(Alliance News) - Tex Holdings PLC axed its final dividend Friday after sinking to a loss on lower revenue, whilst trading conditions continue to be "challenging."
In 2018, the engineering firm sank to a GBP714,000 pretax loss from a profit of GBP927,000 the year prior. This was after revenue fell to GBP40.4 million from GBP41.5 million the year before.
"The Plastics division profits have reduced marginally as a result of increased labour and power costs, partly compensated by increased volumes," Tex Chair Chris Gray said.
"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," Gray added. "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.
Tex proposed to axe its final dividend, after having paid 6.0 pence the year prior. For the full year, the dividend fell to 2.5p from 8.5p the year before.
"The Plastics Division has continued to trade profitably as expected in 2019," Gray said. "Opening orders have been strong within the Engineering Division and the board is confident that appropriate steps have been taken to address the issues seen during 2018."
"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," Gray continued.
Shares in Tex have been suspended since April, amid the delay to the release of its 2018 annual results.