TIDMHDT
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
GBP'000 GBP'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
Half year ended 31 May 2019
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 GBP6.0m (H1 2018: GBP6.2m),
gross margins increased by 0.6% to 26.2%, and the pre-tax result
was a profit of GBP20,000 (H1 2018: profit of GBP65,000).
PCB
PCB sales in the period decreased by 9.8%, from GBP4,756,000 in
2018 to GBP4,291,000, 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
GBP30,000 (H1 2018: profit GBP159,000).
LCS
Lighting and Control Solutions divisions in the UK and Germany
made good progress during the period. Revenue grew by 21.8% from
GBP1,426,000 to GBP1,737,000, 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 GBP31,000 (H1 2018: loss
GBP38,000).
Taxation
HMRC have now accepted our final claim for EU Cross Border tax
which was shown as a liability of GBP43,000 at the end of November
2018. The liability has been removed from the accounts during the
period which resulted in a credit of GBP14,000 to interest paid and
a credit of GBP29,000 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
for the half year ended 31 May 2019 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2019 May 2018 Nov 2018
========== ========== ==========
Notes GBP'000 GBP'000 GBP'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
for the half year ended 31 May 2019 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2019 May 2018 Nov 2018
========== ================ ==========
GBP'000 GBP'000 GBP'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)
Capital
Share redemption Translation Retained
Share capital premium reserve reserve earnings Total equity
=============== ============ ================== =============== ================ ==============
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 Half year Full year
ended 31 ended 31 ended 30
May 2019 May 2018 Nov 2018
========== ========== ==========
GBP'000 GBP'000 GBP'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 Half year Full year
ended 31 ended 31 ended 30
May 2019 May 2018 Nov 2018
========== ========== ==========
GBP'000 GBP'000 GBP'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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 GBP49,000 (2018: profit
GBP65,000) 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
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