HDT.L Regulatory News (HDT)

7 Mar 2007 07:01

Holders Technology PLC07 March 2007 Holders Technology plc Providers of specialised materials, equipment and services for the electronics and telecommunications industries Audited results for the year ended 30 November 2006 Holders Technology plc announces its audited results for the year ended 30November 2006. Highlights Following the restructuring of European operations in 2005, the group was ableto take advantage of an upturn in business for the PCB industry in 2006. • Turnover grew 28% to £18.8m• Operating profit grew 89% to £0.9m• Net operating cash inflow of £0.6m• Chinese subsidiary began trading• Proposed 9% increase in final dividend to 3.0p Chairman's statement Financials In the year to 30 November 2006, turnover increased to £18.8m (2005: £14.7m).The group achieved a pre-tax profit of £0.9m (2005: £0.3m). The earnings pershare were 13.50p (2005: 8.47p). Your directors are recommending a finaldividend of 3.0p (2005: 2.75p) per share, which will be payable on 22 May 2007to shareholders on the register at close of business on 27 April 2007. Theshares will go ex-dividend on 25 April 2007. The year to 30th November 2006 was one of considerable progress for the group.The recovery in profitability which I reported at the time of our interimresults continued through the second half of the year with total group turnoverincreasing by 28% and operating profit growing by 87% as compared to thepreceding year. All of our European subsidiaries achieved improved sales andprofitability during the year and despite a number of problems with supplies inthe period, our Chinese activities made further progress. Our balance sheet asat 30th November 2006 remained robust. These results reflect the benefits of the restructuring of the management of ourEuropean activities which we undertook in order to align our operations moreclosely to market requirements and the increasing impact of progressivelyimproving IT systems across the group. We have now been able to devolve greater operating authority to the managementteams of our subsidiaries and we have introduced a system of incentives toreward them for the delivery of consistent growth in turnover and profitabilitywhilst conserving working capital. Strategy continues to be set and performance monitored centrally but the greateroperating autonomy that our subsidiaries now have has freed group management toconcentrate on extending the product range and increasing our geographicalcoverage. We are already starting to see the benefits of this approach. Following theestablishment of our Chinese WOFE we have made an encouraging start toidentifying Chinese made products which may have significant potential forexport. The combination of supplies into and from China will, we believe, leadto our Chinese operations making a positive contribution in the current year. India is rapidly emerging as a country with a growing electronics industry andwe have concluded a joint venture agreement with a small, well establishedcompany located in Mysore to serve the Indian market. As with our Chineseoperations, this will require time fully to realise its potential. With the developments in China and the planned venture in India we believe thatwe have laid the foundations for a strong international presence. The widergeographical presence we are working towards and greater time resources nowavailable at group level has led to a significant rise in opportunities toextend our product range both as regards basic volume and specialist nicheproducts. It remains the case that the markets which we serve are cyclical in nature butthe range extensions which we anticipate, coupled with the greater geographicalcoverage we have achieved, are significant developments for the group. We believe we are now well placed to seek more stable and sustained growth forthe group. R W WeinreichChairman and Chief Executive 7 March 2007 Consolidated profit and loss accountfor the year ended 30 November 2006 Restated Note 2006 2005 £'000 £'000 Group turnover - continuing operations 18,822 14,740Cost of sales (13,891) (10,471) Gross profit 4,931 4,269Distribution costs (446) (406)Administrative expenses (3,592) (3,404)Other operating income 38 46 Group operating profit 931 505Share of associate's operating (loss) / profit (25) (25) Total operating profit 906 480Cost of fundamental restructuring - (215)Deferred consideration arising on sale of former subsidiary 39 24 Profit on ordinary activities before interest and tax 945 289Interest receivable 9 5Interest payable and similar charges (26) (24) Profit on ordinary activities before taxation 928 270Tax on profit on ordinary activities 2 (390) 88 Profit on ordinary activities after taxation 538 358Minority interests - equity 22 (7) Profit for the financial year 560 351 Basic earnings per share 4 13.50p 8.47p Diluted earnings per share 4 12.88p 8.29p Consolidated balance sheetat 30 November 2006 Restated Note 2006 2005 £'000 £'000Fixed assetsIntangible assets 382 410Tangible fixed assets 506 509Investment in associated undertaking 119 103 1,007 1,022 Current assetsStocks 3,153 2,624Debtors 2,844 2,970Cash at bank and in hand 822 734 6,819 6,328 Creditors: amounts falling due within one year (2,344) (2,088) Net current assets 4,475 4,240 Total assets less current liabilities 5,482 5,252 Creditors: amounts falling due after one year (4) (6) Provision for liabilities and charges (198) (186) 5,280 5,070 Capital and reservesCalled up share capital 416 414Share premium account 1,531 1,525Capital redemption reserve 1 1Profit and loss account 3,170 2,883 Equity shareholders' funds 5,118 4,823 Minority interests - equity 162 247 5,280 5,070 Consolidated cash flow statementfor the year ended 30 November 2006 Note 2006 2005 £'000 £'000 Net cash inflow from operating activities 583 753 Returns on investment and servicing of financeInterest received 9 5Interest paid (25) (21)Finance lease interest (1) (3) Net cash outflow from returns on investment andservicing of finance (17) (19) Taxation paidUK Corporation tax 48 (254)Overseas corporation tax (144) (10) (96) (264) Capital expenditurePayments to acquire tangible fixed assets (244) (116)Receipts from sales of tangible fixed assets 29 58 (215) (58) Acquisitions and disposalsNet cash acquired with subsidiary undertaking - 9Increase in investment in existing subsidiary (54)Investment in associated undertaking - (31)Deferred consideration arising on sale of former subsidiary 39 24 (15) 2 Equity dividends paid (197) (197) Cash flow before financing 43 217 FinancingIssue of shares 8 -Capital element of finance leases (16) (42) (8) (42) Increase in cash 35 175 Notes 1. The Company has adopted FRS20 "Share Based Payments", FRS21 "Eventsafter the Balance Sheet Date" and FRS 25 "Financial Instruments: Disclosure andPresentation" for the first time in these financial statements. The adoption ofthese standards represents a change in accounting policy and the comparativeshave been restated accordingly. FRS20 has been adopted early. 2. Taxation comprises United Kingdom corporation tax of 204,000 (2005: £(118,000)), foreign tax of £209,000 (2005: £22,000) and deferred taxation of £(23,000) (2005: £8,000). 3. The directors have recommended a final dividend of 3.00p (2005: 2.75p)per share payable on 22 May 2007 to shareholders on the register at close ofbusiness on 27 April 2007. The total dividend for the year, including theinterim dividend of 2.0p (2005: 2.0p) per share paid on 19 September 2006,amounts to £208,000 (2005: £197,000), which is equivalent to 5.00p (2005: 4.75p)per share. 4. The basic earnings per share are based on the profit for the financialyear of £560,000 (2005: £351,000) and on ordinary shares 4,149,236 (2005:4,144,551), the weighted average number of shares in issue during the year.Diluted earnings per share are based on 4,349,236 ordinary shares (2005:4,234,551), being the weighted average number of ordinary shares after anadjustment of 200,000 shares (2005: 90,000) in relation to share options. 5. This preliminary statement which has been approved by the Board on 7March 2007 is not the Company's statutory accounts. The statutory accounts foreach of the two years to 30 November 2005 and 30 November 2006 received auditreports, which were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The 2005 accounts have been filed withthe Registrar of Companies but the 2006 accounts are not yet filed. ENDS For further information, contact: Mr Rudi Weinreich, Chairman and Chief Executive, Holders Technology plc, on 020 8731 4336 Mr Jim Shawyer, Group Finance Director, Holders Technology plc, on 020 8731 4336 Mr John Wakefield, Director, Corporate Synergy Plc, on 0117 933 0020. Website www.holderstechnology.com This information is provided by RNS The company news service from the London Stock Exchange