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Holders Technology PLC   -  HDT   

Final Results

Released 09:02 22-Feb-2019

RNS Number : 8016Q
Holders Technology PLC
22 February 2019
 

Holders Technology plc

 

Specialised PCB Materials, LED Components and Smart Lighting

 

Final results for the year ended 30 November 2018

               

 

Holders Technology plc ("Holders Technology" or "the Group") announces its audited results for the year ended 30 November 2018.  Holders Technology supplies specialty laminates and materials for printed circuit board manufacture ("PCB") and operates as an LED solutions provider to the lighting market.

                               

The Group made further progress during the year, with overall revenue growth and improved profitability.

 

The Group comprises two PCB divisions based in the UK and Germany, and two LED divisions also based in the UK and Germany.  In the opinion of the directors, all divisions made satisfactory progress by the year end.

 

The directors will recommend payment of a final dividend of 0.50p per share, a total of 0.75p for the year (2017 total: 0.50p).

 

Highlights included:

 

 

2018

2017

 

 

£'000

£'000

 

 

 

 

·     Revenue

PCB

9,374

9,453

 

LED

3,112

2,755

 

Group

12,486

12,208

 

 

 

 

·     Operating Profit/ (Loss)

PCB

280

214

 

LED

(13)

(92)

 

Central costs

(83)

(57)

 

Group

184

65

 

 

 

 

·     Discontinued Loss

Group

-

(42)

 

 

 

 

·     Pre-tax Profit

Group

177

54

 

 

 

 

·     Cash Balances

Group

403

579

 

 

 

 

·     Basic Earnings per Share

Continuing

4.06p

1.42p

 

Total

4.06p

0.41p

 

 

 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

For further information, contact: 

Holders Technology plc

01896 758781

 

Rudi Weinreich, Executive Chairman

 

 

Victoria Blaisdell, Group Managing Director

 

 

Paul Geraghty, Group Finance Director

 

 

Website www.holderstechnology.com

 

 

 

 

 

SP Angel Corporate Finance LLP - Nomad & Broker

020 3470 0470

 

Matthew Johnson / Jamie Spotswood

 

 

 

 

 

 

Chairman's statement

 

Given our continuing commitment to achieving satisfactory levels of profitability I am pleased to be able to report that the Group has made further progress over the year.  Group revenue for the year was £12.5m (2017: £12.2m), with gross margins of 26.2% (2017: 26.3%).  The operating profit for the year from continuing operations was £184,000 (2017: operating profit of £65,000), and the profit after tax from continuing operations was £169,000 (2017: profit £59,000).

 

The Group comprises two PCB divisions, based in the UK and Germany, and two LED divisions, also based in the UK and Germany. 

 

The PCB divisions together had revenue of £9.4m (2017: £9.5m) and achieved an operating profit of £280,000 (2017: profit £214,000).  Margins reduced from 24.2% to 23.5%.

 

Our German PCB operations, the largest single element of the Group, achieved similar revenue to 2017, but improved operating profit therefrom. Investments were made in machinery and improved systems during the year, and in Q1 2019 an upgraded aluminium coil cutting machine will be installed in our Germany premises.  This investment will enable both further efficiency improvements and will increase capacity.

 

UK PCB operations achieved satisfactory revenue in the year despite a lower level of market demand than 2017. 

 

LED revenues overall amounted to £3.1m (2017: £2.8m) with gross margins increasing from 33.4% to 34.1% and operating losses reducing from £92,000 in 2017 to £13,000 in 2018.  The product range continues to develop with smart lighting controls a key focus for the future.  Both divisions were profitable in the second half of the year.

 

The Cross-Border Corporation Tax liability reported in 2015 is nearing settlement:  £88,000 was paid during 2018 which leaves a potential liability of up to £43,000 remaining which has been fully provided for.

 

We believe the Group is well positioned to deliver further improvements in the current year but recognise that the market conditions that we face remain unpredictable.

 

On behalf of the Board I would like to record our thanks to all of our staff for their hard work during 2018 which resulted in a profitable year for the Group.  Given the improved results, the Board considers it appropriate to recommend an increased final dividend of 0.50p in respect of the 2018 year.

 

 

 

R W Weinreich 

Executive Chairman

21 February 2019

Group income statement for the year ended 30 November 2018

 

 

 

 

Note

2018

2017

 

 

 

 

£'000

£'000

 

 

 

 

 

 

Revenue

 

 

 

12,486

12,208

Cost of sales

 

 

 

(9,220)

(9,003)

Gross profit

 

 

 

3,266

3,205

Distribution costs

 

 

 

(422)

(438)

Administrative expenses

 

 

 

(2,696)

(2,695)

Other operating (expenses)/ income

 

 

 

36

(7)

Operating profit

 

 

 

184

65

Finance income

 

 

 

-

-

Finance expenses

 

 

 

(7)

(11)

Profit before taxation

 

 

 

177

54

Tax credit/ (expense)

 

 

2

(8)

5

Profit after taxation from continuing operations

 

 

 

169

59

Loss from discontinued operations

 

 

4

-

(42)

Profit for the year attributable to equity shareholders

 

 

 

169

17

 

 

 

 

 

 

Basic earnings per share - continuing operations

5

4.06p

1.42p

Diluted earnings per share - continuing operations

5

4.03p

1.34p

Basic and diluted loss per share - discontinued operations

5

-

(1.01p)

Total earnings per share

5

4.06p

0.41p

 

 

 

Group statement of comprehensive income for the year ended 30 November 2018

 

 

 

 

2018

£'000

2017

£'000

Profit for the year

 

 

169

17

Items that may be reclassified subsequently to profit or loss:

 

 

 

     Exchange differences on translating foreign operations

 

 

15

73

Total comprehensive income for the year

 

 

184

90

 

 

 

Group 

Share capital

Share premium

Capital redemption reserve

Translation reserve

Retained earnings

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 December 2016

416

1,590

1

134

1,719

3,860

Dividends

-

-

-

-

(21)

           (21)

Share based payments

-

-

-

-

3

3

Transactions with owners

-

-

-

-

(18)

(18)

Profit for the year

-

-

-

-

17

17

Other comprehensive income

-

-

-

73

-

73

Total comprehensive income for the year

-

-

-

73

17

90

Balance at 30 November 2017

416

1,590

1

207

1,718

3,932

Dividends

-

-

-

-

(21)

       (21)

Share based payments

-

-

-

-

4

4

Transactions with owners

-

-

-

-

(17)

(17)

Profit for the year

-

-

-

-

169

169

Other comprehensive income

-

-

-

15

-

15

Total comprehensive income for the year

-

-

-

15

169

184

Balance at 30 November 2018

416

1,590

1

222

1,870

4,099

 

 

 

Group balance sheet at 30 November 2018

 

 

 

 

 

2018

2017

 

 

 

 

£'000

£'000

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Goodwill

 

 

 

318

318

Property, plant and equipment

 

 

 

357

369

Deferred tax assets

 

 

 

10

16

 

 

 

 

685

703

Current assets

 

 

 

 

 

Inventories

 

 

 

2,849

2,408

Trade and other receivables

 

 

 

1,791

2,272

Cash and cash equivalents

 

 

 

403

579

 

 

 

 

5,043

5,259

Liabilities

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

 

 

(1,373)

(1,675)

Current tax liabilities

 

 

 

(43)

(122)

 

 

 

 

(1,416)

(1,797)

Net current assets

 

 

 

3,627

3,462

Non-current liabilities

 

 

 

 

 

Retirement benefit liability

 

 

 

(204)

(226)

Deferred tax liabilities

 

 

 

(9)

(7)

 

 

 

 

(213)

(233)

 

 

 

 

4,099

3,932

Shareholders' equity

 

 

 

 

 

Share capital

 

 

 

416

416

Share premium account

 

 

 

1,590

1,590

Capital redemption reserve

 

 

 

1

1

Retained earnings

 

 

 

1,870

1,718

Cumulative translation adjustment reserve

 

 

 

222

207

 

 

 

 

4,099

3,932

  

 

Statement of cash flows for the year ended 30 November 2018

 

 

 

 

 

2018

 2017

 

 

 

 

£'000

£'000

Cash flows from operating activities

 

 

 

 

 

Profit before tax from continuing operations

 

 

 

177

54

Share-based payment charge

 

 

 

4

3

Depreciation

 

 

 

71

72

Increase in inventories

 

 

 

(427)

(34)

Increase in trade and other receivables

 

 

 

(407)

(368)

Decrease in trade and other payables

Interest expense

 

 

 

571

8

128

11

Cash used in operations

 

 

 

(3)

(134)

Interest paid

Corporation tax paid

 

 

 

(8)

(88)

(11)

-

Loss from discontinued operations

 

 

 

-

(9)

Net cash (used in)/ generated from operations

 

 

 

(99)

(154)

Cash flows from investing activities

 

 

 

 

 

Purchase of property, plant and equipment

 

 

 

(58)

(41)

Proceeds from sale of property, plant and equipment

 

 

-

4

Net cash (used in)/generated from investing activities

 

 

(58)

(37)

Cash flows from financing activities

 

 

 

 

 

Equity dividends paid

 

 

 

(21)

(21)

Net cash used in financing activities

 

 

 

(21)

(21)

 

Net change in cash and cash equivalents

 

 

 

 

(178)

 

(212)

Cash and cash equivalents at start of period

 

 

 

579

781

Effect of foreign exchange rates

 

 

 

2

10

Cash and cash equivalents at end of period

 

 

 

403

579

 

 

 

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

 

2018

£'000

2017

£'000

Analysis of the charge in the period

 

 

Current tax

 

 

-   Current period

-

-

-   Adjustments in respect of prior periods

-

-

 

-

-

Deferred tax

8

(5)

Total tax

8

(5)

 

 

 

Tax reconciliation

 

 

 

 

 

The tax for the period is lower (2017: lower) than the standard rate of corporation tax in the UK, effectively 19.0% (2017: 19.3%) for the company's financial year.  The differences are explained below:

 

 

2018

£'000

2017

£'000

Profit/ (loss) before taxation

177

54

 

 

 

Profit/ (loss) before taxation multiplied by the rate of corporation tax in the UK of 19.0% (2017: 19.3%)

 

34

 

10

 

 

 

Effects of:

 

 

Accelerated capital allowances

2

-

Taxation losses

(28)

(15)

Taxation

8

(5)

 

3.    Dividends

The directors have proposed a final dividend of 0.50p per share payable on 21 May 2019 to shareholders on the register at close of business on 3 May 2019.  The total dividend for the year, including the interim dividend of 0.25p (2017: 0.25p) per share paid on 9 October 2018, amounts to £31,000 (2017: £20,000), which is equivalent to 0.75p (2017: 0.50p) per share.

 

4.    Discontinued operations

In March 2017 the LED finished goods activity in the UK, branded as NRGstar, was discontinued.  This point marked the Group's cessation of this type of LED operation, and a re-focus on sales of LED components, lighting solutions and smart lighting systems.  

 

Notes continued

 

5.    The basic earnings per share are based on the profit for the financial year of £169,000 (2017: profit of £59,000) and on ordinary shares of 4,159,551 (2017: 4,159,551 shares), the weighted average number of shares in issue during the year.  Diluted earnings per share is based on 4,190,594 ordinary shares (2017: 4,414,419 shares), being the weighted average number of ordinary shares after an adjustment of 31,043 (2017: 254,868) in relation to share options.

 

6.    This preliminary statement, which has been approved by the Board on 21 February 2019, is not the Company's statutory accounts.  The statutory accounts for each of the two years to 30 November 2017 and 30 November 2018 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 2017 accounts have been filed with the registrar of Companies, but the 2018 accounts are not yet filed.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
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Final Results - RNS