TIDMHDT
RNS Number : 1795G
Holders Technology PLC
16 March 2020
Holders Technology plc
("The Group")
Specialised PCB Materials, Lighting and Control Solutions
Final results for the year ended 30 November 2019
Holders Technology plc (AIM: HDT) announces its audited results
for the year ended 30 November 2019.
The Group supplies specialty laminates and materials for printed
circuit board manufacture ("PCB") and operates as a Lighting and
Control Solutions ("LCS") provider. The Group operates from the UK
and from Germany, with a PCB division and an LCS division in each
country.
LCS divisions made further progress during the year and achieved
profitability, and the PCB UK division in the UK made modest
progress. Market conditions for the PCB division in Germany
remained difficult which resulted in reduced revenue and
profitability for the division. The UK legacy tax liabilities were
resolved with a favourable outcome. The overall profit after tax
was a modest improvement compared to 2018, from slightly reduced
revenue.
The directors will recommend payment of a final dividend of
0.75p per share, a total of 1.00p for the year (2018 total:
0.75p).
The results are summarised below.
2019 2018
GBP'000 GBP'000
-------- --------
* Revenue PCB 8,647 9,374
LCS 3,515 3,112
-------- --------
Group 12,162 12,486
* Operating Profit/ (Loss) PCB 230 280
LCS 69 (13)
Central costs (155) (83)
-------- --------
Group 144 184
* Profit before tax Group 150 177
Tax credit/ (expense) 31 (8)
-------- --------
Profit after tax 181 169
* Cash Balances Group 734 403
* Basic Earnings per Share Group 4.31p 4.06p
* Diluted Earnings per Share Group 4.30p 4.03p
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.holdersgroup.com
SP Angel Corporate Finance LLP - Nominated
Advisor & Broker 020 3470 0470
Matthew Johnson / Caroline Rowe
Chairman's statement
The Group operates from the UK and from Germany, with a PCB
division and an LCS division in each country.
I am pleased to report that both LCS divisions have continued to
make good progress during 2019, and PCB UK has achieved modest
growth. Market conditions for PCB Germany however have remained
difficult. As a consequence, Group revenue was slightly lower than
2018. Operating profitability was lower than 2018, while after-tax
profitability improved slightly compared to 2018.
Revenue for the year was GBP12.2m (2018: GBP12.5m), with gross
margins of 27.9% (2018: 26.2%). The operating profit for the year
was GBP144,000 (2018: operating profit of GBP184,000), and the
profit after tax was GBP181,000 (2018: profit GBP169,000).
The PCB divisions together had revenue of GBP8.6m (2018:
GBP9.4m) and achieved an operating profit of GBP230,000 (2018:
profit GBP280,000). Margins increased from 23.5% to 24.3%.
Economic conditions in Germany, especially in the manufacturing
sector, remained difficult during 2019. This adversely impacted our
German PCB operations, the largest single element of the Group,
with lower revenue and profitability than in 2018.
UK PCB operations achieved a modest improvement in the year
despite the continuing challenging market.
LCS revenues overall amounted to GBP3.5m (2018: GBP3.1m) with
gross margins increasing from 34.1% to 36.7% and a profit of
GBP69,000 was achieved (2018: loss of GBP13,000). In the second
half the sales and technical team was considerably strengthened,
and further LCS investments are planned for 2020.
HMRC has now agreed the 2005 Cross-Border Corporation Tax claim
reported previously. As a result, the related GBP29,000 tax and
GBP14,000 interest liabilities recognised at last year end were
reversed during the year.
On behalf of the Board I would like to record our thanks to our
staff for their hard work during 2019 which resulted in a
profitable year for the Group. Given the improved earnings, the
Board recommends an increased final dividend of 0.75p in respect of
the 2019 year.
The outlook for 2020 is in many ways the same as 2019. Our LCS
divisions are well placed to deliver further improvements, whilst
improvement in results from the German PCB operations is heavily
dependent on recovery in the German automotive sector and wider
economy.
R W Weinreich
Executive Chairman
13 March 2019
Group income statement for the year ended 30 November 2019
Note 2019 2018
GBP'000 GBP'000
----------------------------------- ----- -------- --------
Revenue 12,162 12,486
Cost of sales (8,770) (9,220)
------------------------------------- ----- -------- --------
Gross profit 3,392 3,266
Distribution costs (419) (422)
Administrative expenses (2,890) (2,696)
Other operating (expenses)/ income 61 36
------------------------------------- ----- -------- --------
Operating profit 144 184
Finance income 6 -
Finance expenses - (7)
------------------------------------- ----- -------- --------
Profit before taxation 150 177
Tax credit/ (expense) 2 31 (8)
------------------------------------- ----- -------- --------
Profit after taxation attributable
to equity shareholders 181 169
------------------------------------- ----- -------- --------
Basic earnings per share 4 4.31p 4.06p
------------------------------------- ----- -------- --------
Diluted earnings per share 4 4.30p 4.03p
------------------------------------- ----- -------- --------
Group statement of comprehensive income for the year ended 30
November 2019
2019 2018
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Profit for the year 181 169
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations (94) 15
---------------------------------------------- --------- ---------
Total comprehensive income for the
year 87 184
---------------------------------------------- --------- ---------
Statement of changes in equity for the year ended 30 November
2019
Group Share capital Share premium Capital Translation Retained Total equity
redemption reserve earnings
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Balance at 1
December 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
Exchange
differences
on
translating
foreign
operations - - - 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
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Dividends - - - - (32) (32)
Shares issued 6 - - - - 6
Share based
payments - - - - 4 4
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Transactions
with owners 6 - - - (28) (22)
Profit for the
year - - - - 181 181
Exchange
differences
on
translating
foreign
operations - - - (94) - (94)
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Total
comprehensive
income for
the year - - - (94) 181 87
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Balance at 30
November 2019 422 1,590 1 128 2,023 4,164
--------------- -------------- -------------- ------------- ------------- -------------- -----------------------
Group balance sheet at 30 November 2019
2019 2018
GBP'000 GBP'000
---------------------------------- -------- --------
Assets
Non-current assets
Intangible fixed assets 394 416
Property, plant and equipment 237 259
Deferred tax assets 12 10
------------------------------------- -------- --------
643 685
---------------------------------- -------- --------
Current assets
Inventories 2,530 2,849
Trade and other receivables 1,758 1,791
Cash and cash equivalents 734 403
------------------------------------- -------- --------
5,022 5,043
Liabilities
Current liabilities
Trade and other payables (1,280) (1,373)
Current tax liabilities - (43)
------------------------------------- -------- --------
(1,280) (1,416)
Net current assets 3,742 3,627
------------------------------------- -------- --------
Non-current liabilities
Retirement benefit liability (212) (204)
Deferred tax liabilities (9) (9)
------------------------------------- -------- --------
(221) (213)
4,164 4,099
---------------------------------- -------- --------
Shareholders' equity
Share capital 422 416
Share premium account 1,590 1,590
Capital redemption reserve 1 1
Retained earnings 2,023 1,870
Cumulative translation adjustment
reserve 128 222
------------------------------------- -------- --------
4,164 4,099
---------------------------------- -------- --------
Statement of cash flows for the year ended 30 November 2019
2019 2018
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Cash flows from operating activities
Profit before tax from continuing
operations 150 177
Share-based payment charge 4 4
Depreciation 74 71
Decrease/ (Increase) in inventories 237 (427)
(Increase) in trade and other
receivables (140) (407)
Increase in trade and other
payables 92 571
Interest (Income)/ Expense (6) 8
-------------------------------------------------------- -------- --------
Cash used in operations 411 (3)
Interest paid (8) (8)
Corporation tax paid - (88)
Net cash (used in)/ generated
from operations 403 (99)
-------------------------------------------------------- -------- --------
Cash flows from investing activities
Purchase of property, plant
and equipment (42) (58)
Proceeds from sale of property, plant 1 -
and equipment
Net cash (used in)/generated from
investing activities (41) (58)
-------------------------------------------- --------- -------- --------
Cash flows from financing activities
Sale of shares 6 -
Equity dividends paid (32) (21)
-------------------------------------------------------- -------- --------
Net cash used in financing activities (26) (21)
-------------------------------------------------------- -------- --------
Net change in cash and cash
equivalents 335 (178)
Cash and cash equivalents at
start of period 403 579
Effect of foreign exchange rates (4) 2
-------------------------------------------------------- -------- --------
Cash and cash equivalents at
end of period 734 403
-------------------------------------------------------- -------- --------
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
2019 2018
GBP'000 GBP'000
----------------------------------------------------------------------- ------------ ------------
Analysis of the charge in the period
Current tax
- Current period - -
- Credit adjustment in respect of prior periods (29) -
----------------------------------------------------------------------- ------------ ------------
(29) -
Deferred tax (2) 8
----------------------------------------------------------------------- ------------ ------------
Total tax (31) 8
----------------------------------------------------------------------- ------------ ------------
Tax reconciliation
The tax for the period is lower (2018: lower) than the standard rate of corporation tax in
the UK, effectively 19.0% (2018: 19.0%) for the company's financial year. The differences
are explained below:
2019 2018
GBP'000 GBP'000
----------------------------------------------------------------------------------------------- --------- ---------
Profit before taxation 150 177
----------------------------------------------------------------------------------------------- --------- ---------
Profit before taxation multiplied by the rate of corporation tax in the UK of 19.0% (2018:
19.0%) 29 34
Effects of:
Accelerated capital allowances - 2
Adjustment from prior years (29) -
Taxation losses (31) (28)
Taxation (31) 8
----------------------------------------------------------------------------------------------- --------- ---------
3. Dividends
The directors have proposed a final dividend of 0.75p per share
payable on 19 May 2020 to shareholders on the register at close of
business on 1 May 2020. The total dividend for the year, including
the interim dividend of 0.25p (2018: 0.25p) per share paid on 8
October 2019, amounts to GBP42,000 (2018: GBP32,000), which is
equivalent to 1.00p (2018: 0.75p) per share.
4. The basic earnings per share are based on the profit for the
financial year of GBP181,000 (2018: profit of GBP169,000) and on
ordinary shares of 4,199,735 (2018: 4,159,551 shares), the weighted
average number of shares in issue during the year. Diluted earnings
per share is based on 4,207,199 ordinary shares (2018: 4,190,594
shares), being the weighted average number of ordinary shares after
an adjustment of 7,464 (2018: 31,043) in relation to share
options.
5. This statement, which has been approved by the Board on 13
March 2020, is not the Company's statutory accounts. The statutory
accounts for each of the two years to 30 November 2018 and 30
November 2019 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 2018 accounts have been filed with the
registrar of Companies, but the 2019 statutory accounts are not yet
filed.
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END
FR UOVBRRBUOAAR
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