HDT.L Regulatory News (HDT)

Holders Technology plc

Specialised PCB Materials, LED Components and Lighting Solutions

Half yearly results for the 6 months ended 31 May 2015

Holders Technology plc (AIM: HDT) announces its unaudited half yearly results for the 6 month period ended 31 May 2015. 

Highlights

Holders Technology plc supplies specialty laminates and materials for printed circuit board manufacturers ("PCB"), and operates as an LED solutions provider to the lighting and industrial markets.

Unaudited results for the period are summarised as follows:

Chairman's statement

Half year ended 31 May 2015

The first half of the year saw a strengthening of sterling against the Euro. This, combined with the anticipated lower PCB sales in the UK and reduced PCB sales in Germany, led to a fall of £1.5m in sales revenues as compared to the preceding year. Despite this, operating profit showed a £75,000 improvement as overheads were reduced by some 19% and margins recorded a modest improvement of 2%.

PCB

The largest element of our PCB turnover is generated from our German subsidiary. The slow down which they experienced in their domestic market resulted in a decline in trading as compared to the preceding year. Our UK subsidiary, whilst suffering the full impact of the termination of the supplier agreement which occurred at the end of our last financial year, succeeded in replacing some of this lost turnover with new products and it also achieved a marked reduction in its cost base and thus remained profitable.

In summary, total PCB sales for the period were £4,146,000 as compared to £5,802,000 in 2014. The impact of the reduced volume was lessened by improved margins and overhead reductions which resulted in an overall profit of £35,000 as compared to £112,000 in the prior year.

LED

All of our LED activities recorded encouraging improvements in revenues and margins as compared to the same period last year. Total sales for the first half were £1,333,000 whilst the preceding year showed £1,160,000 with losses reduced from £247,000 to £72,000.

Summary

Whilst the Group has not yet returned to profitability the overall result for the first half shows a significant improvement as compared to the prior year. Discussions with other potential new suppliers are underway further to strengthen our PCB and LED ranges. We anticipate continued progress towards our goal of achieving acceptable returns in the second half of the current year.

Rudolf W. Weinreich Holders Technology plc

Executive Chairman Elstree House

Elstree Way

Borehamwood

24 July 2015 Hertfordshire WD61SD

Consolidated income statement

for the half year ended 31 May 2015 (Unaudited)

Consolidated statement of comprehensive income

for the half year ended 31 May 2015 (Unaudited)

Consolidated statement of changes in equity

for the half year ended 31 May 2015 (Unaudited)

Consolidated balance sheet

at 31 May 2015 (Unaudited)

Consolidated cash flow statement

for the half year ended 31 May 2015 (Unaudited)

Notes

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 2014.

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 2015 and 31 May 2014.

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 2014 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 24 July 2015.

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 2015 is calculated based on the tax rates applicable in the country in which each company operates. Taxation includes a tax credit of £10,000 (2014: tax credit of £5,000) relating to overseas operations.

5. A final dividend of 0.25p per share on the total issued share capital of 3,939,551 10p ordinary shares, excluding treasury shares, was paid on 19 May 2015 in respect of the year ended 30 November 2014.

An interim dividend payment of 0.25p per share (2014: 1.0p per share) will be payable on 6 October 2015 to shareholders on the register at 11 September 2015. The shares will go ex-dividend on 10 September 2015. The interim dividend had not been approved by the board at 31 May 2015 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 £81,000 (2014: loss £146,000) and on ordinary shares 3,939,551 (2014: 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 (2014: 3,959,551), being the weighted average number of ordinary shares after an adjustment of nil shares (2014: nil) 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.holdersgroup.com.

For further information, contact:

Website www.holdersgroup.com