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Tex Holdings PLC  -  TXH   

Half-year Report

Released 14:24 14-Aug-2018

RNS Number : 7844X
Tex Holdings PLC
14 August 2018
 

 

 

 

 

 

 

 

 

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 2018 was lower than the same period in the previous year with pre-tax profit also down on the previous year.

 

The Plastics Division produced a five percent increase in turnover which resulted in a twenty three percent increase in operating profit.

 

The Boards & Panels Division had a static turnover year on year, but the operating profit is reduced as a result of higher than anticipated labour costs. A new Production Director designate has been recruited with a view to improving the overall performance of this Division.

 

The Boards & Panels Division is currently developing additional factory space at its Brigg site to house the latest technology edging machine. This represents a significant investment for the Group and is being carried out to support a key customer in the caravan industry.

 

Turnover of the Engineering Division decreased by twenty percent due to delays in customer orders. This has resulted in a reduced profit for the Division. However, the second half of the year has opened with a solid order book which will be reflected in the second half results.

 

The Group has recently acquired the trade and assets of Argento UK Limited, a metal fabrication and powder coating business based in Beccles, Suffolk.

 

The Group has just been awarded the contract to supply a "flat pack" air traffic control room to Nigeria to be supplied by the Tex A.T.C. Division.

 

The Board, whilst remaining cautious, anticipates that the investments in assets and acquisitions will result in the trading results improving in the medium term, albeit with higher working capital.

 

The Board is proposing to pay an interim dividend of 2.5 pence (2017: 2.5 pence) which will be paid on 5th October 2018 to shareholders on the register as at 14th September 2018.

 

 

 

G C Gray

Chairman

14th August 2018



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

14th August 2018



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 


 

 

 

 

Notes

6 months ended

30.06.18

(Unaudited)

£000

6 months ended

30.06.17

(Unaudited)

£000

 

Year ended

31.12.17

(Audited)

£000

 

Revenue

     3

   20,577

   21,421

41,505

Cost of sales


(14,319)

(14,625)

(29,681)

Gross profit


6,258

6,796

11,824

Selling and marketing costs


(540)

(693)

(1,073)

Administrative expenses


(5,527)

(5,598)

(9,668)

Operating profit


191

505

1,083

Finance costs


(95)

(82)

(156)

Profit before taxation


96

423

927

Taxation

4

(12)

(92)

(197)

Profit for the period

 


84

331

730

Other comprehensive income:





Actuarial gain arising on defined benefit pension scheme


-

-

767

Tax recognised on actuarial gain on defined pension scheme


-

-

(148)

Total comprehensive income for the period


84

331

1,349






Basic and diluted earnings per share


1.3p

5.2p

11.5p











 

 

 

 



TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET


 

 

 

Notes

As at

30.06.18

(Unaudited)

£000

As at

30.06.17

(Unaudited)

£000

As at

31.12.17

(Audited)

£000

ASSETS





Non-current assets





Property, plant and equipment

7

7,117

6,180

6,557

Deferred tax assets


20

177

20



7,137

6,357

6,577

Current assets





Inventories


7,891

6,952

6,798

Trade and other receivables


11,248

11,270

11,392

Cash in hand


-

-

-



19,139

18,222

18,190

Total assets


26,276

24,579

24,767

 

EQUITY





Capital and reserves attributable to the equity holders of the parent





Share capital


635

635

635

Capital reserve


16

16

16

Share premium account


2,890

2,890

2,890

Retained earnings


7,182

6,620

7,098

Total equity


10,723

10,161

10,639

 

LIABILITIES





Non-current liabilities





Other interest-bearing loans and borrowings


1,467

2,542

2,159

Employee benefits


631

1,470

662



2,098

4,012

2,821

Current liabilities





Bank overdraft


2,136

1,053

1,737

Other interest-bearing loans and borrowings


1,056

792

971

Trade and other payables


9,871

8,019

8,184

Provision for other liabilities and charges


177

199

199

Tax payable


215

343

216



13,455

10,406

11,307

Total liabilities


       15,553

       14,418

14,128

Total equity and liabilities


26,276

24,579

24,767



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 2017

635

16

2,890

6,289

9,830

Profit for the period

-

-

-

331

331

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-


-

-

-

331

331

Balance at 30 June 2017

635

16

2,890

6,620

10,161







Balance at 1 January 2017

635

16

2,890

6,289

9,830

Profit for the period

-

-

-

730

730

Pension fund actuarial movement net of tax

-

-

-

619

619

Dividends paid

-

-

-

(540)

(540)


-

-

-

809

809

Balance at 31 December 2017

635

16

2,890

7,098

10,639







Balance at 1 January 2018

635

16

2,890

7,098

10,639

Profit for the period

-

-

-

84

84

Pension fund actuarial movement net of tax

-

-

-

-

-

Dividends paid

-

-

-

-

-


-

-

-

84

84

Balance at 30 June 2018

635

16

2,890

7,182

10,723







 



TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

 


6 months ended

30.06.18

(Unaudited)

£000

6 months ended

30.06.17

(Unaudited)

£000

 

Year ended

31.12.17

(Audited)

£000

Cash flows from operating activities




Profit for the period

84

331

               730

Adjustments for:




Depreciation

640

556

1,135

Loss on sale of fixed assets

-

6

10

Finance costs

95

82

156

Taxation

12

92

197

Operating profit before changes in working capital and provisions

831

1,067

2,228

Movement in trade and other receivables

144

(650)

(772)

Movement in inventories

(1,093)

(69)

85

Movement in trade and other payables

1,687

(2)

163

Decrease in provisions

(22)

-

-

Movement in employee benefits

(50)

(50)

(100)

Cash generated from operations

1,497

296

1,604

Tax paid

(13)

-

(223)

Net cash generated from operating activities

1,484

296

1,381





Cash flows from investing activities




Purchases of property, plant and equipment (PPE)

(1,204)

(914)

(1,188)

Proceeds from sale of PPE

4

36

39

Net cash used in investing activities

(1,200)

(878)

(1,149)





Cash flows from financing activities




New borrowings

-

450

-

Repayments of borrowings

(216)

(316)

(534)

Finance lease payments

(391)

(308)

(532)

Interest paid

(76)

(54)

(120)

Dividends paid to company's shareholders

-

-

(540)

Net cash used in financing activities

(683)

(228)

(1,726)





Net decrease in cash and cash equivalents

(399)

(243)

(1,494)

Cash and cash equivalents at beginning of the period

(1,737)

(810)

(243)

Cash and cash equivalents at end of the period

(2,136)

(1,053)

(1,737)

 



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 2017 annual report.

 

The comparative figures for the financial year ended 31st December 2017 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 2017, with the exception of the application of IFRS 15 and IFRS 9 which had no significant impact on the results.

 

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

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

 

 

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

2017


£000

£000

£000

£000

 

Revenue






Total revenue from continuing operations


11,106

8,101

2,214

21,421







Result






Segment result from continuing operations


489

441

78

1,008

Expenses pertaining to the Company





(503)

Operating profit





505

Finance costs





(82)

Profit before taxation





423

Taxation





(92)

Profit for the period from continuing operations





331

 

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 2017: 20%).

 

5.     Earnings per share

Basic earnings per share of 1.3p (2017: 5.2p) is based on the following data.

 

Earnings

 


6 months ended

30.06.18

(Unaudited)

£000

6 months ended

30.06.17

(Unaudited)

£000





Earnings for the purposes of basic earnings per share


84

331

 

Number of shares

 


6 months ended

30.06.18

(Unaudited)

6 months ended

30.06.17

(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 (2017: £Nil).

 

7.         Property, plant and equipment

During the period, the Group spent £1,204,000 on additions.

 

It also disposed of certain machinery and equipment with a carrying value of £4,000 for proceeds of £4,000.

 

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 2018 that require disclosure are detailed below:

Rentals paid                          £343,000 (30th June 2017: £159,000)

Trade payables                     £14,777 (30th June 2017: £Nil)

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 2018 that require disclosure are detailed below:

Purchases                              £92,165 (30th June 2017: £97,379)

Trade payables                     £52,701 (30th June 2017: £60,588)

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 14th August 2018.

 

 


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Half-year Report - RNS