Information  X 
Enter a valid email address

Tex Holdings PLC (TXH)

  Print          Annual reports

Friday 23 August, 2019

Tex Holdings PLC

Results Announcement

RNS Number : 1025K
Tex Holdings PLC
23 August 2019
 

 

Tex Holdings plc

Results Announcement

31st December 2018

Registered number 00405838

Further to the announcement of 31st July 2019, the Company confirms that its annual report for the 12 months ended 31st December 2018 is now available at Companies House and has been submitted to the Financial Conduct Authority through the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM.  The Annual Report is also available on the Company's website www.tex-holdings.co.uk

 

The Company also includes below extracts from the Annual Report:

 

CHAIRMAN'S STATEMENT

 

Results for year ended 31st December 2018

 

Results and operations

 

Tex Group sales were £40m (2017: £42m). Gross margins reduce from 28.4% to 25%.

 

The Plastics Division profits have reduced marginally as a result of increased labour and power costs, partly compensated by increased volumes. The Engineering Division had a very challenging year and produced a significant loss with trading issues around sales volumes and mix in some companies, after incurring further relocation costs, write-off of design and other costs relating to contracts expected to be shipped in 2019 and provision against debtor balances. The Boards & Panels Division performance was down on the previous year as a result of increased costs of gearing up for the expanded operations within the new factory currently under construction at the Brigg site.

 

The Group reported a pre-tax trading loss of £180k for the year (2017: profit £927k), but this was increased by an exceptional IAS19 adjustment for GMP equalisation of £543k which took the total reported pre-tax loss for the year to £714k.

 

The challenging conditions in the Engineering Division were largely responsible for the Group breaching certain banking covenants and then in early 2019 having trading in its shares suspended. More detail about these events are given in the Strategic Report.

 

The Group's net assets per share have decreased from 168p to 140p, driven by the increase in the pension scheme deficit and the reported loss for the current year.

 

Prospects and dividends

 

The Plastics Division has continued to trade profitably as expected in 2019. Opening orders have been strong within the Engineering Division with the Group order book in excess of £10,000,000 and the Board is confident that appropriate steps have been taken to address the issues seen during 2018 referred to later. The overall Group performance for the first five months remains challenging, however the Board look forward to reporting an improved position for the full 2019 based on an anticipated improved Engineering Division performance once delayed projects go ahead.

 

We recommend a final dividend of Nil (2017:  6.0 pence), making an overall payment in respect of the year of 2.5 pence (2017:  8.5 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

31st July 2019

 

 

 

 

RESULTS IN BRIEF

 

 

Year

ended

31/12/18

£000

Year

ended

31/12/17

£000

Revenue

40,354

41,505

(Loss)/profit before taxation

 (714)

927

Taxation

124

(197)

(Loss)/profit after taxation

(590)

730

Total equity

8,847

10,639

Net assets per share

140p

168p

Basic earnings per share

(9.3)p

11.5p

Diluted earnings per share

(9.3)p

11.5p

Dividends per share (based on interim dividend in the year, special dividend and final dividend proposed)

2.5p

8.5p

 

 

 

 

Consolidated Income Statement

for the year ended 31st December 2018

 

 

 

Year ended 31/12/18

Year ended 31/12/17

 

 

£000

£000

Revenue

 

40,354

41,505

Cost of sales

 

(30,150)

(29,681)

Gross profit

 

10,204

11,824

Distribution costs

 

(1,040)

(1,073)

Administrative expenses

 

(9,724)

(9,668)

Operating (loss)/profit

 

(560)

1,083

Finance costs

 

(154)

(156)

(Loss)/profit before taxation

 

(714)

927

Taxation

 

124

(197)

(Loss)/profit for the year attributable to the equity holders of the Parent Company

 

(590)

730

 

 

 

 

Earnings per share attributable to the equity holders of the Parent Company

 

 

 

Basic and diluted

 

(9.3)p

11.5p

 

 

Consolidated Statement of Comprehensive Income

for the year ended 31st December 2018

 

 

 

 

Year ended 31/12/18

Year ended 31/12/17

 

 

£000

£000

(Loss)/profit for the year attributable to the equity holders of the Parent Company

 

(590)

730

 

 

 

 

Other comprehensive income

 

 

 

Items that will not subsequently be reclassified to profit or loss:

 

 

 

Actuarial (loss)/gain on defined benefit pension plans

 

(713)

767

Deferred taxation recognised on actuarial loss/(gain) on defined benefit pension plan recognised directly in equity

 

 

 

135

 

(148)

Other comprehensive (expense)/income for the year

 

(578)

619

Total comprehensive (loss)/income for the year attributable to the equity holders of the Parent Company

 

(1,168)

1,349

 

 

 

 

 

 

Consolidated Balance Sheets

at 31st December 2018

 

 

 

 

 

 

 

 

 

31/12/18

31/12/17

 

 

 

 

£000

£000

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

 

 

 

8,007

6,557

Investments

 

 

 

-

-

Deferred taxation assets

 

 

 

213

20

 

 

 

 

8,220

6,577

Current assets

 

 

 

 

 

Inventories

 

 

 

8,271

6,798

Trade and other receivables

 

 

 

10,011

11,392

 

 

 

 

18,282

18,190

Total assets

 

 

 

26,502

24,767

 

 

 

 

 

 

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

 

 

 

4,628

6,420

Total equity

 

 

 

8,847

10,639

Liabilities

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Other interest-bearing loans and borrowings

 

 

 

1,275

2,159

Employee benefits

 

 

 

1,833

662

 

 

 

 

3,108

2,821

Current liabilities

 

 

 

 

 

Bank overdraft

 

 

 

2,105

1,737

Other interest-bearing loans and borrowings

 

 

 

2,941

971

Trade and other payables

 

 

 

9,226

8,184

Provisions

 

 

 

128

199

Taxation payable

 

 

 

147

216

 

 

 

 

14,547

11,307

Total liabilities

 

 

 

17,655

14,128

Total equity and liabilities

 

 

 

26,502

24,767

These financial statements were approved by the Board of Directors on 31st July 2019 and were signed on its behalf by:

 

GC Gray                                                               CA Parker

Director                                                                  Director

 

Registered number: 00405838

Consolidated Statements of Changes in Equity

at 31st December 2018

 

 

Share capital

Capital reserve

Other reserves

Share premium account

Retained earnings

Total

Consolidated

£000

£000

£000

£000

£000

£000

Balance at 1st January 2017

635

16

678

2,890

5,611

9,830

 

Profit for the year

-

-

-

-

730

730

Pension fund actuarial movement net of taxation

-

-

-

-

619

619

Total comprehensive income

-

-

-

-

1,349

1,349

Contributions by and distributions to owners:

 

 

 

 

 

 

Dividends paid

-

-

-

-

(540)

(540)

Balance at 31st December 2017 and 1st January 2018

 

635

16

678

2,890

6,420

10,639

Loss for the year

-

-

-

-

(590)

(590)

IFRS15 adjustment to opening reserves

-

-

-

-

(91)

(91)

Pension fund actuarial movement net of taxation

-

-

-

-

(578)

(578)

Total comprehensive (expense)/income

-

-

-

-

(1,259)

(1,259)

Contributions by and distributions to owners:

 

 

 

 

 

 

Dividends paid

-

-

-

-

(533)

(533)

Balance at 31st December 2018

635

16

678

2,890

4,628

8,847

 

 

 

Consolidated Cash Flow Statements

for the year ended 31st December 2018

 

 

 

 

Year

ended 31/12/18

Year

ended 31/12/17

 

 

 

 

£000

£000

Cash flows from operating activities

 

 

 

 

 

(Loss)/profit for the year

 

 

 

(590)

730

   Adjustments for:

 

 

 

 

 

   Dividends received

 

 

 

-

-

   Interest received from subsidiaries

 

 

 

-

-

   Depreciation

 

 

 

1,309

1,135

   GMP equalisation

 

 

 

543

-

   Impairment of investments

 

 

 

-

-

   Restatement of opening reserves

 

 

 

(91)

-

   Loss on sale of fixed assets

 

 

 

(15)

10

   Financial expense

 

 

 

154

156

   Taxation

 

 

 

(124)

197

 

 

 

 

1,186

2,228

Decrease/(increase) in trade and other receivables

 

 

 

1,381

(772)

(Increase)/decrease in inventories

 

 

 

(1,473)

85

Increase/(decrease) in trade and other payables

 

 

 

 

1,042

 

163

(Decrease)/increase in provisions

 

 

 

(71)

-

Decrease in employee benefits

 

 

 

(100)

(100)

Cash generated from operations

 

 

 

1,965

1,604

Taxation paid

 

 

 

(3)

(223)

Net cash generated from operating activities

 

 

 

      1,962

1,381

Cash flows from investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(2,783)
 

(1,188)
 

Proceeds from sale of property, plant and equipment

 

 

 

39

39

Dividends received

 

 

 

-

-

Interest received

 

 

 

-

-

Advances of loans to subsidiaries

 

 

 

-

-

Net cash used in investing activities

 

 

 

(2,744)

(1,149)

Cash flows from financing activities

 

 

 

 

 

New borrowings

 

 

 

1,954

-

Repayments of borrowings

 

 

 

(416)

(534)

Finance lease payments

 

 

 

(452)

(532)

Interest paid

 

 

 

(139)

(120)

Dividends paid

 

 

 

(533)

(540)

Net cash generated/(used in) from financing activities

 

 

 

         414

(1,726)

Net (decrease)/increase in cash and cash equivalents

 

 

 

(368)

 

(1,494)

Cash and cash equivalents at beginning of the year

 

 

 

(1,737)

(243)

Cash and cash equivalents at end of the year

 

 

 

(2,105)

(1,737)

 

 

 

 

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 2018 annual report.

 

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 2017, with the exception of the application of IFRS 15 which resulted in a £90,782 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 2018 that require disclosure are detailed below:

Rentals paid (excluding recharge of ancillary costs)        £460,914 (31st December 2017: £383,904)

Other property related expenditure                                   £186,374 (31st December 2017:  £144,162)

Trade payables                                                                   £22,333 (31st December 2017:  £17,777)

ARB Burrows has an interest in IS&G Steel Stockholders Limited through which the Group purchases steel. Transactions during the period ended 31st December 2018 that require disclosure are detailed below:

Purchases                                                                           £193,151 (31st December 2017: £173,391)

Trade payables                                                                   £62,109 (31st December 2017:  £52,305)

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%)                                                                  £4,675 (31st December 2017: £Nil)

Loan balance                                                                       £1,300,000 (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.

 

The statement of Directors' responsibilities is set out on pages 18 and 19 of the Company's annual report and financial statements for the year ended 31st December 2018. 

 

 

 

 

Notes:

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31st December 2017 or 31st December 2018. The auditor has reported on the statutory accounts for 31st December 2018 and their report was a disclaimer of opinion. The full audit report is contained on pages 27 - 36 of the Company's annual report and financial statements for the year ended 31st December 2018.  The statutory accounts for 31st December 2018 have been delivered to the Registrar of Companies.

 

Statutory accounts for 2017 were delivered to the Registrar of Companies.  The previous auditor reported on the accounts for 2017 and their report was unqualified.

 


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 [email protected] or visit www.rns.com.
 
END
 
 
FR FMGZRMFRGLZM

a d v e r t i s e m e n t