Net cash generated from/ (used in) financing activities

 

32

(36)

39

(20)

 

Net change in cash and cash equivalents

 

 

317

 

(155)

 

293

 

(20)

Cash and cash equivalents at start of period

 

443

634

25

45

Effect of foreign exchange rates

 

21

(36)

-

-

Cash and cash equivalents at end of period

 

781

443

318

25

 

Notes

 

1.    Basis of preparation

The Group and parent company financial statements have been prepared in accordance with EU endorsed International Financial Reporting Standards (IFRS), International Financial Reporting Interpretations Committee (IFRIC) interpretations and with those parts of the Companies Act applicable to companies reporting under IFRS.  All accounting standards and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee effective at the time of preparing these financial statements have been applied.

 

2.    Taxation

 

2016

£'000

2015

£'000

Analysis of the charge in the period

 

 

Current tax

 

 

-   Current period

-

6

-   Adjustments in respect of prior periods

17

179

 

17

185

Deferred tax

-

10

Total tax

17

195

 

 

 

Tax reconciliation

 

 

 

 

 

The tax for the period is higher (2015: higher) than the standard rate of corporation tax in the UK, effectively 20.0% (2015: 20.0%) for the company's financial year.  The differences are explained below:

 

 

2016

£'000

2015

£'000

Loss before taxation

(378)

(166)

 

 

 

Loss before taxation multiplied by the rate of corporation tax in the UK of 20.0 % (2015: 20.0%)

 

(76)

 

(33)

 

 

 

Effects of:

 

 

Differences between capital allowances and depreciation

-

4

Adjustments in respect of prior years

17

176

Taxation losses

64

35

Other temporary differences

12

13

Taxation

17

195

 

 

3.    The directors have proposed a final dividend of 0.25p per share payable on 23 May 2017 to shareholders on the register at close of business on 5 May 2017.  The total dividend for the year, including the interim dividend of 0.25p (2015: 0.25p) per share paid on 11 October 2016, amounts to £20,000 (2015: £20,000), which is equivalent to 0.50p (2015: 0.50p) per share.

 

4.    The basic earnings per share are based on the loss for the financial year of £395,000 (2015: loss of £361,000) and on ordinary shares 4,063,813 (2015: 3,939,551), the weighted average number of shares in issue during the year.  There was no earnings dilution calculated in 2015 and 2016 as a loss was recorded by the Group.

 

5.    This preliminary statement, which has been approved by the Board on 16 February 2016, is not the Company's statutory accounts.  The statutory accounts for each of the two years to 30 November 2015 and 30 November 2016 received audit reports, which were unqualified and did not contain statements under section 498(2) and section 498(3) of the Companies Act 2006.  The 2015 accounts have been filed with the Registrar of Companies but the 2016 accounts are not yet filed.

 

For further information, contact:

 

Rudi Weinreich, Executive Chairman, Holders Technology plc,

Tel. 01896 758781

Paul Geraghty, Group Finance Director, Holders Technology plc,

Tel. 01896 758781

William Vandyk, Director, Corporate Finance, Northland Capital Partners Ltd,

Tel. 020 7382 1100

 

Website www.holdersgroup.com   

ENDS    


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Replacement: 2016 Audited Results - RNS