Holders Technology warns it will post operating loss for the year

Holders Technology said on Friday it expects to post an operating loss for the year to 30 November on the back of a fall in revenue.

The company expects to report an operating loss of £200,000 on revenue of around £11m, as trading in its German division was hit by a fire at a major customer’s premises, as well as reduced customer demand for a number of product lines and a stronger sterling.

In addition, Holders Technology said it faces an unforeseen taxation liability in respect of EU Cross Border Group Relief (CBGR) claims relating to its former Swedish and Dutch divisions. The company said that following an EU Court of Justice ruling earlier this year, certain CBGR claims relating to between 2003 and 2009 may no longer be allowable by HMRC.

It said that since the CJEU ruling, it has withdrawn certain CBGR claims totalling £65,000. Further claims and interest totalling £135,000 are currently under discussion with HMRC, so the total liability is between £65,000 and £200,000.

Holders Technology is a distributor of specialist materials, tools and equipment to the printed circuit boards industry.

At 1020 BST, Holders shares were down 32.8% to 25.20p.