TIDMHDT
RNS Number : 6427P
Holders Technology PLC
19 February 2021
Holders Technology plc
("the Group")
Specialised PCB Materials, Lighting and Control Solutions
Final results for the year ended 30 November 2020
Holders Technology plc (AIM: HDT) announces its audited results
for the year ended 30 November 2020.
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 PCB divisions and LCS divisions in each
country. During the year, investments were also made in LCS joint
ventures in the UK and Austria.
Revenue for all divisions was reduced by the economic
consequences of the Covid-19 pandemic, particularly the LCS
divisions. The companies have reduced costs whenever possible, and
PCB divisions taken together remained profitable. However, the LCS
divisions became loss making.
The directors will recommend payment of a final dividend of
0.25p per share, a total of 0.50p for the year (2019 total:
0.75p).
The results are summarised below.
2020 2019
GBP'000 GBP'000
------------- --------
* Revenue PCB 7,314 8,647
LCS 2,524 3,515
------------- --------
Group 9,838 12,162
* Operating Profit/ (Loss) PCB 102 230
LCS (246) 69
Central costs (105) (155)
------------- --------
Group (249) 144
* (Loss)/ profit before tax Group (264) 150
Tax (expense)/ credit - 31
------------- --------
(Loss)/ profit after tax (264) 181
* Cash Balances Group 1,113 734
* Basic (Loss)/ earnings per Share Group (6.25p) 4.31p
* Diluted (Loss)/ earnings per Share Group (6.25p) 4.30p
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 - Nominated
Advisor & Broker 020 3470 0470
Matthew Johnson / Caroline Rowe
Chairman's statement
The Group principally operates from the UK and from Germany,
with a PCB division and an LCS division in each country. In
addition, during the year investments were made in LCS joint
ventures in the UK and Austria.
Inevitably the Group results were impacted by the economic
consequences of the Covid-19 pandemic. We have reduced costs in the
UK and Germany wherever possible, including salary reductions for
higher paid employees, and making use of government support schemes
where available.
Revenue for the year was GBP9.8m (2019: GBP12.2m), with gross
margins of 27.5% (2019: 27.9%). The operating loss for the year was
GBP249,000 (2019: operating profit of GBP144,000), and the loss
after tax was GBP264,000 (2019: profit of GBP181,000).
The PCB divisions taken together had revenue of GBP7.3m (2019:
GBP8.7m) and achieved an operating profit of GBP102,000 (2019:
profit of GBP230,000). PCB gross margins increased from 24.3% to
24.4%. In both the UK and Germany, PCB revenues held up well in the
first half but showed a material reduction in the second half of
the year.
As reported last year, the LCS sales and technical team was
strengthened in the second half of 2019. Despite the exceptional
economic situation in 2020, this team was retained in anticipation
of an improvement in market conditions in 2021. LCS revenues
overall amounted to GBP2.5m (2019: GBP3.5m) with gross margins
decreasing from 36.7% to 36.5% and there was an operating loss of
GBP246,000 (2019: profit of GBP69,000).
Two new 50:50 joint ventures were set up in 2020 as follows:
-- Holders Technology Austria GmbH is a joint venture with a
sales partner based in Austria. The new company sells wireless
lighting control solutions in Austria, Switzerland, Czechia, and
Slovakia. The joint venture achieved breakeven in the period.
-- Holders Technology Data Analytics Ltd was set up with a data
analytics company in the Netherlands. The new company has developed
a data analytics platform for smart lighting and building
solutions. It will commence trading in 2021.
On behalf of the Board, I would like to record our thanks to our
staff for their hard work during the exceptional conditions
experienced in 2020. Given the outcome for the year, the Board
recommends a final dividend of 0.25p in respect of the 2020
year.
The outlook for the first half of 2021 is more positive than the
second half of 2020, with increased sales levels and order books.
As for many similar companies however, sustained improvement is
heavily dependent on a recovery in the wider economy during
2021.
R W Weinreich
Executive Chairman
19 February 2021
Group income statement for the year ended 30 November 2020
Note 2020 2019
GBP'000 GBP'000
------------------------------------- ----- -------- --------
Revenue 9,838 12,162
Cost of sales (7,135) (8,770)
--------------------------------------- ----- -------- --------
Gross profit 2,703 3,392
Distribution costs (348) (419)
Administrative expenses (2,562) (2,890)
Other operating (expenses)/ income (42) 61
--------------------------------------- ----- -------- --------
Operating (loss)/ profit (249) 144
Income from joint ventures 1 -
Finance (expenses)/ income (16) 6
--------------------------------------- ----- -------- --------
(Loss)/ profit before taxation (264) 150
Tax credit/ (expense) 2 - 31
--------------------------------------- ----- -------- --------
(Loss)/ profit after taxation
attributable to equity shareholders (264) 181
--------------------------------------- ----- -------- --------
Basic (loss)/ earnings per share 4 (6.25p) 4.31p
--------------------------------------- ----- -------- --------
Diluted (loss)/ earnings per share 4 (6.25p) 4.30p
--------------------------------------- ----- -------- --------
Group statement of comprehensive income for the year ended 30
November 2020
2020 2019
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Profit for the year (264) 181
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations 120 (94)
---------------------------------------------- --------- ---------
Total comprehensive income for the
year (144) 87
---------------------------------------------- --------- ---------
Statement of changes in equity for the year ended 30 November
2020
Group Share capital Share Capital Translation Retained Total equity
premium redemption reserve earnings
account reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Balance at 1
December 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)
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Loss and total
comprehensive
income for
the year - - - (94) 181 87
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Balance at 30
November 2019 422 1,590 1 128 2,023 4,164
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Dividends - - - - (21) (21)
Transactions
with owners - - - - (21) (21)
Loss for the
year - - - - (264) (264)
Exchange
differences
on
translating
foreign
operations - - - 120 - 120
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Loss and total
comprehensive
income for
the year - - - 120 (264) (144)
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Balance at 30
November 2020 422 1,590 1 248 1,738 3,999
--------------- -------------- ------------- ------------- -------------- -------------- -----------------------
Group balance sheet at 30 November 2020
2020 2019
GBP'000 GBP'000
---------------------------------- -------- --------
Assets
Non-current assets
Intangible fixed assets 381 394
Property, plant and equipment 560 237
Investments in joint ventures 28 -
Deferred tax assets 12 12
------------------------------------- -------- --------
981 643
---------------------------------- -------- --------
Current assets
Inventories 2,340 2,530
Trade and other receivables 1,420 1,758
Cash and cash equivalents 1,113 734
------------------------------------- -------- --------
4,873 5,022
Liabilities
Current liabilities
Trade and other payables (1,274) (1,280)
Lease liabilities (105) -
---------------------------------- -------- --------
(1,379) (1,280)
Net current assets 3,494 3,742
------------------------------------- -------- --------
Non-current liabilities
Retirement benefit liability (223) (212)
Lease liabilities (244) -
Deferred tax liabilities (9) (9)
------------------------------------- -------- --------
(476) (221)
---------------------------------- -------- --------
3,999 4,164
---------------------------------- -------- --------
Shareholders' equity
Share capital 422 422
Share premium account 1,590 1,590
Capital redemption reserve 1 1
Retained earnings 1,738 2,023
Cumulative translation adjustment
reserve 248 128
------------------------------------- -------- --------
3,999 4,164
---------------------------------- -------- --------
Statement of cash flows for the year ended 30 November 2020
2020 2019
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Cash flows from operating activities
(Loss)/ profit before tax from
continuing operations (264) 150
Share-based payment charge - 4
Depreciation 292 74
Decrease in inventories 284 237
Decrease/ (increase) in trade
and other receivables 385 (140)
(Decrease)/ increase in trade
and other payables
Interest (Income)/ Expense (50) 92
16 (6)
----------------------------------------------------- -------- --------
Cash generated from operations 663 411
Interest paid (16) (8)
Income from investments (1) -
Net cash (used in)/ generated
from operations 646 403
-------------------------------------------------------- -------- --------
Cash flows from investing activities
Purchase of property, plant
and equipment (25) (42)
Investment in Joint Venture (27) -
Proceeds from sale of property, plant
and equipment - 1
Net cash (used in)/generated from
investing activities (52) (41)
-------------------------------------------- --------- -------- --------
Cash flows from financing activities
Sale of shares - 6
Repayment of leases (213) -
Equity dividends paid (21) (32)
-------------------------------------------------------- -------- --------
Net cash used in financing activities (234) (26)
-------------------------------------------------------- -------- --------
Net change in cash and cash
equivalents 360 336
Cash and cash equivalents at
start of period 734 403
Effect of foreign exchange rates 19 (5)
-------------------------------------------------------- -------- --------
Cash and cash equivalents at
end of period 1,113 734
-------------------------------------------------------- -------- --------
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
2020 2019
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 charge/ (credit) - (2)
----------------------------------------------------------------------- ------------- ------------
Total tax - (31)
----------------------------------------------------------------------- ------------- ------------
Tax reconciliation
The tax for the period is lower (2019: lower) than the standard rate of corporation tax in
the UK, effectively 19.0% (2019: 19.0%) for the company's financial year. The differences
are explained below:
2020 2019
GBP'000 GBP'000
------------------------------------------------------------------------------------------------ --------- ---------
(Loss)/ profit before taxation (264) 150
------------------------------------------------------------------------------------------------ --------- ---------
(Loss)/ profit before taxation multiplied by the rate of corporation tax in the UK of 19.0%
(2019: 19.0%) (50) 29
Effects of:
Adjustment from prior years - (29)
Taxation losses 50 (31)
Taxation - (31)
------------------------------------------------------------------------------------------------ --------- ---------
3. Dividends
The directors have proposed a final dividend of 0.25p per share
payable on 1 June 2021 to shareholders on the register at close of
business on 14 May 2021. The total dividend for the year, including
the interim dividend of 0.25p (2019: 0.25p) per share paid on 6
October 2020, amounts to GBP21,000 (2019: GBP32,000), which is
equivalent to 0.50p (2019: 0.75p) per share.
4. The basic earnings per share are based on the loss for the
financial year of GBP264,000 (2019: profit of GBP181,000) and on
ordinary shares of 4,224,164 (2019: 4,199,735 shares), the weighted
average number of shares in issue during the year. Diluted earnings
per share is based on 4,224,164 ordinary shares (2019: 4,207,199
shares), being the weighted average number of ordinary shares after
an adjustment of GBPnil (2019: 7,464) in relation to share
options.
5. This statement, which has been approved by the Board on 19
February 2021, is not the Company's statutory accounts. The
statutory accounts for each of the two years to 30 November 2019
and 30 November 2020 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 2019 accounts have been filed
with the registrar of Companies, but the 2020 statutory accounts
are not yet filed.
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END
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