TIDMHDT
RNS Number : 9453J
Holders Technology PLC
27 August 2021
Holders Technology plc
("Holders Technology" or the "Company")
Half Year Report
Holders Technology, (AIM: HDT), is pleased to announce its
unaudited half year results for the six months ended 31 May
2021.
Highlights
Holders Technology supplies specialty laminates and materials
for printed circuit board manufacturers ("PCB") and operates as a
lighting and control solutions ("LCS") provider.
Unaudited results for the half year ended 31 May 2021 are
summarised as follows:
2021 2020
GBP'000 GBP'000
-------- --------
Revenue PCB 3,798 4,157
LCS 1,991 1,170
Total 5,789 5,327
--------
Gross profit 1,718 1,398
Margins 29.7% 26.2%
Overheads 1,616 1,482
Operating profit 102 (84)
Finance expense (10) (6)
Income from joint
ventures 12 -
Profit before
tax 104 (90)
Taxation - -
Profit
after tax 104 (90)
======== ========
Earnings per share 2.46p (2.13p)
Interim dividend
per share 0.50p 0.25p
Net assets per
share 95p 99p
--------------------- ------- -------- --------
Chairman's statement
Half year ended 31 May 2021
Following a very challenging time in the last financial year, I
am pleased to report that revenue has increased in the half year to
31 May 2021, and that the Group has returned to profitability. The
improving economic environment has affected both business segments
in different ways. Details of this are set out below.
Group revenue increased by 8.7% to GBP5.8m (H1 2020: GBP5.3m),
gross margins increased from 26.2% to 29.7%, and pre-tax profit was
GBP104,000 (H1 2020: loss of GBP90,000).
PCB
As the global economy returned to growth, the PCB industry
experienced significant instability, with widespread raw material
shortages and marked cost increases both for goods and freight. PCB
sales in the period decreased by 8.6% compared to the same period
in 2020, from GBP4,157,000 to GBP3,798,000. PCB gross margins,
however, increased by 2.2% to 25.5%. Administration expenses were
similar to the previous year in value terms, although as a
percentage of sales they increased from 16.4% to 17.8%. Overall,
PCB activities recorded a pre-tax profit of GBP134,000 (H1 2020:
profit of GBP124,000).
On 24 August 2021 we announced that our UK and Germany operating
subsidiaries had conditionally agreed to sell certain PCB assets to
the Ventec International Group for a cash consideration of c.
GBP1,600,000. The sale proceeds will be used for investment in the
continuing PCB and LCS segments and for general working capital
purposes.
LCS
The LCS divisions recovered strongly in 2021 as the economy
improved and building projects resumed: revenue increased by 70.2%
overall to GBP1,991,000 (2020: GBP1,170,000). Margins improved from
36.8% to 37.7%, and overheads as a percentage of sales fell from
49.7% to 32.3%. The overall result for the LCS divisions was a
profit of GBP53,000 (H1 2020: loss of GBP174,000).
The two LCS joint ventures, Holders Technology Austria, and
Holders Technology Data Analytics, made further progress during the
period and together contributed GBP12,000 profit (H1 2020: nil
profit because both joint ventures commenced trading in H2
2020).
Cash and Debt
Group cash at the period end was GBP1,277,000 (H1 2020:
GBP723,000). Other than lease liabilities, the company has no
debt.
Outlook
The outlook for the second half of the year is encouraging,
although there is still a level of uncertainty regarding global
supply chains. Holders continues to expand its product and services
portfolio, as well as investing in people and additional technology
to support this expansion. The company also seeks additional
complementary revenue streams when opportunities arise. Its ability
to do this will be enhanced by the asset disposal outlined
above.
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
Rudi Weinreich, Executive Chairman
01896 758781
Victoria Blaisdell, Group Managing Director
Paul Geraghty, Group Finance Director
SP Angel Corporate Finance LLP - Nomad and Broker
Matthew Johnson/ Caroline Rowe, Corporate Finance
020 3470 0470
Website
www.holdersgroup.com
Consolidated income statement
for the half year ended 31 May 2021 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2021 May 2020 Nov 2020
========== ========== ==========
Notes GBP'000 GBP'000 GBP'000
Revenue 4 5,789 5,327 9,838
Cost of sales (4,071) (3,929) (7,135)
========== ========== ==========
Gross profit 1,718 1,398 2,703
Distribution costs (213) (186) (348)
Administrative expenses (1,399) (1,294) (2,562)
Other operating expenses (4) (2) (42)
========== ========== ==========
Operating profit/ (loss) 102 (84) (249)
Income from joint ventures 12 - 1
Finance costs (10) (6) (16)
========== ========== ==========
Profit/ (loss) before taxation 104 (90) (264)
Taxation 5 - - -
========== ========== ==========
Profit/ (loss) for the period 104 (90) (264)
========== ========== ==========
Total and continuing
Basic earnings per share 7 2.46p (2.13p) (6.25p)
========== ========== ==========
Diluted earnings per share 7 2.46p (2.13p) (6.25p)
========== ========== ==========
Consolidated statement of comprehensive income
for the half year ended 31 May 2021 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2021 May 2020 Nov 2020
========== ================ ==========
GBP'000 GBP'000 GBP'000
Profit/ (loss) for the period 104 (90) (264)
Reserves adjustment for - (10) -
IFRS 16
Exchange differences on
translation of foreign operations (89) 133 120
========== ================ ==========
Total comprehensive income
for the period 15 33 (144)
========== ================ ==========
Consolidated statement of changes in equity
for the half year ended 31 May 2021 (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
2019 422 1,590 1 128 2,023 4,164
Dividends - - - - (21) (21)
Transactions
with owners - - - - (21) (21)
============== ============ ================== ================ ================ =============
Loss for the
year - - - - (264) (264)
Exchange
differences on
translating
foreign
operations - - - (120) - 120
============== ============ ================== ================ ================ =============
Total
comprehensive
income for the
year - - - 120 (264) (144)
============== ============ ================== ================ ================ =============
Balance 30 Nov
2020 422 1,590 1 248 1,738 3,999
============== ============ ================== ================ ================ =============
Dividends - - - - (10) (10)
- - - - (10) (10)
Profit for the
period - - - - 104 104
Exchange
differences on
translating
foreign
operations - - - (89) - (89)
============== ============ ================== ================ ================ =============
Total
comprehensive
income for the
period - - - (89) 104 15
============== ============ ================== ================ ================ =============
Balance 31 May
2021 422 1,590 1 125 1,832 4,004
============== ============ ================== ================ ================ =============
Consolidated balance sheet
at 31 May 2021 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2021 May 2020 Nov 2020
========== ========== ==========
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible fixed assets 378 388 381
Property, plant and equipment 3 1,127 654 560
Investment in joint venture 40 15 28
Deferred tax assets 12 12 12
========== ========== ==========
1,557 1,069 981
========== ========== ==========
Current assets
Inventories 1,953 2,358 2,340
Trade and other receivables 1,642 1,461 1,420
Cash and cash equivalents 1,277 723 1,113
========== ========== ==========
4,872 4,542 4,873
Liabilities
Current liabilities
Trade and other payables (1,270) (765) (1,274)
Lease liabilities 3 (930) (419) (105)
Current tax liabilities - - -
========== ========== ==========
(2,200) (1,184) (1,379)
Net current assets 2,672 3,358 3,494
========== ========== ==========
Non-current liabilities
Retirement benefit liability (216) (221) (223)
Lease liabilities - - (244)
Deferred tax liabilities (9) (9) (9)
(225) (230) (476)
Net assets 4,004 4,197 3,999
========== ========== ==========
Shareholders' equity
Share capital 422 422 422
Share premium account 1,590 1,590 1,590
Capital redemption reserve 1 1 1
Retained earnings 1,829 1,923 1,738
Cumulative translation
adjustment 162 261 248
========== ========== ==========
Equity attributable to
the shareholders of the
parent 4,004 4,197 3,999
Consolidated cash flow statement
for the half year ended 31 May 2021 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2021 May 2020 Nov 2020
========== ========== ==========
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/ (loss) before tax 104 (90) (264)
Depreciation 131 150 292
Decrease in inventories 323 261 284
(Increase)/ decrease in trade
and other receivables (579) (75) 385
Increase/ (decrease) in trade
and other payables 350 (139) (50)
Interest expense 10 6 16
Cash generated from operations 339 123 663
Income from investments (12) - (1)
Interest paid (10) (6) (16)
Net cash generated from operations 317 117 646
========== ========== ==========
Cash flows from investing activities
Purchase of property, plant, and
equipment (30) (21) (25)
Investment in joint venture - (15) (27)
Net cash used in investing activities (30) (36) (52)
========== ========== ==========
Cash flows from financing activities
Equity dividends paid - - (21)
Lease repayments (95) (116) (213)
Net cash used in financing activities (95) (116) (234)
========== ========== ==========
Net change in cash and cash equivalents 192 (35) 360
Cash and cash equivalents at start
of period 1,113 734 734
Effect of foreign exchange rates (28) 24 19
Cash and cash equivalents at end
of period 1,277 723 1,113
========== ========== ==========
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 2020.
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 2020 and 31 May
2021.
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 2020 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 26 August 2021.
3. IFRS 16 Leases
On 1 January 2021 the lease on the premises at
Kirchheimbolanden, Germany was renewed for a 5-year term. As
required under IFRS 16, the lease has been shown as a right-of-use
asset and lease liability on the balance sheet, both at an initial
value of GBP676,000.
4. Segmental information
Management currently identifies two operating segments:
1. PCB distributes materials, equipment, and supplies to the PCB industry.
2. LCS provides lighting and control solutions.
Analysis by operating segment for the half year ended 31 May
PCB LCS Central Costs Total
2021 2020 2021 2020 2021 2020 2021 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======== ======== ======== ======== ======== ======== ======== ========
Revenue 3,798 4,157 1,991 1,170 - - 5,789 5,327
Cost of sales 2,830 3,189 1,241 740 - - 4,071 3,929
======== ======== ======== ======== ======== ======== ======== ========
Gross Profit 968 968 750 430 - - 1,718 1,398
Distribution
costs 159 164 54 22 - - 213 186
Administration
costs and other
operating expenses 675 680 643 582 85 34 1,403 1,296
======== ======== ======== ======== ======== ======== ======== ========
Segment Profit/
(Loss) 134 124 53 (174) (85) (34) 102 (84)
======== ======== ======== ======== ======== ======== ======== ========
5. The tax provision for the six months ended 31 May 2021 is
calculated based on the tax rates applicable in the country in
which each company operates.
6. A final dividend of 0.25p per share on the total issued share
capital of 4,224,164 10p ordinary shares was approved by the board
on 29 January 2021, and paid on 1 June 2021, in respect of the year
ended 30 November 2020.
An interim dividend payment of 0.50p per share (2020: 0.25p per
share) will be payable on 5 October 2021 to shareholders on the
register at 10 September 2021. The shares will go ex-dividend on 9
September 2021. The interim dividend had not been approved by the
board at 31 May 2021 and accordingly, has not been included as a
liability as at that date.
7. The basic earnings per share for continuing operations are
based on the profit for the period of GBP104,000 (2020: loss
GBP90,000) and on 4,224,164 ordinary shares (2020: 4,224,164), the
weighted average number of shares in issue during the period. There
were no share options in issue in 2020 or 2021 and therefore
diluted earnings per share and basic earnings per share are the
same value for each year.
8. 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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IR FLFERTIIRFIL
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