HDT.L Regulatory News (HDT)

Holders Technology plc

Specialised PCB Materials, LED Components and Smart Lighting

Final results for the year ended 30 November 2018

Holders Technology plc ("Holders Technology" or "the Group") announces its audited results for the year ended 30 November 2018. Holders Technology supplies specialty laminates and materials for printed circuit board manufacture ("PCB") and operates as an LED solutions provider to the lighting market.

The Group made further progress during the year, with overall revenue growth and improved profitability.

The Group comprises two PCB divisions based in the UK and Germany, and two LED divisions also based in the UK and Germany. In the opinion of the directors, all divisions made satisfactory progress by the year end.

The directors will recommend payment of a final dividend of 0.50p per share, a total of 0.75p for the year (2017 total: 0.50p).

Highlights included:

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

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Chairman's statement

Given our continuing commitment to achieving satisfactory levels of profitability I am pleased to be able to report that the Group has made further progress over the year. Group revenue for the year was £12.5m (2017: £12.2m), with gross margins of 26.2% (2017: 26.3%). The operating profit for the year from continuing operations was £184,000 (2017: operating profit of £65,000), and the profit after tax from continuing operations was £169,000 (2017: profit £59,000).

The Group comprises two PCB divisions, based in the UK and Germany, and two LED divisions, also based in the UK and Germany.

The PCB divisions together had revenue of £9.4m (2017: £9.5m) and achieved an operating profit of £280,000 (2017: profit £214,000). Margins reduced from 24.2% to 23.5%.

Our German PCB operations, the largest single element of the Group, achieved similar revenue to 2017, but improved operating profit therefrom. Investments were made in machinery and improved systems during the year, and in Q1 2019 an upgraded aluminium coil cutting machine will be installed in our Germany premises. This investment will enable both further efficiency improvements and will increase capacity.

UK PCB operations achieved satisfactory revenue in the year despite a lower level of market demand than 2017.

LED revenues overall amounted to £3.1m (2017: £2.8m) with gross margins increasing from 33.4% to 34.1% and operating losses reducing from £92,000 in 2017 to £13,000 in 2018. The product range continues to develop with smart lighting controls a key focus for the future. Both divisions were profitable in the second half of the year.

The Cross-Border Corporation Tax liability reported in 2015 is nearing settlement: £88,000 was paid during 2018 which leaves a potential liability of up to £43,000 remaining which has been fully provided for.

We believe the Group is well positioned to deliver further improvements in the current year but recognise that the market conditions that we face remain unpredictable.

On behalf of the Board I would like to record our thanks to all of our staff for their hard work during 2018 which resulted in a profitable year for the Group. Given the improved results, the Board considers it appropriate to recommend an increased final dividend of 0.50p in respect of the 2018 year.

R W Weinreich 

Executive Chairman

21 February 2019

Group income statement for the year ended 30 November 2018

Group statement of comprehensive income for the year ended 30 November 2018

Statements of changes in equity for the year ended 30 November 2018

Group balance sheet at 30 November 2018

Statement of cash flows for the year ended 30 November 2018

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 0.50p per share payable on 21 May 2019 to shareholders on the register at close of business on 3 May 2019. The total dividend for the year, including the interim dividend of 0.25p (2017: 0.25p) per share paid on 9 October 2018, amounts to £31,000 (2017: £20,000), which is equivalent to 0.75p (2017: 0.50p) per share.

4. Discontinued operations

In March 2017 the LED finished goods activity in the UK, branded as NRGstar, was discontinued. This point marked the Group's cessation of this type of LED operation, and a re-focus on sales of LED components, lighting solutions and smart lighting systems.  

Notes continued

5. The basic earnings per share are based on the profit for the financial year of £169,000 (2017: profit of £59,000) and on ordinary shares of 4,159,551 (2017: 4,159,551 shares), the weighted average number of shares in issue during the year. Diluted earnings per share is based on 4,190,594 ordinary shares (2017: 4,414,419 shares), being the weighted average number of ordinary shares after an adjustment of 31,043 (2017: 254,868) in relation to share options.

6. This preliminary statement, which has been approved by the Board on 21 February 2019, is not the Company's statutory accounts. The statutory accounts for each of the two years to 30 November 2017 and 30 November 2018 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 2017 accounts have been filed with the registrar of Companies, but the 2018 accounts are not yet filed.