HOLDERS TECHNOLOGY 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*
| ||
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.
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 |
Holders Technology plc issued this content on 12 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 February 2016 23:19:12 UTC
Original Document: http://ww2.holderstechnology.com/wp-content/uploads/2016/02/Prelim-Announcement-20151.pdf
