REG - Holders Technology - Half-year Report
16/08/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230816:nRSP3926Ja&default-theme=true
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
£'000 £'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 £3,865,000 (2022: £3,454,000),
and the growth in revenue was 11.9%. The figures do not include the Group
share of joint venture revenues of £196,000 (2022: £193,000). Gross margins
reduced from 34.9% to 32.6% and the pre-tax Group results was a loss of
£507,000 (2022: loss of £226,000).
LCS
LCS revenue increased by 24.1% to £2,764,000 (2022: £2,227,000) 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 £364,000 (2022: loss of £216,000).
The LCS joint ventures also suffered from unfavourable market conditions and
in aggregate were loss making, recording a loss of £50,000 for the half year
(2022: profit of £18,000.)
PCB
Results from the PCB division saw revenues decreasing by 10.3% from
£1,227,000 to £1,101,000. 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 £2,000 (2022:
£82,000 profit).
Cash and Debt
Group cash at the period end was £1,808,000 (31 May 2022: £2,490,000). 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 (http://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 (http://www.holderstechnology.com)
Consolidated income statement
for the half year ended 31 May 2023 (Unaudited)
Half year Half year Full year
ended 31 ended 31 ended 30
May 2023 May 2022 Nov 2022
Notes £'000 £'000 £'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 31 ended 31 ended 30
May 2023 May 2022 Nov 2022
£'000 £'000 £'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)
Share capital Share Capital Translation reserve Retained earnings Total equity
redemption reserve
premium
£'000 £'000 £'000 £'000 £'000 £'000
Balance 1 Dec 2021 422 1,590 1 114 2,401 4,528
- - - - (126) (126)
Dividends
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 31 ended 31 ended 30
May 2023 May 2022 Nov 2022
Notes £'000 £'000 £'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 31 ended 31 ended 30
May 2023 May 2022 Nov 2022
£'000 £'000 £'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
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 £507,000 (2022: loss £226,000) 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
(http://www.holderstechnology.com) .
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFFITRIELIVRecent news on Holders Technology
See all newsREG - AIM Holders Technology - Cancellation - Holders Technology Plc
AnnouncementREG - Holders Technology - Holding(s) in Company
AnnouncementREG - Holders Technology - Holding(s) in Company
AnnouncementREG - Holders Technology - Update on De-Listing
AnnouncementREG - FTSE Russell Holders Technology - Holders Technology
Announcement