Holders Technology

Holders is a small European distributor of materials and products to manufacturers of printed circuit boards (PCBs). Unsurprisingly, the group has been hit by the downturn. But it has not been hit as bad as its share price performance might suggest. Results for the year to November showed turnover reduced by 24% to £9m, but with a swing into the red only resulting in a loss of £100,000, against a loss of £300,000 last year. To try and keep shareholders on board, the final dividend has been maintained at 2.5p, making for a year-total of 4.5p (a16% yield in total). Obviously, the future viability of such generous payouts is under threat, especially in the face of the warning that market conditions 'remain challenging'. But backing it up is a balance sheet with virtually no long-term debt and £4m of tangible net assets, a long way above the current market capitalisation. Group chairman, chief executive and founder Rudi Weinreich (also, incidently, a 51 per cent shareholder) has commented about the high probability of consolidation within the company's sector in the past. So far it has been the consolidator, with the purchase of companies in Holland and Germany. But it could be a target, especially if 81%-owned Justfone is sold off.

Sector: General Industrials

Companies: Holders Technology

Market cap: £1.2m

PE Forecast: n/a

Share price: 28.5p

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