HDT.L Regulatory News (HDT)

18 Jul 2006 07:00

Holders Technology PLC18 July 2006 HOLDERS TECHNOLOGY PLC ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 May 2006 CHAIRMAN'S STATEMENT Results Turnover for the six month period to 31 May 2006 was £9,030,000 as compared with£7,190,000 for the similar period in the preceding year. Pre-tax profitincreased to £403,000 (2005: £182,000). Earnings per share amounted to 5.81p(2005: 2.56p) and net assets totalled £5,157,000 (2005: £4,775,000). Dividend A net interim dividend of 2.0p per share (2005: 2.0p) will be paid on 19September to shareholders on the Register of Members at the close of business on25 August 2006. The shares will go ex-dividend on 23 August 2006. Activities I am pleased to be able to report a recovery in profitability across the Groupwith our subsidiaries in Holland and Sweden showing particularly markedimprovements on the preceding year. While UK operations experienced only a modest increase in turnover, all of ourother European activities achieved significant growth in sales, despite supplylimitations at times in respect of a number of products. The price of oil,aluminium and copper, all of which impact the prices of the products we supplyto customers, increased in the period, but generally we have been able tomaintain our margins. Exchange rate movements had a negligible effect on theresults. Due to the restructuring which we undertook last year, we have been able tocontain overheads despite higher volumes and significant cost increases in someareas such as energy costs. The growth in turnover in the half year caused an increase in the group'sworking capital, with notably higher debtors and prepayments. This resulted ina reduction in net cash balances of £409,000 since the end of the last financialyear, however, the Group has a strong balance sheet and at 31 May 2006 net debtwas £34,000 (2005: £110,000). After a number of delays our Chinese WOFE (Wholly Owned Foreign Enterprise) wassuccessfully registered in May 2006 and we are now able to look to expand ouroperations in China. As I have said in earlier statements, we believe there aresignificant opportunities open to us in this market but we will be taking aprudent approach. If we are successful the results will take time to showthrough and the impact on the current year will necessarily be modest. We believe that the sound performance in the first half of the current yearleaves us well placed to achieve a satisfactory result for the year as a whole. The interim financial statements were approved by the Board on 18 July 2006 andsigned on its behalf by: Rudolf W. Weinreich Holders Technology plcChairman and Chief Executive Devonshire House Manor way Borehamwood Hertfordshire WD6 1QQ18 July 2006 GROUP PROFIT AND LOSS ACCOUNTfor the half-year ended 31 May 2006 Unaudited Unaudited Audited half-year half-year full-year ended 31 ended 31 ended 30 May 2006 May 2005 Nov 2005 Notes £'000 £'000 £'000Turnover Continuing operations 1 9,030 7,190 14,740Operating profit Continuing operations 417 202 509Share of associates operating (loss)/profit (25) - (25)Total operating profit 392 202 484Cost of fundamental restructuring - - (215)Deferred consideration arising onsale of former subsidiary 6 12 24Profit on ordinary activitiesbefore interest and tax 398 214 293Net interest receivable/(payable)and similar charges 5 (32) (19)Profit before taxation 403 182 274Taxation 2 (162) (72) 88Profit after taxation 241 110 362Minority interests - equity - (4) (7)Profit for the period 241 106 355Dividends 3 (114) (114) (197)Transfer to/(from) reserves 127 (8) 158 Earnings per share 4 5.81p 2.56p 8.57pDiluted earnings per share 4 5.61p 2.52p 8.38p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Profit for the financial year 241 106 355Currency translation differences (40) (41) (32)Total recognised gains and losses 201 65 323 GROUP BALANCE SHEET AT 31 MAY 2006 Unaudited Unaudited Audited half-year half-year full-year ended 31 ended 31 ended 30 May 2006 May 2005 Nov 2005 £'000 £'000 £'000Fixed assets Intangible assets 393 404 410 Tangible assets 502 596 509 Investment in associated undertaking 65 121 103 960 1,121 1,022 Current assets Stocks 2,643 2,737 2,624 Debtors 4,218 3,276 2,970 Cash at bank and in hand 376 377 734 6,390 6,390 6,328Creditors Amounts falling due within one year (2,854) (2,631) (2,202) Net current assets 4,383 3,759 4,126 Total assets less current liabilities 5,343 4,880 5,148 Creditors: amounts falling due after one year (1) (1) (6) Provision for liabilities and charges (186) (104) (186) 5,157 4,775 4,956Capital and reserves Called up share capital 414 414 414 Share premium account 1,525 1,525 1,525 Capital redemption reserve 1 1 1 Profit and loss account 2,970 2,708 2,769Equity shareholders' funds 4,910 4,648 4,709 Minority interests - equity 247 127 247 5,157 4,775 4,956 GROUP CASH FLOWfor the half-year ended 31 May 2006 Unaudited Unaudited Audited half-year half-year full-year ended 31 ended 31 ended 30 May 2006 May 2005 Nov 2005 £'000 £'000 £'000 Net cash (outflow)/inflow from operating activities(1) (309) 144 753 Returns on investment and servicing of finance Interest received 3 2 5 Interest paid (4) (5) (21) Finance lease interest (1) (2) (3)Net cash flow from returns on investment andservicing of finance (2) (5) (19) Taxation 64 (193) (264) Capital expenditure Payments to acquire tangible fixed assets (65) (61) (116) Receipts from sales of tangible fixed assets 18 14 58 (47) (47) (58) Acquisitions and disposals Net cash acquired with subsidiary undertaking - - 9 Investment in associated undertaking - (24) (31) Deferred consideration arising on sale of former subsidiary 6 12 24 6 (12) 2 Equity dividends paid (114) (114) (197) Cash flow before financing (402) (227) 217 Financing Capital element of finance leases (7) (25) (42) (Decrease)/increase in cash 2 (409) (252) 175 1. Reconciliation of operating profit to net cash inflow from operating activities Unaudited Unaudited Audited half-year half-year full-year ended 31 ended 31 ended 30 May 2006 May 2005 Nov 2005 £'000 £'000 £'000 Operating profit 417 202 509 Depreciation 69 86 (187) Amortisation of goodwill 16 17 30 Currency translation (26) (28) (4) Cost of fundamental restructuring - - (215) Loss on sale of tangible fixed assets (15) (5) (7) Change in stocks (19) (130) (17) Change in debtors (1,366) (478) 215 Change in creditors 615 480 55 Net cash inflow from operating activities (309) 144 753 2. Reconciliation of net cash flow to movement in net (debt) / funds (Decrease)/increase in cash (409) (252) 175Cash flow from change in debt and leasefinance 7 25 42 (402) (227) 217 Exchange gains/(losses) on currency balances 7 (27) - (395) (254) 217 Opening net funds 361 144 144 Closing net (debt) / funds (34) (110) 361 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 2005, except that FRS21 (Events after the Balance Sheet Date) has been adopted. The effect of this is that dividends paid by the company are accounted for in the period in which the company is liable to pay them. Previously, the company accrued dividends in the period in which the net profit, to which those dividends related, was accounted for. The unaudited comparative figures for May 2005 have been restated in accordance with the new policy; however the audited figures for 30 November 2005, which have not been restated, will be restated in the audited accounts for the year ending 30 November 2006. 2. The tax charge for the six months ended 31 May 2006 is calculated based on the tax rates applicable in the country in which each company operates. The effective rate of tax is 40.2% (2005: 39.6%). Taxation includes a charge of £129,000 (2005: £42,000) relating to overseas operations. 3. The dividend expense represents the final dividend of 4.75p per share on the total issued share capital of 4,144,551 10p ordinary shares, which was paid on 23 May 2006 in respect of the year ended 30 November 2005. An interim dividend payment of 2.0p per share will be payable on 19 September 2006. The interim dividend was not approved by the board at 31 May 2006 and accordingly, has not been included as a liability as that date. 4. The earnings per ordinary share (basic and diluted) for the six months ended 31 May 2006 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 £241,000 (2005: £106,000) and on 4,144,551 ordinary shares (2005: 4,144,551) being the weighted average number of shares in issue during the period. Diluted earnings per share is based on 4,299,551 ordinary shares (2005: 4,209,551), being the weighted average number of ordinary shares after an adjustment of 155,000 shares (2005: 65,000) in relation to share options. 5. The results for the half year to 31 May 2006 are unaudited. The results for the year ended 30 November 2005 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). 6. A copy of this interim report is being sent to shareholders and is available for inspection at the Company's registered office, Devonshire House, Manor Way Borehamwood, Herts WD6 1QQ. For further information please contact: Mr Rudi Weinreich, Chairman and Chief Executive, Holders Technology plc,on 020 8731 4336 Mr Jim Shawyer, Group Finance Director, Holders Technology plc,On 020 8731 4336 Mr Barrie Newton, Director, Rowan Dartington and Company Limited,on 0117 933 0020. Website: http://www.holders.co.uk This information is provided by RNS The company news service from the London Stock Exchange