Final Results

Holders Technology plc

("the Group")

Specialised PCB Materials, Lighting and Control Solutions

Final results for the year ended 30 November 2020

Holders Technology plc (AIM: HDT) announces its audited results for the year ended 30 November 2020.

The Group supplies specialty laminates and materials for printed circuit board manufacture ("PCB") and operates as a Lighting and Control Solutions ("LCS") provider. The Group operates from the UK and from Germany, with PCB divisions and LCS divisions in each country. During the year, investments were also made in LCS joint ventures in the UK and Austria.

Revenue for all divisions was reduced by the economic consequences of the Covid-19 pandemic, particularly the LCS divisions. The companies have reduced costs whenever possible, and PCB divisions taken together remained profitable. However, the LCS divisions became loss making.

The directors will recommend payment of a final dividend of 0.25p per share, a total of 0.50p for the year (2019 total: 0.75p).

The results are summarised below.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

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Chairman's statement

The Group principally operates from the UK and from Germany, with a PCB division and an LCS division in each country. In addition, during the year investments were made in LCS joint ventures in the UK and Austria.

Inevitably the Group results were impacted by the economic consequences of the Covid-19 pandemic. We have reduced costs in the UK and Germany wherever possible, including salary reductions for higher paid employees, and making use of government support schemes where available.

Revenue for the year was £9.8m (2019: £12.2m), with gross margins of 27.5% (2019: 27.9%). The operating loss for the year was £249,000 (2019: operating profit of £144,000), and the loss after tax was £264,000 (2019: profit of £181,000).

The PCB divisions taken together had revenue of £7.3m (2019: £8.7m) and achieved an operating profit of £102,000 (2019: profit of £230,000). PCB gross margins increased from 24.3% to 24.4%. In both the UK and Germany, PCB revenues held up well in the first half but showed a material reduction in the second half of the year.

As reported last year, the LCS sales and technical team was strengthened in the second half of 2019. Despite the exceptional economic situation in 2020, this team was retained in anticipation of an improvement in market conditions in 2021. LCS revenues overall amounted to £2.5m (2019: £3.5m) with gross margins decreasing from 36.7% to 36.5% and there was an operating loss of £246,000 (2019: profit of £69,000).

Two new 50:50 joint ventures were set up in 2020 as follows:

· Holders Technology Austria GmbH is a joint venture with a sales partner based in Austria. The new company sells wireless lighting control solutions in Austria, Switzerland, Czechia, and Slovakia. The joint venture achieved breakeven in the period.

· Holders Technology Data Analytics Ltd was set up with a data analytics company in the Netherlands. The new company has developed a data analytics platform for smart lighting and building solutions. It will commence trading in 2021.

On behalf of the Board, I would like to record our thanks to our staff for their hard work during the exceptional conditions experienced in 2020. Given the outcome for the year, the Board recommends a final dividend of 0.25p in respect of the 2020 year.

The outlook for the first half of 2021 is more positive than the second half of 2020, with increased sales levels and order books. As for many similar companies however, sustained improvement is heavily dependent on a recovery in the wider economy during 2021.

R W Weinreich 

Executive Chairman

19 February 2021

Group income statement for the year ended 30 November 2020

Group statement of comprehensive income for the year ended 30 November 2020

Statement of changes in equity for the year ended 30 November 2020

Group balance sheet at 30 November 2020

  Statement of cash flows for the year ended 30 November 2020

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

3. Dividends

The directors have proposed a final dividend of 0.25p per share payable on 1 June 2021 to shareholders on the register at close of business on 14 May 2021. The total dividend for the year, including the interim dividend of 0.25p (2019: 0.25p) per share paid on 6 October 2020, amounts to £21,000 (2019: £32,000), which is equivalent to 0.50p (2019: 0.75p) per share. 

4. The basic earnings per share are based on the loss for the financial year of £264,000 (2019: profit of £181,000) and on ordinary shares of 4,224,164 (2019: 4,199,735 shares), the weighted average number of shares in issue during the year. Diluted earnings per share is based on 4,224,164 ordinary shares (2019: 4,207,199 shares), being the weighted average number of ordinary shares after an adjustment of £nil (2019: 7,464) in relation to share options.

5. This statement, which has been approved by the Board on 19 February 2021, is not the Company's statutory accounts. The statutory accounts for each of the two years to 30 November 2019 and 30 November 2020 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 2019 accounts have been filed with the registrar of Companies, but the 2020 statutory accounts are not yet filed.