(Alliance News) - Holders Technology PLC on Friday said its profit dropped more than two thirds in its most recently ended financial year due to challenges in its printed circuit board unit.
The company supplies specialty laminates and materials for printed circuit board manufacturers and operates as a lighting and control solutions provider.
Holders reported pretax profit of GBP20,000 for the year to the end of May compared to GBP65,000 a year ago, as revenue slipped by 2.5% to GBP6.0 million from GBP6.2 million.
The company maintained its interim dividend at 0.25 pence a share.
Printed circuit board revenue has been negatively impacted by the overall economic environment, Holders said, and the challenges faced by the automotive industry in Germany. In contrast, revenue from the lighting and control solutions divisions have grown strongly.
At the end of the period, the company said the upgraded aluminium cutting and punching line in Germany was brought into full operation, which is expected to provide higher throughput and result in efficiency gains in future periods.
"Our printed circuit board business continues to face challenges due to unfavourable market conditions. However, printed circuit board operations remain profitable, and management has recently implemented targeted cost savings to further improve profitability," said Executive Chair Rudolf Weinreich.
"The lighting and control solutions 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," added Weinreich.
Holders shares were trading 2.2% lower on Friday in London at 44.00p each.