27 Mar 2012 16:37
Tex Holdings plc Preliminary Announcement 31st December 2011 Registered number 00405838 |
Results in Brief
| Year ended 31/12/11 | Year ended 31/12/10 |
| £000 | £000 |
Revenue | 36,829 | 33,103 |
Profit before taxation | 1,541 | 688 |
Taxation | (220) | (130) |
Profit on ordinary activities after taxation | 1,321 | 558 |
Total equity | 6,753 | 7,438 |
Net assets per share | 106p | 117p |
Basic earnings per share | 20.8p | 8.8p |
Diluted earnings per share | 20.8p | 8.8p |
Dividends per share (based on interim dividend in the year and final dividend proposed) | 4.0p | 2.0p |
CHAIRMAN'S STATEMENT
Results for year ended 31st December 2011
Results and Operations
Tex Group sales for the 12 months to 31st December 2011 were £36.8m compared with £33.1m for 2010. The December 2011 year was one of recovery for the Engineering Division which contributed a majority of the increase in turnover. Cost control combined with the additional turnover resulted in the 88% increase in operating profit to £1,600k.
Both the Plastics Division and the Engineering Division improved their sales levels. Pre-tax results improved in the Plastics Division, but the Engineering Division was impacted by the timing of long term contracts and the associated profit recognition. The Board & Panels Division contracted, but as a result of cost control, was able to limit its operating loss.
Prospects and Dividend
The orders for the first quarter are satisfactory, but political uncertainties worldwide continue to give us concerns.
Our results have improved substantially over the year and we recommend an increase in the final dividend from 1.0 pence to 2.5 pence, making an overall increase for the year of 100% to 4.0 pence.
We have continued to strengthen our balance sheet for the second year running by retaining substantial earnings. These will be needed when our markets improve to support working capital.
In order to provide security of finance for the future and to take advantage of historically low interest rates, we have agreed with RBS a 5 year term loan of £2.0m. This was finalised in March 2012.
The final dividend will be paid, subject to shareholder approval, on 20th July 2012 to members on the register as at 22nd June 2012.
Staff
It has been another busy and demanding year, and I would like to thank staff at all levels in the Group for their contribution.
ARB Burrows
Chairman
Consolidated Income Statement
for the year ended 31st December 2011
Year ended 31/12/11 | Year ended 31/12/10 | ||
£000 | £000 | ||
Revenue | 36,829 | 33,103 | |
Cost of sales | (27,540) | (24,791) | |
Gross profit | 9,289 | 8,312 | |
Selling and marketing costs | (834) | (742) | |
Administrative expenses | (6,855) | (6,717) | |
Operating profit | 1,600 | 853 | |
Finance costs | (59) | (165) | |
Profit before tax | 1,541 | 688 | |
Taxation | (220) | (130) | |
Profit for the year attributable to the equity holders of the Parent | 1,321 | 558 | |
Earnings per share | |||
Basic and diluted | 20.8p | 8.8p |
All of the activities of the Group relate to continuing operations.
Statements of Recognised Income and Expense
for the year ended 31st December 2011
Group | Year ended 31/12/11 | Year ended 31/12/10 | |
£000 | £000 | ||
Profit for the year | 1,321 | 558 | |
Actuarial (losses)/gains on defined benefit pension plans | (2,496) | 941 | |
Tax recognised on expenses and income recognised directly in equity | 649 | (263) | |
Net income recognised directly in equity | (1,847) | 678 | |
Total recognised income and expense attributable to the equity holders of the Parent | (526) | 1,236 | |
Balance Sheets
at 31st December 2011
Group | |||||
31/12/11 | 31/12/10 | ||||
£000 | £000 | ||||
Assets | |||||
Non-current assets | |||||
Property, plant and equipment | 5,934 | 5,599 | |||
Intangible assets | - | - | |||
Investments | - | - | |||
Deferred tax assets | 811 | - | |||
6,745 | 5,599 | ||||
Current assets | |||||
Inventories | 6,309 | 5,626 | |||
Tax receivable | - | - | |||
Trade and other receivables | 8,190 | 7,754 | |||
Cash and cash equivalents | - | - | |||
14,499 | 13,380 | ||||
Total assets | 21,244 | 18,979 | |||
Equity | |||||
Capital and reserves attributable to the equity holders of the Parent | |||||
Share capital | 635 | 635 | |||
Other reserves | 2,906 | 2,906 | |||
Retained earnings | 3,212 | 3,897 | |||
Total equity | 6,753 | 7,438 | |||
Liabilities | |||||
Non-current liabilities | |||||
Other interest-bearing loans and borrowings | 1,755 | 1,890 | |||
Employee benefits | 3,430 | 1,137 | |||
Deferred tax liabilities | - | 12 | |||
5,185 | 3,039 | ||||
Current liabilities | |||||
Bank overdraft | 653 | 285 | |||
Other interest-bearing loans and borrowings | 737 | 919 | |||
Trade and other payables | 7,369 | 6,889 | |||
Tax payable | 547 | 409 | |||
9,306 | 8,502 | ||||
Total liabilities | 14,491 | 11,541 | |||
Total equity and liabilities | 21,244 | 18,979 | |||
These financial statements were approved by the Board of Directors on 26th March 2012 and were signed on its behalf by:
A R B Burrows C A Parker
Director Director
Registered number: 00405838Statement of Changes in Equity
at 31st December 2011
Share capital | Capital reserve | Share premium account | Retained earnings | Total | |
Group | £000 | £000 | £000 | £000 | £000 |
Balance at 1st January 2010 | 635 | 16 | 2,890 | 2,788 | 6,329 |
Profit for the period | - | - | - | 558 | 558 |
Pension fund actuarial movement net of tax | - | - | - | 678 | 678 |
Dividends paid | - | - | - | (127) | (127) |
Balance at 1st January 2011 | 635 | 16 | 2,890 | 3,897 | 7,438 |
Profit for the period | - | - | - | 1,321 | 1,321 |
Pension fund actuarial movement net of tax | - | - | - | (1,847) | (1,847) |
Dividends paid | - | - | - | (159) | (159) |
Balance at 31st December 2011 | 635 | 16 | 2,890 | 3,212 | 6,753 |
The aggregate current and deferred tax relating to items that are charged or credited to equity is £649,000 (2010: £263,000).
Cash Flow Statement
for the year ended 31st December 2011
Group | |||||
Year ended 31/12/11 | Year ended 31/12/10 | ||||
£000 | £000 | ||||
Cash flows from operating activities | |||||
Profit for the year | 1,321 | 558 | |||
Adjustments for : | |||||
Dividends received | - | - | |||
Depreciation | 1,045 | 1,014 | |||
Goodwill impairment | - | 218 | |||
Financial expense | 59 | 165 | |||
Profit on sale of property plant and equipment | - | (18) | |||
Taxation | 220 | 130 | |||
2,645 | 2,067 | ||||
Increase in trade and other receivables | (436) | (525) | |||
Increase in inventories | (683) | (392) | |||
Increase in trade and other payables | 478 | 242 | |||
Decrease in employee benefits | (112) | (150) | |||
Cash generated from operations | 1,892 | 1,242 | |||
Income tax paid | (255) | (116) | |||
Net cash generated from operating activities | 1,637 | 1,126 | |||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment (PPE) | (1,448) | (610) | |||
Purchase of goodwill | - | - | |||
Proceeds from sale of PPE | 68 | 119 | |||
Dividends received | - | - | |||
Investment loans to subsidiaries | - | - | |||
Net cash used in investing activities | (1,380) | (491) | |||
Cash flows from financing activities | |||||
New borrowings | 700 | 207 | |||
Repayments of borrowings | (700) | (700) | |||
Finance lease payments | (317) | (195) | |||
Interest paid | (149) | (143) | |||
Dividends paid to Company's shareholders | (159) | (127) | |||
Net cash used in financing activities | (625) | (958) | |||
Net decrease in cash and cash equivalents | (368) | (323) | |||
Cash and cash equivalents at beginning of the year | (285) | 38 | |||
Cash and cash equivalents at end of the year | (653) | (285) | |||
Notes:
The financial information set out above does not constitute the Group's statutory accounts for the years ended 31st December 2010 or 31st December 2011. The statutory accounts for 31st December 2011 will be finalised on the basis of financial information presented by the Directors on this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.