24 Jun 2019 16:52
TEX HOLDINGS PLC
CHAIRMAN'S STATEMENT
24TH JUNE 2019
A brief report of the trading companies.
The Plastics Division is trading in line with expectations, with some new customers having been acquired during the past year.
In order to reduce the effect of wage costs, we are gradually introducing more automation, in particular with robotics.
Within the Engineering Division, Tex Engineering opened the year more slowly than anticipated, but recent orders indicate trading should return to anticipated levels. The company is expected to report another profit this year.
Eurotex has been busy supporting the fisheries protection ships, as noted last year. The company was unsuccessful in winning one significant project (Trinity House), but continues to quote as other opportunities arise.
The ATC Division has completed the key projects on the Aircraft Carriers HMS Queen Elizabeth and HMS Prince of Wales, and continues to provide additional support services. The company has received orders from Nigeria and once deposit monies have been received will be mobilising production. ATC is finalising testing of products related to the Indian Navy Aircraft Carrier project.
BSP opened the year slowly, but during recent weeks has received a number of orders. BSP exhibited at Bauma, a major construction exhibition in Germany, which was well attended and generated further enquiries.
G&M TEX opened the year with an order book in excess of the 2018 turnover. This equipment is now being shipped and the order level has been maintained. We expect an improved result in comparison with 2018.
QK Honeycomb Products is trading strongly with turnover up on budget. The project to increase production capacity for a major customer, who is a leading manufacturer in the caravan industry, is well underway with the main piece of equipment being delivered this week. We have constructed a new building at Brigg at a cost of £1m. We have also purchased a new specialised machine for Euros 700k from Germany.
Regarding Brexit, we have analysed the potential impact of Brexit on the Group. Our exports to the EU are not significant but we do however import some raw materials, for example plywood for Q&K Honeycomb Products. We are looking to find an alternative source of supply.
We will continue to protect the interests of both our pensioners and those who have given many years of good service to the Group, we as your directors will continue to act in the best interest of our shareholders in both good and difficult times.
G.C. GRAY
Chairman