Holders buffeted by tough components markets

Holders Technology was buffeted by volatile markets for its electrical components in 2015, with group revenue down significantly in the 12 months to 30 November, it said on Friday.

The AIM-traded company supplies specialty laminates and materials for printed circuit board (PCB) production, and provides LED solutions to the lighting and industrial markets.

On a statutory basis, group revenue was 17% down to £11.2m, with PCB revenue down 25% to £8.3m. That was partially offset by LED revenue, which was up 18% to £2.9m.

Reported group margins were 1.3% higher for the year.

"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," said executive chairman Rudi Weinreich.

Holders described the PCB market as demanding during the year, with its German operation - which comprised 75% of group sales - suffering lower revenue as a result of sharply reduced customer demand.

Sales to a major customer were also suspended due to a fire at one of its factories, though they had recommenced since year-end.

UK PCB operations were able to partly mitigate the effect of their discontinued contract, the company's board reported, with increased sales of replacement products and cost reduction measures.

Holders' small Indian PCB venture once again saw modest results during the year, and it was disposed of in December. Overall margins in the PCB business were down slightly to 22.3%, from 23.1% in 2014.

"The LED divisions showed significant progress with an overall result for this division close to breakeven," Weinreich said.

The Holders Components divisions in the UK and Germany achieved strong revenue growth, the board said, aided by a number of new suppliers added during the year.

Its smaller NRGstar and Opteon Germany divisions also showed improved revenues, it confirmed, with a combined operating loss in LEDs of £26,000.

The company also touched on its unforseen tax liability announced in October, in respect of EU Cross Border Group Relief claims related to its former Swedish and Dutch operations.

"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," Weinreich confirmed.

Holders Technology's board recommended a final dividend for the year of 0.25p.