Interim Results

Holders Technology PLC
19 July 2005

                             HOLDERS TECHNOLOGY PLC



                        ANNOUNCEMENT OF INTERIM RESULTS
                    FOR THE SIX MONTH PERIOD TO 31 MAY 2005



CHAIRMAN'S STATEMENT



Results

Turnover for the six month period to 31 May 2005 was £7,190,000 as compared with
£7,845,000 for the similar period in the preceding year.  Pre-tax profit fell to
£182,000 (2004: £421,000).  Earnings per share amounted to 2.56p (2004: 6.23p)
and net assets totalled £4,692,000 (2004: £4,384,000).



Dividend

A net interim dividend of 2.0p per share (2004: 2.0p) will be paid on 20
September to shareholders on the Register of Members at the close of business on
26 August 2005.  The shares will go ex-dividend on 24 August 2005.



Activities

In the chairman's statement within the Report and Accounts for the year to 30
November 2004, issued in March this year, I cautioned that we were experiencing
trading at levels below those of the preceding year and saw no signs of the
position easing.  This was borne out by trading in the balance of the first half
year.  That said, I am pleased to be able to report that all save one of our
subsidiaries operated at budgeted levels, generally maintained gross margins and
tightly controlled overheads.  The exception to this favourable position was
Screen Circuit.  Having made a loss of £155,000 in the period, it will be
restructured in the second half of the year with a view to eliminating any
continuing losses.



It remains the Group's policy to seek, wherever possible, to hedge its foreign
exchange exposure and to insure its debtors.  In some instances it is not
possible to do this and in the first half we suffered a net exchange loss of
£27,000, primarily due to a weak euro, and £53,000 of bad debts were incurred in
the UK.  The rationalisation of Screen Circuit, when completed, is expected to
reduce overall stock levels and this will lead to a further strengthening of our
balance sheet.



In China, Topgrow Technologies (our 60% owned subsidiary) is currently engaged
in creating a Wholly Owned Foreign Enterprise which will lease production
facilities of a size which will enable it to address the opportunities in this
market.  Topgrow, despite quality problems with certain suppliers' products and
the cost and resources required by the expansion programme, achieved a break
even position in the six month period.



The group generated an operating cash inflow of £144,000 in the period, but due
to tax payments and the final dividend, paid in May 2005, there was a net
decrease in cash of £252,000.  Net debt at 31 May amounted to £110,000 compared
with net funds of £144,000 at the end of last year.



Outlook

The elimination of Screen Circuit's losses will positively impact the second
half of the current year. Given maintenance in the second half of the trading
levels achieved by the other companies within the group in the first half, we
continue to expect that the year as a whole will be in line with our initial
expectations.




Rudolf W. Weinreich                             Holders Technology plc
Chairman and Chief Executive                    Northway House
                                                1379 High Road
                                                Whetstone
                                                London  N20 9LP
19 July 2005


GROUP PROFIT AND LOSS ACCOUNT
for the half-year ended 31 May 2005

                                                     Notes      Unaudited        Unaudited     Audited full
                                                                half year        half year       year ended
                                                             ended 31 May     ended 31 May      30 Nov 2004
                                                                     2005             2004
                                                                    £'000            £'000            £'000
Turnover
Continuing operations                                  1            7,190            7,845           15,658
Operating profit
Continuing operations                                                 202              427              720
Share of associates operating (loss)/profit                             -              (1)                4
Total operating profit                                                202              426              724
Profit on disposal of subsidiary - discontinued        2               12               12               24
operation
Profit on ordinary activities before interest and                     214              438              748
tax
Net interest payable and similar charges                             (32)             (17)             (16)
Profit before taxation                                                182              421              732
Taxation                                               3             (72)            (163)            (274)
Profit after taxation                                                 110              258              458
Minority interests - equity                                           (4)                -              (2)
Profit for the period                                                 106              258              456
Dividends                                              4             (83)             (83)            (197)
Transfer to reserves                                                   23              175              259

Earnings per share                                     5            2.56p            6.23p           11.00p
Diluted earnings per share                             5            2.52p            6.13p           10.83p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


Profit for the financial year                                         106              258              456
In respect of associated undertaking prior to                           -                -               23
acquisition
Currency translation differences                                     (41)             (81)               11
Total recognised gains and losses                                      65              177              490




GROUP BALANCE SHEET
at 31 May 2005

                                                     Unaudited half        Unaudited half        Audited full
                                                         year ended            year ended          year ended
                                                        31 May 2005           31 May 2004         30 Nov 2004
                                                               £000                  £000                £000
Fixed Assets
Intangible assets                                               404                   197                 424
Tangible assets                                                 596                   632                 640
Investment in associated undertaking                            121                   202                  97
                                                              1,121                 1,031               1,161

Current Assets
Stocks                                                        2,737                 2,272               2,607
Debtors                                                       3,276                 3,862               2,804
Cash at bank and in hand                                        377                   428                 480
                                                              6,390                 6,562               5,891

Creditors: Amounts falling due within one year              (2,714)               (3,159)             (2,217)

Net current assets                                            3,676                 3,403               3,674


Total assets less current liabilities                         4,797                 4,434               4,835


Creditors:  Amounts falling due after one year                  (1)                  (39)                (25)


Provision for liabilities and charges                         (104)                  (11)               (104)

                                                              4,692                 4,384               4,706

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                                       2,625                 2,444               2,643
Equity shareholders' funds                                    4,565                 4,384               4,583


Minority interests - equity                                     127                     -                 123

                                                              4,692                 4,384               4,706




GROUP CASH FLOW
for the half-year ended 31 May 2005

                                                          Unaudited             Unaudited        Audited full
                                                    half year ended       half year ended          year ended
                                                        31 May 2005           31 May 2004         30 Nov 2004
                                                               £000                  £000                £000

Net cash inflow from operating activities  1                    144                   524                 837

Returns on investment and servicing of finance
Interest received                                                 2                     7                  15
Interest paid                                                   (5)                  (20)                (25)
Finance lease interest                                          (2)                   (4)                 (6)

Net cash flow from returns on investment and                    (5)                  (17)                (16)
servicing of finance
Taxation                                                      (193)                  (57)               (220)

Capital expenditure
Payments to acquire tangible fixed assets                      (61)                 (115)               (253)
Receipts from sales of tangible fixed assets                     14                     -                 554
                                                               (47)                 (115)                 301

Acquisitions and disposals
Purchase of subsidiary undertaking                                -                     -                (76)
Net cash acquired with subsidiary undertaking                     -                     -                   8
Investment in associated undertaking                           (24)                     -                (24)
Sale of subsidiary undertaking                                   12                    12                  24
                                                               (12)                    12                (68)

Equity dividends paid                                         (114)                 (104)               (187)

Cash flow before financing                                    (227)                   243                 647

Financing
Capital element of finance leases                              (25)                  (12)                (32)
(Repayment)/draw-down of bank loan                                -                     -               (598)
Repayment of bank loan                                            -                 (465)                   -
                                                               (25)                 (477)               (630)

(Decrease)/increase in cash  2                                (252)                 (234)                  17






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

                                                          Unaudited             Unaudited        Audited full
                                                    half year ended       half year ended          year ended
                                                        31 May 2005           31 May 2004         30 Nov 2004
                                                              £'000                 £'000               £'000

Operating profit                                                202                   427                 720
Depreciation                                                     86                    90                 240
Amortisation of goodwill                                         17                    12                  21
Impairment of goodwill                                            -                     -                  47
Currency translation                                           (28)                  (57)                  10
Loss on sale of tangible fixed assets                           (5)                  (42)                (45)
Change in stocks                                              (130)                 (113)               (350)
Change in debtors                                             (478)                 (475)                 377
Change in creditors                                             480                   682               (183)
Net cash inflow from operating activities                       144                   524                 837


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

(Decrease)/increase in cash                                   (252)                 (234)                  17
Cash flow from change in debt and lease finance                  25                   477                 630
                                                              (227)                   243                 647

Exchange losses on currency balances                           (27)                     -                   -
                                                              (254)                   243                 647

Opening net (debt) / funds                                      144                 (503)               (503)

Closing net (debt) / funds                                    (110)                 (260)                 144



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 2004.


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 2005 is calculated based on 
   the tax rates applicable in the country in which each company operates.
   The effective rate of tax is 39.6% (2004: 38.7%).  Taxation includes a charge
   of £42,000 (2004: £142,000) 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 2005 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 £106,000 (2004: £258,000)
   and on 4,144,551 ordinary shares (2004: 4,144,551) being the weighted average
   number of shares in issue during the period.  Diluted earnings per share is
   based on 4,209,551 ordinary shares (2004: 4,209,551), being the weighted 
   average number of ordinary shares after an adjustment of 65,000 shares (2004: 
   65,000) in relation to share options.



6. The results for the half year to 31 May 2005 are unaudited.  The results for
   the year ended 30 November 2004 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.



For further information please contact:

Rudi Weinreich, Chairman & Chief Executive, Holders Technology Group plc 
- 020 8343 7095

Barrie Newton, Rowan Dartington & Co. Limited 
- 0117 933 0011



Website:                   http://www.holders.co.uk




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