HDT.L Regulatory News (HDT)

19 Jul 2005 07:00

Holders Technology PLC19 July 2005 HOLDERS TECHNOLOGY PLC ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 MAY 2005 CHAIRMAN'S STATEMENT Results Turnover for the six month period to 31 May 2005 was £7,190,000 as compared with£7,845,000 for the similar period in the preceding year. Pre-tax profit fell to£182,000 (2004: £421,000). Earnings per share amounted to 2.56p (2004: 6.23p)and net assets totalled £4,692,000 (2004: £4,384,000). Dividend A net interim dividend of 2.0p per share (2004: 2.0p) will be paid on 20September to shareholders on the Register of Members at the close of business on26 August 2005. The shares will go ex-dividend on 24 August 2005. Activities In the chairman's statement within the Report and Accounts for the year to 30November 2004, issued in March this year, I cautioned that we were experiencingtrading at levels below those of the preceding year and saw no signs of theposition easing. This was borne out by trading in the balance of the first halfyear. That said, I am pleased to be able to report that all save one of oursubsidiaries operated at budgeted levels, generally maintained gross margins andtightly controlled overheads. The exception to this favourable position wasScreen Circuit. Having made a loss of £155,000 in the period, it will berestructured in the second half of the year with a view to eliminating anycontinuing losses. It remains the Group's policy to seek, wherever possible, to hedge its foreignexchange exposure and to insure its debtors. In some instances it is notpossible to do this and in the first half we suffered a net exchange loss of£27,000, primarily due to a weak euro, and £53,000 of bad debts were incurred inthe UK. The rationalisation of Screen Circuit, when completed, is expected toreduce overall stock levels and this will lead to a further strengthening of ourbalance sheet. In China, Topgrow Technologies (our 60% owned subsidiary) is currently engagedin creating a Wholly Owned Foreign Enterprise which will lease productionfacilities of a size which will enable it to address the opportunities in thismarket. Topgrow, despite quality problems with certain suppliers' products andthe cost and resources required by the expansion programme, achieved a breakeven position in the six month period. The group generated an operating cash inflow of £144,000 in the period, but dueto tax payments and the final dividend, paid in May 2005, there was a netdecrease in cash of £252,000. Net debt at 31 May amounted to £110,000 comparedwith net funds of £144,000 at the end of last year. Outlook The elimination of Screen Circuit's losses will positively impact the secondhalf of the current year. Given maintenance in the second half of the tradinglevels achieved by the other companies within the group in the first half, wecontinue to expect that the year as a whole will be in line with our initialexpectations. Rudolf W. Weinreich Holders Technology plcChairman and Chief Executive Northway House 1379 High Road Whetstone London N20 9LP19 July 2005 GROUP PROFIT AND LOSS ACCOUNTfor the half-year ended 31 May 2005 Notes Unaudited Unaudited Audited full half year half year year ended ended 31 May ended 31 May 30 Nov 2004 2005 2004 £'000 £'000 £'000TurnoverContinuing operations 1 7,190 7,845 15,658Operating profitContinuing operations 202 427 720Share of associates operating (loss)/profit - (1) 4Total operating profit 202 426 724Profit on disposal of subsidiary - discontinued 2 12 12 24operationProfit on ordinary activities before interest and 214 438 748taxNet interest payable and similar charges (32) (17) (16)Profit before taxation 182 421 732Taxation 3 (72) (163) (274)Profit after taxation 110 258 458Minority interests - equity (4) - (2)Profit for the period 106 258 456Dividends 4 (83) (83) (197)Transfer to reserves 23 175 259 Earnings per share 5 2.56p 6.23p 11.00pDiluted earnings per share 5 2.52p 6.13p 10.83p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Profit for the financial year 106 258 456In respect of associated undertaking prior to - - 23acquisitionCurrency translation differences (41) (81) 11Total recognised gains and losses 65 177 490 GROUP BALANCE SHEETat 31 May 2005 Unaudited half Unaudited half Audited full year ended year ended year ended 31 May 2005 31 May 2004 30 Nov 2004 £000 £000 £000Fixed AssetsIntangible assets 404 197 424Tangible assets 596 632 640Investment in associated undertaking 121 202 97 1,121 1,031 1,161 Current AssetsStocks 2,737 2,272 2,607Debtors 3,276 3,862 2,804Cash at bank and in hand 377 428 480 6,390 6,562 5,891 Creditors: Amounts falling due within one year (2,714) (3,159) (2,217) Net current assets 3,676 3,403 3,674 Total assets less current liabilities 4,797 4,434 4,835 Creditors: Amounts falling due after one year (1) (39) (25) Provision for liabilities and charges (104) (11) (104) 4,692 4,384 4,706 Capital and ReservesCalled up share capital 414 414 414Share premium account 1,525 1,525 1,525Capital redemption reserve 1 1 1Profit and loss account 2,625 2,444 2,643Equity shareholders' funds 4,565 4,384 4,583 Minority interests - equity 127 - 123 4,692 4,384 4,706 GROUP CASH FLOWfor the half-year ended 31 May 2005 Unaudited Unaudited Audited full half year ended half year ended year ended 31 May 2005 31 May 2004 30 Nov 2004 £000 £000 £000 Net cash inflow from operating activities 1 144 524 837 Returns on investment and servicing of financeInterest received 2 7 15Interest paid (5) (20) (25)Finance lease interest (2) (4) (6) Net cash flow from returns on investment and (5) (17) (16)servicing of financeTaxation (193) (57) (220) Capital expenditurePayments to acquire tangible fixed assets (61) (115) (253)Receipts from sales of tangible fixed assets 14 - 554 (47) (115) 301 Acquisitions and disposalsPurchase of subsidiary undertaking - - (76)Net cash acquired with subsidiary undertaking - - 8Investment in associated undertaking (24) - (24)Sale of subsidiary undertaking 12 12 24 (12) 12 (68) Equity dividends paid (114) (104) (187) Cash flow before financing (227) 243 647 FinancingCapital element of finance leases (25) (12) (32)(Repayment)/draw-down of bank loan - - (598)Repayment of bank loan - (465) - (25) (477) (630) (Decrease)/increase in cash 2 (252) (234) 17 1. Reconciliation of operating profit to net cash inflow from operating activities Unaudited Unaudited Audited full half year ended half year ended year ended 31 May 2005 31 May 2004 30 Nov 2004 £'000 £'000 £'000 Operating profit 202 427 720Depreciation 86 90 240Amortisation of goodwill 17 12 21Impairment of goodwill - - 47Currency translation (28) (57) 10Loss on sale of tangible fixed assets (5) (42) (45)Change in stocks (130) (113) (350)Change in debtors (478) (475) 377Change in creditors 480 682 (183)Net cash inflow from operating activities 144 524 837 2. Reconciliation of net cash flow to movement in net (debt) / funds (Decrease)/increase in cash (252) (234) 17Cash flow from change in debt and lease finance 25 477 630 (227) 243 647 Exchange losses on currency balances (27) - - (254) 243 647 Opening net (debt) / funds 144 (503) (503) Closing net (debt) / funds (110) (260) 144 Notes: 1. The interim results are prepared on the basis of accounting policies set out in the financial statements for the year ended 30 November 2004. 2. The profit on disposal of subsidiary represents deferred consideration from the sale of Justfone Limited in 2003, which is recognised when received. 3. The tax charge for the six months ended 31 May 2005 is calculated based on the tax rates applicable in the country in which each company operates. The effective rate of tax is 39.6% (2004: 38.7%). Taxation includes a charge of £42,000 (2004: £142,000) relating to overseas operations. 4. The dividend payment of 2.0p per share is payable on the total issued share capital of 4,144,551 10p ordinary shares. 5. The earnings per ordinary share (basic and diluted) for the six months ended 31 May 2005 have been calculated using Financial Reporting Standard 14. The calculation of basic earnings per share, for the six months, is based on the profit attributable to equity shareholders of £106,000 (2004: £258,000) and on 4,144,551 ordinary shares (2004: 4,144,551) being the weighted average number of shares in issue during the period. Diluted earnings per share is based on 4,209,551 ordinary shares (2004: 4,209,551), being the weighted average number of ordinary shares after an adjustment of 65,000 shares (2004: 65,000) in relation to share options. 6. The results for the half year to 31 May 2005 are unaudited. The results for the year ended 30 November 2004 are taken from the full accounts filed with the Registrar of Companies, which contained an unqualified audit report and did not contain statements under s237 (2) or (3). 7. A copy of this interim report is being sent to shareholders and is available for inspection at the Company's registered office, Northway House, 1379 High Road, Whetstone, London N20 9LP. For further information please contact: Rudi Weinreich, Chairman & Chief Executive, Holders Technology Group plc - 020 8343 7095 Barrie Newton, Rowan Dartington & Co. Limited - 0117 933 0011 Website: http://www.holders.co.uk This information is provided by RNS The company news service from the London Stock Exchange