LONDON (Alliance News) - Holders Technology PLC on Friday said it swung to a loss in its last financial year on the back of a fall in revenue which outpaced lower costs.
Holders, which suppliers laminates and materials for printed circuit boards and provides LED services, recorded a pretax loss of GBP362,000 for the year to November 30, compared to a GBP73,000 profit for last year.
Revenue in the year fell to GBP13.5 million from GBP14.3 million a year earlier, falling slightly faster than its cost of sales in the year, which fell to GBP10.2 million from GBP10.8 million. Distribution costs and administrative expenses also increased for the company and is recorded a small restructuring charge, all of which combined to push it to a loss for the year.
Holders said the year had been "particularly challenging", with performance in its printed circuit boards and LED business both performed below expectations.
Its printed circuit board business in Germany, which contributes 74% of group sales, had a good first half but a weak second. Its UK operations were hit by slower customer demand and the loss of two companies which ceased trading during the year.
LED revenue was lower year-on-year, with its Holders Components Germany arm hit by higher sales and marketing costs, though it said its order book for 2015 is encouraging.
Despite the performance, the company is paying a 0.25 pence dividend for the year, down on the 1 pence per share paid last year.
Holders expects its overall printed circuit boards results in the first half to be lower year-on-year owing to the termination of a supplier agreement, but it expects a recovery in the second half. It sees its LED arm making further progress in the year.
Shares in Holders were down 9.3% to 34.00 pence on Friday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
