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Holders Technology's PCB Materials Sales Down in First Half 2015
July 29, 2015 | Holders Technology plcEstimated reading time: 1 minute
Holders Technology plc has announced its unaudited half yearly results for the 6 month period ended 31 May 2015. Holders Technology plc supplies specialty laminates and materials for printed circuit board manufacturers (PCB), and operates as an LED solutions provider to the lighting and industrial markets.
The first half of the year saw a strengthening of sterling against the Euro. This, combined with the anticipated lower PCB sales in the UK and reduced PCB sales in Germany, led to a fall of £1.5m in sales revenues as compared to the preceding year. Despite this, operating profit showed a £75,000 improvement as overheads were reduced by some 19% and margins recorded a modest improvement of 2%.
PCB
The largest element of our PCB turnover is generated from our German subsidiary. The slow down which they experienced in their domestic market resulted in a decline in trading as compared to the preceding year. Our UK subsidiary, whilst suffering the full impact of the termination of the supplier agreement which occurred at the end of our last financial year, succeeded in replacing some of this lost turnover with new products and it also achieved a marked reduction in its cost base and thus remained profitable.
In summary, total PCB materials sales for the period were £4,146,000 as compared to £5,802,000 in 2014. The impact of the reduced volume was lessened by improved margins and overhead reductions which resulted in an overall profit of £35,000 as compared to £112,000 in the prior year.
LED
All of our LED activities recorded encouraging improvements in revenues and margins as compared to the same period last year. Total sales for the first half were £1,333,000 whilst the preceding year showed £1,160,000 with losses reduced from £247,000 to £72,000.
Summary
Whilst the Group has not yet returned to profitability the overall result for the first half shows a significant improvement as compared to the prior year. Discussions with other potential new suppliers are underway further to strengthen our PCB and LED ranges. We anticipate continued progress towards our goal of achieving acceptable returns in the second half of the current year.
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