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Tex Holdings PLC (TXH)

  Print          Annual reports

Monday 11 August, 2014

Tex Holdings PLC

Half Yearly Report

RNS Number : 7763O
Tex Holdings PLC
11 August 2014
 



 

 

 

 

 

 

 

 

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 2014 was down by 9% over the same period in the previous year. This potential shortfall in profit was recovered as a result of the absence of further significant costs on the Muscat project and the rental income from the 40 tonne hammer.

 

With the exception of the Boards & Panels Division, all divisions saw a decrease in sales compared to the first six months of 2013.

 

Profit in the Plastics Division has improved as a result of mix of work. Engineering was a mixed picture with BSP trading strongly on the back of the rental and sale of the 40 tonne hammer, this being offset by the underperformance of the balance of the Division as a result of, in the case of Eurotex, delayed contracts, and in Tex Engineering, lower than anticipated margins. An exercise to review the margins within Tex Engineering has been undertaken and it is anticipated that this subsidiary should recover to a breakeven position. The Boards & Panels Division continues to improve on a further modest increase in sales.

 

The current order book is down on last year, however enquiries are at the prior year's level and the rate of conversion is consistent with previous years; it is the time-period from quote to order that is extending as the markets remain nervous.

 

This, along with the current political turmoil in the world and the continued strengthening of Sterling, tempers any optimism that the Board could draw from the first half results. The current indications are for the full year trading to be consistent with recent full year results.

 

The Board are also mindful of the impact a significant drop in the FTSE would have on the Pension Scheme deficit and therefore the Group balance sheet.

 

Cash and cost control remain a corporate priority.

 

The Board is proposing to pay an interim dividend of 2.0 pence (2013: 1.5 pence) which will be paid on 6th October 2014 to shareholders on the register as at 12th September 2014.

 

 

 

 

 

ARB Burrows

Chairman

8th August 2014



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).

A R B Burrows           

Chairman

8th August 2014



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

 

 

 

Notes

6 months ended

30.06.14

(Unaudited)

£000

6 months ended

30.06.13

(Unaudited)

£000

 

Year ended

31.12.13

(Audited)

£000

 

Revenue

     3

   17,743

   19,439

38,379

Cost of sales


(11,420)

(13,378)

(29,256)

Gross profit


6,323

6,061

9,123

Selling and marketing costs


(435)

(420)

(905)

Administrative expenses


(5,325)

(5,184)

(7,214)

Operating profit


563

457

1,004

Finance costs


(104)

(133)

(260)

Profit before taxation


459

324

744

Taxation

4

(97)

(84)

(164)

Profit for the period

 


362

240

580

Other comprehensive income:





Change in value of available-for-sale financial assets


-

(45)

(37)

Actuarial gain arising on defined benefit pension scheme


-

-

2,313

Tax recognised on actuarial gain on defined pension scheme


-

-

(537)

Total comprehensive income for the period


362

195

2,319






Basic and diluted earnings per share


5.7p

3.8p

9.1p











 

 

 

 



TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET


 

 

 

Notes

 

30.06.14

(Unaudited)

£000

 

30.06.13

(Unaudited)

£000

 

31.12.13

(Audited)

£000

ASSETS





Non-current assets





Property, plant and equipment

7

5,627

5,735

6,058

Deferred tax assets


357

876

353



5,984

6,611

6,411

Current assets





Inventories


6,450

6,784

6,128

Trade and other receivables


8,857

10,486

10,059

Available-for-sale financial assets


-

411

253

Cash in hand


840

-

-



16,147

17,681

16,440

Total assets


22,131

24,292

22,851

 

EQUITY





Capital and reserves attributable to the equity holders of the parent





Share capital


635

635

635

Other reserves


2,906

2,906

2,906

Retained earnings


6,030

3,830

5,668

Total equity


9,571

7,371

9,209

 

LIABILITIES





Non-current liabilities





Other interest-bearing loans and borrowings


1,907

2,595

2,332

Employee benefits


1,350

3,662

1,370



3,257

6,257

3,702

Current liabilities





Bank overdraft


-

1,170

1,106

Other interest-bearing loans and borrowings


902

874

713

Trade and other payables


7,775

7,726

7,580

Provision for other liabilities and charges


270

473

270

Tax payable


356

421

271



9,303

10,664

9,940

Total liabilities


       12,560

        16,921

13,642

Total equity and liabilities


22,131

24,292

22,851



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


Share Capital

 

£000

Capital Redemption Reserve

£000

Share Premium Account

£000

Retained Earnings

 

£000

Total Equity

 

 

£000

Balance at 1 January 2013

635

16

2,890

3,635

7,176

Profit for the period

-

-

-

240

240

Change in value of available-for-sale financial assets

-

-

-

(45)

(45)

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-


-

-

-

195

195

Balance at 30 June 2013

635

16

2,890

3,830

7,371







Balance at 1 January 2013

635

16

2,890

3,635

7,176

Profit for the period

-

-

-

580

580

Change in value of available-for-sale financial assets

-

-

-

(37)

(37)

Pension fund actuarial movement net of tax

-

-

-

1,776

1,776

Dividends paid

-

-

-

(286)

(286)


-

-

-

2,033

2,033

Balance at 31 December 2013

635

16

2,890

5,668

9,209







Balance at 1 January 2014

635

16

2,890

5,668

9,209

Profit for the period

-

-

-

362

362

Change in value of available-for-sale financial assets

-

-

-

-

-

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-


-

-

-

362

362

Balance at 30 June 2014

635

16

2,890

6,030

9,571







 



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 


6 months ended

30.06.14

(Unaudited)

£000

6 months ended

30.06.13

(Unaudited)

£000

 

Year ended

31.12.13

(Audited)

£000

Cash flows from operating activities




Profit for the period

362

240

580

Adjustments for:




Depreciation

535

544

1,141

Finance costs

104

133

260

Taxation

97

84

164

Operating profit before changes in working capital and provisions

1,098

1,001

2,145

Movement in trade and other receivables

1,202

719

1,146

Movement in inventories

(322)

(488)

168

Movement in trade and other payables

195

(207)

(353)

Increase in provisions

-

-

(203)

Movement in employee benefits

(50)

(50)

(100)

Cash generated from operations

2,123

975

2,803

Tax (paid)/recovered

(16)

87

(157)

Net cash generated from operating activities

2,107

1,062

2,646





Cash flows from investing activities




Purchases of property, plant and equipment (PPE)

(490)

(603)

(1,494)

Proceeds from sale of PPE

386

88

59

Realisation of available-for-sale financial assets

253

39

205

Net cash used in investing activities

149

(476)

(1,230)





Cash flows from financing activities




New borrowings

128

261

226

Repayments of borrowings

(216)

(216)

(432)

Finance lease payments

(148)

(219)

(392)

Interest paid

(74)

(57)

(113)

Dividends paid to company's shareholders

-

-

(286)

Net cash used in financing activities

(310)

(231)

(997)





Net increase in cash and cash equivalents

1,946

355

419

Cash and cash equivalents at beginning of the period

(1,106)

(1,525)

(1,525)

Cash and cash equivalents at end of the period

840

(1,170)

(1,106)

 



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.

 

The comparative figures for the financial year ended 31st December 2013 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) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not 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 2013.

 

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

2014


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


9,937

5,762

2,044

17,743







Result






Segment result from continuing operations


520

101

159

780

Expenses pertaining to the Company





(217)

Operating profit





563

Finance costs





(104)

Profit before tax





459

Taxation





(97)

Profit for the period from continuing operations





362

 

 

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

2013


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


11,420

6,106

1,913

19,439







Result






Segment result from continuing operations


391

16

132

539

Expenses pertaining to the Company





(82)

Operating profit





457

Finance costs





(133)

Profit before tax





324

Taxation





(84)

Profit for the period from continuing operations





240

 

4.     Taxation

Interim period corporation tax is accrued based on the estimated average annual effective income tax rate of 21% (6 months ended 30th June 2013: 26%).

 

5.     Earnings per share

Basic earnings per share of 5.6p (2013: 3.8p) is based on the following data.

 

Earnings

 


6 months ended

30.06.14

(Unaudited)

£000

6 months ended

30.06.13

(Unaudited)

£000





Earnings for the purposes of basic earnings per share


362

240

 

Number of shares

 


6 months ended

30.06.14

(Unaudited)

6 months ended

30.06.13

(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 (2013: £Nil).

 

7.         Property, plant and equipment

During the period, the Group spent £490,000 on additions to the plant and equipment.

 

It also disposed of certain machinery and equipment with a carrying value of £386,000 for proceeds of £386,000.

 

8.         Related party transactions

The Company has a related party relationship with its subsidiaries and directors.

A R B 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 2014 that require disclosure are detailed below:

Rentals paid                          £163,000 (30 June 2013: £150,000)

Trade Creditor                      £Nil (30 June 2013: £Nil)

A R B 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 8th August 2014.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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