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Tex Holdings PLC (TXH)

  Print          Annual reports

Wednesday 28 August, 2019

Tex Holdings PLC

Half-year Report

RNS Number : 4571K
Tex Holdings PLC
28 August 2019
 

 

 

 

 

 

 

 

 

TEX HOLDINGS PLC

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



TEX HOLDINGS PLC

INDEX

 

 

Page

Chairman's Statement

2

Responsibility Statement

3

Consolidated Statement of Comprehensive Income

4

Consolidated Balance Sheet

5

Consolidated Statement of Changes in Equity

6

Consolidated Statement of Cash Flows

7

Notes to the Interim Condensed Consolidated Financial Statements

8-10

 

 

 

 

 



TEX HOLDINGS PLC

CHAIRMAN'S STATEMENT

 

Group turnover for the six months to 30th June 2019 was higher in comparison to the same period in the previous year. However, as a consequence of lower margins and additional professional fees, the half year result is a pre-tax loss.

 

The Plastics Division, with a small increase in turnover increased the operating profit by eight percent.

 

The Boards & Panels Division had a static turnover year on year, but the operating profit has increased as a result of improved margins following the recruitment of a new Production Director, as noted in last year's report.

 

The new factory in Brigg has now been completed. The new Edging Machine has also been installed and initial production has commenced.

 

The Engineering Division turnover has increased by seventeen percent due to the despatch of a number of significant orders received in 2018. However, the Division has produced a loss due to the mix of sales with a lower margin. The Division has entered the second half of the year with an order book in excess of £5,000,000 which is expected to consist of an improvement in the mix of business with increased margins.

 

The contracts to supply "flat pack" air traffic control rooms to Nigeria, to be supplied by the Tex A.T.C. Division, have been delayed. Customers are awaiting funds from the Nigerian Government; these funds are now understood to have been released.

 

The Group has been offered a £7,000,000 term loan from associates of the major shareholder. A circular is due to be issued shortly calling an extraordinary general meeting for shareholders to approve the transaction.

 

The Group has experienced a slow-down in the UK domestic and European markets due to the uncertainty and general lack of confidence surrounding the Brexit issue.

 

The Board, whilst remaining cautious, anticipates that investments in assets and acquisitions will result in an improvement in trading performance, albeit with higher working capital.

 

The Board is not proposing to pay an interim dividend (2018: 2.5 pence).

 

 

 

G C Gray

Chairman

28th August 2019



TEX HOLDINGS PLC

RESPONSIBILITY STATEMENT

in respect of the interim financial report

 

We confirm that to the best of our knowledge:

·    the interim condensed consolidated financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU;

·    the interim management report includes a fair review of the information required by Disclosure and Transparency Rules ("DTR") 4.2.7R (indication of the important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

·    the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

G C Gray       

Chairman

28th August 2019



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

 

 

 

Notes

6 months ended

30.06.19

(Unaudited)

£000

6 months ended

30.06.18

(Unaudited)

£000

 

Year ended

31.12.18

(Audited)

£000

 

Revenue

     3

   21,805

   20,577

40,354

Cost of sales


(15,274)

(14,319)

(30,150)

Gross profit


6,531

6,258

10,204

Selling and marketing costs


(502)

(540)

(1,040)

Administrative expenses


(6,045)

(5,527)

(9,724)

Operating (loss)/profit


(16)

191

(560)

Finance costs


(302)

(95)

(154)

(Loss)/profit before taxation


(318)

96

(714)

Taxation

4

52

(12)

124

(Loss)/profit for the period

 


(266)

84

(590)

Other comprehensive income:





Actuarial loss arising on defined benefit pension scheme


-

-

(713)

Tax recognised on actuarial loss on defined pension scheme


-

-

135

Total comprehensive (loss)/income for the period


(266)

84

1,168






Basic and diluted earnings per share


(4.2)p

1.3p

(9.3)p











 

 

 

 



TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET



 

 

 

Notes

As at

30.06.19

(Unaudited)

£000

As at

30.06.18

(Unaudited)

£000

As at

31.12.18

(Audited)

£000

ASSETS






Non-current assets






Property, plant and equipment


7

                   14,295

7,117

8,007

Deferred tax assets



213

20

213




14,508

7,137

8,220

Current assets






Inventories



8,433

7,891

8,271

Trade and other receivables



9,559

11,248

10,011

Cash in hand



-

-

-




17,992

19,139

18,282

Total assets



32,500

26,276

26,502

 

EQUITY






Capital and reserves attributable to the equity holders of the parent






Share capital



635

635

635

Capital reserve



16

16

16

Other reserve



678

678

678

Share premium account



2,890

2,890

2,890

Retained earnings



4,316

6,504

4,628

Total equity



8,535

10,723

8,847

 

LIABILITIES






Non-current liabilities






Other interest-bearing loans and borrowings



6,025

1,467

1,275

Employee benefits



1,843

631

1,833




7,868

2,098

3,108

Current liabilities






Bank overdraft



3,166

2,136

2,105

Other interest-bearing loans and borrowings



3,526

1,056

2,941

Trade and other payables



9,277

9,871

9,226

Provision for other liabilities and charges



128

177

128

Tax payable



-

215

147




16,097

13,455

14,547

Total liabilities



       23,965

       15,553

17,655

Total equity and liabilities



32,500

26,276

26,502



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


 

Share Capital

£000

Capital Redemption Reserve

£000

Other Reserve

Share Premium Account

£000

 

Retained Earnings

£000

 

 

Total Equity

£000

Balance at 1st January 2018

635

16

678

2,890

6,420

10,639

Profit for the period

-

-

-

-

84

84

Pension fund actuarial movement net of tax

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

-


-

-

-

-

84

84

Balance at 30th June 2018

635

16

678

2,890

6,504

10,723








Balance at 1st January 2018

635

16

678

2,890

6,420

10,639

Loss for the period

-

-

-

-

(590)

(590)

IFRS15 adjustment to opening reserves

-

-

-

-

(91)

(91)

Pension fund actuarial movement net of tax

-

-

-

-

(578)

(578)

Dividends paid

-

-

-

-

(533)

(533)


-

-

-

-

(1,792)

(1,792)

Balance at 31st December 2018

635

16

678

2,890

4,628

8,847








Balance at 1st January 2019

635

16

678

2,890

4,628

8,847

Loss for the period

-

-

-

-

(266)

(266)

IFRS16 adjustment to opening reserves

-

-

-

-

(46)

(46)

Pension fund actuarial movement net of tax

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

-


-

-

-

-

(312)

(312)

Balance at 30th June 2019

635

16

678

2,890

4,316

8,535








 



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 


6 months ended

30.06.19

(Unaudited)

£000

6 months ended

30.06.18

(Unaudited)

£000

 

Year ended

31.12.18

(Audited)

£000

Cash flows from operating activities




(Loss)/profit for the period

(266)

84

                      (590)

Adjustments for:




Depreciation

994

640

1,309

GMP equalisation

-

-

543

Restatement of opening reserves

(46)

-

(91)

Loss on sale of fixed assets

(2)

-

(15)

Finance costs

302

95

154

Taxation

(52)

12

(124)

Operating profit before changes in working capital and provisions

930

831

1,186

Movement in trade and other receivables

508

144

1,381

Movement in inventories

(162)

(1,093)

(1,473)

Movement in trade and other payables

51

1,687

1,042

Decrease in provisions

-

(22)

(71)

Movement in employee benefits

(50)

(50)

(100)

Cash generated from operations

1,277

1,497

1,965

Tax paid

(151)

(13)

(3)

Net cash generated from operating activities

1,126

1,484

1,962





Cash flows from investing activities




Purchases of property, plant and equipment (PPE)

(7,282)

(1,204)

(2,783)

Proceeds from sale of PPE

2

4

39

Net cash used in investing activities

(7,280)

(1,200)

(2,744)





Cash flows from financing activities




New borrowings

6,339

-

1,954

Repayments of borrowings

(400)

(216)

(416)

Finance lease payments

(604)

(391)

(452)

Interest paid

(242)

(76)

(139)

Dividends paid to company's shareholders

-

-

(533)

Net cash used in financing activities

5,093

(683)

414





Net decrease in cash and cash equivalents

(1,061)

(399)

(368)

Cash and cash equivalents at beginning of the period

(2,105)

(1,737)

(1,737)

Cash and cash equivalents at end of the period

(3,166)

(2,136)

(2,105)

 



TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

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 and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. 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.

 

The comparative figures for the financial year ended 31st December 2018 are not the statutory financial statements for that financial year. Those financial statements have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) a disclaimer of opinion, (ii) did include a reference to any matters to which the auditors drew attention by way of emphasis, and (iii) did contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

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 16 which increased the loss by £19,000.

 

3.     Segment information

The following is an analysis of the revenue and results for the period analysed by business segment, the Group's primary basis of segmentation.

 

 

 

 


 

 

Plastics

 

 

Engineering

 

Boards & Panels

Total for continuing operations

2019


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


11,843

7,575

2,387

21,805







Result






Segment result from continuing operations


652

(436)

82

298

Expenses pertaining to the Company





(314)

Operating profit





(16)

Finance costs





(302)

Profit before taxation





(318)

Taxation





52

Profit for the period from continuing operations





(266)

 

 

All operations are continuing.

TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

3.     Segment information (continued)

Segment information about the Group's continuing operations is presented below.

 

 

 

 


 

 

Plastics

 

 

Engineering

 

Boards & Panels

Total for continuing operations

2018


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


11,718

6,493

2,366

20,577







Result






Segment result from continuing operations


602

47

30

679

Expenses pertaining to the Company





(488)

Operating profit





191

Finance costs





(95)

Profit before taxation





96

Taxation





(12)

Profit for the period from continuing operations





84

 

4.     Taxation

Interim period corporation tax is accrued based on the estimated average annual effective income tax rate of 19% (6 months ended 30th June 2018: 19%).

 

5.     Earnings per share

Basic earnings per share of (4.2)p (2018: 1.3p) is based on the following data.

 

Earnings

 


6 months ended

30.06.19

(Unaudited)

£000

6 months ended

30.06.18

(Unaudited)

£000





Earnings for the purposes of basic earnings per share


(266)

84

 

Number of shares

 


6 months ended

30.06.19

(Unaudited)

6 months ended

30.06.18

(Unaudited)

Weighted average number of ordinary shares for the purposes of basic earnings per share


6,351,452

6,351,452

 



TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

6.         Dividends

During the interim period, no dividends were paid (2018: £Nil).

 

7.         Property, plant and equipment

During the period, the Group spent £272,000 on additions.

 

It also disposed of certain machinery and equipment with a carrying value of £Nil for proceeds of £2,000.

 

8.         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 at normal commercial rates. Transactions during the period ended 30th June 2019 that require disclosure are detailed below:

Rentals paid                                         £257,000 (30th June 2018: £213,000)

Other property related expenditure  £93,000 (30th June 2018: £130,000)

Trade payables                                    £14,692 (30th June 2018: £14,777)

A R B Burrows has an interest in IS&G Steel Stockholders Limited through which the Group purchases steel.  Transactions during the period ended 30th June 2019 that require disclosure are detailed below:

Purchases                                              £139,274 (30th June 2018: £92,165)

Trade payables                                    £63,074 (30th June 2018: £52,701)

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%)                                                                   £24,719 (31st December 2017: £Nil)

Loan balance                                                                       £1,700,000 (31st December 2017: £Nil)

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.

 

All intra-group related party transactions and outstanding balances are eliminated in the preparation of the consolidated financial statements of the Group and therefore in accordance with IAS 24 related party disclosures are not disclosed.

 

9.         Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 28th August 2019.

 

 


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