TIDMTXH
RNS Number : 1025K
Tex Holdings PLC
23 August 2019
Tex Holdings plc
Results Announcement
31st December 2018
Registered number 00405838
Further to the announcement of 31st July 2019, the Company
confirms that its annual report for the 12 months ended 31st
December 2018 is now available at Companies House and has been
submitted to the Financial Conduct Authority through the National
Storage Mechanism and will shortly be available for inspection at:
http://www.morningstar.co.uk/uk/NSM. The Annual Report is also
available on the Company's website www.tex-holdings.co.uk
The Company also includes below extracts from the Annual
Report:
CHAIRMAN'S STATEMENT
Results for year ended 31st December 2018
Results and operations
Tex Group sales were GBP40m (2017: GBP42m). Gross margins reduce
from 28.4% to 25%.
The Plastics Division profits have reduced marginally as a
result of increased labour and power costs, partly compensated by
increased volumes. The Engineering Division had a very challenging
year and produced a significant loss with trading issues around
sales volumes and mix in some companies, after incurring further
relocation costs, write-off of design and other costs relating to
contracts expected to be shipped in 2019 and provision against
debtor balances. The Boards & Panels Division performance was
down on the previous year as a result of increased costs of gearing
up for the expanded operations within the new factory currently
under construction at the Brigg site.
The Group reported a pre-tax trading loss of GBP180k for the
year (2017: profit GBP927k), but this was increased by an
exceptional IAS19 adjustment for GMP equalisation of GBP543k which
took the total reported pre-tax loss for the year to GBP714k.
The challenging conditions in the Engineering Division were
largely responsible for the Group breaching certain banking
covenants and then in early 2019 having trading in its shares
suspended. More detail about these events are given in the
Strategic Report.
The Group's net assets per share have decreased from 168p to
140p, driven by the increase in the pension scheme deficit and the
reported loss for the current year.
Prospects and dividends
The Plastics Division has continued to trade profitably as
expected in 2019. Opening orders have been strong within the
Engineering Division with the Group order book in excess of
GBP10,000,000 and the Board is confident that appropriate steps
have been taken to address the issues seen during 2018 referred to
later. The overall Group performance for the first five months
remains challenging, however the Board look forward to reporting an
improved position for the full 2019 based on an anticipated
improved Engineering Division performance once delayed projects go
ahead.
We recommend a final dividend of Nil (2017: 6.0 pence), making
an overall payment in respect of the year of 2.5 pence (2017: 8.5
pence).
Staff
I would like to thank staff at all levels in the Group for their
contribution to the result for the year.
G C Gray
Chairman
31st July 2019
RESULTS IN BRIEF
Year Year
ended ended
31/12/18 31/12/17
GBP000 GBP000
----------------------------------------- ---------- ----------
Revenue 40,354 41,505
(Loss)/profit before taxation (714) 927
Taxation 124 (197)
(Loss)/profit after taxation (590) 730
Total equity 8,847 10,639
Net assets per share 140p 168p
Basic earnings per share (9.3)p 11.5p
Diluted earnings per share (9.3)p 11.5p
Dividends per share (based on interim
dividend in the year, special dividend
and final dividend proposed) 2.5p 8.5p
Consolidated Income Statement
for the year ended 31st December 2018
Year ended Year ended
31/12/18 31/12/17
GBP000 GBP000
---------------------------------------------- ----------- -----------
Revenue 40,354 41,505
Cost of sales (30,150) (29,681)
----------------------------------------------- ----------- -----------
Gross profit 10,204 11,824
Distribution costs (1,040) (1,073)
Administrative expenses (9,724) (9,668)
----------------------------------------------- ----------- -----------
Operating (loss)/profit (560) 1,083
Finance costs (154) (156)
----------------------------------------------- ----------- -----------
(Loss)/profit before taxation (714) 927
Taxation 124 (197)
----------------------------------------------- ----------- -----------
(Loss)/profit for the year attributable
to the equity holders of the Parent Company (590) 730
=============================================== =========== ===========
Earnings per share attributable to the
equity holders of the Parent Company
Basic and diluted (9.3)p 11.5p
----------------------------------------------- ----------- -----------
Consolidated Statement of Comprehensive Income
for the year ended 31st December 2018
Year ended Year ended
31/12/18 31/12/17
GBP000 GBP000
-------------------------------------------------- ----------- -----------
(Loss)/profit for the year attributable
to the equity holders of the Parent Company (590) 730
--------------------------------------------------- ----------- -----------
Other comprehensive income
Items that will not subsequently be reclassified
to profit or loss:
Actuarial (loss)/gain on defined benefit
pension plans (713) 767
Deferred taxation recognised on actuarial
loss/(gain) on defined benefit pension
plan recognised directly in equity 135 (148)
--------------------------------------------------- ----------- -----------
Other comprehensive (expense)/income
for the year (578) 619
--------------------------------------------------- ----------- -----------
Total comprehensive (loss)/income for
the year attributable to the equity holders
of the Parent Company (1,168) 1,349
=================================================== =========== ===========
Consolidated Balance Sheets
at 31st December 2018
31/12/18 31/12/17
GBP000 GBP000
----------------------------- --- --------- ---------
Assets
Non-current assets
Property, plant and
equipment 8,007 6,557
Investments - -
Deferred taxation
assets 213 20
------------------------------------ --------- ---------
8,220 6,577
--------------------------------- --------- ---------
Current assets
Inventories 8,271 6,798
Trade and other receivables 10,011 11,392
18,282 18,190
--------------------------------- --------- ---------
Total assets 26,502 24,767
==================================== ========= =========
Equity
Capital and reserves
attributable to the
equity holders of
the Parent Company
Share capital 635 635
Capital redemption
reserve 16 16
Other reserve 678 678
Share premium account 2,890 2,890
Retained earnings 4,628 6,420
------------------------------------ --------- ---------
Total equity 8,847 10,639
------------------------------------ --------- ---------
Liabilities
Non-current liabilities
Other interest-bearing
loans and borrowings 1,275 2,159
Employee benefits 1,833 662
3,108 2,821
--------------------------------- --------- ---------
Current liabilities
Bank overdraft 2,105 1,737
Other interest-bearing
loans and borrowings 2,941 971
Trade and other payables 9,226 8,184
Provisions 128 199
Taxation payable 147 216
------------------------------------
14,547 11,307
--------------------------------- --------- ---------
Total liabilities 17,655 14,128
------------------------------------ --------- ---------
Total equity and
liabilities 26,502 24,767
==================================== ========= =========
These financial statements were approved by the Board of
Directors on 31st July 2019 and were signed on its behalf by:
GC Gray CA Parker
Director Director
Registered number: 00405838
Consolidated Statements of Changes in Equity
at 31st December 2018
Share Capital Other Share premium Retained
capital reserve reserves account earnings Total
Consolidated GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ --------- --------- ---------- -------------- ---------- --------
Balance at 1st
January 2017 635 16 678 2,890 5,611 9,830
Profit for the
year - - - - 730 730
Pension fund actuarial
movement net of
taxation - - - - 619 619
------------------------ --------- --------- ---------- -------------- ---------- --------
Total comprehensive
income - - - - 1,349 1,349
------------------------ --------- --------- ---------- -------------- ---------- --------
Contributions by
and distributions
to owners:
Dividends paid - - - - (540) (540)
------------------------ --------- --------- ---------- -------------- ---------- --------
Balance at 31st
December 2017 and
1st January 2018 635 16 678 2,890 6,420 10,639
Loss for the year - - - - (590) (590)
IFRS15 adjustment
to opening reserves - - - - (91) (91)
Pension fund actuarial
movement net of
taxation - - - - (578) (578)
------------------------ --------- --------- ---------- -------------- ---------- --------
Total comprehensive
(expense)/income - - - - (1,259) (1,259)
------------------------ --------- --------- ---------- -------------- ---------- --------
Contributions by
and distributions
to owners:
Dividends paid - - - - (533) (533)
------------------------ --------- --------- ---------- -------------- ---------- --------
Balance at 31st
December 2018 635 16 678 2,890 4,628 8,847
======================== ========= ========= ========== ============== ========== ========
Consolidated Cash Flow Statements
for the year ended 31st December 2018
Year Year
ended ended
31/12/18 31/12/17
GBP000 GBP000
-------------------------------- ------------ ----------
Cash flows from operating
activities
(Loss)/profit for the
year (590) 730
Adjustments for:
Dividends received - -
Interest received from - -
subsidiaries
Depreciation 1,309 1,135
GMP equalisation 543 -
Impairment of investments - -
Restatement of opening (91) -
reserves
Loss on sale of fixed
assets (15) 10
Financial expense 154 156
Taxation (124) 197
----------------------------------- ------------ ----------
1,186 2,228
Decrease/(increase) in
trade and other receivables 1,381 (772)
(Increase)/decrease in
inventories (1,473) 85
Increase/(decrease) in
trade and other payables 1,042 163
(Decrease)/increase in (71) -
provisions
Decrease in employee
benefits (100) (100)
----------------------------------- ------------ ----------
Cash generated from operations 1,965 1,604
Taxation paid (3) (223)
----------------------------------- ------------ ----------
Net cash generated from
operating activities 1,962 1,381
----------------------------------- ------------ ----------
Cash flows from investing
activities
Purchases of property,
plant and equipment (2,783) (1,188)
Proceeds from sale of
property, plant and equipment 39 39
Dividends received - -
Interest received - -
Advances of loans to - -
subsidiaries
Net cash used in investing
activities (2,744) (1,149)
Cash flows from financing
activities
New borrowings 1,954 -
Repayments of borrowings (416) (534)
Finance lease payments (452) (532)
Interest paid (139) (120)
Dividends paid (533) (540)
----------------------------------- ------------ ----------
Net cash generated/(used
in) from financing activities 414 (1,726)
----------------------------------- ------------ ----------
Net (decrease)/increase
in cash and cash equivalents (368) (1,494)
Cash and cash equivalents
at beginning of the year (1,737) (243)
-----------------------------------
Cash and cash equivalents
at end of the year (2,105) (1,737)
=================================== ============ ==========
1. Basis of preparation
The condensed consolidated financial statements have been
prepared using accounting policies consistent with International
Financial Reporting Standards as adopted by EU. The condensed
consolidated financial statements have not been audited or
reviewed.
They do not include all disclosures that would otherwise be
required in a complete set of financial statements and should be
read in conjunction with the 2018 annual report.
2. Significant accounting policies
The condensed consolidated financial statements have been
prepared under the historical cost convention.
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial
statements as were applied in the preparation of the Group's
consolidated financial statements for the year ended 31st December
2017, with the exception of the application of IFRS 15 which
resulted in a GBP90,782 decrease to profit and retained earnings as
at 1st January 2018, reflecting the re-allocation of the profit
recognition on the aircraft carrier project, now based on
completion rather than percentage of expenditure at the average
margin on the project.
3. Related party transactions
The Company has a related party relationship with its
subsidiaries and Directors.
ARB Burrows has an interest in Edward Le Bas Properties Limited
through which the Group rents properties. Transactions during the
period ended 31st December 2018 that require disclosure are
detailed below:
Rentals paid (excluding recharge of ancillary costs) GBP460,914
(31st December 2017: GBP383,904)
Other property related expenditure GBP186,374 (31st December
2017: GBP144,162)
Trade payables GBP22,333 (31st December 2017: GBP17,777)
ARB Burrows has an interest in IS&G Steel Stockholders
Limited through which the Group purchases steel. Transactions
during the period ended 31st December 2018 that require disclosure
are detailed below:
Purchases GBP193,151 (31st December 2017: GBP173,391)
Trade payables GBP62,109 (31st December 2017: GBP52,305)
ARB Burrows has an interest in Le Bas Investment Trust Limited
through which the Group has borrowed a short-term loan.
Transactions during the period ended 31st December 2018 that
require disclosure are detailed below:
Interest (3.75%) GBP4,675 (31st December 2017: GBPNil)
Loan balance GBP1,300,000 (31st December 2017: GBPNil)
ARB Burrows is a trustee and a beneficiary of the Pension and
Assurance Scheme of Edward Le Bas Limited which is a substantial
shareholder in the Company.
The statement of Directors' responsibilities is set out on pages
18 and 19 of the Company's annual report and financial statements
for the year ended 31st December 2018.
Notes:
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31st December 2017
or 31st December 2018. The auditor has reported on the statutory
accounts for 31st December 2018 and their report was a disclaimer
of opinion. The full audit report is contained on pages 27 - 36 of
the Company's annual report and financial statements for the year
ended 31st December 2018. The statutory accounts for 31st December
2018 have been delivered to the Registrar of Companies.
Statutory accounts for 2017 were delivered to the Registrar of
Companies. The previous auditor reported on the accounts for 2017
and their report was unqualified.
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END
FR FMGZRMFRGLZM
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