LONDON (Alliance News) - Tex Holdings PLC Tuesday said revenue over the last few months continues to be below its budget expectations, although it said profits have remained in line with expectations on the back of cost control and rental income from its 40 tonne hydraulic piling hammer.
The company, which manufactures and supplies engineering products, plastics, boards and panels, warned on the rest of its outlook for 2014, citing some weakness in its engineering division, having been hit by a number of project delays.
"The anticipated profit for the year will be negatively impacted by the costs of the bid process, but is expected to be a satisfactory return," the company said in a statement.
In its statement, Tex said it continues to take a cautious approach in the UK and especially overseas in Europe, as well as to a lesser extent Asia.
It said that within its engineering division, Eurotex has been hit by delays to a number of projects, while its plastics division is on target to generate profits in line with previous years, and its boards and panels divisions is trading in line with its expectations.
"Tex Engineering has achieved their budgeted turnover, but the profitability has been impacted by the timing of customer requirements and internal inefficiencies which are currently being eliminated," the company said.
It said its ATC Division is pursuing a number of new projects.
Back in August, Tex reported a 42% increase in first-half pretax profit for the six months to June 30, as a better gross profit margin more than offset a fall in revenue.
Shares in Tex Holdings were trading 1.6% lower Tuesday afternoon at 90.00 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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