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 2013

Holders Technology plc (AIM: HDT) announces its unaudited half yearly results for the 6 month period ended 31 May 2013.

Highlights Half year ended 31 May

2013 2012

Revenue £7.7m £8.0m

Profit/ (loss) before tax £0.0m (£0.1m)

Operating cash flow before tax (£0.1m) £0.8m

Earnings per share 0.46p (1.98p)

Interim dividend per share 1.00p 1.00p

Net assets per share at 31 May 134p 147p

Chairman's statement

I am pleased to be able to report that we achieved an improvement in the result for the first half of the current year as compared to the particularly difficult comparable period in the preceding year with a pre-tax profit of £27,000 (2012: loss £99,000). Both the PCB and LED business segments achieved slightly improved pre-tax results, although total sales were 3.8% lower than 2012.

PCB

Results for the PCB business were mixed. The majority of our PCB sales are to European customers, and, compared to 2012, these showed modest growth and a small margin improvement. UK sales were at lower levels compared to 2012 as a result of reduced demand and price pressure. Both divisions benefitted from continuing cost reductions: overheads as a percentage of sales reduced by 1.8% compared to 2012.

LED

LED results in the period were impacted by the loss of a UK customer. Despite this, the first half outturn was a small improvement in sales and results against the comparable 2012 period. In the UK we have recently strengthened the management team and combined the LED and PCB offices into one location which will improve efficiency. In Europe sales were at a similar level to 2012 with improved results. Overheads as a percentage of sales were 1.2% lower than 2012.

Far East

Far East operations are now predominantly LED focussed rather than PCB. We will continue to seek opportunities to use these in house resources where they can be cost effective.

Outlook

For the PCB businesses we see some opportunity to grow our share of the European market later in the year. The UK market remains difficult and here we have reduced costs with the aim of improving competitiveness and retaining market share.

As previously announced, overall LED results in 2013 are unlikely to see the growth enjoyed in previous years. We are currently working on opportunities to broaden our offering with the aim of resuming growth from 2014 onwards. In addition, the LED businesses are no longer a significant drain on working capital resources.

The Group balance sheet remains strong with a satisfactory cash position and no debt.

Consolidated income statement

for the half year ended 31 May 2013 (Unaudited)

Consolidated statement of comprehensive income

for the half year ended 31 May 2013 (Unaudited)

Consolidated statement of changes in equity

for the half year ended 31 May 2013 (Unaudited)

Consolidated balance sheet

at 31 May 2013 (Unaudited)

Consolidated cash flow statement

for the half year ended 31 May 2013 (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 2012.

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 2013 and 31 May 2012.

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 2012 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 26 July 2013.

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 2013 is calculated based on the tax rates applicable in the country in which each company operates. Taxation includes a tax credit of £5,000 (2012: tax credit of £39,000) 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 21 May 2013 in respect of the year ended 30 November 2012.

An interim dividend payment of 1.0p per share (2012: 1.0p per share) will be payable on 3 October 2013 to shareholders on the register at 8 September 2013. The shares will go ex-dividend on 6 September 2013. The interim dividend had not been approved by the board at 31 May 2012 and accordingly, has not been included as a liability as at that date.

6. The basic earnings per share are based on the profit for the period of £18,000 (2012: loss £78,000) and on ordinary shares 3,939,551 (2012: 3,939,551), the weighted average number of shares in issue during the year. Diluted earnings per share are based on 4,064,777 ordinary shares (2012: 4,094,745), being the weighted average number of ordinary shares after an adjustment of 125,226 shares (2012: 155,194) in relation to share options.

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