Interim Results

Holders Technology PLC
18 July 2000

CHAIRMAN'S STATEMENT

Results
The period to 31 May 2000 resulted in a turnover of £5,770,000 (+26.1%) as
compared with £4,576,000 for the first half of last year.  Pre-tax profits
rose to £348,000 (+13.0%) from £308,000 and earnings per share rose to 5.60p
(+11.3%) against 5.03p.

Dividend
A net interim dividend of 2.00p per share (1999 : 2.00p) will be payable on 15
September 2000 to shareholders on the Register of Members at the close of
business on 11 August 2000.

Activities
Market conditions remained challenging during the six months to 31 May 2000,
with continued pressure on margins especially in relation to commodity
products, but the period was one of recovery for your company with both
turnover and profitability increasing.  The full impact of this on reported
profits was somewhat masked by the impact of the weakness of the Euro and the
strength of the dollar during the period.

During the half year additional commodity products were successfully
introduced which, despite difficulties in securing supply of the full volumes
required, significantly assisted with the opening of new accounts as well as
expanding business to existing customers.  Of itself, this activity was only
marginally profitable, but it did allow the company to expand its market
position with the present and future benefit of increasing sales from our
established and newly introduced higher margin niche products.

The combination of a good market reception for these new commodity products
coupled with the initial supply difficulties led to a bunching of sales in the
final months of the period which led to stocks and debtors being significantly
increased, with a consequent rise in borrowings in the period.  This position
will be ameliorated as we progress through the balance of the current year. 
Net debt at 31 May 2000 amounted to £357,000 compared with net funds of
£451,000 at 30 November 1999.

Good progress has been made in expanding our own manufactured drill care
systems with initial shipments of the new design being made.  An active
marketing campaign, to run for the next twelve months, is in hand and this is
designed significantly to increase sales of these products.

Our software activities are now conducted within a newly formed 81%-owned
subsidiary, Justfone Limited.  Several innovative products have been developed
and discussions are currently in hand with potential marketing partners.

Whilst we continue to exercise financial prudence with regard to the sums
invested in these areas, we are very encouraged by the progress currently
being made both in own manufactured and software products.

We view the second half of the current year with a degree of optimism and we
continue to examine methods of further extending both the product range and
our geographical coverage within Europe.

The interim financial statements were approved by the Board on 18 July 2000
and signed on its behalf by:

Rudolf W. Weinreich
Chairman and Chief Executive 


 
GROUP PROFIT AND LOSS ACCOUNT
for the half-year ended 31 May 2000

                                      Unaudited     Unaudited        Audited
                                      half-year     half-year      full-year
                                          ended         ended          ended
                                    31 May 2000   31 May 1999   30 Nov. 1999  
                            Notes         £'000         £'000          £'000  
    
Turnover                      1           5,770         4,576          8,922
Operating profit                            429           300            595
Net interest payable and 
similar charges                             (81)            8            (60)
                                          -----         -----          -----
Profit before taxation                      348           308            535
    
Taxation                      2            (122)         (105)          (144)
                                          -----         -----          -----
Profit after taxation                       226           203            391
     
Dividends                     3             (81)          (81)          (293)
                                          -----         -----          -----
Profits retained                            145           122             98
                                          =====         =====          =====
Earnings per share            4            5.60p         5.03p          9.69p 
                                          -----         -----          -----
Diluted earnings per share    4            5.60p         5.03p          9.69p
                                          -----         -----          -----

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Profit for the financial year               226           203            391  
    
Currency translation differences             (2)          (78)           (59)
                                          -----         -----          -----
                                            224           125            332
                                          =====         =====          =====
Notes:

1. The interim results are prepared on the basis of accounting policies set
   out in the financial statements for the year ended 30 November 1999.  FRS
   15 and 16 have not had a material effect on the results.
 
2. The tax charge for the six months ended 31 May 2000 is calculated based on
   the tax rates applicable in the country in which each company operates. 
   The effective rate of tax is 35.1% (1999 : 34.1%).  The tax charge includes
   £112,000 relating to overseas operations.

3. The dividend payment of 2p per share is payable on the total issued share
   capital of 4,034,498 10p ordinary shares.

4. The earnings per ordinary share (basic and diluted) for the six months
   ended 31 May 2000 have been calculated using Financial Reporting Standard
   14.  The calculation of earnings per share, for the six months, is based on
   profit attributable to equity shareholders of £226,000 (1999 £203,000) and
   4,034,498 shares being the daily average of the number of shares in issue
   during the periods.  The diluted earnings per share is based on the same
   numbers.

5. The results for the half year to 31 May 2000 are unaudited.  The results
   for the year ended 30 November 1999 are taken from the full accounts filed
   with the Registrar of Companies, which contained an unqualified report and
   did not contain statements under s237 (2) or (3).

6. A copy of this interim report is being sent to shareholders and is
   available for inspection at theCompany's registered office, Northway House,
   1379 High Road, Whetstone, London N20 9LP.

 
GROUP BALANCE SHEET AT 31 MAY 2000

                                      Unaudited     Unaudited        Audited
                                      half-year     half-year      full-year
                                          ended         ended          ended
                                    31 May 2000   31 May 1999   30 Nov. 1999  
                                          £'000         £'000          £'000  

Fixed Assets                                          
Tangible Assets                           1,263         1,248          1,289  
Investments                                   -            11              -  
                                          -----         -----          -----
                                          1,263         1,259          1,289
       
Current Assets                                          
Stocks                                    2,348         1,160          1,790
Debtors                                   3,135         2,399          2,142
Cash at bank and in hand                    481         1,279            619
                                          -----         -----          -----
                                          5,964         4,838          4,551  
    
Creditors: Amounts falling due within 
one year                                 (2,946)       (1,984)        (1,709) 
                                          -----         -----          -----
Net current assets                        3,018         2,854          2,842
                                          
Total assets less current liabilities     4,281         4,113          4,131
                                          
Creditors: Amounts falling due after 
one year                                    (14)            -            (16)
                                                 
Provision for liabilities and charges  
Deferred taxation                           (98)          (82)           (89)
                                          -----         -----          -----
                                          4,169         4,031          4,026
                                          =====         =====          =====
Capital and Reserves                                          
Called up share capital                     403           403            403  
Share premium account                     1,486         1,486          1,486  
Capital redemption reserve                    1             1              1  
Profit and loss account                   2,279         2,141          2,136  
                                          -----         -----          -----
                                          4,169         4,031          4,026
                                          =====         =====          =====
                                              
 
GROUP CASHFLOW
                                      Unaudited     Unaudited        Audited
                                      half-year     half-year      full-year
                                          ended         ended          ended
                                    31 May 2000   31 May 1999   30 Nov. 1999  
                                          £'000         £'000          £'000

Net cash flow from operating 
activities (1.)                            (411)          325            407
                                                 
Returns on investment and servicing 
of finance                                          
Interest received                             5            11             26
Interest paid                               (19)           (3)           (14)
Finance lease interest                        -             -             (1) 
                                          -----         -----          -----
Net cash flow from returns on 
investment and servicing of finance         (14)            8             11  
                                                 
Taxation                                    (24)         (139)          (311)
                                                
Capital expenditure                                          
Payments to acquire tangible fixed assets   (87)         (368)          (497)
Receipts from sales of tangible fixed 
assets                                        7             8             27
Receipt from sale of investment               -             -             41
                                          -----         -----          -----
                                            (80)         (360)          (429)

Equity dividends paid                      (212)         (202)          (283) 
         
                                                 
Cashflow before financing                  (741)         (368)          (605)
                                                 
Financing                                          
Capital element of finance leases            (2)            -            (12) 
                                          -----         -----          -----
                                             (2)            -            (12)
                                          -----         -----          -----
(Decrease) in cash (2.)                    (743)         (368)          (617)
                                          =====         =====          =====

1.  Reconciliation of operating profit to net cash inflow from operating
    activities
                                      Unaudited     Unaudited        Audited
                                      half-year     half-year      full-year
                                          ended         ended          ended
                                    31 May 2000   31 May 1999   30 Nov. 1999  
                                          £'000         £'000          £'000

    Operating profit                        429           300            595
    Depreciation                            100            88            185
    Exchange differences                      4           (56)           (30)
    Loss on sale of tangible fixed assets     -             3              7
    (Gain) on sale of investment              -             -            (29)
    Change in stocks                       (558)           31           (599)
    Change in debtors                    (1,036)         (588)          (105)
    Change in creditors                     650           547            383
                                          -----         -----          -----
                                           (411)          325            407
                                          =====         =====          =====
                                              
2.  Reconciliation of net cash flow to movement in net debt       
                                                 
    (Decrease) in cash                     (741)         (368)          (605)
    Inception of finance leases               -             -            (39)
    Exchange losses on currency holding     (67)            -            (71) 
                                          -----         -----          -----
                                           (808)         (368)          (715)

    Opening net funds                       451         1,166          1,166  
                                          -----         -----          -----
    Closing net (debt)/funds               (357)          798            451
                                          =====         =====          =====