Interim Results

Holders Technology PLC
17 July 2001


HOLDERS TECHNOLOGY PLC
INTERIM RESULTS FOR THE PERIOD TO 31 MAY 2001


CHAIRMAN'S STATEMENT



Results

The 6 month period to 31 May 2001 resulted in a turnover of £6,627,000
(+14.8%) as compared with £5,770,000 for the first half of last year.  Pre-tax
profits fell to £230,000 (-33.9%) from £348,000 and earnings per share fell to
4.11p (-26.6%) against 5.60p.  Net assets at 31 May 2001 were £4,249,000
compared with £4,169,000 at 31 May 2000.


Dividend

A net interim dividend of 2.00p per share (2000 : 2.00p) will be payable on 14
September 2001 to shareholders on the Register of Members at the close of
business on 17 August 2001.


Activities

The first half of the current year opened strongly with high levels of demand
from our major customers.  In the event, the strong start did not to continue
through the second quarter, which saw a significant decline in business
levels.  This was particularly marked in the telecommunications sector, where
the fact that our customers were carrying high levels of stock caused an
immediate drop in orders.  Over the years, we have experienced periods of
cyclical downturn but the scale and rapidity this year has exceeded anything
the Company has seen before.  There are signs that the reduction in activity
seen in the second quarter has levelled off, but it is too early to predict
when the recovery will occur.

The Company's core distribution business achieved a first-half performance
broadly in line with expectations, although the interim results reflect the
continuing development costs of Justfone Limited, its 81%-owned subsidiary.
Justfone has launched new products, On-line Alert and On-line Spectator, which
have both received promising reactions in their target markets and are
expected to contribute revenues in the second half of the year.

While continuing to support Justfone through its build up-phase, we are taking
steps to cut costs in all areas, with particular emphasis on reducing stock
levels.  At the same time, however, we will continue to seek distribution
arrangements for specialised products that will broaden our range and also
preserve customer service levels, so as to leave us well placed when recovery
occurs in our customers' businesses.

It is intended that in late September the company will move from the Official
List to the Alternative Investment Market (AIM), as the Board believes that
this will be a more appropriate market for the company's shares.

We have been advised that under current regulations AIM quoted shares cannot
be held in either Personal Equity Plans (PEPs) nor in Investment Savings
Accounts (ISAs).  Shareholders who are in doubt as to the action they should
take in regard to this or any other aspect of their shareholding in the
company should consult appropriate professional or financial advisers.

The interim financial statements were approved by the Board on 17 July 2001
and signed on its behalf by:


Rudolf W. Weinreich
Chairman and Chief Executive
17 July 2001


GROUP PROFIT AND LOSS ACCOUNT
for the half-year ended 31 May 2001


                                        Unaudited       Unaudited       Audited
                                        half-year       half-year     full-year
                                         ended 31        ended 31      ended 30
                                         May 2001        May 2000      Nov 2000
                                  Notes     £'000           £'000         £'000

Turnover                          1         6,627           5,770        13,256

Operating profit                              281             429           996

Net interest payable and similar             (51)            (81)         (131)
charges
Profit before taxation                        230             348           865
Taxation                          2          (78)           (122)         (275)
Profit after taxation                         152             226           590
Minority interests - equity                    14               -            15
                                              166             226           605
Dividends                         3          (81)            (81)         (303)
Profits retained                               85             145           302
Earnings per share                4         4.11p           5.60p        15.00p
Diluted earnings per share        4         4.11p           5.60p        15.00p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Profit for the financial year                 166             226           605
Currency translation differences             (94)             (2)          (43)
                                               72             224           562


Notes:


1.    The interim results are prepared on the basis of accounting policies set
out in the financial statements for the year ended 30 November 2000.


2.    The tax charge for the six months ended 31 May 2001 is calculated based
on the tax rates applicable in the country in which each company operates.
The effective rate of tax is 34.0% (1999 : 35.1%).  The tax charge includes £
67,000 (2000: £112,000) relating to overseas operations.


3.    The dividend payment of 2p per share is payable on the total issued
share capital of 4,034,498 10p ordinary shares.


4.    The earnings per ordinary share (basic and diluted) for the six months
ended 31 May 2001 have been calculated using Financial Reporting Standard 14.
The calculation of earnings per share, for the six months, is based on profit
attributable to equity shareholders of £166,000 (2000 : £226,000) and
4,034,498 shares being the daily average of the number of shares in issue
during the periods.  The diluted earnings per share is based on the same
numbers.


5.    The results for the half year to 31 May 2001 are unaudited.  The results
for the year ended 30 November 2000 are taken from the full accounts filed
with the Registrar of Companies, which contained an unqualified audit report
and did not contain statements under s237 (2) or (3).


6.    A copy of this interim report is being sent to shareholders and is
available for inspection at the Company's registered office, Northway House,
1379 High Road, Whetstone, London N20 9LP.



GROUP BALANCE SHEET AT 31 MAY 2001

                                        Unaudited       Unaudited       Audited
                                        half-year       half-year     full-year
                                         ended 31        ended 31      ended 30
                                         May 2001        May 2000      Nov 2000
                                            £'000           £'000         £'000

Fixed Assets

      Tangible assets                       1,200           1,263         1,222

Current Assets
      Stocks                                3,248           2,348         2,533
      Debtors                               2,466           3,135         3,051
      Cash at bank and in hand                115             481           387
                                            5,829           5,964         5,971
Creditors
      Amounts falling due within one      (2,592)         (2,964)         2,763
      year

Net current assets                          3,237           3,018         3,208

Total assets less current liabilities       4,437           4,281         4,430

Creditors:  Amounts falling due after
one year                                     (95)            (14)          (60)
                                             

Provision for liabilities and charges
      Deferred taxation                      (93)            (98)          (98)
                                            4,249           4,169         4,272
Capital and Reserves

      Called up share capital                 403             403           403
      Share premium account                 1,486           1,486         1,486
      Capital redemption reserve                1               1             1
      Profit and loss account               2,386           2,279         2,395
Equity shareholder's funds                  4,276           4,169         4,285

Minority interests - equity                  (27)               -          (13)

                                            4,249           4,169         4,272



GROUP CASHFLOW


                                        Unaudited       Unaudited       Audited
                                        half-year       half-year     full-year
                                         ended 31        ended 31      ended 30
                                         May 2001        May 2000      Nov 2000
                                            £'000           £'000         £'000


Net cash flow from operating activities     (493)           (411)           394
  1

Returns on investment and servicing of
finance
      Interest received                         4               5            14
      Interest paid                          (29)            (19)          (53)
      Finance lease interest                  (5)               -           (4)

Net cash flow from returns on
investment and servicing of finance          (30)            (14)          (43)

Taxation                                     (40)            (24)         (198)



Capital expenditure

      Payments to acquire tangible           (35)            (87)         (123)
      fixed assets

      Receipts from sales of tangible           -               7            35
      fixed assets
                                             (35)            (80)          (88)

Equity dividends paid                       (222)           (212)         (293)

Cashflow before financing                   (820)           (741)         (228)

Financing

      Capital element of finance leases      (22)             (2)          (13)

Decrease in cash  2                         (842)           (743)         (241)




1.    Reconciliation of operating profit to net cash flow from operating
activities

                                        Unaudited       Unaudited       Audited
                                        half-year       half-year     full-year
                                         ended 31        ended 31      ended 30
                                         May 2001        May 2000      Nov 2000
                                            £'000           £'000         £'000

      Operating profit                        281             429           996
      Depreciation                            106             100           208
      Exchange differences                   (79)               4          (27)
      Loss on sale of tangible fixed            -               -           (3)
      assets
      Change in stocks                      (715)           (558)         (743)
      Change in debtors                       585         (1,036)         (991)
      Change in creditors                   (671)             650           954


      Net cash flow from operating          (493)           (411)           394
      activities



2.     Reconciliation of net cash flow to movement in net debt

Decrease in cash                            (856)           (741)         (241)
Cashflow from change in debt and lease
finance                                        22               -            13
                                               
                                            (834)           (741)         (228)

Inception of finance leases                  (69)               -          (70)

Exchange losses on currency holding          (21)            (67)          (88)


                                            (924)           (808)         (386)

Opening net funds                             65             451           451

Closing net (debt)/funds                    (859)           (357)           65