LONDON (Alliance News) - Holders Technology PLC on Friday saw its shares tumble, after it said its revenue declined in its recent financial year, citing poor sales of its printed circuit boards and the strengthening of the pound.
Holders shares were down 9.8% at 20.30p on Friday morning.
Holders, which supplies laminates and materials for printed circuit boards and provides LED services, posted an operating loss of GBP126,000 for the year ended November 30, after its printed circuit board division took a hit, down 19% on a like for like basis from 2014, due to lower customer demand in Germany, which makes up 75% of the division's sales, and a fire at a factory in the year which led to the suspension of sales to major customers.
The company also said the strengthening of the pound against the euro had "materially reduced" its revenue. Holders reported revenue of GBP11.2 million, versus GBP13.5 million in 2014, and pretax loss of GBP166,000, versus a loss of GBP362,000 a year earlier.
Holders added it had seen progress in its LED division, 24% higher than 2014 on a like for like basis, and the overall result was close to breakeven with an operating loss of GBP26,000 versus loss of GBP355,000.
The company also gave an update on the taxation liability that it announced in October. This arose from an EU Court of Justice ruling last year that meant that certain claims under the EU Cross Border Group Relief between 2003 and 2009 may no longer be allowable. Holder said it considers the maximum potential liability to be GBP192,000 and has made a provision of this amount as at November 30, although it said it believes a lower amount may be payable at the final settlement. Since the announcement no further discussions have taken place with UK tax authorities, it said.
Despite the performance, the company is paying a 0.25 pence dividend for the year, in line with last year's payment.
"Shareholders can be assured that we will continue to evaluate all possible routes to returning the group to satisfactory profitability. In the current year, given market conditions, it will be difficult for our PCB activities to make a positive contribution," said Executive Chairman Rudi Weinreich.
"The outlook for our LED operations is significantly more encouraging and we anticipate continued progress from this area of activity," Weinreich added.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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