HDT.L Regulatory News (HDT)

Holders Technology plc

Specialised Materials, LED Components and Lighting Solutions

Half yearly results for the 6 months ended 31 May 2014

Holders Technology plc (AIM: HDT) announces its unaudited half yearly results for the 6 month period ended 31 May 2014.

Highlights Half year ended 31 May

2014 2013

Restated

Revenue £7.0m £7.0m

Profit/ (loss) before tax (£0.2m) £0.0m

Operating cash flow before tax (£0.4m) (£0.1m)

Earnings per share (3.71p) 0.91p

Interim dividend per share 1.00p 1.00p

Net assets per share at 31 May 121p 134p

Chairman's statement

The overall result for the first half was below our expectations, with certain divisions performing better than others.

PCB

Our largest PCB division in Germany achieved good progress and increased market share during the first half of the current year with newly won business making a valuable contribution. The UK PCB business however continued to face strong competition which adversely impacted revenue and margins. Our India joint venture remained profitable, although it is a much smaller operation. 

Together the PCB divisions achieved modest sales growth. Margins fell by 1.7% which was partly offset by overhead savings. The net result £112,000 profit was slightly reduced compared to 2013.

LED

Sales of LED finished lighting products in the UK and Germany made satisfactory progress with improved revenue and profitability. However the larger LED components and solutions divisions achieved lower revenue from an increased cost base. The overall LED result was a loss of £247,000.

The higher costs in the LED solutions businesses arise from the strengthened sales and management team commented on in the Chairman's Statement in the last Annual Report, as well as increased participation at key European exhibitions. The investment in staff was necessary, we believe, to provide the technical credibility to win sustainable solutions business. The lead times to secure this work can be lengthy, however the margins for the work secured have already shown improvement.

Summary

We expect that the second half of the year will show a more satisfactory outcome for our LED activities and that further progress will be made to ensuring that we are able to achieve sustained growth in Group turnover. We continue to seek new business opportunities in all markets and grow our market share.

Consolidated income statement

for the half year ended 31 May 2014 (Unaudited)

Consolidated statement of comprehensive income

for the half year ended 31 May 2014 (Unaudited)

Consolidated statement of changes in equity

for the half year ended 31 May 2014 (Unaudited)

Consolidated balance sheet

at 31 May 2013 (Unaudited)

Consolidated cash flow statement

for the half year ended 31 May 2014 (Unaudited)

1. General information

Holders Technology plc is incorporated in the United Kingdom under the Companies Act 2006. The principal activity of the group is to provide specialised materials, components and solutions to the electronics and lighting industries.

2. Basis of preparation

The condensed consolidated half year financial statements have been prepared in accordance with the AIM Rules for Companies and prepared on a basis consistent with International Financial Reporting Standards ("IFRS") as adopted by the EU and the accounting policies set out in the group's financial statements for the year ended 30 November 2013.

The condensed consolidated half year financial statements are unaudited and include all adjustments which management considers necessary for a fair presentation of the group's financial position, operating results and cash flows for the 6 month periods ended 31 May 2014 and 31 May 2013.

The financial statements for the 6 month period to 31 May 2013 have been restated to show the impact of discontinued operations in China. This is detailed in note 10 of the financial statements for the 12 months to 30 November 2013.

The half year financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. A copy of the group's financial statements for the year ended 30 November 2013 prepared in accordance with IFRS as adopted by the EU has been filed with the Registrar of Companies. The auditors' report on those financial statements was not qualified and did not contain statements under s498(2) of s498(3) of the Companies Act 2006.

As permitted, the group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these half year financial statements and therefore the half year financial information is not in full compliance with IFRS.

The preparation of half year financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

These half year financial statements have been prepared under the historical cost convention.

The board of Holders Technology plc approved this half yearly report on 25 July 2014.

3. Segmental information

Management currently identifies two operating segments:

- PCB, which distributes materials, equipment and supplies to the PCB industry.

- LED, which distributes LED-related components and lighting solutions to the lighting industry.

Analysis by operating segment

for the half year ended 31 May

4. The tax provision for the six months ended 31 May 2014 is calculated based on the tax rates applicable in the country in which each company operates. Taxation includes a tax credit of £5,000 (2013: tax credit of £5,000) relating to overseas operations.

5. A final dividend of 1.00p per share on the total issued share capital of 3,939,551 10p ordinary shares, excluding treasury shares, was paid on 20 May 2014 in respect of the year ended 30 November 2013.

An interim dividend payment of 1.0p per share (2013: 1.0p per share) will be payable on 7 October 2014 to shareholders on the register at 12 September 2014. The shares will go ex-dividend on 10 September 2014. The interim dividend had not been approved by the board at 31 May 2014 and accordingly, has not been included as a liability as at that date.

6. The basic earnings per share for continuing operations are based on the loss for the period of £146,000 (2013: restated profit £33,000) and on ordinary shares 3,939,551 (2013: 3,939,551), the weighted average number of shares in issue during the period. Diluted earnings per share for continuing operations are based on 3,939,551 ordinary shares (2013: 4,064,777), being the weighted average number of ordinary shares after an adjustment of nil shares (2013: 125,226) in relation to share options.

The basic and diluted loss per share for discontinued operations was nil in the period. For the comparative 2013 period the basic and diluted loss per share was based on a loss of £21,000 and weighted average number of shares in issue of 3,939,551 ordinary shares.

7. A copy of this half yearly report is being sent to shareholders and is available for inspection at the company's registered office, Elstree House, Elstree Way, Borehamwood, Herts WD6 1SD and via its website www.holderstechnology.com.

For further information, contact:

Website www.holderstechnology.com

END