European electronics- and telecoms-focused distributor Holders is reeling from the downturn in the markets it supplies. But, like most British listed electronics distributors, it remains profitable, though only just. It made £41,000 pre-tax in the six months to March on £4.9m sales. This compares with £230,000 on £6.6m in the same period last year. Cost-cutting measures have been introduced to improve the second-half performance. The shares fell 12% on the day, which means its market cap is significantly below net assets of £4.3m (no intangibles). Equally intriguing are rumours that the sub-sector is in line for a bout of consolidation. Peter Webb's Eaglet Investment Trust holds 28% of the shares. This is similar to the holding it has in Deltron Electronics, which looks ripe for a takeover, probably by Acal. Holders expresses uncertainty about the second half, but this is in relation to a recovery in demand. A further collapse is therefore unlikely. At the currently depressed price, the company looks like good value.