Regulatory Story
Go to market news section View chart   Print
RNS
Holders Technology PLC   -  HDT   

Half-year Report

Released 07:00 23-Aug-2019

RNS Number : 9869J
Holders Technology PLC
23 August 2019
 

 

 

 

 

Holders Technology plc

Half Yearly Report 2019

 

Specialised PCB Materials, Lighting and Control Solutions

 

 

 

 

 

 

 

Highlights

 

Holders Technology plc supplies specialty laminates and materials for printed circuit board manufacturers ("PCB") and operates as a lighting and control solutions ("LCS") provider to the lighting market and commercial buildings sector.

 

Unaudited results for the half year ended 31 May are summarised as follows:

 

 

 

 

 

2019

2018

 

 

£'000

£'000

 

 

 

 

Revenue

PCB

4,291

4,756

 

LCS

1,737

1,426

 

Total

6,028

6,182

 

 

 

 

Gross profit

 

1,579

1,585

Margins

 

26.2%

25.6%

 

 

 

 

Overheads

 

1,570

1,520

 

 

 

 

Operating profit

9

65

 

 

 

 

Finance income

11

-

Profit before tax

20

65

 

 

 

 

Taxation

 

29

-

Profit after tax

49

65

 

 

 

 

Earnings per share

1.17p

1.56p

Interim dividend per share

0.25p

0.25p

Net assets per share

100p

96p

 

 

 

 

 

 

 

 

 

Contents

 

 

1.   Chairman's statement

 

3.   Consolidated income statement

 

3.   Consolidated statement of comprehensive income

 

4.   Consolidated statement of changes in equity

 

5.   Consolidated balance sheet

 

6.   Consolidated cash flow statement

 

7.   Notes

 

Chairman's statement

 

These interim results show a mixed outcome as compared to the equivalent period in 2018. PCB revenues have been adversely impacted by the overall economic environment, and the challenges faced by the automotive industry in Germany.  In contrast, revenues from the LCS divisions have grown strongly.

 

Group revenue decreased by 2.5% to £6.0m (H1 2018: £6.2m), gross margins increased by 0.6% to 26.2%, and the pre-tax result was a profit of £20,000 (H1 2018: profit of £65,000).

 

PCB

 

PCB sales in the period decreased by 9.8%, from £4,756,000 in 2018 to £4,291,000, while PCB gross margins decreased by 0.7% to 22.5%. At the end of the period the upgraded aluminium cutting and punching line in Germany was brought into full operation.  The improved cutting line is expected to provide higher throughput and result in efficiency gains in future periods.

 

PCB overheads as a percentage of sales increased by 1.7% to 18.1%. Overall our PCB activities recorded a pre-tax profit of £30,000 (H1 2018: profit £159,000).

 

LCS

 

Lighting and Control Solutions divisions in the UK and Germany made good progress during the period.  Revenue grew by 21.8% from £1,426,000 to £1,737,000, and gross margins improved from 33.7% to 35.2%.  Overheads as a percentage of revenue decreased from 33.2% to 31.1%, leading to a profit of £31,000 (H1 2018: loss £38,000).

 

Taxation

 

HMRC have now accepted our final claim for EU Cross Border tax which was shown as a liability of £43,000 at the end of November 2018.  The liability has been removed from the accounts during the period which resulted in a credit of £14,000 to interest paid and a credit of £29,000 to taxation.

 

Board Changes

 

On 7 May Thomas Bray stepped down from the Board, and I would like to thank him for his contribution to the Group over the last six years.  Thomas' role will be partly filled by Mat Hanson who joined us in February and is now UK Sales Director for our Lighting and Control Solutions division.  We plan to add further technical and sales capacity to LCS divisions in the UK and Germany over the next few months to support growing customer demand and our expanding portfolio of products and services. 

 

Summary

 

Our PCB business continues to face challenges due to unfavourable market conditions.  However, PCB operations remain profitable, and management has recently implemented targeted cost savings to further improve profitability.  The LCS divisions have achieved good growth and a modest profit in the first half, and the pipeline of sales opportunities is encouraging, with the acceptance in the market of wireless lighting controls.

 

 

Rudolf W. Weinreich                                                                                                     Holders Technology plc                               

Executive Chairman                                                                                                        27-28 Eastcastle Street

                                                                                                                                                London  W1W 8HD

 

 

 

 

For further information, contact:

 

Holders Technology plc

Rudi Weinreich, Executive Chairman                                                                                               01896 758781

Victoria Blaisdell, Group Managing Director

Paul Geraghty, Group Finance Director

 

SP Angel Corporate Finance LLP - Nomad and Broker

Matthew Johnson/ Jamie Spotswood, Corporate Finance                                                            020 3470 0470

 

Website

www.holdersgroup.com

 

 

 

 

 

 

 

 

Consolidated income statement

 

 

 

Half year

ended 31

May 2019

 

Half year

ended 31

May 2018

 

Full year

ended 30

Nov 2018

Notes

£'000

 

£'000

 

£'000

 

Revenue

3

6,028

 

6,182

 

12,486

Cost of sales

 

(4,449)

 

(4,597)

 

(9,220)

Gross profit

 

1,579

 

1,585

 

3,266

Distribution costs

 

(199)

 

(210)

 

(422)

Administrative expenses

 

(1,369)

 

(1,300)

 

(2,696)

Other operating (expenses)/ income

 

(2)

 

-

 

36

Operating profit

 

9

 

65

 

184

Finance income/ (costs)

 

11

 

-

 

(7)

Profit before taxation

 

20

 

65

 

177

Taxation

4

29

 

-

 

(8)

Profit for the period

 

49

 

65

 

169

 

Total and continuing

 

 

 

 

 

 

Basic earnings per share

6

1.17p

 

1.56p

 

4.06p

Diluted earnings per share

6

1.17p

 

1.46p

 

4.03p

 

 

 

                 

 

 

 

 

Consolidated statement of comprehensive income

 

 

 

Half year

ended 31

May 2019

 

Half year

ended 31

May 2018

 

Full year

ended 30

Nov 2018

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Profit/ (loss) for the period

49

 

(65)

 

169

Exchange differences on translation of foreign operations

 

 

6

 

 

(12)

 

 

15

Total comprehensive income/ (expense) for the period

 

 

55

 

            

53

 

  

184

 

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity

for the half year ended 31 May 2019 (Unaudited)

 

 

  Share   capital

    Share

premium

     Capital
redemption       reserve

Translation            reserve

Retained             earnings

  Total    equity

 

   £'000

     £'000

           £'000

     £'000

     £'000

  £'000

 

 

 

 

 

 

 

Balance 1 Dec 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 for the year

 -

-

-

15

-

15

Total comprehensive income for the year

 -

-

15

169

184

Balance 30 Nov 2018

416 

1,590

1

222

1,870

4,099

 

Dividends

-

-

-

-

(21)

(21)

New shares issued

6

-

-

-

-

6

Transactions with owners

 6

-

-

-

(21)

(15)

Profit for the period

 -

-

-

-

49

49

Other comprehensive expense for the period

 -

-

-

6

-

6

Total comprehensive income for the period

 -

6

49

55

Balance 31 May 2019

422 

1,590

1

228

1,898

4,139

 

 

Consolidated balance sheet

at 31 May 2019 (Unaudited)

 

 

 

Half year

ended 31

May 2019

 

Half year

ended 31

May 2018

 

Full year

ended 30

Nov 2018

 

 

£'000

 

£'000

 

£'000

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Goodwill

 

318

 

318

 

318

 

Property, plant and equipment

 

338

 

374

 

357

 

Deferred tax assets

 

9

 

9

 

10

 

 

 

665

 

701

 

685

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventories

 

2,459

 

2,304

 

2,849

 

Trade and other receivables

 

1,542

 

1,986

 

1,791

 

Cash and cash equivalents

 

674

 

633

 

403

 

 

 

4,675

 

4,923

 

5,043

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

(988)

 

(1,328)

 

(1,373)

 

Current tax liabilities

 

-

 

(94)

 

(43)

 

 

 

(988)

 

(1,422)

 

(1,416)

 

 

 

 

 

 

 

 

Net current assets

 

3,687

 

3,501

 

3,627

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Retirement benefit liability

 

(207)

 

(227)

 

(204)

 

Deferred tax liabilities

 

(6)

 

-

 

(9)

 

 

 

(213)

 

(227)

 

(213)

 

 

 

 

 

 

 

 

Net assets

 

4,139

 

3,975

 

4,099

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Share capital

 

422

 

416

 

416

 

Share premium account

 

1,590

 

1,590

 

1,590

 

Capital redemption reserve

 

1

 

1

 

1

 

Retained earnings

 

1,898

 

1,773

 

1,870

 

Cumulative translation adjustment

 

 

228

 

195

 

222

Equity attributable to the shareholders of the parent

 

 

4,139

 

 

3,975

 

 

4,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated cash flow statement

for the half year ended 31 May 2019 (Unaudited)

 

 

Half year

ended 31

May 2019

 

Half year

ended 31

May 2018

 

Full year

ended 30

Nov 2018

 

 

£'000

 

£'000

 

£'000

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Profit before tax from continuing operations

20

 

65

 

177

 

 

Share-based payment charge

-

 

-

 

4

 

 

Depreciation

76

 

43

 

71

 

 

Decrease/ (increase) in inventories

375

 

104

 

(427)

 

 

Decrease/ (increase) in trade and other receivables

104

 

286

 

(407)

 

 

(Decrease)/ increase in trade and other payables

(221)

 

(338)

 

571

 

 

Interest (credit)/ expense

(14)

 

-

 

8

 

 

 

 

 

 

 

 

 

 

Cash generated from/ (used in) operations

340

 

160

 

(3)

 

 

 

 

 

 

 

 

 

 

Interest paid

-

 

-

 

(8)

 

 

Corporation tax paid

-

 

(36)

 

(88)

 

 

Net cash generated from/ (used in) operations

340

 

124

 

(99)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property, plant and equipment

(57)

 

(49)

 

(58)

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

(57)

 

(49)

 

(58)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Equity dividends paid

(21)

 

(10)

 

(21)

 

 

Ordinary shares issued

6

 

-

 

-

 

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

(15)

 

(10)

 

(21)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

268

 

65

 

(178)

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at start of period

403

 

579

 

579

 

 

Effect of foreign exchange rates

3

 

(11)

 

2

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

674

 

633

 

403

 

 

 

 

 

 

Notes

 

1.            General information

 

Holders Technology plc is incorporated in the United Kingdom under the Companies Act 2006.  The principal activity of the group is to provide specialised materials, components and solutions to the electronics and lighting industries.

 

2.            Basis of preparation

 

The condensed consolidated half year financial statements have been prepared in accordance with the AIM Rules for Companies and prepared on a basis consistent with International Financial Reporting Standards ("IFRS") as adopted by the EU and the accounting policies set out in the group's financial statements for the year ended 30 November 2018.

 

The condensed consolidated half year financial statements are unaudited and include all adjustments which management considers necessary for a fair presentation of the group's financial position, operating results and cash flows for the 6-month periods ended 31 May 2018 and 31 May 2019.

 

The half year financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. A copy of the group's financial statements for the year ended 30 November 2018 prepared in accordance with IFRS as adopted by the EU has been filed with the Registrar of Companies. The auditors' report on those financial statements was not qualified and did not contain statements under s498(2) of s498(3) of the Companies Act 2006.

 

As permitted, the group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these half year financial statements and therefore the half year financial information is not in full compliance with IFRS.

 

The preparation of half year financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  Actual results may differ from these estimates. 

 

        These half year financial statements have been prepared under the historical cost convention.

 

        The board of Holders Technology plc approved this half yearly report on 22 August 2019.

 

3.            Segmental information

 

        Management currently identifies two operating segments:

-     PCB, which distributes materials, equipment and supplies to the PCB industry.

-     LCS, which provides lighting and control solutions to the lighting market and commercial buildings sector.

 

 

 

 

 

 

 

Notes (continued):

 

3.            Segmental information (continued)

 

Analysis by operating segment

                for the half year ended 31 May

 

               

 

PCB

LCS

Central Costs

Total

 

2019

2018

2019

2018

2019

2018

2019

2018

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

Revenue

4,291

4,756

1,737

1,426

-

-

6,028

6,182

Cost of sales

3,324

3,651

1,125

946

-

-

4,449

4,597

Gross Profit

967

1,105

612

480

    -

-

1,579

1,585

Distribution costs

159

165

40

45

-

-

199

210

Administration costs

778

781

541

473

52

56

1,371

1,310

Segment Profit/ (Loss)

30

159

31

(38)

(52)

(56)

9

65

 

 

 

4.            The tax provision for the six months ended 31 May 2019 is calculated based on the tax rates applicable in the country in which each company operates.

 

5.            A final dividend of 0.50p per share on the total issued share capital of 4,224,164 10p ordinary shares was paid on 21 May 2019 in respect of the year ended 30 November 2018. 

 

An interim dividend payment of 0.25p per share (2018: 0.25p per share) will be payable on 8 October 2019 to shareholders on the register at 13 September 2019.  The shares will go ex-dividend on 12 September 2019.  The interim dividend had not been approved by the board at 31 May 2019 and accordingly, has not been included as a liability as at that date.

 

6.            The basic earnings per share for continuing operations are based on the profit for the period of £49,000 (2018: profit £65,000) and on 4,172,759 ordinary shares (2018: 4,159,551), the weighted average number of shares in issue during the period.  Diluted earnings per share for continuing operations are based on 4,194,313 ordinary shares (2018: 4,159,551), being the weighted average number of ordinary shares after an adjustment of 21,554 shares (2018: nil shares) in relation to share options.

 

7.            A copy of this half yearly report is being sent to shareholders and is available for inspection at the company's offices at Holders Technology (UK) Ltd., Units 1-4, Block 9, Tweedbank Industrial Estate, Galashiels TD1 3RS and via its website www.holdersgroup.com.

 

 

 

 


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
 
 
IR LLFIRTFIFFIA
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Half-year Report - RNS