TIDMHDT
RNS Number : 3926J
Holders Technology PLC
16 August 2023
Holders Technology plc
("Holders Technology", the "Company" or the "Group")
Half Year Report
Holders Technology, (AIM: HDT), is pleased to announce its
unaudited half year results for the six months ended 31 May
2023.
Highlights
Holders Technology operates as a lighting and wireless control
solutions ("LCS") provider and supplies specialty laminates and
materials for printed circuit board ("PCB") manufacturers.
Unaudited results for the half year ended 31 May 2023 are
summarised as follows:
2023 2022
GBP'000 GBP'000
--------- --------
Revenue LCS 2,764 2,227
PCB 1,101 1,227
Total 3,865 3,454
---------
Gross profit 1,261 1,207
Margins 32.6% 34.9%
Overheads 1,736 1,450
Operating (loss)/
profit (475) (243)
Finance expense 18 (1)
Income from joint
ventures (50) 18
(Loss)/ profit before
tax (507) (226)
Taxation - -
(Loss)/ profit after
tax (507) (226)
========= ========
(Loss)/ earnings per
share (11.99p) (5.35p)
Interim dividend per
share 0.25p 0.50p
Net assets per share 85p 99p
--------------------------- --------- --------
Chairman's statement
Half year ended 31 May 2023
The results for the first half of 2023 are disappointing but an
improvement for the second half is anticipated. The first half saw
weak customer demand due to a generally adverse economic climate.
Coupled with this, some PCB customers were holding higher than
anticipated levels of stock at the beginning of the period, and
this contributed to lower demand than we would normally expect in
the first quarter. When this became apparent, the Group reduced its
cost base which was of some benefit in the latter part of the first
half of the year and is expected further to benefit the second half
of the year.
Revenue for the six months to 31 May 2023 was GBP3,865,000
(2022: GBP3,454,000), and the growth in revenue was 11.9%. The
figures do not include the Group share of joint venture revenues of
GBP196,000 (2022: GBP193,000). Gross margins reduced from 34.9% to
32.6% and the pre-tax Group results was a loss of GBP507,000 (2022:
loss of GBP226,000).
LCS
LCS revenue increased by 24.1% to GBP2,764,000 (2022:
GBP2,227,000) with stronger growth in the UK than in Germany. The
higher cost base as a result of actions taken to expand our
activities contributed to a margin decrease from 34.3% to 32.4%.
The overall result for the LCS divisions was an operating loss of
GBP364,000 (2022: loss of GBP216,000).
The LCS joint ventures also suffered from unfavourable market
conditions and in aggregate were loss making, recording a loss of
GBP50,000 for the half year (2022: profit of GBP18,000.)
PCB
Results from the PCB division saw revenues decreasing by 10.3%
from GBP1,227,000 to GBP1,101,000. This decrease was largely due to
customers holding higher stocks at the beginning of 2023. Gross
margins reduced from 36.1% to 33.1% and the overall result was an
operating profit of GBP2,000 (2022: GBP82,000 profit).
Cash and Debt
Group cash at the period end was GBP1,808,000 (31 May 2022:
GBP2,490,000). Other than lease liabilities, the Company has no
debt.
Outlook
Although in the second half of the current year the Group will
benefit from the cost saving measures already in hand, we remain
cautious as regards our expectations for the second half of the
current year. Despite the current economic situation and the
consequent difficult market conditions, we remain confident for the
longer term and continue to believe that performance will improve
as markets settle.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Rudolf W. Weinreich Holders Technology plc
Executive Chairman 27-28 Eastcastle Street
London W1W 8HD
For further information, contact:
Holders Technology plc 01896 758781
Rudi Weinreich, Executive Chairman
Victoria Blaisdell, Group Managing Director
Mehul Shah, Group Finance Director
Website www.holderstechnology.com
SP Angel Corporate Finance LLP - Nominated
Adviser & Broker 020 3470 0470
Matthew Johnson / Harry Davies-Ball (Corporate
Finance)
Abigail Wayne (Sales)
Website
www.holderstechnology.com
Consolidated income statement
for the half year ended 31 May 2023 (Unaudited)
Half year Half year Full year
ended ended 31 ended 30
31 May 2022 Nov 2022
May 2023
=========== ============ =============
Notes GBP'000 GBP'000 GBP'000
Revenue 3 3,865 3,454 8,319
Cost of sales (2,604) (2,247) (5,425)
=========== ============ =============
Gross profit 1,261 1,207 2,894
Distribution costs (92) (88) (197)
Administrative expenses (1,618) (1,359) (2,943)
Impairment of goodwill - - -
Other operating expenses (26) (3) 8
=========== ============ =============
Operating (loss)/ profit (475) (243) (238)
Income from joint ventures (50) 18 (8)
Profit on disposal of assets - - -
Finance costs 18 (1) (13)
=========== ============ =============
(Loss)/ profit before taxation (507) (226) (259)
Taxation 4 - - -
=========== ============ =============
(Loss)/ profit for the period (507) (226) (259)
=========== ============ =============
Total and continuing
Basic (loss)/ earnings per
share 6 (11.99p) (5.35p) (6.13p)
=========== ============ =============
Diluted (loss)/ earnings per
share 6 (11.99p) (5.35p) (6.13p)
=========== ============ =============
Consolidated statement of comprehensive income
for the half year ended 31 May 2023 (Unaudited)
Half year Half year Full year
ended ended 31 ended 30
31 May 2022 Nov 2022
May 2023
========== =================== ==========
GBP'000 GBP'000 GBP'000
Profit/ (loss) for the period (507) (226) (259)
Exchange differences on
translation of foreign operations (47) 7 29
========== =================== ==========
Total comprehensive income
for the period (554) (219) (230)
========== =================== ==========
Consolidated statement of changes in equity
for the half year ended 31 May 2023 (Unaudited)
Capital
Share redemption Translation Retained
Share capital premium reserve reserve earnings Total equity
============== ============ ================== ================ ================ =============
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance 1 Dec
2021 422 1,590 1 114 2,401 4,528
Dividends - - - - (126) (126)
Transactions
with owners - - - - (126) (126)
============== ============ ================== ================ ================ =============
Loss for the
year - - - - (259) (259)
Exchange
differences on
translating
foreign
operations - - - 29 - 29
============== ============ ================== ================ ================ =============
Total
comprehensive
income for the
year - - - 29 (259) (230)
============== ============ ================== ================ ================ =============
Balance 30 Nov
2022 422 1,590 1 143 2,016 4,172
============== ============ ================== ================ ================ =============
Dividends - - - - (21) (21)
- - - - (21) (21)
Loss for the
period - - - - (507) (507)
Exchange
differences on
translating
foreign
operations - - - (47) - (47)
============== ============ ================== ================ ================ =============
Total
comprehensive
income for the
period - - - (47) (507) (554)
============== ============ ================== ================ ================ =============
Balance 31 May
2023 422 1,590 1 96 1,488 3,597
============== ============ ================== ================ ================ =============
Consolidated balance sheet
at 31 May 2023 (Unaudited)
Half year Half year Full year
ended ended 31 ended 30
31 May 2022 Nov 2022
May 2023
========== ========== ==========
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible fixed assets 186 172 190
Property, plant and equipment 320 186 226
Leased assets 151 63
Investment in joint ventures 62 130 103
Deferred tax assets 12 12 12
========== ========== ==========
731 500 594
========== ========== ==========
Current assets
Inventories 1,248 1,623 1,362
Trade and other receivables 1,481 1,173 1,636
Cash and cash equivalents 1,808 2,490 2,270
========== ========== ==========
4,537 5,286 5,268
Liabilities
Current liabilities
Trade and other payables (1,244) (1,389) (1,456)
Lease liabilities 3 (73) - (51)
Current tax liabilities (60) - -
========== ========== ==========
(1,377) (1,389) (1,507)
Net current assets 3,160 3,897 3,761
========== ========== ==========
Non-current liabilities
Retirement benefit liability (206) (185) (165)
Lease liabilities (79) - (9)
Deferred tax liabilities (9) (9) (9)
(294) (194) (183)
Net assets 3,597 4,203 4,172
========== ========== ==========
Shareholders' equity
Share capital 422 422 422
Share premium account 1,590 1,590 1,590
Capital redemption reserve 1 1 1
Retained earnings 1,488 2,069 2,016
Cumulative translation
adjustment 96 121 143
========== ========== ==========
Equity attributable to
the shareholders of the
parent 3,597 4,203 4,172
Consolidated cash flow statement
for the half year ended 31 May 2023 (Unaudited)
Half year Half year Full year
ended ended 31 ended 30
31 May 2022 Nov 2022
May 2023
========== ========== ==========
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/ profit before tax (507) (244) (259)
Depreciation 29 43 141
Gain on disposal of property,
plant and equipment - - 3
Impairment - Goodwill - - -
(Increase)/ decrease in inventories 112 (442) (173)
(Increase)/ decrease in trade
and other receivables (446) (83) (409)
Increase/ (decrease) in trade
and other payables 543 233 169
Interest expense/(income) (16) 1 13
Cash generated from operations (285) (492) (515)
Income/(loss) from investments - (18) 8
Tax paid - - -
Interest paid - (1) (21)
Net cash generated from operations (285) (511) (528)
========== ========== ==========
Cash flows from investing activities
Purchase of property, plant, and
equipment (184) (69) (212)
Investment in joint venture 50 18 -
Proceeds from sale of property,
plant and equipment - 2
Interest Received 16 - 42
========== ========== ==========
Net cash used in investing activities (118) (51) (168)
========== ========== ==========
Cash flows from financing activities
Equity dividends paid (21) (106) (126)
Lease repayments (33) (26) (57)
Net cash used in financing activities (54) (132) (183)
========== ========== ==========
Net change in cash and cash equivalents (457) (694) (879)
Cash and cash equivalents at start
of period 2,270 3,192 3,192
Effect of foreign exchange rates (5) (8) (43)
Cash and cash equivalents at end
of period 1,808 2,490 2,270
========== ========== ==========
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 2022.
The 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 2022 and 31 May
2023.
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 2022 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 15 August 2023.
3. Segmental information
Management currently identifies two operating segments:
1. LCS provides lighting and control solutions.
2. PCB distributes materials, equipment, and supplies to the PCB industry.
Analysis by operating segment for the half year ended 31 May
LCS PCB Central Costs Total
2023 2022 2023 2022 2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======== ======== ======== ======== ======== ======== ======== ========
Revenue 2,764 2,227 1,101 1,227 - - 3,865 3,454
Cost of
sales 1,868 1,463 736 784 - - 2,604 2,247
======== ======== ======== ======== ======== ======== ======== ========
Gross Profit 896 764 365 443 - - 1,261 1,207
Distribution
costs 70 65 22 23 - - 92 88
Administration
costs and
other operating
expenses 1,190 915 341 338 113 109 1,644 1,362
======== ======== ======== ======== ======== ======== ======== ========
Operating
Profit/
(Loss) (364) (216) 2 82 (113) (109) (475) (243)
======== ======== ======== ======== ======== ======== ======== ========
4. The tax provision for the six months ended 31 May 2023 is
calculated based on the tax rates applicable in the country in
which each company operates.
5. A final dividend of 0.50p (2022: 0.50p per share) per share
on the total issued share capital of 4,224,164 10p ordinary shares
was approved by the board on 24 January 2023, and paid on 31 May
2023, in respect of the year ended 30 November 2022.
An interim dividend payment of 0.25p per share (2022: 0.50p per
share) will be payable on 4 October 2023 to shareholders on the
register on 8 September 2023. The shares will go ex-dividend on 7
September 2023. The interim dividend had not been approved by the
board on 31 May 2023 and accordingly, has not been included as a
liability as at that date.
6. The basic earnings per share are based on the loss for the
period of GBP507,000 (2022: loss GBP226,000) and on 4,224,164
ordinary shares (2022: 4,224,164), the weighted average number of
shares in issue during the period. There were no share options in
issue in 2022 or 2023 and therefore diluted earnings per share and
basic earnings per share are the same value for each year.
7. A copy of this half yearly report will be sent to
shareholders and is available for inspection at the company's
offices at Holders Technology (UK) Ltd., Units 1-4, Block 9,
Tweedbank Industrial Estate, Galashiels TD1 3RS and via its website
www.holderstechnology.com .
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