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August 26, 2019 | Holders TechnologyEstimated reading time: Less than a minute
PCB revenues have been adversely impacted by the overall economic environment, and the challenges faced by the automotive industry in Germany in H1 2019. In contrast, revenues from the LCS divisions have grown strongly. Group revenue decreased by 2.5% to £6.0m (H1 2018: £6.2m), gross margins increased by 0.6% to 26.2%,and the pre-tax result was a profit of £20,000(H1 2018: profit of £65,000).
PCB sales in the period decreased by 9.8%, from £4,756,000 in 2018to £4,291,000, while PCB gross margins decreased by 0.7% to 22.5%. At the end of the period the upgraded aluminium cutting and punching line in Germany was brought into full operation. The improved cutting line is expected to provide higher through put and result inefficiency gains in future periods. PCB over heads as a percentage of sales increased by 1.7% to 18.1%. Overall our PCB activities recorded a pre-tax profit of £30,000 (H1 2018: profit £159,000).
Our PCB business continues to face challenges due to unfavorable 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.
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