TXH.L Regulatory News (TXH)

28 Apr 2006 11:23

Tex Holdings PLC28 April 2006 TEX HOLDINGS PLC RESULTS ANNOUNCEMENT FOR YEAR ENDED 31ST DECEMBER 2005 FOR STOCK EXCHANGE/PRESS RELEASE ON FRIDAY 28TH APRIL 2006 Results in Brief Year ended 9 months 31st ended 31st December December 2005 2004 (unaudited) (unaudited) £000 £000 Revenue 31,685 21,606Profit before taxation 312 392Taxation (100) (180)Profit on ordinary activities after taxation 212 212Total equity 6,332 6,492Net assets per share 100p 102pBasic earnings per share 3.3p 3.3pDiluted earnings per share 3.3p 3.3pDividends per share (based on interim dividend 4.0p 3.0pin the year and final dividend proposed) Chairman's Statement follows on next page For further information:- Tex Holdings plc Tel: 01473-830144 Fax: 01473-832545 CHAIRMAN'S STATEMENT Results for year ended 31st December 2005 Results and Operations Tex Group turnover for the 12 months to 31st December 2005 amounted to £31.7million, compared with £21.6 million in the 9 months to 31st December 2004,following the change of accounting year end. Pre-tax profit earned in 2005 was £312k compared with £388k in the 9 months to31st December 2004. Although turnover was up across the board, business levels tailed off at the endof 2005 and there was some margin erosion due to mix, notably at Tex IndustrialPlastics. Profits are also down on the prior period due to the Board deciding totake a firm view in two specific areas. The Group has undertaken business in some difficult overseas territories whichhas led to some tough lessons and the Board has made provisions of £479kalthough the contract sums due are still being pursued. A thorough review ofstock has led to provisions of £252k, some of which stem from accelerating therate of provision. These two one-off impacts will place the Group in a strongerposition going forward but have resulted in pre-tax profit being less than theexpectation noted in the interims. The problems have been concentrated, as in previous years, in the EngineeringDivision which has faced lumpy demand and margin pressure from low cost foreigncompetitors. Accordingly, Tex has retained corporate brokers to review optionswhich could involve further restructuring. Prospects and Dividend 2006 started across all divisions more quietly than expected, although latelythe order book has strengthened and currently stands at an above average levelof £10 million. Given the problems experienced as noted above, the Board remainscautious about prospects to the half year, but feels able to recommend a tokenfinal dividend of 1.0 pence, which would make a total of 4.0 pence proposed inthe year (9 months to 31st December 2004: 3.0 pence). The final dividend will bepaid, subject to shareholder approval, on 4th August 2006 to members on theregister as at 7th July 2006. Staff It has been another difficult and challenging year when staff throughout theGroup have worked industriously to address the various issues, and I would liketo express my thanks for their efforts. ARB Burrows Chairman 28th April 2006 Consolidated Income Statement for the year ended 31 December 2005 Year ended Nine months 31 December ended 31 2005 December 2004 (unaudited) (unaudited) £000 £000 Revenue 31,685 21,606Cost of Sales (23,491) (15,288)Gross Profit 8,194 6,318Selling and Marketing Costs (1,000) (667)Administrative Expenses (6,446) (4,890)Operating Profit before finance costs 748 761Finance costs (436) (369)Profit before Tax 312 392Taxation (100) (180)Profit for the Year 212 212 Earnings per shareBasic 3.3p 3.3p Diluted 3.3p 3.3p All of the activities of the group relate to continuing operations. All the amounts are attributable to the equity holders of the parent company. Statements of recognised income and expense for the year ended 31 December 2005 Year ended Nine months 31 December ended 31 2005 December 2004 (unaudited) (unaudited) £000 £000 Actuarial gains and losses on defined benefit 14 (377)pension plansTax recognised on income and expenses recognised (4) 113directly in equityNet income recognised directly in equity 10 (264)Profit for the year 212 212Total recognised income and expense 222 (52) Consolidated Balance Sheet at 31 December 2005 31 December 31 December 2005 2004 (unaudited) (unaudited) £000 £000Assets Non Current Assets Property, Plant and Equipment 7,408 7,516Goodwill 252 252Deferred Tax Assets 216 314 7,876 8,082Current AssetsStocks 5,412 5,575Trade and Other Receivables 8,059 8,676Tax receivable 113 -Cash and Cash Equivalents - - 13,584 14,251Total Assets 21,460 22,333 EquityCapital and Reserves attributableto the equity holders of theparentShare Capital 635 635Other Reserves 2,906 2,906Retained Earnings 2,791 2,951Total Equity 6,332 6,492 Liabilities Non-Current LiabilitiesOther interest bearing loans and 2,423 2,928borrowingsEmployee benefits 2,398 2,978 4,821 5,906Current LiabilitiesBank overdraft 2,897 3,071Other interest bearing loans and 738 971borrowingsTrade and Other Payables 6,672 5,356Tax payable - 537 10,307 9,935Total Liabilities 15,128 15,841Total Equity and Liabilities 21,460 22,333 Consolidated Statement of Changes in Equity for the year ended 31 December 2005 Share Capital Share Retained Total Capital Reserve Premium Earnings Account £000 £000 £000 £000 £000 Balance at 1 April 635 16 2,890 3,416 6,9572004Profit for the Period - - - 212 212Pension fund - - - (264) (264)actuarial movementDividend Relating to - - - (413) (413)2004Balance at 1 January 635 16 2,890 2,951 6,4922005Profit for the Period - - - 212 212Pension fund - - - 10 10actuarial movementDividend Relating to - - - (382) (382)2005Balance at 31 635 16 2,890 2,791 6,332December 2005 The aggregate current and deferred tax relating to items that are charged orcredited to equity is £Nil (2004: £113,000). All the amounts are attributable to the equity holders of the parent company. Consolidated Cash Flow Statement for the year ended 31 December 2005 Year ended Nine months 31 December ended 31 2005 December 2004 (unaudited) (unaudited) £000 £000 Cash flows from operatingactivitiesProfit for the year 212 212Adjustments for :Depreciation 938 702Financial expense 436 369Gain on sale of property plant and (23) (1)equipmentTaxation 100 180Operating profit before changes in 1,663 1,462working capital and provisionsDecrease in trade and other 617 592receivablesDecrease/(increase) in stock 163 (286)Increase/(decrease) in trade and 1,316 (2,259)other payables(Decrease) in employee benefits (666) (162)provisionCash generated from operations 3,093 (653)Income tax (paid)/refunded (656) 149Net cash generated from operating 2,437 (504)activities Cash flows from investingactivitiesPurchases of property, plant and (884) (427)equipment (PPE)Proceeds from sale of PPE 77 24Net cash used in investing (807) (403)activities Cash flows from financingactivitiesRepayments of borrowings (738) (600)Interest paid (336) (280)Dividends paid to Company's (382) (412)shareholdersNet cash used in financing (1,456) (1,292)activities Net (decrease)/increase in bank 174 (2,199)overdraftBank overdraft at beginning of the (3,071) (872)yearBank overdraft at end of the year (2,897) (3,071) Notes: 1) The financial information set out above does not constitute the Group'sstatutory accounts for the periods ended 31 December 2004 or 31 December 2005.The financial information for 31 December 2004 is derived from the statutoryaccounts for 2004 which have been delivered to the registrar of companies. Theauditors have reported on the 31 December 2004 accounts under UK GAAP; theirreport was unqualified and did not contain a statement under section 237 (2) or(3) of the Companies Act 1985. The statutory accounts for 31 December 2005 willbe finalised on the basis of financial information presented by the directors onthis preliminary announcement and will be delivered to the registrar ofcompanies following the company's annual general meeting. 2) The comparative figures have been restated to conform with InternationalFinancial Reporting Standards and these have been revised since publication ofthe interim statement. Details of the adjustments will be published in theGroup's statutory accounts. This information is provided by RNS The company news service from the London Stock Exchange