Interim Results

Holders Technology PLC
23 July 2003

CHAIRMAN'S STATEMENT



Results

The 6 month period to 31 May 2003 resulted in a turnover of £6,748,000 as
compared with £4,901,000 for the first half of last year.  The pre-tax result
was a loss of £71,000 compared with a profit of £41,000 in 2002.  This resulted
in a loss per share of 0.93p as against earnings per share of 0.84p in 2002.
Net assets at 31 May 2003 were £4.2m (31 May 2002: £4.2m).



Dividend

A net interim dividend of 2p per share (2002: 2p) will be paid on 19 September
2003 to shareholders on the Register of Members at the close of business on 22
August 2003.



Activities

In the Chairman's statement accompanying the Annual Report and Accounts to 31
November 2002 I said that we expected the current year to be one of
consolidation: this remains the position.



In general the markets which we serve remain subdued, particularly in
Scandinavia, where there has been a major reduction in the volumes of locally
produced PCB supplies for the telecommunications industry.  As a result of this
position we have felt it prudent to increase by £85,000 our provisions against
slow moving stocks held by our Swedish subsidiary.  Elsewhere in mainland Europe
a similar but less pronounced decline in domestic production has continued,
although during the first six months of the current year the UK market was
relatively robust.

Our chosen strategy of making selective acquisitions led to the marked increase
in turnover for the period as compared to last year.  Taken together these
activities have, to date, broadly performed in line with our initial
expectations and we continue to expect that they will make a significant
contribution to future profitability both through organic growth and by enabling
us to remodel our European operations.



An essential element of this approach is to add additional products to our range
so as to take advantage of our stronger market coverage.  We have identified one
new product range allied to our traditional product field and we will be
launching this shortly.  Now that the SARS outbreak has abated we will be able
to resume our efforts to identify further Far Eastern products to sell in Europe
and to supplement the range of products which our associated company Topgrow
Technologies Limited can represent in China.



In view of the considerable management time commitment required to achieve the
results we are seeking in our core business we considered it opportune to accept
an offer we received for our shareholding in Justfone Limited.  This transaction
took place on 13 June and thus is not reflected in these interim accounts.
While Justfone has some interesting opportunities available, further finance and
significant management effort will be required fully to realise its potential.
In the event of significant commercial success being achieved, we will
participate in the consequent growth in value of the company through the
earn-out arrangements we negotiated and in the meantime we have eliminated a
significant monthly loss.  The impact of Justfone on the first half results was
a loss of £86,000 before tax.


Despite the challenges which our markets present we view the second half of the
current year positively both as regards profitability and cash flow and have
therefore felt it appropriate to maintain the interim dividend at the same level
as last year.


The interim financial statements were approved by the Board on 23 July 2003 and
signed on its behalf by:




Rudolf W. Weinreich                                 Holders Technology plc
Chairman and Chief Executive                        Northway House
                                                    1379 High Road
                                                    Whetstone
                                                    London  N20 9LP
23 July 2003


GROUP PROFIT AND LOSS ACCOUNT

for the half-year ended 31 May 2003


                                                 Unaudited           Unaudited             Audited
                                                 half-year           half-year           full-year
                                                  ended 31            ended 31            ended 30
                                                  May 2003            May 2002            Nov 2002
                                  Notes              £'000               £'000               £'000
Turnover

Continuing operations                1               6,168               4,811               8,868
Acquisition                                            534                   -                   -
                                     5               6,702               4,811               8,868
Discontinued operations                                 46                  90                 137
                                                     6,748               4,901               9,005
Operating profit
                                     6
Continuing operations                                   76                 124                  33
Acquisition                                           (32)                   -                   -
                                                        44                 124                  33
Discontinued operations                               (76)                (76)               (152)
Group operating (loss) / profit                       (32)                  48               (119)
Share of loss in associated undertaking               (16)                   -                   -
Net interest payable   
and similar charges                                   (23)                 (7)                (14)
(Loss) / profit before taxation                       (71)                  41               (133)
Taxation                             2                  25                (18)                  15
Profit after taxation                                 (46)                  23               (118)
Minority interests - equity                              8                  11                  24
(Loss) / profit for the period                        (38)                  34                (94)
Dividends                            3                (86)                (81)               (182)
Transfer from reserves                               (124)                (47)               (276)

(Loss) / earnings per share          4             (0.93)p               0.84p             (2.33)p
Diluted (loss) / earnings per        4             (0.93)p               0.84p             (2.33)p
share




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

(Loss) / profit for the financial year                (38)                  34                (94)
Currency translation differences                       269                  68                  76
Total recognised gains and losses                      231                 102                (18)






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 2002.


2. The tax charge for the six months ended 31 May 2002 is calculated based on 
   the tax rates applicable in the country in which each company operates.  The 
   effective rate of tax is 35.2% (2002: 43.9%).  Taxation includes a credit of           
   £62,000 (2002: charge of £30,000) relating to overseas operations.


3. The dividend payment of 2p per share is payable on the total issued share 
   capital of 4,144,551 10p ordinary shares.


4. The earnings per ordinary share (basic and diluted) for the six months ended 
   31 May 2002 have been calculated using Financial Reporting Standard 14.  The 
   calculation of earnings per share, for the six months, is based on the loss
   attributable to equity shareholders of £38,000 (2002: profit of £34,000) and 
   4,101,014 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. On 7 February 2003, the company acquired 100% of the Dutch company Screen 
   Circuit BV.  This transaction has been accounted for as an acquisition.  The 
   following sets out the effect on the consolidated balance sheet:


                                                    £'000

   Net assets acquired                                 68
   Goodwill capitalised                               107
   Consideration                                      175

   Satisfied by:
                                                       
   Cash                                                92
   Issue of shares                                     50
   Costs                                               33
                                                      175




6. On 13 June 2003, the company sold its 81% shareholding in Justfone Limited.  
   Under the sale terms, the purchasor paid £150,000 for the share capital and 
   to settle part of Justfone's indebtedness to the Holders group.  A further            
   £112,000 will be paid in monthly instalments over 5 years, commencing in 
   September 2003.  Further amounts of up to £250,000 are potentially payable to 
   Holders, depending on Justfone's financial results for the 3 years to 31 May         
   2006.  The financial impact of the sale of Justfone Limited is not reflected 
   in these financial statements as it falls in the second half of the financial 
   year.


7. The results for the half year to 31 May 2003 are unaudited.  The results for 
   the year ended 30 November 2002 are taken from the full accounts filed with 
   the Registrar of Companies, which contained an unqualified audit report and      
   did not contain statements under s237 (2) or (3).


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






GROUP BALANCE SHEET AT 31 MAY 2003


                                                        Unaudited            Unaudited              Audited
                                                        half-year            half-year            full-year
                                                         ended 31             ended 31             ended 30
                                                         May 2003             May 2002             Nov 2002
                                                            £'000                £'000                £'000
Fixed Assets

    Intangible assets                                         194                    -                  110
    Tangible assets                                         1,171                1,012                1,175
    Investment in associated undertaking                      204                    -                    -
                                                            1,569                1,012                1,285

Current Assets
    Stocks                                                  2,384                1,942                1,897
    Debtors                                                 3,061                2,105                2,112
    Cash at bank and in hand                                  316                  479                  259
                                                            5,761                4,526                4,268
Creditors
    Amounts falling due within one year                   (2,974)              (1,071)              (1,370)

Net current assets                                          2,787                3,455                2,898

Total assets less current liabilities                       4,356                4,467                4,183

Creditors:  Amounts falling due after one year               (64)                 (93)                 (74)

Provision for liabilities and charges
    Deferred taxation                                        (50)                 (85)                 (54)
                                                            4,242                4,289                4,055
Capital and Reserves
    Called up share capital                                   415                  403                  403
    Share premium account                                   1,524                1,486                1,486
    Capital redemption reserve                                  1                    1                    1
    Profit and loss account                                 2,375                2,451                2,230
Equity shareholder's funds                                  4,315                4,341                4,120

Minority interests - equity                                  (73)                 (52)                 (65)

                                                            4,242                4,289                4,055





GROUP CASH FLOW

for the half-year ended 31 May 2003


                                                       Unaudited            Unaudited              Audited
                                                       half-year            half-year            full-year
                                                        ended 31             ended 31             ended 30
                                                        May 2003             May 2002             Nov 2002
                                                           £'000                £'000                £'000


Net cash outflow from operating activities 1               (186)                  532                  944

Returns on investment and servicing of finance
     Interest received                                         4                    4                    9
     Interest paid                                          (24)                  (7)                 (15)
     Finance lease interest                                  (3)                  (4)                  (8)
Net cash flow from returns on investment and
servicing of finance                                        (23)                  (7)                 (14)
Taxation                                                      24                 (38)                 (69)

Capital expenditure

     Payments to acquire tangible fixed assets              (36)                  (1)                 (13)
     Receipts from sales of tangible fixed
     assets                                                    7                   17                   13
                                                            (29)                   16                    -

Acquisitions
     Purchase of subsidiary undertaking                    (125)                    -                (492)
     Net overdraft acquired with subsidiary                (186)                    -                    -
     undertaking
     Payment in respect of existing                        (190)                    -                    -
     subsidiaries
     Investment in associated undertaking                  (220)                    -                    -
                                                           (721)                    -                (492)

Equity dividends paid                                      (104)                (101)                (182)

Cash flow before financing                               (1,039)                  402                  187

Financing

     Capital element of finance leases                       (5)                 (19)                 (35)

(Decrease) / increase in cash  2                         (1,044)                  383                  152











1.  Reconciliation of operating profit to net cash outflow from operating activities


                                                     Unaudited            Unaudited              Audited
                                                     half-year            half-year            full-year
                                                      ended 31             ended 31             ended 30
                                                      May 2003             May 2002             Nov 2002
                                                         £'000                £'000                £'000

   Operating (loss) / profit                              (32)                   48                (119)
   Depreciation                                            145                   87                  226
   Amortisation of goodwill                                  5                    -                    -
   Exchange differences                                    199                   61                   68
   Transfer from current to fixed assets                     -                    -                (123)
   (Profit) / loss on sale of tangible fixed                 -                    -                    3
   assets
   Change in stocks                                      (243)                  425                  958
   Change in debtors                                     (459)                  171                  214
   Change in creditors                                     199                (260)                (283)


   Net cash (outflow) / inflow from operating
   activities                                             (186)                  532                  944


2.  Reconciliation of net cash flow to movement in net (debt) / funds

(Decrease) / Increase in cash                          (1,044)                  372                  152
Cash flow from change in debt and lease
finance                                                      5                   19                   35

                                                       (1,039)                  391                  187

Opening net funds / (debt)                                 150                 (37)                 (37)

Closing net (debt) / funds                               (889)                  354                  150




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