Interim Results

Holders Technology PLC
20 July 2004

                             HOLDERS TECHNOLOGY PLC



                         ANNOUNCEMENT OF INTERIM RESULTS

                    FOR THE SIX MONTH PERIOD TO 31 MAY 2004



CHAIRMAN'S STATEMENT



Results

Turnover for the six month period to 31 May 2004 was £7,845,000 as compared with
£6,748,000 for the comparable period in the preceding year.  Pre-tax profit
increased to £421,000 from a loss of £71,000 last year.  This resulted in
earnings per share of 6.23p as against a loss per share of 0.93p in 2003.  Net
assets at 31 May were £4,384,000 (31 May 2003 £4,242,000).



Dividend

A net interim dividend of 2.0p per share (2003: 2.0p) will be paid on 21
September 2004 to shareholders on the Register of Members at the close of
business on 27 August 2004.  The shares will go ex-dividend on 25 August 2004.



Activities

The turnover growth of 16% in this year's first half reflects, in part, the
inclusion of Screen Circuit for a full six months, whereas the preceding year
benefited from only four months turnover from this subsidiary.  Like-for-like
turnover in continuing operations grew by 13%.



A favourable sales mix led to some improvement in gross margins and this,
combined with the continuing drive to contain costs, resulted in a much improved
pre-tax profit being achieved.



The majority of the programme to restructure our European operations has now
been completed and this has enabled us to agree terms to dispose of two surplus
properties.  The first half's results have benefited from a profit on the sale
of the two properties of £42,000.  The impact of this on our cash position will
be significant, as the proceeds will amount to £551,000, net of expenses, which
will be received in the second half.



Positive operating cashflow of £524,000 has lead to a reduction in net debt to
£260,000 at 31 May 2004 compared with £889,000 at 31 May 2003 and £503,000 at 30
November 2003.



In general, our operations have performed above plan in the first half with a
somewhat weaker performance from Screen Circuit being more than offset by the
strong performance of UK and German operations.



Although not without risk, we continue to regard China as an area of significant
opportunity.  We expect to lift our stake in the Hong Kong-based associate,
Topgrow Technologies Limited, from 35% to 60% at an estimated initial cost of
£130,000 with up to £100,000 of deferred consideration.  This will be the
subject of a further announcement in due course.



Outlook

Provided that we do not experience more serious supply shortages than those
which we encountered in the first half, we expect to maintain the improved sales
performance in the second half with the benefit of the lower cost base being
maintained.



Rudolf W. Weinreich

Chairman and Chief Executive

20 July 2004




GROUP PROFIT AND LOSS ACCOUNT

for the half-year ended 31 May 2004
                                                                   Unaudited        Unaudited          Audited
                                                                   half-year        half-year        full-year
                                                                ended 31 May     ended 31 May     ended 30 Nov
                                                                        2004             2003             2003
                                               Notes                   £'000            £'000            £'000
Turnover

Continuing operations                               1                  7,845            6,702           14,155
Discontinued operations                                                    -               46               46
                                                                       7,845            6,748           14,201
Operating profit
Continuing operations                                                    427               44              460
Discontinued operations                                                    -             (76)             (76)
Group operating profit / (loss)                                          427             (32)              384
Share of associates operating loss                                       (1)             (16)             (22)
Total operating profit/(loss)                                            426             (48)              362
Profit on disposal of subsidiary -                  2                     12                -               26
discontinued operation
Profit / (loss) on ordinary activities before                            438             (48)              388
interest and tax
Net interest payable and similar charges                                (17)             (23)             (60)
Profit / (loss) before taxation                                          421             (71)              328
Taxation                                            3                  (163)               25            (218)
Profit / (loss) after taxation                                           258             (46)              110
Minority interests - equity                                                -                8                -
Profit / (loss) for the period                                           258             (38)              110
Dividends                                           4                   (83)             (86)            (190)
Transfer to / (from) reserves                                            175            (124)             (80)

Earnings / (loss) per share                         5                  6.23p          (0.93)p            2.67p
Diluted earnings / (loss) per share                 5                  6.13p          (0.93)p            2.63p





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


Profit / (loss) for the financial year                                   258             (38)              110
Currency translation differences                                        (81)              269              200
Total recognised gains and losses                                        177              231              310








GROUP BALANCE SHEET

at 31 May 2004
                                                                  Unaudited        Unaudited          Audited
                                                                  half-year        half-year        full-year
                                                               ended 31 May     ended 31 May     ended 30 Nov
                                                                       2004             2003             2003
                                                                      £'000            £'000            £'000

Fixed Assets
Intangible assets                                                       197              194              209
Tangible assets                                                         632            1,171            1,136
Investment in associated undertaking                                    202              204              207
                                                                      1,031            1,569            1,552

Current Assets
Stocks                                                                2,272            2,384             2159
Debtors                                                               3,862            3,061            2,813
Cash at bank and in hand                                                428              316              394
                                                                      6,562            5,761            5,366

Creditors
Amounts falling due within one year                                 (3,159)          (2,974)          (2,566)

Net current assets                                                    3,403            2,787            2,800

Total assets less current liabilities                                 4,434            4,356            4,352

Creditors:  Amounts falling due after one year                         (39)             (64)             (51)

Provision for liabilities and charges
Deferred taxation                                                      (11)             (50)             (11)
                                                                      4,384            4,242            4,290

Capital and Reserves
Called up share capital                                                 414              414              414
Share premium account                                                 1,525            1,525            1,525
Capital redemption reserve                                                1                1                1
Profit and loss account                                               2,444            2,375            2,350
Equity shareholder's funds                                            4,384            4,315            4,290

Minority interests - equity                                               -             (73)                -
                                                                      4,384            4,242            4,290




GROUP CASH FLOW

for the half-year ended 31 May 2004
                                                                Unaudited         Unaudited           Audited
                                                                half-year         half-year         full-year
                                                             ended 31 May      ended 31 May      ended 30 Nov
                                                                     2004              2003              2003
                                                                    £'000             £'000             £'000

Net cash inflow from operating activities1                            524             (186)               327

Returns on investment and servicing of finance
Interest received                                                       7                 4                 6
Interest paid                                                        (20)              (24)              (59)
Finance lease interest                                                (4)               (3)               (7)
Net cash flow from returns on investment and servicing of            (17)              (23)              (60)
finance
Taxation                                                             (57)                24                17

Capital expenditure

Payments to acquire tangible fixed assets                           (115)              (36)             (168)
Receipts from sales of tangible fixed assets                            -                 7                49
                                                                    (115)              (29)             (119)

Acquisitions and disposals
Purchase of subsidiary undertaking                                      -             (125)             (125)
Net overdraft acquired with subsidiary undertaking                      -             (186)             (186)
Payment in respect of existing subsidiaries                             -             (190)             (206)
Investment in associated undertaking                                    -             (220)             (234)
Sale of subsidiary undertaking                                         12                 -               120
                                                                       12             (721)             (631)

Equity dividends paid                                               (104)             (104)             (187)

Cash flow before financing                                            243           (1,039)             (653)

Financing

Capital element of finance leases                                    (12)               (5)              (13)
Draw-down of bank loan                                                  -                 -               598
Repayment of bank loan                                              (465)                 -                 -
                                                                    (477)               (5)               585

(Decrease) / increase in cash2                                      (234)           (1,044)              (68)



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


                                                                     £'000             £'000            £'000

Operating profit / (loss)                                              427              (32)              384
Depreciation                                                            90               145              253
Amortisation of goodwill                                                12                 5               19
Currency translation                                                  (57)               199              142
(Profit) / loss on sale of tangible fixed assets                      (42)                 -                -
Change in stocks                                                     (113)             (243)             (24)
Change in debtors                                                    (475)             (459)            (381)
Change in creditors                                                    682               199             (66)
Net cash (outflow) / inflow from operating activities                  524             (186)              327




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


Decrease in cash                                                     (234)           (1,044)             (68)

Cash flow from change in debt and lease finance                        477                 5            (585)
                                                                       243           (1,039)            (653)

Opening net (debt) / funds                                           (503)               150              150

Closing net (debt) / funds                                           (260)             (889)            (503)






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 2003.



2.       The profit on disposal of subsidiary represents deferred consideration
from the sale of Justfone Limited in 2003, which is recognised when received.



3.       The tax charge for the six months ended 31 May 2004 is calculated based
on the tax rates applicable in the country in which each company operates.  The
effective rate of tax is 38.7% (2003: 35.2%).  Taxation includes a charge of
£142,000 (2003: credit of £62,000) relating to overseas operations.



4.       The dividend payment of 2.0p per share is payable on the total issued
share capital of 4,144,551 10p ordinary shares.



5.       The earnings per ordinary share (basic and diluted) for the six months
ended 31 May 2004 have been calculated using Financial Reporting Standard 14.
The calculation of basic earnings per share, for the six months, is based on the
profit attributable to equity shareholders of £258,000 (2003: loss of £38,000)
and on 4,144,551 ordinary shares (2003: 4,101,014) being the weighted average
number of shares in issue during the period.  Diluted earnings per share is
based on 4,209,551 ordinary shares (2003: 4,101,014), being the weighted average
number of ordinary shares after an adjustment of 65,000 shares (2003: nil) in
relation to share options.



6.       The results for the half year to 31 May 2004 are unaudited.  The
results for the year ended 30 November 2003 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).



7.       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.





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