Hightex Group Share News (HTIG)

Full-year losses more than doubled after turnover plunged at AIM-listed Hightex Group, prompting a steep decline in the group's share price. The firm, which designs and produces materials used in the roofs and facades of large buildings, posted pre-tax losses from continuing operations of €2.8m (2012: €1.1m) on significantly lower turnover of €9.9m (2012: €17.1m). The group's main issue was the difficulty it has had obtaining financial information and payment from its Brazilian joint venture, which resulted in uncertainty in its Brazilian receivables and difficulties with its group working capital. This was, however, alleviated to some extent by the sale of its 50.15% stake in SolarNext AG and the signing of a loan facility for up to $10m. Additionally, although the company delivered a drop in operating costs, which fell by €0.12m to €2.39m, this was almost entirely cancelled out by unrealised currency losses of €0.3m. The majority of the group's revenues were earned from its contracts in Brazil, where the 2014 FIFA World Cup competition will take place in June. In addition, the maintenance business generated revenues of €0.2m. Charles DesForges, Hightex's Executive Chairman, said: "2013 has proved to be a most difficult year for the company principally as a consequence of operational problems in the Brazilian joint venture company, but the company successfully took action to alleviate the working capital strains by the sale of 50.15% of the issued share capital of SolarNext and negotiating a loan facility of up to $10m of which $1.8m has been drawn down. "Hightex's reputation for innovative expertise in membrane structures, coupled with the gradual improvement in global economic conditions, have led Hightex to submit tenders for several interesting projects and the Directors are cautiously optimistic about one or more contract wins in the second half of 2014."Cash at the year-end was on par with the the prior year at €0.9m. The share price was down 26.32% to 0.35p by 13:30.NR