Final Results

RNS Number : 8634O
Holders Technology PLC
12 February 2016
 

Holders Technology plc

 

Specialised PCB Materials, LED Components and Lighting Solutions

 

Audited results for the year ended 30 November 2015   

 

 

Holders Technology plc ("Holders Technology" or "the Group") announces its audited results for the year ended 30 November 2015.  Holders Technology supplies specialty laminates and materials for printed circuit board manufacture ("PCB"), and operates as an LED solutions provider to the lighting and industrial markets.                          

 

LED results showed good improvement during 2015 and this, despite disappointing PCB results, led to material improvement in the group operating result.  Group revenue was reduced compared to 2014 due principally to sterling strengthening and the loss of a large PCB distributorship at the end of 2014.  Gross margins improved and cash balances remained satisfactory.

 

The directors propose to pay a final dividend of 0.25p per share.

 

 

Highlights included:                                                                        Statutory basis                 Like-for-like basis*       

               

·     Results compared to 2014:

Group revenue                                             17% lower                          11% lower

PCB revenue                                                 25% lower                          19% lower

LED revenue                                                  18% higher                         24% higher

Group margins                                              1.3% higher

 

·     Operating loss before impairment and restructuring costs          £126,000

·     Cash balances £0.44 million. No debt.

 

*Like-for-like basis assumes constant sterling exchange rate.

 

 

Chairman's statement

 

As noted in the Interim Report, 2015 revenues were materially reduced by sterling's strengthening against the Euro, and reduced UK PCB sales as a result of a discontinued distribution contract.  Overall group revenues decreased from £13.5m to £11.2m; however excluding the two above factors, 2015 group revenues showed a decline of 1.4% compared to 2014. 

 

Results for the year to 30 November 2015 were mixed; LED divisions made good progress whilst German PCB results were disappointing.  The Group operating result before impairment and restructuring costs was a loss of £126,000 (2014: operating loss £290,000).  The operating result after impairment and restructuring costs was a loss of £151,000 (2014: operating loss £357,000).

 

The PCB market in 2015 continued to be demanding and the PCB divisions together recorded a small loss.  The German operation, comprising 75% of Group PCB sales, suffered lower revenue as a result of sharply reduced customer demand.  In addition, sales to a major customer were suspended due to a fire at one of their factories but since the year-end sales to this customer have recommenced. 

 

UK PCB operations were able partly to mitigate the impact of the discontinued distribution contract with increased sales of replacement products and cost reductions.   The results achieved by our small Indian venture remained modest and this investment was sold in December 2015.  Total PCB revenues were £8.3m (2014: £11.0m); with margins at 22.3% (2014: 23.1%).

 

The LED divisions overall showed significant progress with an overall result for this division close to breakeven. The Holders Components divisions in the UK and Germany, aided by a number of new suppliers added during the year, achieved strong revenue growth and improvements both to margins and profitability. The smaller NRGstar and Opteon Germany also showed improved revenues and operating results. In total LED revenues amounted to £2.9m (2014: £2.5m); with a combined operating loss of £26,000 (2014: loss of £355,000). 

 

In October we announced an unforeseen taxation liability in respect of EU Cross Border Group Relief ("CBGR") claims relating to our former Swedish and Dutch subsidiaries. The board considers the maximum potential liability to be up to £192,000 and has   made   a   provision   of   this   amount   as   at  30 November 2015, although the Board believes a lower amount may be payable at the final settlement.  Since the announcement no further discussions have taken place with HMRC.

 

Once again I would like to thank all our staff for their hard work and support throughout a demanding financial year.

Given the board's continuing belief in the Group's future we consider it appropriate to recommend a final dividend for the past year of 0.25p per share.

 

Shareholders can be assured that we will continue to evaluate all possible routes to returning the Group to satisfactory profitability. In the current year, given market conditions, it will be difficult for our PCB activities to make a positive contribution. The outlook for our LED operations is significantly more encouraging and we anticipate continued progress from this area of activity.

 

 

R W Weinreich 

Executive Chairman

11 February 2016

 

 

Group income statement for the year ended 30 November 2015

 




Note

2015

2014





£'000

£'000







Revenue




11,195

13,478

Cost of sales




(8,396)

(10,224)

Gross profit




2,799

3,254

Distribution costs




(364)

(414)

Administrative expenses




(2,652)

(3,167)

Restructuring costs




-

(67)

Impairment costs




(25)

-

Other operating income




91

37

Operating loss




(151)

(357)

Finance income




1

2

Finance expenses




(16)

(7)

Loss before taxation




(166)

(362)

Tax expense



2

(195)

(11)

Loss for the financial year




(361)

(373)







Basic loss per share

4

(9.16p)

(9.47p)

Diluted loss per share

4

(9.16p)

(9.47p)

Total loss per share

4

(9.16p)

(9.47p)

 

 

Group statement of comprehensive income for the year ended 30 November 2015

 




2015

£'000

2014

£'000

Loss for the year



(361)

(373)

Items that may be reclassified subsequently to profit or loss:




     Exchange differences on translating foreign operations



(246)

(112)

Total comprehensive income and expense for the year



(607)

(485)

 

 

Statements of changes in equity for the year ended 30 November 2015

 

 

Group 

Share capital

Share premium

Capital redemption reserve

Translation reserve

Retained earnings

Non-controlling interest

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 November 2013

416

1,531

1

169

2,936

(4)

5,049

Dividends

-

-

(79)

-

           (79)

Employee share-based payment options

-

-

-

-

9

-

9

Transactions with owners

-

-

-

-

(70)

-

(70)

(Loss) for the year

-

-

-

-

(373)

-

(373)

Reclassification adjustment related to terminated foreign operations

-

-

-

(23)

19

4

-

Exchange differences on translating foreign operations

-

-

-

(112)

-

-

(112)

Total comprehensive income for the year

-

-

-

(135)

(354)

4

(485)

Balance at 30 November 2014

416

1,531

1

34

2,512

-

4,494

Dividends

-

-

-

-

(20)

-

                    (20)

Employee share-based payment options

-

-

-

-

3

-

3

Transactions with owners

-

-

-

-

(17)

-

(17)

(Loss) for the year

-

-

-

-

(361)

-

(361)

Exchange differences on translating foreign operations

-

-

-

(246)

-

-

(246)

Total comprehensive income for the year

-

-

-

(246)

(361)

-

(607)

Balance at 30 November 2015

416

1,531

1

(212)

2,134

-

3,870

 

Company 

Share capital

Share premium

Capital redemption reserve

Retained earnings

Total equity


 £'000

£'000

£'000

£'000

£'000

Balance at 1 December 2013

416

1,531

1

42

1,990

Profit/ (loss) and total comprehensive income for the year

-

-

-

79

79

Dividends

-

-

-

(79)

(79)

Share-based payment charge

-

-

-

9

9

Balance at 30 November 2014

416

1,531

1

51

1,999

Profit/ (loss) and total comprehensive income for the year

-

-

-

138

138

Dividends

-

-

-

(20)

(20)

Share-based payment charge

-

-

-

3

3

 Balance at 30 November 2015

416

1,531

1

172

2,120

 

 

Balance sheets at 30 November 2015



Group

Company



2015

2014

2015

2014



£'000

£'000

£'000

£'000

Assets






Non-current assets






Goodwill


316

318

-

-

Property, plant and equipment


327

274

4

8

Investments in subsidiaries


-

-

2,291

2,291

Investment in joint venture


-

-

15

15

Deferred tax assets


16

35

-

-



659

627

2,310

2,314

Current assets






Inventories


2,533

2,742

-

-

Trade and other receivables


1,556

1,945

433

250

Current tax assets


59

72

-

-

Cash and cash equivalents


443

634

25

45



4,591

5,393

458

295

Liabilities






Current liabilities






Trade and other payables


(975)

(1,257)

(627)

(562)

Current tax liabilities


(213)

(48)

(21)

(47)



(1,188)

(1,305)

(648)

(609)

Net current assets


3,403

4,088

(190)

(314)

Non-current liabilities






Retirement benefit liability


(181)

(201)

-

-

Deferred tax liabilities


(11)

(20)

-

(1)



(192)

(221)

-

(1)



3,870

4,494

2,120

1,999

Shareholders' equity






Share capital


416

416

416

416

Share premium account


1,531

1,531

1,531

1,531

Capital redemption reserve


1

1

1

1

Retained earnings


2,134

2,512

172

51

Cumulative translation adjustment reserve


(212)

34

-

-

 


3,870

4,494

2,120

1,999

 

 

Statements of cash flows for the year ended 30 November 2015

 



Group

Company



2015

 2014

2015

 2014



£'000

£'000

£'000

£'000

Cash flows from operating activities






Operating (loss)/ profit


(151)

(357)

(92)

76

Share-based payment credit


3

9

3

9

Depreciation


86

108

8

8

Impairment costs


-

(32)

-

17

(Increase)/decrease in inventories


(102)

5

-

-

(Increase)/decrease in trade and other receivables


295

(36)

17

(25)

Increase/(decrease) in trade and other payables


(86)

(188)

65

(457)

Cash generated from/ (used in) operations


45

(491)

1

(372)

Corporation tax (paid)/received


(7)

(39)

(1)

-

Net cash generated from/ (used in) operations


38

(530)

-

(372)

Cash flows from investing activities






Purchase of property, plant and equipment


(161)

(74)

(4)

-

Proceeds from sale of property, plant and equipment

3

3

-

-

Proceeds from sale of subsidiary

-

32

-

-

Dividends received from group undertakings

-

-

-

13

Interest received


1

2

4

3

Net cash (used in)/generated from investing activities

(157)

(37)

-

16

Cash flows from financing activities






Interest paid


(16)

(7)

-

-

Loan repayments


-

-

-

-

Settlement of contingent consideration


-

-

-

-

Equity dividends paid


(20)

(79)

(20)

(79)

Net cash used in financing activities


(36)

(86)

(20)

(79)

 

Net change in cash and cash equivalents


 

(155)

 

(653)

 

(20)

 

(435)

Cash and cash equivalents at start of period


634

1,290

45

480

Effect of foreign exchange rates


(36)

(3)

-

-

Cash and cash equivalents at end of period


443

634

25

45

 

 

Notes

 

1.    Basis of preparation

The group and parent company financial statements have been prepared in accordance with EU endorsed International Financial Reporting Standards (IFRS), International Financial Reporting Interpretations Committee (IFRIC) interpretations and with those parts of the Companies Act applicable to companies reporting under IFRS.  All accounting standards and interpretations issued by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee effective at the time of preparing these financial statements have been applied.

 

2.    Taxation


2015

£'000

2014

£'000

Analysis of the charge in the period



Current tax



-   Current period

6

(1)

-   Adjustments in respect of prior periods

179

14


185

13

Deferred tax

10

(2)

Total tax

195

11




Tax reconciliation






The tax for the period is higher (2014: higher) than the standard rate of corporation tax in the UK, effectively 20.0% (2014: 20.0%) for the company's financial year.  The differences are explained below:

 


2015

£'000

2014

£'000

Loss before taxation

(166)

(362)




Loss before taxation multiplied by the rate of corporation tax in the UK of 20.0 % (2014: 20.0%)

 

(33)

 

(77)




Effects of:



Differences between capital allowances and depreciation

4

(3)

Different overseas tax rates

-

2

Adjustments in respect of prior years

176

16

Taxation losses

35

-

Other temporary differences

13

73

Taxation

195

11

 

 

3.    The directors have proposed a final dividend of 0.25p per share payable on 24 May 2016 to shareholders on the register at close of business on 6 May 2016.  The total dividend for the year, including the interim dividend of 0.25p (2014: 1.0p) per share paid on 5 October 2015, amounts to £20,000 (2014: £49,000), which is equivalent to 0.50p (2014: 1.25p) per share.

 

4.    The basic earnings per share are based on the loss for the financial year of £361,000 (2014: loss of £373,000) and on ordinary shares 3,939,551 (2014: 3,939,551), the weighted average number of shares in issue during the year, excluding treasury shares.  There was no earnings dilution calculated in 2014 and 2015 as a loss was recorded by the group.

 

5.    This preliminary statement, which has been approved by the Board on 11 February 2016, is not the Company's statutory accounts.  The statutory accounts for each of the two years to 30 November 2014 and 30 November 2015 received audit reports, which were unqualified and did not contain statements under section 498(2) and section 498(3) of the Companies Act 2006.  The 2014 accounts have been filed with the Registrar of Companies but the 2015 accounts are not yet filed.

 

For further information, contact:

 

Rudi Weinreich, Executive Chairman, Holders Technology plc,

Tel. 01896 758781

Paul Geraghty, Group Finance Director, Holders Technology plc,

Tel. 01896 758781

William Vandyk, Director, Corporate Finance, Northland Capital Partners Ltd,

Tel. 020 7382 1100

 

Website www.holdersgroup.com   


This information is provided by RNS
The company news service from the London Stock Exchange
 
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