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Tex Holdings PLC (TXH)

  Print          Annual reports

Wednesday 12 August, 2015

Tex Holdings PLC

Half Yearly Report

RNS Number : 8927V
Tex Holdings PLC
12 August 2015
 



 

 

 

 

 

 

 

 

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 2015 was similar to the same period in the previous year, with the pre-tax profit also remaining consistent with 2014.

 

With the exception of the Plastics Division, all divisions saw a decrease in sales compared to the first six months of 2014. Within the Engineering Division, this is as a result of the timing of projects and turnover is expected to recover. 

 

Profits in the Plastics Division continue to improve due to mix of work and control of overheads. Engineering was a mixed picture with BSP under-performing their previous year's result. The level of quotations remains at the historic levels, but the conversion to orders has deteriorated, with customers deferring making decisions. Eurotex and Tex Engineering are trading in line with expectations. Tex ATC division has recently won contracts in Oman for the supply of control rooms and these should be dispatched in the current trading year.

 

The order book at the half year was in line with 2014.

 

The current political turmoil in the world tempers any optimism that the Board could draw from the first half results. It is anticipated the full year trading will be consistent with recent full year results.

 

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

 

As with previous years, cash and cost control remains a corporate priority.

 

The Board is proposing to pay an interim dividend of 2.0 pence (2014: 2.0 pence) which will be paid on 6th October 2015 to shareholders on the register as at 11th September 2015.

 

 

 

 

 

ARB Burrows

Chairman

12th August 2015



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

12th August 2015



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

 

 

 

Notes

6 months ended

30.06.15

(Unaudited)

£000

6 months ended

30.06.14

(Unaudited)

£000

 

Year ended

31.12.14

(Audited)

£000

 

Revenue

     3

   17,583

   17,743

36,021

Cost of sales


(11,944)

(11,420)

(25,797)

Gross profit


5,639

6,323

10,224

Selling and marketing costs


(465)

(435)

(912)

Administrative expenses


(4,593)

(5,325)

(7,942)

Operating profit


581

563

1,370

Finance costs


(84)

(104)

(191)

Profit before taxation


497

459

1,179

Taxation

4

(109)

(97)

(312)

Profit for the period

 


388

362

867

Other comprehensive income:





Change in value of available-for-sale financial assets


-

-

12

Actuarial loss arising on defined benefit pension scheme


-

-

(1,263)

Tax recognised on actuarial loss on defined pension scheme


-

-

191

Total comprehensive income for the period


388

362

(193)






Basic and diluted earnings per share


6.1p

5.7p

13.7p











 

 

 

 



TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET


 

 

 

Notes

 

30.06.15

(Unaudited)

£000

 

30.06.14

(Unaudited)

£000

 

31.12.14

(Audited)

£000

ASSETS





Non-current assets





Property, plant and equipment

7

5,583

5,627

5,448

Deferred tax assets


420

357

423



6,003

5,984

5,871

Current assets





Inventories


6,538

6,450

5,879

Trade and other receivables


9,607

8,857

9,762

Available-for-sale financial assets


-

-

-

Cash in hand


852

840

358



16,997

16,147

15,999

Total assets


23,000

22,131

21,870

 

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


5,577

6,030

5,189

Total equity


9,118

9,571

8,730

 

LIABILITIES





Non-current liabilities





Other interest-bearing loans and borrowings


1,265

1,907

1,676

Employee benefits


2,586

1,350

2,591



3,851

3,257

4,267

Current liabilities





Bank overdraft


-

-

-

Other interest-bearing loans and borrowings


755

902

722

Trade and other payables


8,764

7,775

7,880

Provision for other liabilities and charges


100

270

100

Tax payable


412

356

171



10,031

9,303

8,873

Total liabilities


       13,882

       12,560

13,140

Total equity and liabilities


23,000

22,131

21,870



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 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







Balance at 1 January 2014

635

16

2,890

5,668

9,209

Profit for the period

-

-

-

867

867

Change in value of available-for-sale financial assets

-

-

-

12

12

Pension fund actuarial movement net of tax

-

-

-

(1,072)

(1,072)

Dividends paid

-

-

-

(286)

(286)


-

-

-

(479)

(479)

Balance at 31 December 2014

635

16

2,890

5,189

8,730







Balance at 1 January 2015

635

16

2,890

5,189

8,730

Profit for the period

-

-

-

388

388

Change in value of available-for-sale financial assets

-

-

-

-

-

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-


-

-

-

388

388

Balance at 30 June 2015

635

16

2,890

5,577

9,118







 



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 


6 months ended

30.06.15

(Unaudited)

£000

6 months ended

30.06.14

(Unaudited)

£000

 

Year ended

31.12.14

(Audited)

£000

Cash flows from operating activities




Profit for the period

388

362

                867

Adjustments for:




Depreciation

521

535

1,094

Profit on sale of fixed assets

(86)

-

(1)

Finance costs

84

104

191

Taxation

109

97

312

Operating profit before changes in working capital and provisions

1,016

1,098

2,463

Movement in trade and other receivables

155

1,202

297

Movement in inventories

(659)

(322)

249

Movement in trade and other payables

884

195

300

Increase in provisions

-

-

(170)

Movement in employee benefits

(50)

(50)

(100)

Cash generated from operations

1,346

2,123

3,039

Tax recovered/(paid)

135

(16)

(291)

Net cash generated from operating activities

1,481

2,107

2,748





Cash flows from investing activities




Purchases of property, plant and equipment (PPE)

(722)

(490)

(859)

Proceeds from sale of PPE

152

386

376

Realisation of available-for-sale financial assets

-

253

265

Net cash used in investing activities

(570)

149

(218)





Cash flows from financing activities




New borrowings

16

128

147

Repayments of borrowings

(216)

(216)

(432)

Finance lease payments

(178)

(148)

(362)

Interest paid

(39)

(74)

(133)

Dividends paid to company's shareholders

-

-

(286)

Net cash used in financing activities

(417)

(310)

(1,066)





Net increase in cash and cash equivalents

494

1,946

1,464

Cash and cash equivalents at beginning of the period

358

(1,106)

(1,106)

Cash and cash equivalents at end of the period

852

840

358

 



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 2014 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 2014.

 

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

2015


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


11,282

4,401

1,900

17,583







Result






Segment result from continuing operations


634

(174)

198

658

Expenses pertaining to the Company





(77)

Operating profit





581

Finance costs





(84)

Profit before tax





497

Taxation





(109)

Profit for the period from continuing operations





388

 

 

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

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

 

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 2014: 21%).

 

5.     Earnings per share

Basic earnings per share of 6.1p (2014: 5.6p) is based on the following data.

 

Earnings

 


6 months ended

30.06.15

(Unaudited)

£000

6 months ended

30.06.14

(Unaudited)

£000





Earnings for the purposes of basic earnings per share


388

362

 

Number of shares

 


6 months ended

30.06.15

(Unaudited)

6 months ended

30.06.14

(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 (2014: £Nil).

 

7.         Property, plant and equipment

During the period, the Group spent £722,000 on additions to the plant and equipment.

 

It also disposed of certain machinery and equipment with a carrying value of £66,000 for proceeds of £152,000.

 

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 2015 that require disclosure are detailed below:

Rentals paid                          £163,000 (30 June 2014: £163,000)

Trade Creditor                      £Nil (30 June 2014: £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 12th August 2015.

 

 


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