11 Apr 2017 08:45
Tex Holdings plc Preliminary Announcement 31st December 2016 Registered number 00405838 |
CHAIRMAN'S STATEMENT
Results for year ended 31st December 2016
Results and Operations
The introduction of G&M TEX Ltd into the Group increased sales, but decreased average gross margins. This was due to the fact that its business involves packaging engines and alternators, to create a generator set, which carries only a modest profit on sales. Brexit also had some impact on the purchase prices of some materials, most notably within QK Honeycomb Products Limited.
Overheads did increase, reflecting a full year of G&M TEX Ltd.
The Plastics Division profits have been marginally reduced by downward pressures on prices. The Engineering Division profit remained stable after taking account of the costs of the relocation of G&M TEX Ltd. As noted above, the Boards & Panels Division performance was impacted by an increase in costs, a result of the fall in the value of Sterling.
The Group's net assets per share have increased to 155p from 149p.
Prospects and Dividends
As compared to the opening of 2016, orders for the first quarter within the Engineering and the Boards & Panels Divisions have been firm, whilst the order intake in the Plastics Division has been subdued. The Board continues to see a slow rate of conversion of enquiries into actual orders which indicates an ongoing nervousness within the Group's customer base.
We recommend a final dividend of 6.0 pence (2015: 5.0 pence), making an overall payment in respect of the year of 8.5 pence (2015: 7.0 pence plus the special dividend of 15.0 pence which was paid to shareholders 24th November 2015).
The final dividend will be paid, subject to shareholder approval, on 21st July 2017 to members on the register as at 23rd June 2017.
Staff
I would like to thank staff at all levels in the Group for their contribution to the result for the year in the current demanding times.
ARB Burrows
Chairman
10th April 2017
RESULTS IN BRIEF
| Year ended 31/12/16 | Year ended 31/12/15
|
| £000 | £000 |
Revenue | 41,386 | 36,046 |
Profit before taxation | 1,107 | 1,493 |
Taxation | (199) | (329) |
Profit after taxation | 908 | 1,164 |
Total equity | 9,830 | 9,438 |
Net assets per share | 155p | 149p |
Basic earnings per share | 14.3p | 18.3p |
Diluted earnings per share | 14.3p | 18.3p |
Dividends per share (based on interim dividend in the year, special dividend and final dividend proposed) | 8.5p | 22.0p |
Consolidated Income Statement
for the year ended 31st December 2016
Year ended 31/12/16 | Year ended 31/12/15 | ||
£000 | £000 | ||
Revenue | 41,386 | 36,046 | |
Cost of sales | (30,358) | (25,932) | |
Gross profit | 11,028 | 10,114 | |
Distribution costs | (1,072) | (962) | |
Administrative expenses | (8,702) | (7,497) | |
Operating profit | 1,254 | 1,655 | |
Finance costs | (147) | (162) | |
Profit before taxation | 1,107 | 1,493 | |
Taxation | (199) | (329) | |
Profit for the year attributable to the equity holders of the Parent Company | 908 | 1,164 | |
Earnings per share | |||
Basic and diluted | 14.3p | 18.3p |
Consolidated Statement of Comprehensive Income
for the year ended 31st December 2016
Year ended 31/12/16 | Year ended 31/12/15 | |
£000 | £000 | |
Profit for the year attributable to the equity holders of the Parent Company | 908 | 1,164 |
Other comprehensive income | ||
Items that will not subsequently be reclassified to profit or loss: | ||
Actuarial (loss)/gain on defined benefit pension plans | (50) | 1,089 |
Deferred taxation recognised on actuarial loss/gain on defined benefit pension plan recognised directly in equity | 10 | (218) |
(40) | 871 | |
Other comprehensive (expense)/income for the year | (40) | 871 |
Total comprehensive income for the year attributable to the equity holders of the Parent Company | 868 | 2,035 |
Balance Sheet
at 31st December 2016
31/12/16 | 31/12/15 | ||||
£000 | £000 | ||||
Assets | |||||
Non-current assets | |||||
Property, plant and equipment | 5,864 | 5,577 | |||
Deferred taxation assets | 187 | 165 | |||
6,051 | 5,742 | ||||
Current assets | |||||
Inventories | 6,883 | 6,546 | |||
Trade and other receivables | 10,620 | 9,541 | |||
17,503 | 16,087 | ||||
Total assets | 23,554 | 21,829 | |||
Equity | |||||
Capital and reserves attributable to the equity holders of the Parent Company | |||||
Share capital | 635 | 635 | |||
Other reserves | 2,906 | 2,906 | |||
Retained earnings | 6,289 | 5,897 | |||
Total equity | 9,830 | 9,438 | |||
Liabilities | |||||
Non-current liabilities | |||||
Other interest-bearing loans and borrowings | 2,621 | 1,155 | |||
Employee benefits | 1,492 | 1,488 | |||
4,113 | 2,643 | ||||
Current liabilities | |||||
Bank overdraft | 243 | 988 | |||
Other interest-bearing loans and borrowings | 887 | 776 | |||
Trade and other payables | 8,021 | 7,481 | |||
Provisions | 199 | 199 | |||
Taxation payable | 261 | 304 | |||
9,611 | 9,748 | ||||
Total liabilities | 13,724 | 12,391 | |||
Total equity and liabilities | 23,554 | 21,829 | |||
These financial statements were approved by the Board of Directors on 10th April 2017 and were signed on its behalf by:
ARB Burrows CA Parker
Director Director
Registered number: 00405838Statement of Changes in Equity
at 31st December 2016
Share capital | Capital reserve | Share premium account | Retained earnings | Total | |
Consolidated | £000 | £000 | £000 | £000 | £000 |
Balance at 1st January 2015 | 635 | 16 | 2,890 | 5,189 | 8,730 |
Profit for the year | - | - | - | 1,164 | 1,164 |
Pension fund actuarial movement net of taxation | -
| -
| -
| 871
| 871
|
Dividends paid | - | - | - | (1,327) | (1,327) |
Balance at 31st December 2015 and 1st January 2016 | 635 | 16 | 2,890 | 5,897 | 9,438 |
Profit for the year | - | - | - | 908 | 908 |
Pension fund actuarial movement net of taxation | -
| -
| -
| (40)
| (40)
|
Dividends paid | - | - | - | (476) | (476) |
Balance at 31st December 2016 | 635 | 16 | 2,890 | 6,289 | 9,830 |
Cash Flow Statement
for the year ended 31st December 2016
Year ended 31/12/16 | Year ended 31/12/15 | |||||
£000 | £000 | |||||
Cash flows from operating activities | ||||||
Profit for the year | 908 | 1,164 | ||||
Adjustments for: | ||||||
Dividends received | - | - | ||||
Depreciation | 1,082 | 1,050 | ||||
Profit on sale of fixed assets | - | (81) | ||||
Financial expense | 147 | 162 | ||||
Taxation | 199 | 329 | ||||
2,336 | 2,624 | |||||
(Increase)/decrease in trade and other receivables | (1,079) | 221 | ||||
Increase in inventories | (337) | (667) | ||||
Increase/(decrease) in trade and other payables |
540 | (399) | ||||
Increase in provisions | - | 99 | ||||
Decrease in employee benefits | (100) | (100) | ||||
Cash generated from operations | 1,360 | 1,778 | ||||
Taxation paid | (254) | (156) | ||||
Net cash generated from operating activities | 1,106 | 1,622 | ||||
Cash flows from investing activities | ||||||
Purchases of property, plant and equipment | (837) | (946) | ||||
Proceeds from sale of property, plant and equipment | 16 | 170 | ||||
Dividends received | - | - | ||||
Net (advances of)/proceeds received in respect of loans to subsidiaries | - | - | ||||
Net cash used in investing activities | (821) | (776) | ||||
Cash flows from financing activities | ||||||
New borrowings | 2,000 | - | ||||
Repayments of borrowings | (632) | (432) | ||||
Finance lease payments | (339) | (357) | ||||
Interest paid | (93) | (76) | ||||
Dividends paid | (476) | (1,327) | ||||
Net cash generated from/(used in) financing activities | 460 | (2,192) | ||||
Net increase/(decrease) in cash and cash equivalents | 745 | (1,346) | ||||
Cash and cash equivalents at beginning of the year | (988) | 358 | ||||
Cash and cash equivalents at end of the year | (243) | (988) | ||||
Notes:
The financial information set out above does not constitute the Group's statutory accounts for the years ended 31st December 2015 or 31st December 2016 and is unaudited. The auditor has not yet reported on the statutory accounts for 31st December 2016. The statutory accounts for 31st December 2016, together with audit report thereon, will be finalised on the basis of financial information presented by the Directors and will be posted to shareholders and available on the Company's website shortly. The statutory accounts for 31st December 2016 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
Statutory accounts for 2015 have been delivered to the Registrar of Companies. The auditor has reported on the accounts for 2015 and their report was unqualified and did not contain statements under Section 498 of the Companies Act 2006.