Holders Technology cuts costs amid Covid crisis
By Josh White
Date: Tuesday 07 Apr 2020
(Sharecast News) - Printed circuit board materials company Holders Technology updated the market on its trading and the impact of the Covid-19 coronavirus pandemic on its operations in the UK and Germany on Tuesday.
The AIM-traded firm said its results ended 31 March showed overall revenues of around 10% less than the same period in 2019, with most of the shortfall coming from the lighting and control systems (LCS) divisions.
It said its printed circuit boards (PCB) divisions, comprising about 75% of revenue, were so far achieving similar profitability to 2019.
Revenues, however, were difficult to forecast, due to the differing impacts of the pandemic on the company's customers.
"Some customers are experiencing higher order volumes due to the requirement for healthcare applications and some are ordering more due to the uncertainty in the global supply chains," Holders said in its statement.
LCS divisions, comprising around 25% of revenue, had experienced a lower level of sales from lighting manufacturers due to a "general softening" in the lighting industry.
"We anticipate the potential of some smart lighting control projects being delayed to later in the year.
"Results to date have been adversely impacted as a result."
The Holders management team said it had made use of the furloughing scheme in the UK, as well as selected pay reductions, in order to reduce costs.
It said its cash position remained satisfactory and, other than the leasing liability for one PCB machine, the company had no debt.
Order books for the second quarter appeared "reasonable" given the current business climate, although the firm said it had limited visibility on the second half of the financial year.
At 1630 BST, shares in Holders Technology were up 21.21% at 40p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN