TIDMTXH
RNS Number : 5976O
Tex Holdings PLC
01 June 2020
Tex Holdings plc
Preliminary Announcement
31st December 2019
Registered number 00405838
The Company also includes below extracts from the Annual
Report:
CHAIRMAN'S STATEMENT
Results for year ended 31st December 2019
Results and operations
During the financial year to 31st December 2019, Tex Group sales
were GBP43.1m (2018 restated: GBP40.1m). Gross margins reduced from
26% to 25%.
Profits for the Plastics Division remained stable, with
increased operating costs being offset by a modest increase in
sales. The Engineering Division experienced another challenging
year resulting in a further loss. However, the Division has entered
2020 with an order book in excess of GBP10m with the conversion
rate of enquiries improving as a degree of certainty has returned
to the market. As a result of delays in delivery of a new Edging
Machine, the Boards & Panels Division experienced a loss due to
the reduction in capacity and productivity in 2019.
The Group reported a pre-tax trading loss of GBP897k for the
year (2018: restated loss GBP877k), this is after exceptional costs
of staff redundancies and additional professional fees. The
underlying trading loss was GBP661k.
Following the approval by shareholders, the Group has drawn down
a term loan from the major shareholder thus allowing the bank
overdraft to be cleared and the commencement of a restructuring
exercise to be initiated.
Application has been made for the restoration of listing of the
shares and a decision is awaited from the FCA.
The Group's net assets per share have increased from 127p to
134p, driven by the Pension Scheme moving into surplus.
Prospects and dividends
The Plastics Division has continued to trade profitably, however
the performance for the year will now be reduced by the impact of
COVID-19, which is expected to reduce volumes for a period of
time.
The Group has taken advantage of support from the Government,
including the deferral of the VAT payment to March 2021, and the
Coronavirus Job Retention Scheme. Currently 50% of the Group's
staff are furloughed, with 10% working from home.
The diversity of the Group means that some operations are either
closed or significantly reduced whilst others are operating almost
normally. QK Honeycomb Products Limited is virtually closed as in
line with its main customer base, being the UK caravan industry.
G&M TEX and the ATC Division are trading in line with their
respective budgets. The Plastics Division is currently trading at
about 70% of the budgeted production levels, supplying critical
line supplies to the medical and hygiene industries.
The Group is using this period of downturn in operations to
revisit working practices and to restructure the organisation in
preparation for future trading opportunities. A plan has been
initiated that could result in an estimated annualised saving of up
to approximately GBP1.5m.
The current cash balance is relatively strong, with in excess of
GBP2,000,000 in the bank. A revised budget through to June 2021 has
been prepared which indicates that if the forecasts are met, the
Group should remain cash positive during this period.
The Group currently has a record order book of in excess of
GBP14m, which assists in underpinning the budget trading
expectations.
The overall Group performance for the first four months is in
line with budget.
The Board previously considered that, subject to the current
global situation, the Group would have reported an improved
position for 2020. This has now been superseded by the COVID-19
pandemic. The outturn for the year now depends upon how swiftly
trading returns and how long the current restrictions remain in
place. There is expected to be an improvement on the 2019 result,
with a number of the projects in stock at the 2019 year-end being
completed during 2020.
We recommend a final dividend of Nil (2018: Nil), making an
overall payment in respect of the year of Nil (2018: 2.5
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
1st June 2020
RESULTS IN BRIEF
Year Year
ended ended
31/12/19 31/12/18
(restated)
GBP000 GBP000
----------------------------------------- ---------- ------------
Revenue 43,080 40,176
Loss before taxation (897) (877)
Taxation (140) 123
Loss after taxation (1,037) (754)
Total equity 8,526 8,104
Net assets per share 134p 127p
Basic earnings per share (16.3p) (11.9p)
Diluted earnings per share (16.3p) (11.9p)
Dividends per share (based on interim
dividend in the year, special dividend
and final dividend proposed) Nil 2.5p
Consolidated Income Statement
for the year ended 31st December 2019
Year ended Year ended
31/12/19 31/12/18
(restated)
GBP000 GBP000
------------------------------------------- ----------- ------------
Revenue 43,080 40,176
Cost of sales (32,446) (29,774)
-------------------------------------------- ----------- ------------
Gross profit 10,634 10,402
Distribution costs (1,118) (1,069)
Administrative expenses (9,937) (10,056)
-------------------------------------------- ----------- ------------
Operating loss (421) (723)
Finance costs (476) (154)
-------------------------------------------- ----------- ------------
Loss before taxation (897) (877)
Taxation (140) 123
-------------------------------------------- ----------- ------------
Loss for the year attributable to the
equity holders of the Parent Company (1,037) (754)
============================================ =========== ============
Earnings per share attributable to
the equity holders of the Parent Company
Basic and diluted (16.3p) (11.9p)
-------------------------------------------- ----------- ------------
Consolidated Statement of Comprehensive Income
for the year ended 31st December 2019
Year ended Year ended
31/12/19 31/12/18
(restated)
GBP000 GBP000
-------------------------------------------------- ---- ----------- ------------
Loss for the year attributable to the
equity holders of the Parent Company (1,037) (754)
-------------------------------------------------------- ----------- ------------
Other comprehensive income
Items that will not subsequently be reclassified
to profit or loss:
Actuarial gain/(loss) on defined benefit
pension plans 2,149 (713)
Deferred taxation recognised on actuarial
(gain)/loss on defined benefit pension
plan recognised directly in equity (409) 135
-------------------------------------------------------- ----------- ------------
1,740 (578)
Other comprehensive income/(expense)
for the year 1,740 (578)
-------------------------------------------------------- ----------- ------------
Total comprehensive income/(loss) for
the year attributable to the equity holders
of the Parent Company 703 (1,332)
======================================================== =========== ============
Balance Sheets
at 31st December 2019
Consolidated
31/12/19 31/12/18
(restated)
GBP000 GBP000
----------------------------- ---- ---- ---- --------- ------------
Assets
Non-current assets
Property, plant and
equipment 14,430 7,818
Investments - -
Deferred taxation
assets - 213
----------------------------------------------- --------- ------------
14,430 8,031
-------------------------------------------- --------- ------------
Current assets
Inventories 7,946 8,110
Trade and other receivables 10,860 10,444
Cash and cash equivalents 1,017 -
19,823 18,554
-------------------------------------------- --------- ------------
Total assets 34,253 26,585
=============================================== ========= ============
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 4,307 3,885
----------------------------------------------- --------- ------------
Total equity 8,526 8,104
----------------------------------------------- --------- ------------
Liabilities
Non-current liabilities
Other interest-bearing
loans and borrowings 8,695 1,451
Deferred taxation 315 -
Employee benefits - 1,833
Provisions 530 530
9,540 3,814
-------------------------------------------- --------- ------------
Current liabilities
Bank overdraft - 2,105
Other interest-bearing
loans and borrowings 7,145 2,762
Trade and other payables 8,949 9,525
Provisions 68 128
Taxation payable 25 147
-----------------------------------------------
16,187 14,667
-------------------------------------------- --------- ------------
Total liabilities 25,727 18,481
----------------------------------------------- --------- ------------
Total equity and
liabilities 34,253 26,585
=============================================== ========= ============
Consolidated Statements of Changes in Equity
at 31st December 2019
Share Capital Other Share premium Retained
capital reserve reserves account earnings Total
Consolidated GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------------- --------- --------- ---------- -------------- ---------- --------
Balance at 1st January
2018 635 16 678 2,890 6,420 10,639
Prior year adjustment
- dilapidations - - - - (530) (530)
Prior year adjustment
- other - - - - (49) (49)
--------------------------- --------- --------- ---------- -------------- ---------- --------
Restated balance
at 1st January 2018 635 16 678 2,890 5,841 10,060
Loss for the year - - - - (754) (754)
IFRS15 adjustment
to opening reserve - - - - (91) (91)
Pension fund actuarial
movement net of taxation - - - - (578) (578)
--------------------------- --------- --------- ---------- -------------- ---------- --------
Total comprehensive
expense - - - - (1,423) (1,423)
--------------------------- --------- --------- ---------- -------------- ---------- --------
Contributions by
and distributions
to owners:
Dividends paid - - - - (533) (533)
--------------------------- --------- --------- ---------- -------------- ---------- --------
Balance at 31st December
2018 and 1st January
2019 635 16 678 2,890 3,885 8,104
Loss for the year - - - - (1,037) (1,037)
IFRS16 adjustment
to opening reserves - - - - (281) (281)
Pension fund actuarial
movement net of taxation - - - - 1,740 1,740
--------------------------- --------- --------- ---------- -------------- ---------- --------
Total comprehensive
income - - - - 422 422
--------------------------- --------- --------- ---------- -------------- ---------- --------
Contributions by
and distributions
to owners:
Dividends paid - - - - - -
--------------------------- --------- --------- ---------- -------------- ---------- --------
Balance at 31st December
2019 635 16 678 2,890 4,307 8,526
=========================== ========= ========= ========== ============== ========== ========
Consolidated Cash Flow Statements
for the year ended 31st December 2019
Year ended Year
31/12/19 ended
31/12/18
(restated)
GBP000 GBP000
-------------------------------- ------------ ------------
Cash flows from operating
activities
Loss for the year (1,037) (754)
Adjustments for:
Dividends received - -
Interest received from - -
subsidiaries
Depreciation 2,398 1,309
GMP equalisation - 543
Impairment of investments - -
Restatement of opening
reserves (281) (671)
Loss on sale of fixed
assets (8) (15)
Financial expense 476 154
Taxation 140 (123)
----------------------------------- ------------ ------------
1,688 443
(Increase)/decrease in
trade and other receivables (48) 948
Decrease/(increase) in
inventories 164 (1,312)
(Decrease)/increase in
trade and other payables (576) 1,338
(Decrease)/increase in
provisions (60) 459
(Decrease) in employee
benefits (100) (100)
----------------------------------- ------------ ------------
Cash generated from operations 1,068 1,776
Taxation paid (143) (3)
----------------------------------- ------------ ------------
Net cash generated from
operating activities 925 1,773
----------------------------------- ------------ ------------
Cash flows from investing
activities
Purchases of property,
plant and equipment (3,258) (2,594)
Proceeds from sale of
property, plant and equipment 212 39
IFRS16 take on (5,956) -
Dividends received - -
Interest received - -
Advances of loans to - -
subsidiaries
Net cash used in investing
activities (9,002) (2,555)
Cash flows from financing
activities
New borrowings 14,547 1,954
Repayments of borrowings (2,698) (416)
Finance lease payments (222) (452)
Interest paid (428) (139)
Dividends paid - (533)
----------------------------------- ------------ ------------
Net cash generated from
financing activities 11,199 414
----------------------------------- ------------ ------------
Net increase/(decrease)
in cash and cash equivalents 3,122 (368)
Cash and cash equivalents
at beginning of the year (2,105) (1,737)
-----------------------------------
Cash and cash equivalents
at end of the year 1,017 (2,105)
=================================== ============ ============
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 2019 annual report.
The financial information set out in the announcement does not
constitute the Company's statutory accounts for the years ended
31st December 2019 or 2018. The financial information for the year
ended 31st December 2018 is derived from the statutory accounts for
that year but has been restated. The statutory accounts for the
year ended 31st December 2018 have been delivered to the Registrar
of Companies. The auditors reported on those accounts: their report
was a disclaimer of opinion, did not draw attention to any matters
by way of emphasis but did contain statements under s498(2) and (3)
of the Companies Act 2006. The audit of the statutory accounts for
the year ended 31st December 2019 is not yet complete, but the
Directors expect this to be completed within the next week.
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
2018, 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 2019 that require disclosure are
detailed below:
Rentals and property related expenditure GBP686,401 (31st
December 2018: GBP647,288)
Trade payables GBP21,715 (31st December 2018: GBP22,333)
ARB Burrows has an interest in IS&G Steel Stockholders
Limited through which the Group purchases steel. Transactions
during the period ended 31st December 2019 that require disclosure
are detailed below:
Purchases GBP201,170 (31st December 2018: GBP193,151)
Trade payables GBP33,236 (31st December 2018: GBP62,109)
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 2019 that
require disclosure are detailed below:
Interest (3.75%) GBP13,556 (31st December 2018: GBP4,675)
Loan balance GBPNil (31st December 2018: GBP1,300,000)
ARB Burrows has an interest in Edward Le Bas Properties Limited
through which the Group has borrowed a term loan. Transactions
during the period ended 31st December 2019 that require disclosure
are detailed below:
Interest (8.00%) GBP52,165 (31st December 2018: GBPNil)
Loan organisation fees GBP2,166 (31st December 2018: GBPNil)
Loan balance GBP7,000,000 (31st December 2018: 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UAONRRUUNRAR
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