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Tex Holdings PLC (TXH)

  Print          Annual reports

Tuesday 09 August, 2016

Tex Holdings PLC

Interim Results

RNS Number : 7108G
Tex Holdings PLC
09 August 2016
 

 

 

 

 

 

 

 

 

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 2016 was higher than the same period in the previous year, however the pre-tax profit did not achieve the same increase.

 

The previous year's pattern was reversed with the Plastics Division being the only division to record lower sales in the first six months of 2016 compared to 2015. This reduction in turnover is as a result of reduced call-offs from a number of customers of the Plastics Division who were reviewing their stock holding levels.

 

The Engineering division benefited from six months trading from G&M TEX Ltd and a strong opening six months from Tex Engineering Limited.  The Boards & Panels Division was buoyed by two larger projects for the Quikaboard product.

 

Since the half year there has been some improvement in the sales volumes in the Plastics Division.

 

Profits for the first six months trading have not reflected the increased turnover, as a result of a different mix of work, the impact of aborted project costs and the initial costs of the relocation of G&M TEX to new premises.

 

The Engineering Division also currently has a number of projects in progress that are due to be completed in the second half of the year.

 

The order book at the half year is in excess of £7,000,000.

 

In order to provide a foundation for future trading and to give some stability in the current turbulent times post Brexit, the Group has put in place a £2,000,000 term loan.

 

The Board remains cautious. It is however anticipated that subject to the current political and economic turmoil in the world, the full year trading will maintain its parity with recent results.

 

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

 

The Board is proposing to pay an interim dividend of 2.5 pence (2015: 2.0 pence) which will be paid on 7th October 2016 to shareholders on the register as at 16th September 2016.

 

 

 

 

ARB Burrows

Chairman

8th August 2016

 

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 2016

 

TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

Notes

6 months ended

30.06.16

(Unaudited)

£000

6 months ended

30.06.15

(Unaudited)

£000

 

Year ended

31.12.15

(Audited)

£000

 

Revenue

     3

   20,791

   17,583

36,046

Cost of sales

 

(14,604)

(11,944)

(25,932)

Gross profit

 

6,187

5,639

10,114

Selling and marketing costs

 

(483)

(465)

(962)

Administrative expenses

 

(5,157)

(4,593)

(7,497)

Operating profit

 

547

581

1,655

Finance costs

 

(52)

(84)

(162)

Profit before taxation

 

495

497

1,493

Taxation

4

(101)

(109)

(329)

Profit for the period

 

 

394

388

1,164

Other comprehensive income:

 

 

 

 

Actuarial gain arising on defined benefit pension scheme

 

-

-

1,089

Tax recognised on actuarial gain on defined pension scheme

 

-

-

(218)

Total comprehensive income for the period

 

394

388

2,035

 

 

 

 

 

Basic and diluted earnings per share

 

6.2p

6.1p

18.3p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

 

 

 

 

 

Notes

As at

30.06.16

(Unaudited)

£000

As at

30.06.15

(Unaudited)

£000

As at

31.12.15

(Audited)

£000

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

7

5,492

5,583

5,577

Deferred tax assets

 

156

420

165

 

 

5,648

6,003

5,742

Current assets

 

 

 

 

Inventories

 

7,271

6,538

6,546

Trade and other receivables

 

10,430

9,607

9,541

Cash in hand

 

942

852

-

 

 

18,643

16,997

16,087

Total assets

 

24,291

23,000

21,829

 

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

 

6,291

5,577

5,897

Total equity

 

9,832

9,118

9,438

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Other interest-bearing loans and borrowings

 

2,709

1,265

1,155

Employee benefits

 

1,464

2,586

1,488

 

 

4,173

3,851

2,643

Current liabilities

 

 

 

 

Bank overdraft

 

-

-

988

Other interest-bearing loans and borrowings

 

1,017

755

776

Trade and other payables

 

8,678

8,764

7,481

Provision for other liabilities and charges

 

199

100

199

Tax payable

 

392

412

304

 

 

10,286

10,031

9,748

Total liabilities

 

       14,459

       13,882

12,391

Total equity and liabilities

 

24,291

23,000

21,829

 

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 2015

635

16

2,890

5,189

8,730

Profit for the period

-

-

-

388

388

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-

 

-

-

-

388

388

Balance at 30 June 2015

635

16

2,890

5,577

9,118

 

 

 

 

 

 

Balance at 1 January 2015

635

16

2,890

5,189

8,730

Profit for the period

-

-

-

1,164

1,164

Pension fund actuarial movement net of tax

-

-

-

871

871

Dividends paid

-

-

-

(1,327)

(1,327)

 

-

-

-

708

708

Balance at 31 December 2015

635

16

2,890

5,897

9,438

 

 

 

 

 

 

Balance at 1 January 2016

635

16

2,890

5,897

9,438

Profit for the period

-

-

-

394

394

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-

 

-

-

-

394

394

Balance at 30 June 2016

635

16

2,890

6,291

9,832

 

 

 

 

 

 

 

 

TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

6 months ended

30.06.16

(Unaudited)

£000

6 months ended

30.06.15

(Unaudited)

£000

 

Year ended

31.12.15

(Audited)

£000

Cash flows from operating activities

 

 

 

Profit for the period

394

388

                     1,164

Adjustments for:

 

 

 

Depreciation

555

521

1,050

Profit on sale of fixed assets

-

(86)

(81)

Finance costs

52

84

162

Taxation

101

109

329

Operating profit before changes in working capital and provisions

1,102

1,016

2,624

Movement in trade and other receivables

(889)

155

221

Movement in inventories

(725)

(659)

(667)

Movement in trade and other payables

1,197

884

(399)

Increase in provisions

-

-

99

Movement in employee benefits

(50)

(50)

(100)

Cash generated from operations

635

1,346

1,778

Tax (paid)/recovered

(4)

135

(156)

Net cash generated from operating activities

631

1,481

1,622

 

 

 

 

Cash flows from investing activities

 

 

 

Purchases of property, plant and equipment (PPE)

(481)

(722)

(1,268)

Proceeds from sale of PPE

11

152

170

Net cash used in investing activities

(470)

(570)

(1,098)

 

 

 

 

Cash flows from financing activities

 

 

 

New borrowings

2,230

16

322

Repayments of borrowings

(216)

(216)

(432)

Finance lease payments

(219)

(178)

(357)

Interest paid

(26)

(39)

(76)

Dividends paid to company's shareholders

-

-

(1,327)

Net cash used in financing activities

1,769

(417)

(1,870)

 

 

 

 

Net increase in cash and cash equivalents

1,930

494

(1,346)

Cash and cash equivalents at beginning of the period

(988)

358

358

Cash and cash equivalents at end of the period

942

852

(988)

 

 

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 2015 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 2015.

 

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

2016

 

£000

£000

£000

£000

 

Revenue

 

 

 

 

 

Total revenue from continuing operations

 

11,161

7,481

2,149

20,791

 

 

 

 

 

 

Result

 

 

 

 

 

Segment result from continuing operations

 

488

(24)

157

621

Expenses pertaining to the Company

 

 

 

 

(74)

Operating profit

 

 

 

 

547

Finance costs

 

 

 

 

(52)

Profit before taxation

 

 

 

 

495

Taxation

 

 

 

 

(101)

Profit for the period from continuing operations

 

 

 

 

394

 

 

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

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 taxation

 

 

 

 

497

Taxation

 

 

 

 

(109)

Profit for the period from continuing operations

 

 

 

 

388

 

4.    Taxation

Interim period corporation tax is accrued based on the estimated average annual effective income tax rate of 20% (6 months ended 30th June 2015: 21%).

 

5.    Earnings per share

Basic earnings per share of 6.2p (2015: 6.1p) is based on the following data.

 

Earnings

 

 

6 months ended

30.06.16

(Unaudited)

£000

6 months ended

30.06.15

(Unaudited)

£000

 

 

 

 

Earnings for the purposes of basic earnings per share

 

394

388

 

Number of shares

 

 

6 months ended

30.06.16

(Unaudited)

6 months ended

30.06.15

(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 (2015: £Nil).

 

7.        Property, plant and equipment

During the period, the Group spent £481,000 on additions.

 

It also disposed of certain machinery and equipment with a carrying value of £11,000 for proceeds of £11,000.

 

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 2016 that require disclosure are detailed below:

Rentals paid                          £149,000 (30th June 2015: £163,000)

Trade Creditor                      £Nil (30th June 2015: £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 2016.

 

 


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