Interim Results
Holders Technology PLC
18 July 2006
HOLDERS TECHNOLOGY PLC
ANNOUNCEMENT OF INTERIM RESULTS
FOR THE SIX MONTH PERIOD TO 31 May 2006
CHAIRMAN'S STATEMENT
Results
Turnover for the six month period to 31 May 2006 was £9,030,000 as compared with
£7,190,000 for the similar period in the preceding year. Pre-tax profit
increased to £403,000 (2005: £182,000). Earnings per share amounted to 5.81p
(2005: 2.56p) and net assets totalled £5,157,000 (2005: £4,775,000).
Dividend
A net interim dividend of 2.0p per share (2005: 2.0p) will be paid on 19
September to shareholders on the Register of Members at the close of business on
25 August 2006. The shares will go ex-dividend on 23 August 2006.
Activities
I am pleased to be able to report a recovery in profitability across the Group
with our subsidiaries in Holland and Sweden showing particularly marked
improvements on the preceding year.
While UK operations experienced only a modest increase in turnover, all of our
other European activities achieved significant growth in sales, despite supply
limitations at times in respect of a number of products. The price of oil,
aluminium and copper, all of which impact the prices of the products we supply
to customers, increased in the period, but generally we have been able to
maintain our margins. Exchange rate movements had a negligible effect on the
results.
Due to the restructuring which we undertook last year, we have been able to
contain overheads despite higher volumes and significant cost increases in some
areas such as energy costs.
The growth in turnover in the half year caused an increase in the group's
working capital, with notably higher debtors and prepayments. This resulted in
a reduction in net cash balances of £409,000 since the end of the last financial
year, however, the Group has a strong balance sheet and at 31 May 2006 net debt
was £34,000 (2005: £110,000).
After a number of delays our Chinese WOFE (Wholly Owned Foreign Enterprise) was
successfully registered in May 2006 and we are now able to look to expand our
operations in China. As I have said in earlier statements, we believe there are
significant opportunities open to us in this market but we will be taking a
prudent approach. If we are successful the results will take time to show
through and the impact on the current year will necessarily be modest.
We believe that the sound performance in the first half of the current year
leaves us well placed to achieve a satisfactory result for the year as a whole.
The interim financial statements were approved by the Board on 18 July 2006 and
signed on its behalf by:
Rudolf W. Weinreich Holders Technology plc
Chairman and Chief Executive Devonshire House
Manor way
Borehamwood
Hertfordshire WD6 1QQ
18 July 2006
GROUP PROFIT AND LOSS ACCOUNT
for the half-year ended 31 May 2006
Unaudited Unaudited Audited
half-year half-year full-year
ended 31 ended 31 ended 30
May 2006 May 2005 Nov 2005
Notes £'000 £'000 £'000
Turnover
Continuing operations 1 9,030 7,190 14,740
Operating profit
Continuing operations 417 202 509
Share of associates operating (loss)/profit (25) - (25)
Total operating profit 392 202 484
Cost of fundamental restructuring - - (215)
Deferred consideration arising on
sale of former subsidiary 6 12 24
Profit on ordinary activities
before interest and tax 398 214 293
Net interest receivable/(payable)
and similar charges 5 (32) (19)
Profit before taxation 403 182 274
Taxation 2 (162) (72) 88
Profit after taxation 241 110 362
Minority interests - equity - (4) (7)
Profit for the period 241 106 355
Dividends 3 (114) (114) (197)
Transfer to/(from) reserves 127 (8) 158
Earnings per share 4 5.81p 2.56p 8.57p
Diluted earnings per share 4 5.61p 2.52p 8.38p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Profit for the financial year 241 106 355
Currency translation differences (40) (41) (32)
Total recognised gains and losses 201 65 323
GROUP BALANCE SHEET AT 31 MAY 2006
Unaudited Unaudited Audited
half-year half-year full-year
ended 31 ended 31 ended 30
May 2006 May 2005 Nov 2005
£'000 £'000 £'000
Fixed assets
Intangible assets 393 404 410
Tangible assets 502 596 509
Investment in associated undertaking 65 121 103
960 1,121 1,022
Current assets
Stocks 2,643 2,737 2,624
Debtors 4,218 3,276 2,970
Cash at bank and in hand 376 377 734
6,390 6,390 6,328
Creditors
Amounts falling due within one year (2,854) (2,631) (2,202)
Net current assets 4,383 3,759 4,126
Total assets less current liabilities 5,343 4,880 5,148
Creditors: amounts falling due after one year (1) (1) (6)
Provision for liabilities and charges (186) (104) (186)
5,157 4,775 4,956
Capital and reserves
Called up share capital 414 414 414
Share premium account 1,525 1,525 1,525
Capital redemption reserve 1 1 1
Profit and loss account 2,970 2,708 2,769
Equity shareholders' funds 4,910 4,648 4,709
Minority interests - equity 247 127 247
5,157 4,775 4,956
GROUP CASH FLOW
for the half-year ended 31 May 2006
Unaudited Unaudited Audited
half-year half-year full-year
ended 31 ended 31 ended 30
May 2006 May 2005 Nov 2005
£'000 £'000 £'000
Net cash (outflow)/inflow from operating activities(1) (309) 144 753
Returns on investment and servicing of finance
Interest received 3 2 5
Interest paid (4) (5) (21)
Finance lease interest (1) (2) (3)
Net cash flow from returns on investment and
servicing of finance (2) (5) (19)
Taxation 64 (193) (264)
Capital expenditure
Payments to acquire tangible fixed assets (65) (61) (116)
Receipts from sales of tangible fixed assets 18 14 58
(47) (47) (58)
Acquisitions and disposals
Net cash acquired with subsidiary undertaking - - 9
Investment in associated undertaking - (24) (31)
Deferred consideration arising on sale of former
subsidiary 6 12 24
6 (12) 2
Equity dividends paid (114) (114) (197)
Cash flow before financing (402) (227) 217
Financing
Capital element of finance leases (7) (25) (42)
(Decrease)/increase in cash 2 (409) (252) 175
1. Reconciliation of operating profit to net cash inflow from operating
activities
Unaudited Unaudited Audited
half-year half-year full-year
ended 31 ended 31 ended 30
May 2006 May 2005 Nov 2005
£'000 £'000 £'000
Operating profit 417 202 509
Depreciation 69 86 (187)
Amortisation of goodwill 16 17 30
Currency translation (26) (28) (4)
Cost of fundamental restructuring - - (215)
Loss on sale of tangible fixed assets (15) (5) (7)
Change in stocks (19) (130) (17)
Change in debtors (1,366) (478) 215
Change in creditors 615 480 55
Net cash inflow from operating activities (309) 144 753
2. Reconciliation of net cash flow to movement in net (debt) / funds
(Decrease)/increase in cash (409) (252) 175
Cash flow from change in debt and lease
finance 7 25 42
(402) (227) 217
Exchange gains/(losses) on currency balances 7 (27) -
(395) (254) 217
Opening net funds 361 144 144
Closing net (debt) / funds (34) (110) 361
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 2005, except
that FRS21 (Events after the Balance Sheet Date) has been adopted. The
effect of this is that dividends paid by the company are accounted for in
the period in which the company is liable to pay them. Previously, the
company accrued dividends in the period in which the net profit, to which
those dividends related, was accounted for. The unaudited comparative
figures for May 2005 have been restated in accordance with the new policy;
however the audited figures for 30 November 2005, which have not been
restated, will be restated in the audited accounts for the year ending 30
November 2006.
2. The tax charge for the six months ended 31 May 2006 is calculated based on
the tax rates applicable in the country in which each company operates.
The effective rate of tax is 40.2% (2005: 39.6%). Taxation includes a
charge of £129,000 (2005: £42,000) relating to overseas operations.
3. The dividend expense represents the final dividend of 4.75p per share on
the total issued share capital of 4,144,551 10p ordinary shares, which was
paid on 23 May 2006 in respect of the year ended 30 November 2005.
An interim dividend payment of 2.0p per share will be payable on 19
September 2006. The interim dividend was not approved by the board at 31
May 2006 and accordingly, has not been included as a liability as that
date.
4. The earnings per ordinary share (basic and diluted) for the six months
ended 31 May 2006 have been calculated using Financial Reporting Standard
14. The calculation of basic earnings per share, for the six months, is
based on the profit attributable to equity shareholders of £241,000 (2005:
£106,000) and on 4,144,551 ordinary shares (2005: 4,144,551) being the
weighted average number of shares in issue during the period. Diluted
earnings per share is based on 4,299,551 ordinary shares (2005: 4,209,551),
being the weighted average number of ordinary shares after an adjustment of
155,000 shares (2005: 65,000) in relation to share options.
5. The results for the half year to 31 May 2006 are unaudited. The results
for the year ended 30 November 2005 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, Devonshire
House, Manor Way Borehamwood, Herts WD6 1QQ.
For further information please contact:
Mr Rudi Weinreich, Chairman and Chief Executive, Holders Technology plc,
on 020 8731 4336
Mr Jim Shawyer, Group Finance Director, Holders Technology plc,
On 020 8731 4336
Mr Barrie Newton, Director, Rowan Dartington and Company Limited,
on 0117 933 0020.
Website: http://www.holders.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
Monday, 13th May 2024
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