HDT.L Regulatory News (HDT)

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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information, contact:

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 £12.2m (2018: £12.5m), with gross margins of 27.9% (2018: 26.2%). The operating profit for the year was £144,000 (2018: operating profit of £184,000), and the profit after tax was £181,000 (2018: profit £169,000).

The PCB divisions together had revenue of £8.6m (2018: £9.4m) and achieved an operating profit of £230,000 (2018: profit £280,000). 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 £3.5m (2018: £3.1m) with gross margins increasing from 34.1% to 36.7% and a profit of £69,000 was achieved (2018: loss of £13,000). 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 £29,000 tax and £14,000 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

Group statement of comprehensive income for the year ended 30 November 2019

Statement of changes in equity for the year ended 30 November 2019

Group balance sheet at 30 November 2019

Statement of cash flows for the year ended 30 November 2019

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

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 £42,000 (2018: £32,000), 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 £181,000 (2018: profit of £169,000) 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.