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