Holders Technology
Annual Report & Accounts 2013
Specialised Materials, LED Components and Lighting Solutions
Year in brief
Holders Technology supplies special laminates and materials for printed circuit board manufacture
(“PCB”), and operates as a LED solutions provider to the lighting and industrial markets.
The overall results for 2013 were mixed. In Germany the PCB and LED divisions both made good
progress. However, in the UK, PCB revenue fell and LED was impacted by the loss of a major
customer and reduced revenue while its components division was restructured. China operations
incurred further losses and were sold in January 2014. The result from the China discontinued
business was £269,000 loss compared to £326,000 loss in 2012.
Highlights included:
Group revenue growth 4.7%
LED revenue growth 25.4%
Operating profit £105,000
Basic earnings per share 1.85p
Cash balances £1.29 million. No debt.
Proposed dividend 1.0 pence per share
Holders Technology recorded the following results:
2013
2012
Restated
£'000
£'000
Continuing Operations
Revenue
PCB
LED
Total
Gross profit
Margins
11,011
3,254
14,265
11,036
2,595
13,631
3,467
24.3%
3,584
26.3%
Operating profit/ (loss)
105
(56)
Earnings/ (loss) per share
Dividend proposed/ paid
1.85p
1.0p
(2.82p)
1.0p
Total Operations
Total cash
Debt
1,290
nil
700
nil
Contents
Page
STRATEGIC REPORT
Chairman’s statement
Operating review
Financial review
1
2
4
BOARD REPORTS
Company information
Report of the directors
Directors’ remuneration report
Corporate governance
FINANCIAL STATEMENTS
Report of the independent auditors to the members of Holders Technology plc
Consolidated income statement
Statement of comprehensive income
Consolidated statements of changes in equity
Balance sheets
Statements of cash flows
Notes to the financial statements
AGM
Notice of annual general meeting
Five year summary
6
7
10
11
13
14
14
15
16
17
18
46
49
STRATEGIC REPORT
Chairman’s statement
interim stage
At the
I was able to report an
improvement in the result for the first half of the year
as compared to the preceding year. This improved
position was maintained during the second half of the
year with operating profit from continuing operations
amounting to £105,000 (2012 loss £56,000).
During the year China operations incurred losses and
following a strategic review it was decided to dispose
of these businesses. This was achieved on 3 January
2014. The loss incurred by the discontinued China
operations was £269,000 (2012:
loss £326,000).
Further details of these items are given in the
Financial review.
The major element of our PCB activities is our German
subsidiary which in the year under review increased
its turnover to £7.8m (2012 £7.0m).The German PCB
market experienced only slight growth in the year and
we believe our activities outperformed the market as
a whole; however, competitive pressures remain
strong and thus the growth in sales was not fully
reflected in increased trading profits.
The UK PCB business
is heavily dependent on
aerospace and defence and the defence area saw a
significant contraction during the year. Against this
background
is commendable that while sales
declined by 19.5% to £3.3m (2012 £4.1m) tight
in
management of costs restricted the decline
operating profit to 1.4%.
it
Whilst our PCB activities remain the core element of
the Group’s continuing business with turnover of
£11,011,000 accounting for some 78% of total
turnover we continue to seek significant growth from
our LED activities.
for LEDs
During the year the general market
continued to grow with significant technical advances
being made by a number of major manufacturers. We
remain focussed on positioning our activities in a
manner designed to ensure we can benefit from these
market developments. We are making progress
towards this goal but we have yet to achieve critical
mass and were adversely affected by the loss of a
major UK customer in the year. Despite this set back,
LED sales from continuing operations increased from
£2,595,000 to £3,254,000.
We have also made marked progress in relocating our
UK production facilities and strengthening both our
UK and German sales teams. Coupled with these
changes we have been able further to extend our
range of products and its technical sophistication.
During the course of the year to 30 November 2013 it
became clear that as a result of changes in customer
demand and the successful expansion of our in-house
assembly capability in our Galashiels facility the role
for our Chinese joint venture was much reduced. We
will, as required, still deal directly with suppliers in the
Far East including China but we disposed of our 70%
holding in Topgrow Technologies Limited on 3 January
2014. The resulting non cash impairment of £213,000
while impacting profitability in the year under review
will eliminate the considerable amount of senior
management time that has had to be diverted to this
activity in recent years and will, we believe, be of
overall financial benefit to the Group in future years.
As always on behalf of the board and shareholders I
would like to thank our staff whose continued support
gives us confidence that we will be able to maintain
our position in our PCB markets and grow our LED
presence significantly.
Given our financial strength and the board’s belief in
the Group’s future we consider it appropriate to
recommend a final dividend for the past year of 1.0p
per share.
While it would be wrong to imply that there will not
be challenges across the Group in the current year we
believe that our German PCB activities will maintain
the progress they have made. The addition of a major
new product range will aid our UK PCB operations to
maximise their share of the market available to them.
We expect LED operations generally to make good
progress this year but I would caution that this will
mainly be weighted towards the second half of the
year.
R W Weinreich
Executive Chairman
19 February 2014
Holders Technology plc ¦ Annual Report & Accounts 2013 1
STRATEGIC REPORT
Operating review
Corporate strategy
Holders is committed to maintaining its position in the
PCB industry whilst increasing sales and profitability in
its LED lighting activities.
The board seeks to enhance shareholder value over
the medium to long term, whilst maintaining a
conservative
Where an
opportunity to increase market share is identified, this
internally
is addressed within
generated cash flow and bank facilities.
the bounds of
framework.
financial
Product strategy
Holders has operated for many years as a distributor
of specialised materials and equipment to the printed
circuit board (PCB) industry. The European PCB
industry has strengths in the defence, aerospace,
automotive and medical sectors, while the Far East is
dominant
in the production of consumer-related
electronics.
Holders continues to pursue its PCB strategy based on
dual positioning: both as a
low-cost source of
standard products used throughout the industry; and
as an exclusive supplier of technically sophisticated
products to the PCB sector.
In addition to the PCB industry, Holders operates as a
LED solutions provider to the lighting and industrial
markets. The product offering ranges from single LED
components, to semi assembled
light modules,
through to finished LED lighting products.
Our LED strategy is to provide a competitive and
complementary product range
for our selected
markets, supported by strong technical support and
industry knowledge. In addition, Holders provides
bespoke
customer
in order
requirements.
solutions
fit
to
available from LED technology is expected to lead to
an increasing uptake of LED lighting products across
both the commercial and domestic markets.
PCB operations
UK
in Galashiels,
UK trading operations are based
Scotland. The PCB industry in the UK is oriented
towards the aerospace and defence industries, both
of which require a broad range of products. The UK
market deteriorated in 2013, resulting in a reduction
in revenue to £3.3m. (2012: £4.1m)
Germany
The German PCB industry is particularly driven by
demand from the automotive and industrial sectors.
We believe that the German PCB business benefitted
both from a slight increase in the market and a gain in
market share leading to an increase in revenue to
£7.8m. (2012: £7.0m)
LED & Lighting products
UK
In addition to its PCB business, Holders Technology UK
has three LED trading elements.
Holders Components specialises in providing LED
solutions both to the general lighting market and to
selected industrial and commercial market segments.
Last year, Holders Components lost a significant
its
customer, which resulted
profitability. Despite this setback we were able to
strengthen the sales team and management, increase
the product range and reduce UK LED operating costs.
in a decline
in
Opteon offers a range of LED products to the
commercial and retail markets. Trading for the year
showed modest improvement.
Economic Environment
In 2013, the PCB industry faced a challenging year.
Although the market showed a slight improvement in
Germany, it reduced in the UK.
NRGstar offers a range of energy efficient lighting
technologies, focussing on the retail and commercial
market segments. NRGstar significantly increased
sales and profitability during 2013.
The LED industry in 2013 showed growth, with the
prices of LEDs continuing to reduce. The reduction in
prices coupled with the efficiencies
Continental Europe
In Germany, Holders Components and Opteon are
trading divisions of Holders Technology GmbH and
these divisions serve the rest of the European market.
Holders Technology plc ¦ Annual Report & Accounts 2013 2
STRATEGIC REPORT
Operating review (continued)
During the last year, both divisions continued to
increase their revenue and profitability.
China
China operations have been discontinued as detailed
in the Financial Review. However we retain valuable
relationships with business partners in the region.
India
Holders Technology (India) Private Limited provides
materials and services to the local PCB industry and is
also now providing LED lighting assembly services to
European customers. The company has continued to
make satisfactory progress.
Victoria Blaisdell
Group Managing Director
19 February 2014
Holders Technology plc ¦ Annual Report & Accounts 2013 3
STRATEGIC REPORT
Financial review
Key performance indicators
The directors believe
following key
that
performance indicators are of most significance to
assessment of the Group’s performance and financial
position:
the
level of turnover provides an
Revenue
The
important
indication of the strength of the Group’s product
range and coverage.
Profitability
Profitability is largely a function of the gross margins
achieved and management’s success in containing
administrative expenses in relation to turnover.
Gearing and liquidity
The Group operates in a cyclical industry and the
directors have consistently applied a conservative
approach to financing the Group’s activities. The
key measures are net liquid funds and gearing,
which are described in more detail below.
Revenue
Group revenue from continuing operations increased
from £13.6m to £14.3m. PCB revenue overall was
unchanged whilst LED revenue grew by 25%.
Profitability
The operating result before exceptional items was a
profit of £105,000 compared to a loss of £56,000 in
2012. The gross profit margin was 24.3% compared to
26.3% in 2012.
During the year the Group’s China operations were
reviewed, and on 3 January 2014 the Group’s 70%
investment in Topgrow Technologies Limited was
disposed of. Topgrow Technologies wholly owns
Dongguan Hui Zhan Electronic Limited, and owns 20%
of Waysky Limited, both operating in mainland China.
The China businesses disposed of on 3 January 2014
have been treated as discontinued operations as at 30
November 2013. This result from the discontinued
businesses was a
loss
£326,000). Further details are shown in note 10 of
the financial statements.
loss of £269,000 (2012:
Total administrative expenses were reduced by
£226,000 compared to 2012 so that the
administration cost as a proportion of revenue
decreased from 24.0% in 2012 to 21.4% in 2013.
Post tax result
The loss for the financial year after tax, attributable to
equity shareholders was £0.2m (2012: loss of £0.4m).
The basic earnings per share from continuing business
were 1.85p (2012: loss 2.82p per share) and the loss
per share from total operations was 4.98p (2012:
11.09p).
Dividends
The board proposes a final dividend of 1.0p per share
to be paid on 20 May 2014 to shareholders on the
register on 30 April 2014. Including the 1.0p interim
dividend already paid on 3 October 2013 the total
dividend for 2013 would be 2.0p (2012: 2.0p).
Principal risks and uncertainties
The directors believe that the following are the
principal risks and uncertainties faced by the Group:
Competition
Both the PCB and LED sectors are highly competitive
and the Group faces competition from a wide range
of companies. The Group continually seeks out the
most cost-effective sources for its products in order
to remain competitive.
Customers
The Group is exposed to the risk of bad debts.
Within the major European markets, the Group uses
credit analysis data to monitor customer risk levels
and maintain appropriate credit
Credit
insurance is used for UK customers where it is
available.
limits.
Suppliers
As with any distribution business, the Group is
dependent on maintaining supply. The Group has
diversified its product range and sources in order
not to be overly dependent on any single supplier.
Cash flow, liquidity and financing
Despite increased sales levels the Group was able to
reduce stock levels from £3.2m in 2012 to £2.8m in
2013.
Holders Technology plc ¦ Annual Report & Accounts 2013 4
STRATEGIC REPORT
Financial review (continued)
The Group maintains overdraft and trade financing
facilities with its banks to meet short term financing
requirements during the year. At 30 November 2013,
the Group had net cash of £1.3m compared with
£0.7m at the previous year end.
At 30 November 2013 the Group had net liquid funds
(trade and other receivables plus cash minus current
liabilities) of £1.8m compared to £1.5m
in the
preceding year.
Net assets per ordinary share at 30 November 2013
were £1.21 compared with £1.25 in 2012.
Derivatives and other financial instruments
Operations are financed by a mixture of retained
profits and overdrafts. The board’s current policy is to
use variable rate overdraft facilities in order to
maintain short term flexibility. At 30 November 2013,
the Group had gearing, being debt divided by debt
plus shareholders’ funds, of 0.0% (2012: 0.0%).
The Group’s financial instruments, other than forward
currency contracts, comprise borrowings, cash and
items, such as trade receivables and payables that
arise directly from its operations. The main purpose
of these instruments is to raise finance for operations.
It is, and has been throughout the period under
review, the Group’s policy that no trading in financial
instruments shall be undertaken.
Currency risk and exposure
The Group enters into derivatives transactions, in the
form of forward currency contracts that are used to
manage the currency risks arising from purchases
from foreign suppliers where the products are sold in
local currencies. Forward currency contracts have
also been used to reduce the company’s foreign
currency exposure when it has provided euro loans to
finance its European subsidiaries.
The overseas sales operations during the year were in
the European Community, China and India. The Group
has currency exposures in US dollars, euros, Hong
Kong dollars and the Chinese Renminbi. Although day
to day transactional exposures are regularly covered
by forward contracts, the Group has an underlying
exposure, particularly to the euro. At the year end
forward USD purchase contracts with a contracted
value of £856,000 were held as detailed in note 20.
Conclusion
The Group continues to operate a conservative
financial policy, which leaves it well placed to benefit
from future growth opportunities.
Paul Geraghty
Group Finance Director
19 February 2014
STRATEGIC REPORT
The Strategic Report on pages 1-5 was approved by
the Board on 19 February 2014 and signed on its
behalf by
Paul Geraghty
Group Finance Director
19 February 2014
Holders Technology plc ¦ Annual Report & Accounts 2013 5
BOARD REPORTS
Company information
Directors
R W Weinreich, Executive Chairman
V M Blaisdell, BSc, Group Managing Director
P K I Geraghty BSc, FCA, Group Finance Director
D A Mahony, BA (Econ), MSc, Non-Executive Director
Secretary
P K I Geraghty BSc, FCA
Registered office
Elstree House
Elstree Way
Borehamwood
Hertfordshire WD6 1SD
Website
www.holderstechnology.com
Registered number
1730535
Auditors
Bankers
Registrars
Grant Thornton UK LLP
101 Cambridge Science Park
Milton Road
Cambridge CB4 0FY
HSBC
City CBC
60 Queen Victoria Street
London EC4N 4TR
Neville Registrars
Neville House
18 Laurel Lane
Halesowen
West Midlands B63 3DA
Nominated Advisor and
Broker
Northland Capital Partners Limited
131 Finsbury Pavement
London
EC2A 1NT
Holders Technology plc ¦ Annual Report & Accounts 2013 6
BOARD REPORTS
Report of the directors
Business review and future developments
A review of the year and likely developments is contained in the Strategic Report.
Results and dividends
The group made a loss after taxation for the financial year attributable to shareholders of £179,000 (2012: loss
£374,000).
Full details are contained in the consolidated income statement on page 14. The directors have proposed a final
dividend of 1.0p per share payable on 20 May 2014 to shareholders on the register at close of business on 30 April
2014. The total dividend for the year, including the interim dividend of 1.0p (2012: 1.0p) per share paid on 3
October 2013, amounts to £78,000 (2012: £168,000), which is equivalent to 2.0p (2012: 2.0p) per share.
Financial risk management
Details of the group’s financial risk management are contained in note 4 to the financial statements.
Directors
The directors currently holding office are listed on page 6, all of whom served throughout the year. The beneficial
shareholdings of the directors at 30 November 2013 are set out in note 24 to the financial statements.
Rudi Weinreich, aged 67, Chairman and Chief Executive, was born in Austria. He has been responsible for all aspects
of the business since he started it in 1972, particularly the assessment of new products and distributorship
agreements.
Victoria Blaisdell, aged 41, joined the Group in 2004 and is now Group Managing Director. She has worked in the IT
industry for over 12 years and has previously worked in several countries as a Senior Consultant for American
Management Systems Inc.
Paul Geraghty, aged 53, joined the Group in 2011 as Group Finance Director and Company Secretary. He previously
held senior financial roles in engineering companies, including Elektron Components Limited and Protec plc.
David Mahony, aged 70, is the Senior Non-executive Director, appointed in 1988. He is chairman of Opsec Security
Group plc.
Holders Technology plc ¦ Annual Report & Accounts 2013 7
BOARD REPORTS
Report of the directors (continued)
Substantial shareholdings
At 14 February 2014 the company had been informed of the following interests, in addition to the interests of R W
Weinreich, amounting to 3% or more in the issued ordinary share capital of the company, excluding treasury shares:
Andre Marcou
Armstrong Investments Limited
Rath Dhu Limited
Stockinvest Limited
Hugh S Pearson Gregory
Number %
471,000
275,000
235,000
171,500
138,290
11.96%
6.98%
5.97%
4.35%
3.51%
Annual General Meeting
The Annual General Meeting of the Company will be held at Elstree House, Elstree Way, Borehamwood,
Hertfordshire WD6 1SD at 11.30 a.m. on 30 April 2014.
Special business at the Annual General Meeting
An ordinary resolution (set out as resolution 6 in the Notice of the Annual General Meeting) will be proposed to give
the directors authority to allot 1,386,517 ordinary shares being approximately 33% of the issued ordinary share
capital of the company as at the date of this report which includes 295,000 ordinary shares being the maximum
number of shares the company may be obliged to issue under its employee share option scheme. The authority,
when given, will expire at the conclusion of next year's annual general meeting. The directors have no present
intention of exercising this authority.
A special resolution (set out as resolution 7 in the Notice of Annual General Meeting) will be proposed to empower
the directors to allot securities of the company up to a specified amount in connection with rights issues without
having to obtain prior approval from shareholders on each occasion and also to allot a smaller number of these for
cash without first being required to offer such shares to existing shareholders. The number of ordinary shares which
may be issued for cash under the latter authority will not exceed 207,978 being approximately 5% of the issued
ordinary share capital of the company as at the date of this report. The proposed power will expire at the conclusion
of next year's Annual General Meeting.
A special resolution (set out as resolution 8 in the Notice of Annual General Meeting) will be proposed to authorise
the company to buy on the open market up to 393,955 ordinary shares of 10p each, representing 10% of the issued
ordinary share capital of the company as at the date of this report, excluding treasury shares. The directors, in
reaching any decision to purchase ordinary shares, will take into account the company’s cash resources, capital
requirements and the effect of any purchase on earnings per share.
Going Concern
The company’s business activities, together with the factors likely to affect its future development, performance and
position are set out in the Strategic Report on pages 1 to 5. The financial position of the company, its cash flows,
liquidity position and borrowing facilities are described in the Financial Review on page 5. In addition, notes 2, 3, 4,
20 and 25 to the financial statements include the company’s objectives, policies and processes for managing its
capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its
exposures to credit risk and liquidity risk. Budgets and forecasts indicate a satisfactory going concern position.
Holders Technology plc ¦ Annual Report & Accounts 2013 8
BOARD REPORTS
Report of the directors (continued)
The company has good financial resources together with a number of customers and suppliers across different
geographic areas and industries. As a consequence, the directors believe that the company is well placed to manage
its business risks successfully despite the current uncertain economic outlook.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Drirectors’ Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union (IFRSs). Under company law the directors must not approve the
financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or
loss of the company and group for that period. In preparing these financial statements, the directors are required to:
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained
in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
select suitable accounting policies and then apply them consistently;
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The directors confirm that:
so far as each of the directors is aware, there is no relevant audit information of which the company’s auditors
are unaware; and
the directors have taken all steps that they ought to have taken as directors in order to make themselves aware
of any relevant audit information and to establish that the auditors are aware of that information.
The directors are responsible for the maintenance and integrity of the corporate and financial information included
on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Directors’ indemnity arrangements
The company has purchased and maintained throughout the year directors’ and officers’ liability insurance in respect
of its directors. The directors also have the benefit of the indemnity provision contained in the company’s Articles of
Association. These provisions, which are qualifying third party indemnity provisions as defined by the Companies Act,
were in force since 30 April 2007, and are currently in force.
Auditors
The auditors, Grant Thornton UK LLP, are willing to continue in office as auditors of the company and a resolution to
reappoint them will be proposed at the forthcoming Annual General Meeting.
By order of the board
Paul Geraghty
Secretary
19 February 2014
Holders Technology plc ¦ Annual Report & Accounts 2013 9
BOARD REPORTS
Directors’ remuneration report
The directors present the directors’ remuneration report for the financial year ended 30 November 2013. As the
company is listed on AIM, it does not have to comply with the requirements of the remuneration report contained in
the listing rules.
Remuneration policy
The company policy is to design prudent executive remuneration packages to attract, motivate and retain directors
of a high calibre and to reward them for enhancing value to shareholders. The determination of the annual
remuneration packages of the senior executive directors and key members of senior management are undertaken as
set out in the corporate governance report on page 11.
There are three main elements of the remuneration packages of the executive directors:
Basic annual salary and benefits;
Share option incentives; and
Pension arrangements.
The company believes that share option incentives encourage long term commitment to shareholder value and
ensure that rewards for executive directors and senior managers are aligned with the interests of shareholders.
There is no company pension scheme in place, apart from a legacy defined benefit scheme in relation to a former
member of staff in Germany. Contributions are made to the personal pension schemes of certain directors.
Executive directors may accept up to two external non-executive appointments, as long as these are not with
competing companies and are not likely to lead to conflicts of interest. This policy is followed where such
appointments would beneficially broaden experience and knowledge.
Executive directors’ remuneration and terms of appointment
Base salaries are reviewed annually and are set to reflect responsibilities, experience and marketability. Regard is
also given to the level of rewards made in the year to staff. The mechanism for supervising the company share
option scheme and the granting of options under it is as set out in the corporate governance report on page 11.
None of the directors have service contracts with a notice period exceeding one year. Each director is entitled to
contributions to personal pension schemes and benefits in kind, which include car allowance and private health
insurance.
Non-executive directors’ remuneration
The fees paid to non-executive directors are determined by the board. Non-executive directors are normally
appointed for an initial period of three years. Appointments are made subject to retirement by rotation or removal
under the company’s articles of association. Non-executive directors do not participate in the company's option
scheme.
Details of the directors’ remuneration, pension entitlements, shareholdings and share options are included in note
24 to the financial statements.
Holders Technology plc ¦ Annual Report & Accounts 2013 10
BOARD REPORTS
Corporate governance
UK Corporate Governance Code
We do not comply with the UK Corporate Governance
Code. Instead, we have reported on our Corporate
Governance arrangements drawing on best practice
available, including those aspects of the UK Corporate
Governance Code we consider to be relevant to the
Company and best practice.
Board composition and responsibility
During the year the board comprised three executive
directors and one non-executive director. None of
the directors are independent. The appointment of
another non-executive director will be considered
when it is judged appropriate. Given the size of the
company it is not considered by the board that it is
either necessary or appropriate to incur the cost of
employing a separate chairman. All directors are
required to retire and submit themselves for re-
election at three yearly intervals. No director has a
service agreement requiring more than twelve
months notice of termination to be given.
information
All directors receive management
in
advance of board meetings, which are held monthly,
the board visits subsidiary companies as
and
appropriate. There is a schedule of matters requiring
board approval,
strategy,
acquisitions and disposals, key appointments and
group funding strategy. All directors have access to
the advice and services of the Company Secretary
(and there are processes in place enabling directors to
legal advice at the company’s
take independent
expense in the furtherance of their duties).
corporate
including
The following table shows the number of scheduled
board and board committee meetings held during the
year ended 30 November 2013 and details of each
director’s attendance.
Number held
R Weinreich
V Blaisdell
D Mahony
P Geraghty
Board
11
11
11
10
11
Audit
2
1
1
2
2
Remuneration
1
-
-
1
-
Audit Committee
The Group Finance Director and the Non-executive
Director act as the audit committee which
is
responsible for reviewing a range of financial matters,
the
interim and
including
final accounts, and
monitoring the controls which are in force to ensure
the integrity of the financial information reported to
the shareholders. The committee reviews the need
for internal audit on an annual basis and, due to the
size of the company, the committee believes that the
cost of introducing this function would outweigh any
perceived benefits. The audit committee has met
twice in the year. The Non-executive Director meets
separately with the auditors as part of such meetings.
Remuneration Committee
During the year, the Non-executive Director has acted
as the sole member of the remuneration committee.
The principal function of the remuneration committee
is to determine on behalf of the board the
remuneration and other benefits of the executive
directors, including pensions, share options, service
contracts and compensation payments.
The
remuneration policy and key elements of the
remuneration packages of the executive directors are
included in the Directors’ Remuneration Report on
page 10.
the
remuneration
The principal objectives of
committee in respect of executive directors and the
board in respect of the company as a whole are to
ensure that the company's senior management
remuneration policies and practice facilitate the
recruitment, retention and motivation of top quality
personnel and to ensure that senior management
remuneration operates on a best-practice basis,
aligning, where practicable, the remuneration of
executives with the interests of shareholders.
Each of the company's executive directors is subject
to an annual appraisal of their performance as
executives which is conducted by the Non-executive
Director.
Board nominations
The company has formal procedures for making
appointments to the board and these would be
applied to ensure that any new appointments that
might be made meet the desired criteria.
Shareholder relationships
The objective of the board is to create increased
shareholder value by growing the business in a
manner that delivers sustainable improvement in
earnings over the medium and long term.
Holders Technology plc ¦ Annual Report & Accounts 2013 11
BOARD REPORTS
Corporate governance (continued)
The board regards the annual general meeting as an
important opportunity to communicate with private
investors in particular. Directors make themselves
available to shareholders both before and after the
annual general meeting and at other times.
Internal Control
The system of internal controls established by the
directors is intended to be comprehensive, although
the limitations of any system of control is such that it
is designed to manage rather than eliminate the risk
of failure to achieve business objectives and to
provide a reasonable, rather than absolute, level of
assurance against material misstatement or loss. The
directors acknowledge their responsibilities for the
group’s system of internal control and for reviewing
its effectiveness.
The principal features of the system of internal
financial controls are:
budgetary control over all operating units,
measuring performance against pre-determined
targets on at least a monthly basis;
regular forecasting and reviews covering trading
performance, assets, liabilities and cash flows;
delegated
financial
expenditure and recruitment;
limits of authority covering key
capital
commitments
including
identification and management of key business
risks.
The board continually reviews the effectiveness of
financial,
other
operational,
risk
management.
compliance
including
controls,
controls
internal
and
Financial reporting
A detailed formal budgeting process for all group
businesses culminates in an annual group budget
which is approved by the board. Results for the
company and for its main constituent businesses
are reported monthly to the board against this
budget and revised forecasts for the year are
prepared each quarter.
Financial and accounting principles
A comprehensive
financial and accounting
controls manual sets out the principles of and
minimum standards required by the board for
effective financial control. The manual sets out
the
financial and accounting policies and
procedures to be applied throughout the group.
Compliance with the policies and procedures set
out in the manual is reviewed on a regular basis.
Internal financial controls assurance
In addition to the existing procedures, during the
year senior executives have prepared detailed
reports on the operation of those elements of the
system for which they are responsible.
Capital investment
The group has clearly defined guidelines for
include annual
capital expenditure.
budgets,
review
procedures, levels of authority and due diligence
requirements where businesses are being
acquired.
These
appraisals
detailed
and
Turnbull risk assessment
The group has
implemented a process for
identifying, reporting and assessing risk at each
subsidiary.
The board regularly reviews the
subsidiaries’ risk assessments.
The directors confirm that they have reviewed the
effectiveness of the system of internal controls in
operation during the year and the period to the date
of the approval of the annual report and accounts.
The board is committed to the principles of openness,
integrity and accountability in dealing with the
company's affairs. It believes it has always acted with
probity in the best interests of the company, its
employees and shareholders and fully intends to
continue to do so in the future.
Holders Technology plc ¦ Annual Report & Accounts 2013 12
FINANCIAL STATEMENTS
Independent auditor's report to the members of Holders Technology plc
We have audited the financial statements of Holders Technology plc for the year ended 30 November 2013 which
comprise the consolidated income statement, the consolidated statement of comprehensive income, group and company
statements of changes in equity, group and company balance sheets, the group and company statements of cash flow,
and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company
financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Directors and Auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 9, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to
audit and express an opinion on the financial statements in accordance with applicable law and International Standards on
Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical
Standards for Auditors.
Scope of the Audit of the Financial Statements
A description of the scope of an audit of
www.frc.org.uk/apb/scope/private.cfm.
financial statements
is provided on the APB's website at
Opinion on Financial Statements
In our opinion:
the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at
30 November 2013 and of the group's loss for the year then ended;
the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European
Union;
the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the
European Union and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for which the
financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you
if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not
been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Paul Naylor
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Cambridge
19 February 2014
Holders Technology plc ¦ Annual Report & Accounts 2013 13
FINANCIAL STATEMENTS
Consolidated income statement for the year ended 30 November 2013
Continuing operations
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Other operating (expenses)/ income
Operating profit/ (loss)
Finance income
Finance expenses
Profit/ (loss) before taxation
Tax expense
Profit/ (loss) for the year from continuing operations
Loss for the year from discontinued operations
(Loss)/ profit for the year
(Loss)/ profit for the year attributable to:
Owners of the parent
Non-controlling interest
(Loss)/ profit for the financial year
Basic earnings/ (loss) per share – continuing operations
Diluted earnings/ (loss) per share – continuing operations
Basic and diluted loss per share – discontinued operations
Total loss per share
Note
5
6
6
8
10
11
11
11
11
2013
£’000
2012 Restated
£’000
14,265
(10,798)
3,467
(381)
(3,049)
68
105
4
(12)
97
(24)
73
(269)
(196)
(179)
(17)
(196)
1.85p
1.78p
(6.83p)
(4.98p)
13,631
(10,047)
3,584
(376)
(3,275)
11
(56)
1
(13)
(68)
(43)
(111)
(326)
(437)
(374)
(63)
(437)
(2.82p)
(2.82p)
(8.27p)
(11.09p)
Consolidated statement of comprehensive income for the year ended 30 November 2013
(Loss)/ profit for the year
Items that will not be reclassified subsequently to profit or loss:
Change in actuarial assumption re pension liability
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations
Total comprehensive income and expense for the year
Total comprehensive income and expense for the year attributable to:
Owners of the parent
Non-controlling interests
2013
£’000
(196)
-
114
(82)
(70)
(12)
(82)
2012
£’000
(437)
(45)
(168)
(650)
(582)
(68)
(650)
Holders Technology plc ¦ Annual Report & Accounts 2013 14
FINANCIAL STATEMENTS
Statements of changes in equity
Group
Share
capital
Share
premium
Capital
redemption
reserve
Translation
reserve
Retained
earnings
Total equity
Non-
controlling
interest
Total
attribut-
able to
owners of
parent
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 December 2011
416
1,531
Dividends
Employee share-based
payment options
Transactions with owners
Profit/(loss) for the year
Effect of change in pension
liability assumptions
Exchange differences on
translating foreign operations
Total comprehensive income
for the year
Balance at 30 November 2012
Dividends
Employee share-based
payment options
Transactions with owners
Profit/(loss) for the year
Reclassification adjustment
related to terminated foreign
operations
Exchange differences on
translating foreign operations
Total comprehensive income
for the year
Balance at 30 November 2013
-
-
-
-
-
-
-
-
-
-
-
-
-
-
416
1,531
-
-
-
-
-
-
-
-
-
-
-
-
-
-
268
3,725
5,941
-
-
-
-
-
(168)
1
(167)
(374)
(45)
(168)
1
(167)
(374)
(45)
(163)
-
(163)
(163)
(419)
(582)
£'000
76
-
-
-
(63)
-
(5)
(68)
£'000
6,017
(168)
1
(167)
(437)
(45)
(168)
(650)
105
3,139
5,192
8
5,200
-
-
-
-
(45)
(78)
9
(69)
(179)
45
(78)
9
(69)
(179)
-
-
-
-
(17)
-
109
-
109
5
64
(134)
(70)
(12)
(78)
9
(69)
(196)
-
114
(82)
1
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
416
1,531
1
169
2,936
5,053
(4)
5,049
Company
Share
capital
Share
premium
Balance at 1 December 2011
Profit/ (loss) and total comprehensive income for
the year
Dividends
Share-based payment charge
Balance at 30 November 2012
Profit/ (loss) and total comprehensive income for
the year
Dividends
Share-based payment charge
Balance at 30 November 2013
£'000
416
-
-
-
416
-
-
-
416
£'000
1,531
-
-
-
1,531
-
-
-
1,531
Capital
redemption
reserve
£'000
1
-
-
-
1
-
-
-
1
Retained
earnings
Total equity
£'000
728
(166)
(168)
1
395
(284)
(78)
9
42
£'000
2,676
(166)
(168)
1
2,343
(284)
(78)
9
1,990
Holders Technology plc ¦ Annual Report & Accounts 2013 15
FINANCIAL STATEMENTS
Balance sheets at 30 November 2013
Company number: 1730535
Assets
Non-current assets
Goodwill
Property, plant and equipment
Investments in subsidiaries
Investment in joint venture
Deferred tax assets
Current assets
Inventories
Trade and other receivables
Current tax assets
Cash and cash equivalents
Liabilities
Current liabilities
Trade and other payables
Current tax liabilities
Net current assets
Non-current liabilities
Borrowings
Retirement benefit liability
Contingent consideration
Deferred tax liabilities
Shareholders’ equity
Share capital
Share premium account
Capital redemption reserve
Retained earnings
Cumulative translation adjustment reserve
Equity attributable to the shareholders of the
parent
Non-controlling interest
Note
Group
2013
£’000
2012
£’000
Company
2013
£’000
2012
£’000
13
14
15
16
22
17
18
19
20
21
28
22
23
320
320
-
-
41
681
2,799
1,927
26
1,290
6,042
(1,413)
(34)
(1,447)
4,595
-
(205)
-
(22)
(227)
5,049
416
1,531
1
2,936
169
5,053
(4)
5,049
318
398
-
-
41
757
3,140
2,397
57
700
6,294
(1,556)
(35)
(1,591)
4,703
-
(199)
(29)
(32)
(260)
5,200
416
1,531
1
3,139
105
5,192
8
5,200
-
16
2,308
15
-
2,339
-
225
-
480
705
(1,019)
(32)
(1,051)
(346)
-
-
-
(3)
(3)
1,990
416
1,531
1
42
-
1,990
-
1,990
-
21
2,780
15
-
2,816
-
387
-
6
393
(800)
(32)
(832)
(439)
-
-
(29)
(5)
(34)
2,343
416
1,531
1
395
-
2,343
-
2,343
The financial statements were approved by the Board on 19 February 2014 and signed on its behalf by:
R W Weinreich
Director
Holders Technology plc ¦ Annual Report & Accounts 2013 16
FINANCIAL STATEMENTS
Statements of cash flows for the year ended 30 November 2013
Group
Company
2013
£’000
2012
£’000
2013
£’000
2012
£’000
Cash flows from operating activities
Operating (loss)/ profit
Share-based payment credit
Depreciation
Impairment costs
(Gain)/ Loss on sale of property, plant and equipment
(Increase)/decrease in inventories
(Increase)/decrease in trade and other
receivables
Increase/(decrease) in trade and other
payables
Cash (used in)/generated from operations
Corporation tax (paid)/received
Net cash (used in)/generated from operations
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Interest received
Net cash (used in)/generated from investing activities
Cash flows from financing activities
Interest paid
Loan repayments
Settlement of contingent consideration
Equity dividends paid
Net cash used in financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at start of period
Effect of foreign exchange rates
Cash and cash equivalents at end of period
(148)
9
110
213
1
348
322
(87)
768
(18)
750
(48)
1
4
(43)
(14)
-
(24)
(78)
(116)
586
700
4
1,290
(365)
1
151
287
(3)
488
415
(92)
882
15
897
(74)
18
1
(55)
(15)
(26)
-
(168)
(209)
633
67
-
700
(369)
9
8
472
-
-
157
219
496
72
568
(3)
-
13
10
(2)
-
(24)
(78)
(104)
474
6
-
480
(175)
1
9
-
-
-
289
34
158
(1)
157
(1)
-
14
13
(5)
-
-
(168)
(173)
(3)
9
-
6
Holders Technology plc ¦ Annual Report & Accounts 2013 17
FINANCIAL STATEMENTS
Notes to the financial statements
1. General information
Holders Technology plc is incorporated in the United Kingdom under the Companies Act.
These consolidated financial statements are presented in pounds sterling and all information has been rounded
to the nearest thousand. Foreign operations are consolidated in accordance with the policies set out in note 2
below.
2. Accounting policies
Basis of preparation
The group and parent company financial statements have been prepared in accordance with EU endorsed
International Financial Reporting Standards (IFRS), International Financial Reporting Interpretations Committee
(IFRIC) interpretations and with those parts of the Companies Act applicable to companies reporting under IFRS.
All accounting standards and interpretations issued by the International Accounting Standards Board and the
International Financial Reporting Interpretations Committee effective at the time of preparing these financial
statements have been applied.
The group and parent company financial statements have been prepared under the historical cost convention
with the exception of forward currency contracts which are carried at fair value. A summary of the significant
group accounting policies adopted in the preparation of the financial statements is set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
Going concern
The company’s business activities, together with the factors likely to affect its future development, performance
and position are set out in the Strategic Report on pages 1 to 5. The financial position of the company, its cash
flows, liquidity position and borrowing facilities are described in the Financial Review on page 5. In addition,
notes 2, 3, 4, 20 and 25 to the financial statements include the company’s objectives, policies and processes for
managing its capital; its financial risk management objectives; details of its financial instruments and hedging
activities; and its exposures to credit risk and liquidity risk.
The company has good financial resources together with a number of customers and suppliers across different
geographic areas and industries. The Board pursues a cautious strategy, combined with effective cost control in
order to maintain a strong working capital position. Budgets and forecasts indicate a satisfactory going concern
position. As a consequence, the directors believe that the company is well placed to manage its business risks
successfully despite the current uncertain economic outlook.
Standards and Interpretations to Standards not yet effective
The following Standards and Interpretations have been issued, but are not yet effective and have not been early
adopted by the group:
IFRS 10 Consolidated Financial Statements (effective 1 January 2014)
IFRS 11 Joint Arrangements (effective 1 January 2014)
IFRS 13 Fair Value Measurement (effective 1 January 2013)
IAS 19 Employee Benefits (Revised June 2011) (effective 1 January 2013)
IAS 27 (Revised), Separate Financial Statements (effective 1 January 2014)
Disclosures - Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7 (effective 1 January
2013)
Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 (effective 1 January 2014)
Holders Technology plc ¦ Annual Report & Accounts 2013 18
FINANCIAL STATEMENTS
Accounting policies (continued)
Mandatory Effective Date and Transition Disclosures - Amendments to IFRS 9 and IFRS 7 (effective 1 January
2015) Annual Improvements 2009-2011 Cycle (effective 1 January 2013)
Transition Guidance - Amendments to IFRS 10, IFRS 11 and IFRS 12 (effective 1 January 2013)
Investment Entities - Amendments to IFRS 10, IFRS 12 and IAS 27 (effective 1 January 2014)
The directors anticipate that the adoption of these standards and interpretations in future periods will have no
material impact on the financial statements of the group except for additional disclosures when the relevant
standard comes into effect.
Use of estimates
The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on historical experience and various
other factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates. Critical judgements and key estimates and assumptions
are disclosed in note 3.
Principles of consolidation
The consolidated financial statements incorporate the financial statements of the company and all its
subsidiaries. Intra-group transactions, including sales, profits, receivables and payables, have been eliminated in
the group consolidation.
Subsidiaries
Subsidiaries are entities controlled by the company. Control exists when the company has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In
assessing control, potential voting rights that presently are exercisable are taken into account. The financial
statements of subsidiaries are included from the date that control commences until the date that control ceases.
In the parent company accounts investments and long term loans to subsidiaries are initially recorded at cost.
The investment value is subsequently recorded at cost less any impairment value.
Associates
An entity is treated as an associated undertaking where the group has a participating interest and exercises
significant influence over its operating and financial policy decisions. In the group accounts, interests in
associated undertakings are accounted for using the equity method of accounting. The consolidated income
statement includes the group’s share of the operating results, interest, pre-tax results and attributable taxation
of such undertakings based on audited financial statements. In the consolidated balance sheet, the interests in
associated undertakings are shown as the group’s share of the identifiable net assets.
Goodwill and business combinations
The results of subsidiaries acquired in the period are included in the income statement from the date they are
acquired. On acquisition, all of the subsidiaries’ assets and liabilities that exist at the date of acquisition are
recorded at their fair values reflecting their condition at that date. For business combinations occurring since 1
December 2009, the requirements of IFRS 3R have been applied. The consideration transferred by the group to
obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred,
liabilities incurred and the equity interests issued by the group, which includes the fair value of any asset or
liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
Holders Technology plc ¦ Annual Report & Accounts 2013 19
FINANCIAL STATEMENTS
Accounting policies (continued)
The group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of
whether they have been previously recognised in the acquiree's financial statements prior to the acquisition.
Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the
sum of a) fair value of consideration transferred, b) the recognised amount of any non-controlling interest in the
acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-
date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated
above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately.
As permitted by IFRS 1, goodwill arising on acquisitions before 1 December 2005 (date of transition to IFRS) has
been frozen at the UK GAAP amounts subject to being tested for impairment at that date.
Impairment charges
The company considers at each reporting date whether there is any indication that assets are impaired. If there
is such an indication, the company carries out an impairment test by measuring an asset’s recoverable amount,
which is the higher of its fair value less costs to sell and its value in use. Goodwill, which is allocated to individual
cash generating units, is reviewed annually for impairment. Value in use represents the present value of the
future cash flows expected to be derived from the cash generating unit. The present value is discounted using a
pre-tax rate that reflects current market assessments of the time value of money and of the risks specific to the
cash generating unit for which future cash flow estimates have not been adjusted. If the recoverable amount is
less than the carrying amount an impairment loss is recognised, and the asset is written down to its recoverable
amount.
Revenue recognition
Revenue comprises the value of sales of goods and services to third party customers occurring in the period,
stated exclusive of value added tax and net of trade discounts and rebates. Revenue is measured at the fair
value of the consideration received or receivable.Revenue on the sale of goods is recognised when substantially
all of the risks and rewards in the product have passed to the customer, which is usually upon delivery to the
customer. Revenue is recognised to the extent that it is probable that the economic benefits associated with
the transaction will flow into the company.
Exceptional Items
Exceptional items are those significant items which are separately disclosed by virtue of their size or incidence
to enable a full understanding of the financial performance.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. The company considers all highly liquid
investments with original maturity dates of three months or less to be cash equivalents. Bank overdrafts that
are repayable on demand and form an integral part of the group’s cash management system are included as a
component of cash and cash equivalents for the purpose of the statement of cash flows.
Trade and other receivables
Trade and other receivables do not carry interest and are initially stated at fair value and subsequently
measured at amortised cost using the effective interest rate, as reduced by appropriate allowances for
estimated irrecoverable amounts. A provision for impairment of trade receivables is established when there is
evidence that the group will not be able to collect all amounts due according to the original terms of these
receivables. The amount of the provision is the difference between the carrying value and the present value of
estimated future cash flows, discounted at the effective interest rate. Impairment losses are recognised in the
income statement.
Holders Technology plc ¦ Annual Report & Accounts 2013 20
FINANCIAL STATEMENTS
Accounting policies (continued)
Trade and other payables
Trade and other payables are not interest bearing and are initially stated at fair value and subsequently
measured at amortised cost using the effective interest rate.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs. Subsequent measurement is at
amortised cost. Finance charges, including any premiums payable or discounts, and direct issue costs are
recognised in the income statement over the period of the borrowings using the effective interest rate method.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of
the liability for at least 12 months after the balance sheet date.
Inventory
Inventory is stated at the lower of cost and net realisable value. Cost is determined on a first-in-first-out basis.
Net realisable value is based on the estimated sales price after allowing for all further costs of completion and
disposal. Where necessary, provision is made for obsolete, slow-moving and defective inventory.
Property, plant and equipment
The cost of items of property, plant and equipment is its purchase cost, together with any incidental costs of
acquisition.
Depreciation is calculated to write off assets over their expected useful lives. Where there is evidence of
impairment, property, plant and equipment is written down to the recoverable amount. Depreciation is
calculated at the following rates:
Leasehold building improvements
Motor vehicles
Plant and machinery
Office equipment
Over the period of the lease
20% on either cost or written down value
20% - 33% on either cost or written down value
25% on cost
Methods of depreciation, recoverable amounts and useful lives are reviewed and adjusted, if appropriate, at
each balance sheet date.
Provision is made against the carrying value of items of property, plant and equipment where impairment in
value is deemed to have occurred.
Leased assets
Leases are classified as operating leases when a significant portion of the risks and rewards of ownership are
retained by the lessor. Rentals payable under operating leases are charged to the income statement on a
straight line basis over the periods of the leases.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of each transaction.
Foreign currency monetary assets and liabilities are retranslated using the exchange rates at the balance sheet
date. Gains and losses arising from changes in exchange rates after the date of the transaction are recognised
in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated at the exchange rate at the date of the original transaction.
In the consolidated financial statements, the net assets of the group’s foreign operations are translated at the
rate of exchange at the balance sheet date. Income and expense items are translated at the average rates for
the period where these rates approximate to actual rates. Otherwise actual rates are used. The resulting
Holders Technology plc ¦ Annual Report & Accounts 2013 21
FINANCIAL STATEMENTS
Accounting policies (continued)
exchange differences are charged/ credited to other comprehensive income and recognised in the currency
translation reserve in equity. Such translation differences are recognised in the income statement on the
disposal of the foreign operation. All other currency differences are taken to the income statement. Profit and
losses on holding foreign currency balances are treated as a finance cost.
Derivative financial instruments
The group uses derivative financial instruments to hedge its exposure to foreign exchange risks arising from
operational, financing and investment activities. In accordance with its treasury policy, the group does not hold
or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for
hedge accounting are accounted for as trading instruments.
Derivative financial instruments are recognised initially at cost. Subsequent to initial recognition, derivative
financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised
immediately in the income statement.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting
all its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of
directly attributable issue costs.
Taxes
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or
recovered) using the tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured using the tax rates that have been enacted or substantively enacted by the
balance sheet date and are expected to apply when the asset is realised or the liability settled.
Provision is not made for deferred tax on the unremitted earnings of foreign subsidiaries where such
remittances are not considered probable as the group’s policy is to reinvest profits to fund growth locally.
Provision is made where it is likely that dividends will be remitted within the foreseeable future.
A deferred tax asset is recognised only when it is probable that suitable taxable profits will be available in the
foreseeable future from which the reversal of the temporary differences can be deducted.
Employee share option scheme
The fair value of employee share plans is calculated using an appropriate actuarial model. In accordance with
IFRS 2 the resulting cost is charged to the income statement over the vesting period of the plans, with a
corresponding credit to retained earnings. The value of the charge is adjusted to reflect the expected and the
actual levels of options vesting. IFRS 2 has been applied to all grants of equity instruments after 7 November
2002 that were unvested as of 1 December 2005, in accordance with the transitional arrangements of IFRS 1.
The proceeds received, net of any directly attributable transaction costs, are credited to share capital and share
premium when the options are exercised.
Pension contributions
The group does not operate a pension scheme. Pension costs relate to group contributions to the personal
pension schemes of certain directors and employees. The contributions are recognised as an employee benefit
Holders Technology plc ¦ Annual Report & Accounts 2013 22
FINANCIAL STATEMENTS
Accounting policies (continued)
expense when they are due. There is also a retirement benefit liability arising from an asset purchase of
Cimatec GmbH as disclosed in note 21. The liability in respect of defined benefit pension plans is the present
value of the defined benefit obligation at the end of the accounting period less the fair value of plan assets,
together with adjustments for past-service costs. The defined benefit obligation is calculated annually by
independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period in which they arise
Dividends payable
Distributions to equity holders are disclosed as a component of the movement in shareholders’ equity. A liability
is recorded for a final dividend when the dividend is approved by the company’s shareholders, and, for an
interim dividend, when the dividend is paid.
Provisions
A provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a
result of a past event, and it is probable that an outflow of economic benefits will be required to settle the
obligation.
Treasury shares
When the company purchases its own equity share capital (treasury shares), the consideration paid, including
any directly attributable incremental costs (net of tax), is deducted from equity attributable to the company’s
equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold
or reissued, any consideration received, net of any directly attributable incremental transaction costs and the
related tax effects, is included in equity attributable to the company’s equity holders.
Profit or loss from discontinued operations
A discontinued operation is a component of the Group that either has been disposed of, or is classified as held
for sale, and:
represents a separate major line of business or geographical area of operations or
is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area
of operations or
is a subsidiary acquired exclusively with a view to resale.
Profit or loss from discontinued operations, including prior year components of profit or loss,is presented in a
single amount in the statement of profit or loss. This amount, which comprises the post-tax profit or loss of
discontinued operations and the post-tax gain or loss resulting from the measurement and disposal of assets
classified as held for sale, is further analysed in Note 10.
The disclosures for discontinued operations in the prior year relate to all operations that
have been discontinued by the reporting date of the latest period presented.
3. Critical accounting judgements and key sources of estimation uncertainty
Critical judgement in applying the group’s accounting policies
Income taxes
The determination of the group’s tax liabilities requires the interpretation of tax law. The group obtains
appropriate professional advice from its tax advisors in relation to all significant tax matters. The directors
believe that the judgements made in determining the group’s tax liabilities are reasonable and appropriate;
however, actual experience may differ and materially affect future tax charges.
Holders Technology plc ¦ Annual Report & Accounts 2013 23
FINANCIAL STATEMENTS
Accounting policies (continued)
Estimation uncertainty
Impairment testing
Impairment testing of goodwill involves comparing the carrying value of an asset with its value in use, based
upon a discounted cash flow model. This model involves making assumptions involving future revenues and
profits as well as long-term growth rates and the appropriate discount rate. Further details are set out in note
13.
4. Financial risk management
Treasury management
Group treasury policies are reviewed and approved by the board. The objectives of group treasury policies are
to ensure that adequate financial resources are available for development of the business while at the same
time managing financial risks. Derivative financial instruments are used to reduce financial risk exposures
arising from the group’s business activities and not for speculative purposes.
The group’s treasury activities are managed by the Group Finance Director. The Group Finance Director reports
to the board on the implementation of group treasury policy.
The group’s business activities expose it to a variety of financial risks that include:
Liquidity risk;
•
• Credit risk;
• Cash flow interest rate risk; and
• Currency risk.
The policies for managing these risks are described below:
Liquidity risk
The group finances its operations through a combination of bank borrowings, finance leases and cash generated
from operations. The group’s treasury policy aims to ensure that there are sufficient funds available to meet the
projected cash flow requirements in the business plan.
The group’s principal source of funding is cash generated from operations. Liquidity is maintained through
committed bank credit facilities (note 20).
Credit risk
Credit risk on trade receivables is managed by monitoring the amount and duration of exposures to individual
customers depending on their credit rating. Where possible, trade receivables are insured. The amounts of
trade receivables presented in the balance sheet are net of allowances for doubtful accounts estimated by
management based on prior experience and their assessment of the current economic environment.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are high
credit quality financial institutions.
The group has no significant concentration of credit risk, with exposure spread over a large number of
customers and counterparties.
Holders Technology plc ¦ Annual Report & Accounts 2013 24
FINANCIAL STATEMENTS
Accounting policies (continued)
Currency risk
The group is exposed to currency risk through movements in exchange rates on its purchases and sales that are
not denominated in the local functional currencies. The group uses forward foreign exchange contracts to
hedge the currency risk associated with these transactions, where material exposure exists. The contracts are
denominated primarily in US dollars and Euros. Such contracts are accounted for in accordance with the policies
set out in note 2. At the year-end forward purchase contracts totalling £856,000 were held as described in note
20.
Cash flow interest rate risk
The group is exposed to cash flow interest rate risk on bank borrowings, which are, arranged at floating rates.
The board monitors the overall level of bank debt and interest costs to limit any adverse effects on the financial
performance of the group. The group does not use interest rate swaps to hedge its exposure to interest rate
fluctuations at the present time.
Fair value estimation
The fair values of cash and cash equivalents, receivables, payables and borrowings with a maturity of less than
one year approximate their book values.
5. Segment reporting
Management currently identifies two operating segments:
PCB, which distributes materials, equipment and supplies to the PCB industry. This includes the following
operations: UK PCB, Germany PCB and India PCB.
LED, which distributes LED-related components and lighting products to the lighting industry. This includes
Holders Components UK and Germany, NRGstar UK, Opteon Germany, and India LED.
These operating segments are monitored and strategic decisions are made on the basis of adjusted segment
operating results. Segment information can be analysed as follows for the reporting periods under review:
PCB
LED
Other
Total
2013
£’000
2012
Restated
£’000
11,011
(8,371)
2,640
(301)
(2,154)
11,036
(8,276)
2,760
(316)
(2,257)
2013
£’000
3,254
(2,427)
827
(80)
(891)
2,595
(1,771)
824
(60)
(873)
56
241
47
234
(3)
(147)
(6)
(115)
2012
Restated
£’000
2013
£’000
2012
Restated
£’000
2013
£’000
2012
Restated
£’000
-
-
-
-
(4)
15
11
-
-
14,265
(10,798)
13,631
(10,047)
-
-
(145)
(30)
(175)
3,467
(381)
(3,049)
3,584
(376)
(3,275)
68
105
11
(56)
99
138
3
4
8
9
110
151
9,453
(1,919)
8,522
(2,467)
1,743
(2,297)
1,918
(2,353)
(4,473)
2,542
(3,389)
2,969
6,723
(1,674)
7,051
(1,851)
“Other” amounts relate to central group activities, which are not identifiable to the operating segments.
Holders Technology plc ¦ Annual Report & Accounts 2013 25
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative
expenses
Other operating
income/(expenses)
Segment operating
profit
Other segmental
information
Depreciation (Note
14)
Segment assets
Segment liabilities
FINANCIAL STATEMENTS
Segment reporting (continued)
Analysis of external revenue by geographic region
UK
2013
£’000
2012
£’000
Rest of Europe
2012
2013
£’000
£’000
Asia
Total
2013
£’000
2012
£’000
2013
£’000
2012
£’000
Revenue - PCB
- LED
19
2
21
Non-current assets
292
External revenue is allocated to regions based on where it originates from.
No customer contributed more than 10% of external revenue.
4,073
1,674
5,747
(340)
3,253
2,142
5,395
233
7,739
1,110
8,849
402
6,929
921
7,850
430
6. Finance income and expenses
Interest on bank deposits
Interest on loans, overdrafts and pension liability
7. Profit for the year
The following items have been included in arriving at the profit for the year:
Costs of inventories recognised as an expense
Write-down of inventory to net realisable value
Depreciation of property, plant and equipment (note 14)
(Gain)/ loss on sale of property, plant and equipment
Fees payable to the company’s auditors for the audit
of the financial statements
Fees payable to the company’s auditors and its
associates for other services:
- Audit of the financial statements of the company’s
subsidiaries (associates) pursuant to legislation
- Other services relating to taxation
Operating leases - land and buildings
Operating leases – plant and machinery
Exchange (profit)/loss
8. Taxation
Analysis of the charge in the period
Current tax
- Current period
- Adjustments in respect of prior periods
Deferred tax (note 22)
Total tax
34
-
34
667
2013
£’000
4
(12)
2013
£’000
10,234
13
110
1
12
44
24
196
15
(25)
2013
£’000
30
4
34
(10)
24
3,254
11,011 11,036
2,595
14,265 13,631
757
927
2012
£’000
1
(13)
2012
£’000
9,956
14
151
(3)
12
58
16
183
14
18
2012
£’000
15
(7)
8
35
43
Holders Technology plc ¦ Annual Report & Accounts 2013 26
FINANCIAL STATEMENTS
Tax reconciliation
The tax for the period is higher (2012: higher) than the standard rate of corporation tax in the UK,
effectively 23.67% (2012: 24.67%) for the company’s financial year. The differences are explained below:
Profit/(loss) before taxation
Profit/(loss) before taxation multiplied by the rate of
corporation tax in the UK of 23.67 % (2012: 24.67%)
Effects of:
Differences between capital allowances and depreciation
Amounts not deductible for taxation purposes
Non taxable income
Adjustments in respect of prior years
Taxation losses
Other temporary differences
Taxation
2013
£’000
97
23
(2)
-
-
2
1
24
2012
£’000
(68)
(17)
(2)
3
-
-
43
16
43
9. Loss/profit of the parent company for the financial year
The result for the financial year dealt with in the accounts of the parent company was a loss of £358,000 (2012
loss: £166,000).
As permitted by Section 408 of the Companies Act 2006, no separate income statement is presented in respect
of the parent company.
10. Discontinued operations
On 3 January 2014, the Group’s 70% shareholding in Topgrow Technologies Ltd was sold for a cash consideration
of one Hong Kong dollar plus a future consideration of 440,000 Hong Kong dollars.
The Topgrow Technologies Ltd disposal has been presented as discontinued operations in the income statement
and the Board are of the view that this presentation of information enables the users of the financial statements
to understand the financial effects of these operations no longer being part of the Group.
In the cash flow statement, the cash flows of the discontinued business have been aggregated with those of
continuing businesses, but are also shown separately in the note below.
The information presented in this note is presented at the lower of cost and fair value less costs to sell as
prescribed in IFRS 5. As a result of this treatment as impairment charge of £213,000 relating to fixed assets,
inventories and receivables has been recognised in the income statement in the year 30 November 2013 (2012:
£287,000). This, combined with an operating loss of £56,000 (2012: loss £39,000), results in a loss on
discontinued operations of £269,000 (2012: £326,000).
Holders Technology plc ¦ Annual Report & Accounts 2013 27
FINANCIAL STATEMENTS
Discontinued operations (continued)
The results from discontinued operations which have been included in the income statement are as below:
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Other operating costs
Operating loss
Impairment costs
Finance expense
Loss before tax
Taxation on discontinued operations
Loss for the period from discontinued operations
A summary of the cash flows from discontinued operations is shown below.
Operating activities
Investing activities
Total cash flows
2013
£‘000
990
(714)
276
(26)
(266)
(24)
(40)
(213)
(2)
(255)
(14)
(269)
2013
£‘000
(160)
20
(140)
2012
£‘000
1,974
(1,716)
258
-
(275)
(5)
(22)
(287)
(2)
(311)
(15)
(326)
2012
£‘000
157
13
170
Holders Technology plc ¦ Annual Report & Accounts 2013 28
FINANCIAL STATEMENTS
11. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the period. The weighted average number of
treasury shares is deducted from the number of shares issued in arriving at the weighted average number of
shares outstanding during the period.
For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume
conversion of all potentially dilutive ordinary shares. Potentially dilutive ordinary shares are those share options
granted to employees where the exercise price is less than the average market price of the company’s ordinary
shares during the period, and where exercise would decrease earnings per share or increase loss per share from
continuing operations.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out
below.
Weighted average number of ordinary shares
Dilutive effect of share options
Fully diluted weighted average number of ordinary shares
Basic earnings/ (loss) per share:
Continuing operations
Discontinued operations
Total operations
Diluted earnings/ (loss) per share:
Continuing operations
Discontinued operations
Total operations
12. Ordinary dividends
Final dividend for the year ended 30 November 2012 of 1.0p
(year ended 30 November 2011 final dividend: 3.25p)
Interim dividend paid in respect of the year of 1.0p (2012: 1.0p)
Amounts recognised as distributions to equity holders
2013
Number
3,939,551
154,721
4,094,272
2012
Number
3,939,551
-
3,939,551
2013
Pence per share
2012
Pence per share
1.85
(6.83)
(4.98)
1.78
(6.83)
(4.98)
2013
£’000
39
39
78
(2.82)
(8.27)
(11.09)
(2.82)
(8.27)
(11.09)
2012
£’000
129
39
168
In addition, the directors are proposing a final dividend in respect of the year ended 30 November 2013 of 1.0p
per share. If approved by shareholders, it will be paid on 20 May 2014 to shareholders on the register of
members on 30 April 2014.
Holders Technology plc ¦ Annual Report & Accounts 2013 29
FINANCIAL STATEMENTS
13. Goodwill
Group
Cost
At 1 December
Currency translation
At 30 November
Analysis by cash generating unit
PCB
LED
2013
£’000
318
2
320
£’000
148
172
320
2012
£’000
318
-
318
£’000
146
172
318
As permitted by IFRS 1, goodwill arising on acquisitions before 1 December 2005 (date of transition to IFRS) has
been frozen at the UK GAAP amounts subject to being tested for impairment at that date, the results of which
assessment indicated no such impairment.
Under UK GAAP, goodwill of £239,000 arising on acquisitions prior to 1 July 1998 was eliminated directly against
reserves. The gain or loss on the disposal of a previously acquired business reflects the attributable amount of
purchased goodwill in respect of that business. As the group has opted not to restate business combinations
prior to the date of transition, the goodwill written off to reserves under UK GAAP has been frozen and remains
in reserves. Goodwill previously written off to reserves is not written back to the income statement on
subsequent disposal.
The recoverable amount of a cash-generating unit is based on its value-in-use. Value-in-use is the present value
of the projected cash flows of the cash-generating unit (CGU). The key assumptions regarding the value-in-use
calculations are those regarding the discount rates and growth rates. Management estimates discount rates
using pre-tax rates that reflect current market assessments of a number of factors that impact on the time value
of money and any risk specific to the CGU. The rate includes management’s assessment of a normal level of
debt: equity ratio within similar companies in its sector and reflects the risks specific to the relevant business
segment.
The group prepares cash flow forecasts based on the most recent financial budgets approved by management,
which cover a two year period. Cash flows for 10 years beyond the budgeted periods are extrapolated using a
growth rate approximating the long term average growth rates for the product sectors concerned. The growth
rates were assessed at 1.5% for Holders Technology Germany (PCB) and 2.5% for Holders Components UK (LED).
The discount rate applied for each CGU was 10.0%.
Holders Technology plc ¦ Annual Report & Accounts 2013 30
FINANCIAL STATEMENTS
14. Property, plant and equipment
Group
Motor
vehicles,
plant and
machinery
and office
equipment
£’000
Short
leasehold
land and
buildings
£’000
Cost
At 1 December 2011
Currency translation
Additions
Disposals
At 30 November 2012
Currency translation
Additions
Disposals
At 30 November 2013
Depreciation
At 1 December 2011
Currency translation
Provided in year
Impairment provision
Disposals
At 30 November 2012
Currency translation
Provided in year
Impairment provision
Disposals
At 30 November 2013
Net book value
At 30 November 2013
At 30 November 2012
94
4
94
-
-
-
94
-
4
-
98
94
-
-
-
-
94
-
-
-
-
-
2,515
(61)
74
(121)
2,407
36
44
(48)
2,439
1,959
(45)
151
50
(106)
2,009
36
110
14
(46)
2,123
316
398
Company
Office
equipment
£’000
Total
£’000
49
-
1
-
50
-
3
-
53
20
-
9
-
29
-
8
-
-
37
16
21
49
-
1
-
50
-
3
-
53
20
-
9
-
29
-
8
-
-
37
16
21
Total
£’000
2,609
(61)
74
(121)
2,501
36
48
(48)
2,537
2,053
(45)
151
50
(106)
2,103
36
110
14
(46)
2,217
320
398
The net book value of property, plant and equipment includes £nil (2012: £nil) in respect of assets held under
finance leases. Depreciation charged in the year on those assets amounted to £nil (2012: £nil)
Holders Technology plc ¦ Annual Report & Accounts 2013 31
FINANCIAL STATEMENTS
15. Investments in subsidiaries
Cost
At 1 December 2011
Addition
Impairment provision
Disposal
At 1 December 2012
Addition
Repaid
Impairment Provision
At 30 November 2013
Shares
£’000
510
-
-
-
510
-
-
(129)
381
Loans
£’000
2,270
-
-
-
2,270
-
(93)
(250)
1,927
Total
£’000
2,780
-
-
-
2,780
-
(93)
(379)
2,308
The following were subsidiary undertakings at the end of the year and have all been included in the
consolidated financial statements.
Name
Country of incorporation
and operation
Holders Technology GmbH Germany
Holders Technology UK
Limited
England and Wales
Holders Components
Limited
Opteon Limited
Topgrow Technologies
Limited
Dongguan Hui Zhan
Electronic Limited#
England and Wales
England and Wales
Hong Kong
China
Holders Property GmbH
Germany
Nature of business
Specialised materials and
equipment
Specialised materials,
equipment and
components
Dormant
Dormant
Specialised materials and
equipment
Specialised materials,
equipment and
components
Dormant
Interest in ordinary
shares and voting rights
100%
100%
100%
100%
70%
70%
100%
# Dongguan Hui Zhan Electronic Limited is owned indirectly through Topgrow Technologies Limited. The latter
owns 100% of Dongguan Hui Zhan Electronic Limited.
The investments in Topgrow Technologies Limited and Dongguan Hui Zhan Electronic Limited were both
disposed of on 3 January 2014.
16. Investment in Joint Venture
In April 2007, the company formed a joint venture called Holders Technology (India) Private Limited, based in
Mysore, India to service the Indian market. Holders Technology plc owns 60% of the Joint Venture.
Cost
Investment at 30 November
Company
2013
£’000
15
2012
£’000
15
Holders Technology plc ¦ Annual Report & Accounts 2013 32
FINANCIAL STATEMENTS
17. Inventories
Raw materials and consumables
Goods for resale
18. Trade and other receivables
Trade receivables
Less: provision for impairment
Net trade receivables
Amounts due from group
undertakings
Other receivables
Prepayments and accrued income
Group
Company
2013
£’000
1,470
1,329
2,799
2012
£’000
1,636
1,504
3,140
2013
£’000
-
-
-
Group
Company
2013
£’000
1,987
(209)
1,778
-
39
110
1,927
2012
£’000
2,304
(130)
2,174
-
113
110
2,397
2013
£’000
-
-
-
194
17
14
225
2012
£’000
-
-
-
2012
£’000
-
-
-
313
59
15
387
The group has provided for all amounts that are deemed doubtful, based on all trade receivables that are more
than 365 days overdue except in certain circumstances where monies have been received after the reporting
date. The group also provides for all other specifically identified amounts that are less than 365 days overdue
based on known impairment indicators including known trading difficulties. The table below shows the
movements in the provision for impairment of trade receivables:
Group
Impairment at 1 December
Currency translation
Impairment losses recognised
Amounts written off as irrecoverable
Amounts recovered
Impairment losses reversed
Balance 30 November
Ageing of past due unimpaired debt:
Past due 0-30 days
Past due 31-60 days
Past due 61-90 days
Past due 91-365 days
Past due > 365 days
2013
£’000
130
-
129
(25)
(3)
(22)
209
2013
£’000
266
20
24
6
-
316
2012
£’000
78
2
67
(17)
130
2012
£’000
5
15
21
85
4
130
Holders Technology plc ¦ Annual Report & Accounts 2013 33
FINANCIAL STATEMENTS
19. Trade and other payables
Trade payables
Amounts due to group
undertakings
Other taxation and social security
Other payables
Accruals
20. Financial instruments
Group
Company
2013
£’000
838
-
162
34
379
1,413
2012
£’000
1,140
-
125
48
243
1,556
2013
£’000
24
952
-
-
43
1,019
2012
£’000
22
738
-
-
40
800
a) The carrying amount and fair value of financial assets and liabilities at 30 November
Financial assets
Cash and cash equivalents
Trade and other receivables
Loans and receivables
Financial liabilities
Trade and other payables
Contingent consideration
Financial liabilities at
amortised cost
Derivatives
Liabilities at fair value through
profit and loss
Group
2013
£’000
1,290
1,817
3,107
1,211
-
1,211
40
40
2012
£’000
700
2,287
2,987
1,424
29
1,453
-
-
Total liabilities
1,251
1,453
Company
2013
£’000
2012
£’000
480
47
527
67
-
67
-
-
67
6
374
380
789
29
818
-
-
818
The carrying value of the group’s financial assets and liabilities are considered to approximate their respective
fair values.
b) Interest rate and currency profile of financial assets and liabilities
Currency profiles of the group’s financial assets and liabilities are set out below:
Holders Technology plc ¦ Annual Report & Accounts 2013 34
FINANCIAL STATEMENTS
Financial instruments (continued)
Group
Financial
liabilities
£’000
262
506
408
5
25
45
1,251
469
545
258
11
1
124
1,408
Net financial
assets /
(liabilities)
£’000
850
723
164
35
22
62
1,856
386
326
391
26
21
429
1,579
Financial
assets
£’000
1,112
1,229
572
40
47
107
3,107
855
871
649
37
22
553
2,987
Company
Financial
liabilities
£’000
1,019
1,091
751
30
Net financial
assets /
(liabilities)
£’000
(777)
432
17
(328)
(619)
215
1
Financial
assets
£’000
242
432
17
691
132
245
1
378
781
(403)
Sterling
Euro
US dollar
Indian rupee
Hong Kong dollar
Renminbi
At 30 November 2013
Sterling
Euro
US dollar
Indian rupee
Hong Kong dollar
Renminbi
At 30 November 2012
All the group’s financial assets and liabilities are non-interest bearing or have floating interest rates. There are
no fixed rate financial assets. Floating rate financial assets earn interest at rates based on local bank deposit
rates. Floating rate financial liabilities bear interest at rates based on the Bank of England Base Rate or relevant
national equivalents.
c) Currency profile of net foreign currency monetary assets and liabilities
The table below shows the net unhedged monetary assets/(liabilities) of the group that are not denominated in
the functional currency of the operating unit and which therefore give rise to exchange gains and losses in the
income statement.
Group
Sterling
At 30 November 2013
Sterling
At 30 November 2012
Euro
£’000
723
723
326
326
US dollar Renminbi
£’000
£’000
164
164
(196)
(196)
62
62
429
429
Total
£’000
949
949
559
559
Euro
£’000
432
432
215
215
Company
US dollar
£’000
17
17
1
1
Total
£’000
449
449
216
216
Holders Technology plc ¦ Annual Report & Accounts 2013 35
FINANCIAL STATEMENTS
Financial instruments (continued)
d) Market risk: objectives, policies and strategies
The group’s interest rate risks, liquidity risks and currency risks are managed centrally within policies approved
by the board.
No hedging of interest rates has been undertaken. The net interest receivable for the year was nil compared to
nil receivable last year. No speculative transactions are undertaken.
At present there is no policy to hedge the group’s currency exposures arising from the profit translation or the
effect of exchange rate movements on the group’s overseas net assets.
e) Market risk: sensitivities
A sensitivity analysis for financial assets and liabilities affected by market risk is set out below. Each risk is
analysed separately and shows the sensitivity of financial assets and liabilities when a certain parameter is
changed. The sensitivity analysis has been performed on balances at 30 November each year and therefore is
not representative of transactions throughout the year. The rates used are based on historical trends and, where
relevant, projected forecasts.
(i) Currencies
The group is exposed to currency risk in relation to the value of its financial assets and liabilities that are
denominated in currencies other than sterling (see note 20(b) above), arising from fluctuations in exchange
rates. The table below shows the impact on the value of the group’s reported net financial assets at 30
November of exchange rates either strengthening or weakening by 10 per cent against sterling and the impact
this would have on the reported profit or loss and equity. The group’s reported profit is not materially impacted
by the effect of changes in exchange rates on the value of its net financial assets, but equity would be £324,000
lower if sterling strengthened by 10 per cent and £324,000 higher if sterling weakened by 10 per cent.
Group
Effect of sterling strengthening
by 10%
Effect of sterling weakening by
Net financial assets/(liabilities)
Denominated in sterling
Not denominated in sterling
Net financial assets
2013
As
reported
£’000
850
1,006
1,856
Rate
+10%
£’000
-
(91)
(91)
Profit
£’000
-
8
8
Equity
£’000
-
(324)
(324)
Rate
-10%
£’000
-
112
112
10%
Profit
£’000
-
(8)
(8)
Equity
£’000
-
324
324
Effect of sterling strengthening by
10%
Effect of sterling weakening by
10%
Net financial assets/(liabilities)
Denominated in sterling
Not denominated in sterling
Net financial assets
2012
As
reported
£’000
386
1,193
1,579
Rate
+10%
£’000
-
(108)
(108)
Profit
£’000
Equity
£’000
-
20
20
-
(342)
(342)
Rate
-10%
£’000
-
133
133
Profit
£’000
-
(20)
(20)
Equity
£’000
-
342
342
Holders Technology plc ¦ Annual Report & Accounts 2013 36
-
-
-
-
-
-
FINANCIAL STATEMENTS
Financial instruments (continued)
Company
Net financial assets/(liabilities)
2013
As
reported
£’000
Denominated in sterling
Not denominated in sterling
Net financial assets
(777)
449
(328)
Effect of sterling strengthening
by 10%
Effect of sterling weakening by
10%
Rate
+10%
£’000
-
(41)
(41)
Profit
£’000
Equity
£’000
Rate
-10%
£’000
Profit
Equity
£’000 £’000
-
(41)
(41)
-
-
-
-
50
50
-
50
50
Effect of sterling strengthening by
Effect of sterling weakening by
10%
10%
Net financial assets/(liabilities)
Denominated in sterling
Not denominated in sterling
Net financial assets
2012
As
reported
£’000
(619)
216
(403)
Rate
+10%
£’000
-
(20)
(20)
Profit
Equity
£’000
-
(20)
(20)
£’000
-
-
-
Rate
-10%
£’000
-
24
24
Profit
Equity
£’000 £’000
-
24
24
(ii) Interest rates
Changes in market interest rates expose the group to the risk of fluctuations in the cash flow relating to its
financial assets and liabilities that attract interest at floating rates (see note 20(b)). Based upon the interest rate
profile of the group’s financial assets and liabilities as at both 30 November 2013 and 30 November 2012, there
would be no material impact of a one percentage point change in the market interest rates on the group’s profit
and equity.
f) Liquidity risk
The group monitors its liquidity to maintain a sufficient level of undrawn debt facilities together with central
management of the group’s cash resources to minimise liquidity risk.
All the trade and other payables at 30 November 2013 amounting to £1,251,000 (2012: £1,556,000) are payable
within three months.
Financial liabilities and loans have the following repayment profile:
Group
0-3 months
3-12 months
Over 12 months
Financial Liabilities
2013
2012
£’000
£’000
Loans
2013
£’000
2012
£’000
1,251
-
-
1,251
1,254
12
187
1,453
-
-
-
-
-
-
-
-
Borrowing facilities
The group has various borrowing facilities available to it. The unutilised portion of the facilities at 30 November
2013 amounted to £250,000 (2012: £1,171,000).
Holders Technology plc ¦ Annual Report & Accounts 2013 37
FINANCIAL STATEMENTS
Financial instruments (continued)
g) Credit risk
Group policies are aimed at minimising losses due to customer payment default. Deferred payment terms are
only granted to those customers who satisfy creditworthiness criteria and individual exposures to customers are
monitored. Where possible, operations purchase credit insurance.
The maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region
is as follows:
UK
Rest of Europe
Asia
At 30 November
h) Capital risk
Group
Company
2013
£’000
939
720
158
1,817
2012
£’000
1,207
569
511
2,287
2013
£’000
67
-
-
67
2012
£’000
129
242
1
372
The group’s primary objective is to ensure its continued ability to provide a consistent return for its equity
shareholders through a combination of capital growth and proposed dividend policy. It aims to minimise any
capital risk by maintaining a conservative financing structure. The board’s current policy is to use the group’s
cash resources for any capital requirements and, where necessary, by adjustment to the amount of dividends
paid to shareholders. At 30 November 2013, the group had gearing, being debt divided by debt plus
shareholders’ funds, of 0.0% (2012: 0.0%).
i) Hedging instruments
The group held forward exchange contracts with a contracted value of £856,000 at 30 November 2013 (2012:
£587,000). When appropriate during the year, contracts were taken out to hedge trade payables denominated
in foreign currencies. The fair value of these instruments was £(40,000).
21. Retirement benefit liability
Group
At 1 December 2011
Currency translation
Charged to the income statement
Utilised
At 1 December 2012
Currency translation
Change in actuarial assumptions
Utilised
At 30 November 2013
Retirement benefit liability
£’000
167
(3)
45
(10)
199
15
-
(9)
205
The retirement benefit liability arose from the 2002 acquisition of assets by Holders Technology GmbH from
Cimatec GmbH. Following the bankruptcy of Cimatec GmbH, a German court determined that Cimatec’s pension
obligation to one former Cimatec employee must be met by Holders Technology GmbH. The provision
represents the estimated net present value of the liability to pay an annuity to that employee upon retirement,
which began in 2008. No other Holders Technology employees have any retirement benefit rights from their
previous employment at Cimatec.
Holders Technology plc ¦ Annual Report & Accounts 2013 38
FINANCIAL STATEMENTS
22. Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using tax rates of 23.67% to
30% (2012: 24.67% to 30%).
The movement on the deferred tax account is as shown below:
At 1 December – deferred tax assets
Income statement credit/(charge)
Transfer to deferred tax liabilities
At 30 November
2013
£’000
9
10
-
19
Group
2012
£’000
40
(31)
-
9
2013
£’000
-
-
-
-
Company
2012
£’000
-
-
-
-
The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same
jurisdiction as permitted by IAS 12) during the period are shown below:
Deferred tax assets
Group
At 1 December 2011
(Charged)/credited to income statement
Transfer to deferred tax liabilities
At 30 November 2012
(Charged)/credited to income statement
Transfer to deferred tax liabilities
At 30 November 2013
Accelerated
capital
allowances
£’000
-
-
-
-
-
-
Other
£’000
72
(33)
2
41
-
-
41
Total
£’000
72
(33)
2
41
-
-
41
At the year end the amount of temporary differences associated with the undistributed earnings of overseas
subsidiaries for which deferred tax liabilities had not been recognised was insignificant.
Deferred tax assets are only recognised where in the Directors’ opinion there is a reasonable expectation of the
tax asset being realised. Assets are recognised based on business forecasts and the local tax environment.
Deferred tax assets have not been recognised for losses in China.
Deferred tax liabilities
Group
At 1 December 2011
Transfer from income statement
Transfer from deferred tax assets
At 30 November 2012
Transfer from income statement
Transfer from deferred tax assets
At 30 November 2013
The company had no deferred tax assets.
Accelerated
capital
allowances
£’000
28
2
2
32
(10)
-
22
Holders Technology plc ¦ Annual Report & Accounts 2013 39
FINANCIAL STATEMENTS
Deferred tax (continued)
Deferred tax liabilities
Company
At 1 December 2011
Credited to income statement
At 30 November 2012
Charged to income statement
At 30 November 2013
23. Share Capital
Authorised
6,000,000 ordinary shares of 10p each (2012: 6,000,000)
Allotted and fully paid ordinary shares of 10p each
At 30 November 2012 and 30 November 2013
Accelerated
capital
allowances
£’000
6
(1)
5
(2)
3
2013
£’000
600
2012
£’000
600
Number
of shares
Number
of shares
4,159,551
4,159,551
220,000 (2012: 220,000) 10p ordinary shares with an aggregate nominal value of £22,000 (2012: £22,000) are
held in treasury and are available for issue upon the exercise of options under the company’s employee share
option scheme.
24. Employees and staff costs
Wages and salaries
Social security costs
Other pension costs
Share based payments
Group
Company
2013
£’000
2,112
290
48
9
2,459
2012
£’000
2,005
285
44
1
2,335
2013
£’000
340
26
29
9
404
2012
£’000
419
43
33
-
495
Holders Technology plc ¦ Annual Report & Accounts 2013 40
FINANCIAL STATEMENTS
Employees and staff costs (continued)
Average monthly number of permanent employees, including executive directors:
Group
Administration and sales
Service and fabrication
Part-time
2013
Number
51
44
95
3
98
2012
Number
54
46
100
4
104
Directors’ remuneration
Directors’ remuneration for the year was as follows:
Company
Basic salary
fees, bonuses
and expenses
Benefits in
kind
Total emoluments
R W Weinreich (Chairman)
V M Blaisdell
D A Mahony
P Geraghty
£’000
15
87
23
86
211
£’000
3
-
-
1
4
2013
£’000
18
87
23
87
215
Pension entitlement
Directors are entitled to receive their remuneration either as salary or as pension contributions.
Pension contributions to directors’ personal pension schemes are as follows:
Pension Contributions
V M Blaisdell
P K I Geraghty
2013
£’000
21
9
30
Directors’ shareholdings
The shareholdings of those serving at the end of the year were as follows:
2012
£’000
88
110
24
96
318
2012
£’000
11
9
20
R W Weinreich
D A Mahony
V M Blaisdell
Ordinary shares
2013
1,851,202
26,300
32,102
2012
1,851,202
26,300
32,102
The shareholdings are all beneficial and have not changed between 30 November 2013 and 19 February 2014.
Holders Technology plc ¦ Annual Report & Accounts 2013 41
FINANCIAL STATEMENTS
Employees and staff costs (continued)
Directors’ interests in share options
At start of year
or on date of
appointment
15,000
12,500
12,500
25,000
46,598
38,444
-
-
No. of options
granted /
(exercised)
during year
-
-
-
-
-
-
47,000
37,500
V M Blaisdell
V M Blaisdell
V M Blaisdell
V M Blaisdell
V M Blaisdell
P K Geraghty
V M Blaisdell
P K Geraghty
At end of year
Exercise price
15,000
12,500
12,500
25,000
46,598
38,444
47,000
37,500
116.5p
68.5p
93.5p
123.18p
10.0p
10.0p
10.0p
10.0p
Date from
which
exercisable
14/03/11
28/07/12
28/05/13
21/07/14
26/03/15
26/03/15
02/05/16
02/05/16
Expiry date
13/03/14
27/07/15
27/05/16
21/07/17
26/03/16
26/03/16
02/05/17
02/05/17
The share price at 30 November 2013 was 62.00p (2012: 70.75p) whilst during the year the high and low prices
were 72.00p and 59.00p.
In respect of the options held at the start of the year, no option may be exercised unless there is (as shown by
the audited accounts) an increase in the fully diluted earnings per share for the financial year immediately prior
to the date of exercise compared with the highest earnings per share figure for the three preceding years unless
the board in its absolute discretion decides otherwise.
For options granted during the year, no option may be exercised unless the share price exceeds 70.0p after 3
years. The number of exercisable options is proportionate to the share price after 3 years. For all the 2013
options to be exercisable the share price must reach 127.0p
Key management compensation
Group
Short-term employee benefits
Post-employment benefits
Termination benefits
Share-based payments
Key management includes Directors and senior executives.
Total share options in issue
Options in issue 1 December 2012
Issued during year
Lapsed
Forfeited
Leavers
Total options in issue 30 November 2013
2013
£’000
512
30
-
9
551
2012
£’000
679
23
20
1
723
2013
No
264,703
84,500
-
-
-
349,203
2012
No
310,000
179,703
(120,000)
(80,000)
(25,000)
264,703
Holders Technology plc ¦ Annual Report & Accounts 2013 42
FINANCIAL STATEMENTS
25. Financial commitments
Capital commitments
There were no capital expenditure commitments at 30 November 2013 (2012: nil).
Operating lease commitments
The group leases various offices and warehouses under non-cancellable operating lease agreements. The lease
terms are between 1 and 5 years and the majority of lease agreements are renewable at the end of the lease
period at market rate.
The total aggregate minimum lease payments under non-cancellable operating leases were as follows:
Land and buildings
- No later than one year
- Later than one year and no later than five years
- Later than 5 years
Motor vehicles, plant and machinery
- No later than one year
- Later than one year and no later than five years
Other equipment
- No later than one year
- Later than one year and no later than five years
2013
£’000
2012
£’000
228
586
280
19
4
-
-
249
509
-
31
33
-
-
26. Share based payments
The Company operates a share option scheme under which options are exercisable at a price equal to the
average quotation of a share as derived from the AIM appendix of the Daily Official List of the London Stock
Exchange for the five dealing days immediately preceding the date of grant, subject to relevant performance
criteria, as described in note 24, being satisfied. The normal minimum vesting period is three years.
Options to subscribe for ordinary shares of 10p each are as follows:
Subscription
Price
116.5p
68.5p
93.5p
123.18p
117.15p
70.0p
Dates when exercisable
14 March 2012 to 13 March 2014
28 July 2012 to 27 July 2015
28 May 2013 to 27 May 2016
21 July 2014 to 21 July 2017
26 Mar 2015 to 26 Mar 2016
2 May 2016 to 2 May 2017
Number of shares
2012
15,000
32,500
12,500
25,000
179,703
-
2013
15,000
32,500
12,500
25,000
179,703
84,500
Holders Technology plc ¦ Annual Report & Accounts 2013 43
FINANCIAL STATEMENTS
Share based payments (continued)
The estimated fair values were calculated using the option pricing model with the following inputs:
Grant date
Share price at date of
grant
Exercise price
No. of employees
2 May
2013
21 July
2012
26 March
2012
70.00
77.00
2
123.18
135.50
106.5
117.15
1
8
Shares under option
84,500
25,000
179,703
Vesting period (years)
3
3
3
Expected volatility
22%
22%
22%
Option life (years)
Expected life (years)
3
3.5
3
3.5
1
3.5
Risk free rates
1.03%
1.03%
0.76%
Expected dividends
4.8%
4.8%
4.0%
Possibility of ceasing
employment before
vesting
Expectations of meeting
performance criteria
Fair value of option
25.0%
25.0%
11.0%
75%
13p
75%
13p
75%
13p
The expected volatility is based on historical volatility over the expected life period. The expected life is the
average expected period to exercise based on historical experience and the terms of the scheme. The risk free
return is the yield on zero-coupon UK government bonds of a term consistent with the assumed option life.
The group recognised a total cost of £9,000 (2012: £1,000) related to equity-settled share-based payment
transactions during the year.
Holders Technology plc ¦ Annual Report & Accounts 2013 44
FINANCIAL STATEMENTS
27. Related party transactions
Group
Transactions between the company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed.
Dividends were paid to directors as follows:
R W Weinreich
D A Mahony
V M Blaisdell
2013
£’000
37
1
1
39
Company
The company carried out the following transactions with its subsidiaries and joint venture:
Consultancy fees charged to subsidiaries and joint venture
Interest on short term loans
2013
£’000
441
13
2012
£’000
79
1
1
81
2012
£’000
568
14
28. Contingent Consideration
On 21 December 2009, the company acquired 100% of the share capital of J K Components Limited (since
renamed Holders Components Limited).
The consideration for the acquisition was £1 plus contingent consideration representing 50%, 30% and 15%
respectively of the net profits for each of the three years following the date of acquisition, payable 30 days after
the signing of the accounts for each respective year.
The contingent consideration was estimated at £29,000 at 2012 year end. The actual amount was £24,209
which was settled during 2013.
Holders Technology plc ¦ Annual Report & Accounts 2013 45
AGM
Notice of annual general meeting
Notice is hereby given that the Annual General Meeting of Holders Technology plc (the "Company") will be held at
Elstree House, Elstree Way, Borehamwood, Hertfordshire WD6 1SD on 30 April 2014 at 11.30 a.m. for the following
purposes:
Ordinary business
1.
2.
3.
4.
To receive and adopt the accounts of the Company together with the directors’ and auditors’ reports
thereon for the year ended 30 November 2013.
To declare a final dividend in respect of the year ended 30 November 2013.
To re-elect V M Blaisdell as a director.
To re-appoint Grant Thornton UK LLP as auditors and to authorise the directors to fix their remuneration.
Special business
To consider and, if thought fit, pass the following resolution as an Ordinary Resolution:
5.
That, in substitution for any equivalent authorities and powers granted to the directors prior to the passing
of this resolution, the directors be and they are generally and unconditionally authorised pursuant to Section
551 of the Act to exercise all powers of the Company to allot shares in the Company, and grant rights to
subscribe for or to convert any security into shares of the Company (such shares, and rights to subscribe for
or to convert any security into shares of the Company being "relevant securities") up to an aggregate
nominal amount of £138,651.70, provided that, unless previously revoked, varied or extended, this authority
shall expire on the conclusion of the Annual General Meeting of the Company to be held in 2015, except that
the Company may at any time before such expiry make an offer or agreement which would or might require
relevant securities to be allotted after such expiry and the directors may allot relevant securities in
pursuance of such an offer or agreement as if this authority had not expired.
To consider and, if thought fit, pass the following resolutions as Special Resolutions:
6.
That the directors be and they are empowered pursuant to Section 570(1) of the Act to allot equity securities
(as defined in Section 560(1) of the Act) of the Company wholly for cash pursuant to the authority of the
directors under Section 551 of the Act conferred by resolution 6 above, and/or by way of a sale of treasury
shares (by virtue of Section 573 of the Act), in each case as if Section 561(1) of the Act did not apply to such
allotment, provided that:
(a)
the power conferred by this resolution shall be limited to:
(i)
the allotment of equity securities in connection with an offer of equity securities to the
holders of ordinary shares in the capital of the Company in proportion as nearly as
practicable to their respective holdings of such shares, but subject to such exclusions or
other arrangements as the directors may deem necessary or expedient to deal with
fractional entitlements or legal or practical problems arising under the laws or requirements
of any overseas territory or by virtue of shares being represented by depository receipts or
the requirements of any regulatory body or stock exchange or any other matter whatsoever;
and
Holders Technology plc ¦ Annual Report & Accounts 2013 46
AGM
Special business (continued)
(ii)
the allotment, otherwise than pursuant to sub-paragraph (i) above, of equity securities up to
an aggregate nominal value equal to £20,797.80; and
(b)
unless previously revoked, varied or extended, this power shall expire on the conclusion of the
Annual General Meeting of the Company to be held in 2015 except that the Company may before
the expiry of this power make an offer or agreement which would or might require equity securities
to be allotted after such expiry and the directors may allot equity securities in pursuance of such an
offer or agreement as if this power had not expired.
7.
That the Company be and it is hereby generally and unconditionally authorised to make market purchases
(within the meaning of Section 693(4) of the Act) of Ordinary Shares of 10p each in the capital of the
Company (“Ordinary Shares”) provided that:
(a)
the maximum number of Ordinary Shares hereby authorised to be purchased is 393,955
(representing 10 per cent of the issued share capital of the Company, excluding treasury shares);
(b)
the minimum price which may be paid for each Ordinary Share is 10p (nominal value);
(c)
(d)
(e)
the maximum price which may be paid for each ordinary share is an amount equal to 105 per cent of
the average of the middle market quotations for an ordinary share as derived from The London Stock
Exchange for the five business days immediately preceding the day on which the Ordinary Shares are
purchased;
the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of
the Company to be held in 2015, unless such authority is renewed prior to such time; and
the Company may make a contract to purchase its ordinary shares under the authority hereby
conferred prior to the expiry of such authority, which will or may be executed wholly or partially
after the expiry of such authority, and may purchase its Ordinary Shares in pursuance of any such
contract.
By order of the board
Paul Geraghty
Secretary
19 February 2014
Registered Office:
Elstree House
Elstree Way
Borehamwood
Hertfordshire
WD6 1SD
Holders Technology plc ¦ Annual Report & Accounts 2013 47
AGM
Notes
1.
2.
3.
4.
5.
6.
A member who is entitled to attend, speak and vote may appoint a proxy to attend, speak and vote instead
of him.
A proxy need not also be a member of the Company but must attend the meeting in order to represent his
appointor. A member may appoint more than one proxy provided each proxy is appointed to exercise rights
attached to different shares (so a member must have more than one share to be able to appoint more than
one proxy). A form of proxy is enclosed. The notes to the form of proxy include instructions on how to
appoint the Chairman of the meeting or another person as proxy. To be effective, forms of proxy must be
duly completed and returned so as to reach Neville Registrars, New Issue Department, Neville House, 18
Laurel Lane, Halesowen, West Midlands, B63 3DA not less than 48 hours before the time appointed for the
meeting, or adjourned meeting, as the case may be.
Only those shareholders registered in the register of members of the Company as at 6 p.m. on Wednesday
28 April 2014 shall be entitled to attend and vote at the meeting in respect of the number of shares
registered in their name at that time. Changes to entries on the relevant register of securities after 6 p.m. on
Wednesday 28 April 2014 shall be disregarded in determining the rights of any person to attend and vote at
the meeting.
As at 18 February 2014 (being the latest practicable date prior to the publication of this notice of annual
general meeting) the Company’s issued share capital consists of 4,159,551 ordinary shares carrying one vote
each. There are currently 220,000 ordinary shares held in treasury which currently do not carry the right to
vote. Therefore the total voting rights in the Company as at 18 February 2014 are 3,939,551.
To appoint a proxy or to amend an instruction to a previously appointed proxy via the CREST system, the
CREST message must be received by the issuer's agent (ID 7RA11) by 11.30 a.m. on Tuesday 29 April 2014.
For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to
the message by the CREST Applications Host) from which the issuer's agent is able to retrieve the message.
After this time any change of instructions to a proxy appointed through CREST should be communicated to
the proxy by other means. CREST should be communicated to the proxy by other means. CREST Personal
Members or other CREST sponsor or voting service provider(s) should contact their CREST sponsor or voting
service provider(s) for assistance with appointing proxies via CREST. For further information on CREST
procedures, limitations and system timings, please refer to the CREST Manual. We may treat as invalid a
proxy appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of the Uncertificated
Securities Regulations 2001.
The following documents are available for inspection at the registered office of the Company during the
usual business hours on any weekday (Saturday, Sunday or public holidays excluded) from the date of this
notice until the conclusion of the annual general meeting and will also be available for inspection at the
place of the meeting from 11.15 a.m. on the day of the meeting until its conclusion:
copies of the executive directors' service contracts with the Company and any of its subsidiary
undertakings and letters of appointment of the non-executive directors.
Holders Technology plc ¦ Annual Report & Accounts 2013 48
AGM
Five year summary
Group revenue - continuing
Group revenue – discontinued
Gross profit
Distribution costs
Administrative expenses
Exceptional items
Other operating income/(expense)
Group operating profit
Finance income
Finance expenses
2013
£’000
14,265
990
3,467
(381)
(3,049)
-
68
105
4
(12)
2012
Restated
£’000
13,631
1,974
2011
2010
2009
£'000
19,636
£'000
£'000
16,314 12,966
3,584
(376)
(3,275)
-
11
4,509
(404)
(3,828)
-
98
4,198
(390)
(3,273)
(83)
39
3,196
(301)
(3,044)
(176)
(90)
(56)
1
(13)
375
-
(12)
491
-
(1)
(415)
20
(13)
Profit before taxation
97
(68)
363
490
(408)
Taxation
Profit after tax
(24)
(43)
(123)
(59)
9
73
(111)
240
431
(399)
Earnings per share – continuing
business
Earnings per share – basic
Earnings per share - diluted
Dividends per share in respect of
each year
Equity attributable to shareholders
of the parent
1.85p
1.78p
(2.82p)
(2.82p)
6.70p
6.63p
12.87p
12.87p
(9.52p)
(9.52p)
2.0p
2.0p
5.35p
5.35p
5.35p
5,053
5,192
5,941
5,841
5,751
Holders Technology plc ¦ Annual Report & Accounts 2013 49