Holders Technology : Half-yearly Report

Holders Technology plc Half Yearly Report 2016

Specialised PCB Materials, LED Components and Lighting Solutions

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:

2016	2015
£'000	£'000
Revenue	PCB	4,014	4,146
LED		1,648	1,333
Total		5,662	5,479
Gross profit		1,381	1,402
Margins		24.4%	25.6%
Loss before exceptional items		(68)	(95)
Loss before taxation
		(171)	(95)
Total cash		726	511
Earnings per share		(4.11p)	(2.06p)
Interim dividend per share		0.25p	0.25p
Net assets per share		92p	107p

Page

1. Chairman's statement

   Contents

2. Consolidated income statement

1. Consolidated statement of comprehensive income

2. Consolidated statement of changes in equity

3. Consolidated balance sheet

4. Consolidated cash flow statement

5. Notes

Chairman's statement

Half year ended 31 May 2016

These interim result before exceptional items shows a small improvement as compared to the equivalent period in 2015. Revenue increased by 3.3% to £5.7m (2015: £5.5m) and the loss before items relating to restructuring reduced to £68,000 (2015: loss of £95,000). The restructuring costs totalling £103,000 (2015:

£nil) comprised employee termination costs, plus legal costs arising from an aborted transaction. The loss before taxation was £171,000 (2015: loss of £95,000).

PCB

PCB sales for the period reduced by 3.2% from £4,146,000 in 2015 to £4,014,000 in 2016. Our German PCB division experienced somewhat improved customer demand and achieved an increase in revenues whereas revenues from our smaller UK operation were adversely impacted by the discontinued distribution contract announced previously. The total PCB revenue figure was also impacted by the disposal in December 2015 of our interest in an Indian PCB joint venture.

Margins overall decreased by 2.7% to 21.1%, mainly due to the weaker Euro/ US Dollar exchange rate. Overheads excluding restructuring costs were reduced by 9.5% to £706,000 and the PCB result before restructuring costs was breakeven. During the period we have invested in improvements to IT systems and production machinery in order to improve efficiency.

LED

LED divisions in total achieved growth of 23.6% rising from £1,333,000 to £1,648,000 with margins improving to 32.3% from 31.1%. The Holders Components Divisions achieved good growth from new products introduced to their ranges in 2015.

Primarily due to the engagement of additional sales staff, LED overheads increased by 13.0%. Overall our LED activities achieved a reduced loss of £67,000 (2015: loss of £109,000).

Summary

Results from both the PCB and LED divisions showed some progress. Our PCB divisions have further reduced their costs in order to remain competitive in challenging markets while our LED divisions have continued to grow their revenues and improve margins. We continue to evaluate all possible routes to return the Group to satisfactory profitability.

Rudolf W. Weinreich Holders Technology plc

Executive Chairman 27-28 Eastcastle Street

London W1W 8HD

Consolidated income statement

for the half year ended 31 May 2016 (Unaudited)

Half year ended 31 May 2016
£'000
5,662
(4,281)
1,381
(200)
(1,249)
(103)
-
(171)
-
-
(171)
-
(171)
(4.31p)
(4.31p)

Half year ended 31

May 2015

Full year ended 30

Nov 2015

Notes

£'000 £'000

Revenue	3	5,479	11,195
Cost of sales	(4,077)	(8,396)
Gross profit	1,402	2,799
Distribution costs	(181)	(364)
Administrative expenses	(1,317)	(2,652)
Restructuring costs	-	(25)
Other operating income	1	91
Operating loss	(95)	(151)
Finance income	-	1
Finance costs	-	(16)
Loss before taxation	(95)	(166)
Taxation	4	14	(195)
Loss for the period	(81)	(361)

Total and continuing

Basic loss per share 6

Diluted loss per share 6

(2.06p) (9.16p)

(2.06p) (9.16p)

Consolidated statement of comprehensive income

for the half year ended 31 May 2016 (Unaudited)

Half year ended 31 May 2016

£'000

(171)

143

(28)

Half year ended 31

May 2015

Full year ended 30

Nov 2015

£'000 £'000

Loss for the period

Exchange differences on translation of foreign operations

Total comprehensive expense for the period

(81) (361)

(196) (246) (277) (607)