Holders Technology profits drop amid poor market conditions

Holders Technology reported a drop in interim profits and revenue on Friday as challenges in the German automotive industry impacted the company's printed circuit board manufacturing division.

Profit before tax came in at £20,000 for the six months ended 30 June, down 62% on the same period last year, as revenue slipped 2% to £6.0m.

The drop in revenue was driven by the AIM-listed company's circuit board division, PCB, which saw its sales decline 10% to £4.3m and its gross margins reduce 0.7% to 22.5%.

The division faced difficulties due to challenges in the German automotive market but Holders said a newly upgraded aluminium cutting and punching line has been brought into full operation, which is expected to provide higher throughput and result in efficiency gains in the future.

Trading in the lighting and control solutions (LCS) divisions in the UK and Germany made good progress during the period, with revenue up 22% to £1.7m and gross margins rising from 33.7% to 35.2%.

The interim dividend remained unchanged at 0.25p per share.

Executive chairman Rudolf Weinreich said: "Our PCB business continues to face challenges due to unfavourable market conditions. However, PCB operations remain profitable, and management has recently implemented targeted cost savings to further improve profitability. The LCS divisions have achieved good growth and a modest profit in the first half, and the pipeline of sales opportunities is encouraging, with the acceptance in the market of wireless lighting controls."

Holders Technology shares were down 2.22% at 44.00p at 0937 BST.