24 Apr 2009 18:03
Tex Holdings plc
Results Announcement 31st December 2008 Registered number 405838
Results in Brief
| Year ended 31st December 2008 (audited) | Year ended 31st December 2007 (audited) | |
| £000 | £000 | |
| Revenue | 35,761 | 36,873 |
| Profit before taxation | 399 | 1,226 |
| Taxation | (280) | (312) |
| Profit on ordinary activities after taxation | 119 | 914 |
| Total equity | 6,113 | 8,408 |
| Net assets per share | 96p | 132p |
| Basic earnings per share | 1.9p | 14.4p |
| Diluted earnings per share | 1.9p | 14.4p |
| Dividends per share (based on interim dividend in the year and final dividend proposed) | 5.5p | 7.5p |
CHAIRMAN'S STATEMENT
Results and Operations
Tex Group sales for the 12 months to 31st December 2008 amounted to £35.8 million compared with £36.9 million in 2007. As with much of the economy, the sharp downturn in trading occurred in the third quarter.
Pre-tax profit earned in 2008 was £399k compared with £1,226k in 2007. The pre-tax profit is after the reorganisation costs of £377k incurred in the Boards & Panels Division.
The Plastics Division and the Boards & Panels Division were both impacted by the economic downturn with customer demand down as they reacted to the trading conditions. Conversely the performance of the Engineering Division was not significantly impacted by the economic trading conditions, as a result of a number of large contracts.
Prospects and Dividend
Business levels in the early months of 2009 have broadly commenced in line with the lowered expectations as a result of the lowered customer demand levels. However the Engineering Division continues to trade at similar levels to last year. The Group order book is in line with the previous year at £10.6m (2007: £10.5m), but demand for the second half is difficult to judge.
The Board feels able to recommend a final dividend of 1.0 pence (2007: 4.0 pence) which would make a total of 5.5 pence in 2008 (2007: 7.5 pence). The final dividend will be paid, subject to shareholder approval, on 24th July 2009 to members on the register as at 19th June 2009.
Staff
It has been a busy and demanding year requiring a number of difficult decisions, and I would like to thank staff at all levels in the Group for their contribution.
ARB Burrows
Chairman
24th April 2009
Consolidated Income Statement
for the year ended 31st December 2008
| Year ended 31/12/08 (audited) | Year ended 31/12/07 (audited) | ||
| £000 | £000 | ||
| Revenue | 35,761 | 36,873 | |
| Cost of sales | (26,741) | (27,659) | |
| Gross Profit | 9,020 | 9,214 | |
| Selling and marketing costs | (879) | (946) | |
| Other administrative expenses | (7,256) | (6,838) | |
| Restructuring costs | (377) | - | |
| Administrative expenses | (7,633) | (6,838) | |
| Operating profit | 508 | 1,430 | |
| Finance costs | (109) | (204) | |
| Profit before tax | 399 | 1,226 | |
| Taxation | (280) | (312) | |
| Profit for the year attributable to the equity holders of the parent | 119 | 914 | |
| Earnings per share | |||
| Basic and diluted | 1.9p | 14.4p |
Statements of recognised income and expense
for the year ended 31st December 2008
| Year ended 31/12/08 (audited) | Year ended 31/12/07 (audited) | ||
| £000 | £000 | ||
| Actuarial losses and gains on defined benefit pension plans | (2,604) | 73 | |
| Tax recognised on income and expenses recognised directly in equity | 729 | (22) | |
| Net (expense)/income recognised directly in equity | (1,875) | 51 | |
| Profit for the year | 119 | 914 | |
| Total recognised income and expense attributable to the equity holders of the parent | (1,756) | 965 | |
Consolidated Balance Sheet
at 31st December 2008
| 31/12/08 (audited) | 31/12/07 (audited) | ||||
| £000 | £000 | ||||
| Assets | |||||
| Non-current assets | |||||
| Property, plant and equipment | 6,599 | 7,117 | |||
| Intangible assets | 318 | 252 | |||
| Deferred tax assets | 125 | - | |||
| 7,042 | 7,369 | ||||
| Current Assets | |||||
| Stocks | 5,409 | 5,349 | |||
| Trade and other receivables | 6,358 | 9,687 | |||
| 11,767 | 15,036 | ||||
| Total Assets | 18,809 | 22,405 | |||
| Equity | |||||
| Capital and reserves attributable to the equity holders of the parent | |||||
| Share capital | 635 | 635 | |||
| Other reserves | 2,906 | 2,906 | |||
| Retained earnings | 2,572 | 4,867 | |||
| Total equity | 6,113 | 8,408 | |||
| Liabilities | |||||
| Non-current Liabilities | |||||
| Other interest bearing loans and borrowings | 1,692 | 1,787 | |||
| Employee benefits | 2,308 | - | |||
| Deferred tax liabilities | - | 503 | |||
| 4,000 | 2,290 | ||||
| Current liabilities | |||||
| Bank overdraft | 1,703 | 2,333 | |||
| Other interest bearing loans and borrowings | 215 | 326 | |||
| Trade and other payables | 6,508 | 8,666 | |||
| Tax payable | 270 | 382 | |||
| 8,696 | 11,707 | ||||
| Total liabilities | 12,696 | 13,997 | |||
| Total equity and liabilities | 18,809 | 22,405 | |||
Consolidated Statement of Changes in Equity
for the year ended 31st December 2008
| Share capital | Capital reserve | Share premium account | Retained earnings | Total | |
| £000 | £000 | £000 | £000 | £000 | |
| Balance at 1st January 2007 | 635 | 16 | 2,890 | 4,378 | 7,919 |
| Profit for the period | - | - | - | 914 | 914 |
| Pension fund actuarial movement net of tax | - | - | - | 51 | 51 |
| Dividends paid | - | - | - | (476) | (476) |
| Balance at 1st January 2008 | 635 | 16 | 2,890 | 4,867 | 8,408 |
| Profit for the period | - | - | - | 119 | 119 |
| Pension fund actuarial movement net of tax | - | - | - | (1,875) | (1,875) |
| Dividends paid | - | - | - | (539) | (539) |
| Balance at 31st December 2008 | 635 | 16 | 2,890 | 2,572 | 6,113 |
The aggregate current and deferred tax relating to items that are charged or credited to equity is £729,000 (2007: £22,000).
All the amounts are attributable to the equity holders of the Parent Company. Consolidated Cash Flow Statement
for the year ended 31st December 2008
| Year ended 31/12/08 (audited) | Year ended 31/12/07 (audited) | ||||
| £000 | £000 | ||||
| Cash flows from operating activities | |||||
| Profit for the year | 119 | 914 | |||
| Adjustments for : | |||||
| Depreciation | 1,043 | 1,004 | |||
| Goodwill impairment | 102 | - | |||
| Financial expense | 109 | 204 | |||
| Loss on sale of property, plant and equipment | 182 | - | |||
| Taxation | 280 | 312 | |||
| Operating profit before changes in working capital and provisions | 1,835 | 2,434 | |||
| Decrease/(increase) in trade and other receivables | 3,329 | (2,285) | |||
| Increase in stock | (60) | (135) | |||
| (Decrease)/increase in trade and other payables | (2,158) | 2,080 | |||
| Decrease in employee benefits provision | (178) | (216) | |||
| Cash generated from operations | 2,768 | 1,878 | |||
| Income tax refunded/(paid) | (290) | (68) | |||
| Net cash generated from operating activities | 2,478 | 1,810 | |||
| Cash flows from investing activities | |||||
| Purchases of property, plant and equipment (PPE) | (805) | (1,175) | |||
| Purchases of goodwill | (168) | - | |||
| Proceeds from sale of PPE | 98 | 57 | |||
| Net cash used in investing activities | (875) | (1,118) | |||
| Cash flows from financing activities | |||||
| Repayments of borrowings | (33) | (234) | |||
| Finance lease payments | (173) | (26) | |||
| Interest paid | (228) | (275) | |||
| Dividends paid to Company's shareholders | (539) | (476) | |||
| Net cash used in financing activities | (973) | (1,011) | |||
| Net increase/(decrease) in cash and cash equivalents | 630 | (319) | |||
| Cash and cash equivalents at beginning of the year | (2,333) | (2,014) | |||
| Cash and cash equivalents at end of the year | (1,703) | (2,333) | |||
Notes:
1) The financial information set out above does not constitute the Group's statutory
accounts for the years ended 31st December 2007 or 31st December 2008. The statutory accounts for 31st December 2008 will be finalised on the basis of financial information presented by the directors on this announcement and will be delivered to the registrar of companies following the company's annual general meeting.