16 Jun 2014 07:00
Tex Holdings plc ("Tex" or the "Company")
Annual General Meeting ("AGM") Statement
At the Company's AGM which will be held later today, Tex Chairman, Richard Burrows will read the following statement regarding Tex and its subsidiary companies' (together the "Group") current trading.
"In aggregate across the Group, year to date trading has been at the levels anticipated, with half year billings and revenues consistently ahead of the 2013 performance to this date.
"In 2013 the full year was impacted by an exceptional loss on the contract for the Air Traffic Control Room at Muscat Airport, which was partially offset by the release of provisions no longer required in respect of an employment claim and for the demolition of a redundant factory.
"The Engineering Division, with the exception of BSP International, is not trading as strongly as anticipated. There has been margin erosion within Tex Engineering as a result of higher costs primarily associated with meeting customers' short lead time requirements. Eurotex, as previously noted, has been impacted by delays to a number of projects.
"Tex A.T.C. Services is handing over the control room in Muscat this month. Looking forward at present, none of Tex A.T.C. Services' current tenders have been converted into firm orders and therefore, especially given the timescale of such projects, they are unlikely to have anything more than a limited financial impact on the current year.
"The Plastics Division is trading in line with the previous year, and the Boards & Panels Division is again currently ahead of the same period in the previous year.
"Across the Group, the pipeline of prospective orders is lower than at this same point last year.
"With the exception of the current offer process there are currently no other known scheduled material exceptional costs or liabilities. Given current sales levels and taking into account the contract delays in Eurotex , noted above ,and some remaining on-going trading uncertainties associated with the ATC division, the board remain broadly cautious on the outlook for the second half."
A.R.B. Burrows
Chairman
16th June 2014