TXH.L Regulatory News (TXH)

TEX HOLDINGS PLC

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TEX HOLDINGS PLC

INDEX

TEX HOLDINGS PLC

CHAIRMAN'S STATEMENT

Group turnover for the six months to 30th June 2018 was lower than the same period in the previous year with pre-tax profit also down on the previous year.

The Plastics Division produced a five percent increase in turnover which resulted in a twenty three percent increase in operating profit.

The Boards & Panels Division had a static turnover year on year, but the operating profit is reduced as a result of higher than anticipated labour costs. A new Production Director designate has been recruited with a view to improving the overall performance of this Division.

The Boards & Panels Division is currently developing additional factory space at its Brigg site to house the latest technology edging machine. This represents a significant investment for the Group and is being carried out to support a key customer in the caravan industry.

Turnover of the Engineering Division decreased by twenty percent due to delays in customer orders. This has resulted in a reduced profit for the Division. However, the second half of the year has opened with a solid order book which will be reflected in the second half results.

The Group has recently acquired the trade and assets of Argento UK Limited, a metal fabrication and powder coating business based in Beccles, Suffolk.

The Group has just been awarded the contract to supply a "flat pack" air traffic control room to Nigeria to be supplied by the Tex A.T.C. Division.

The Board, whilst remaining cautious, anticipates that the investments in assets and acquisitions will result in the trading results improving in the medium term, albeit with higher working capital.

The Board is proposing to pay an interim dividend of 2.5 pence (2017: 2.5 pence) which will be paid on 5th October 2018 to shareholders on the register as at 14th September 2018.

G C Gray

Chairman

14th August 2018

TEX HOLDINGS PLC

RESPONSIBILITY STATEMENT

in respect of the interim financial report

We confirm that to the best of our knowledge:

· the interim condensed consolidated financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU;

· the interim management report includes a fair review of the information required by Disclosure and Transparency Rules ("DTR") 4.2.7R (indication of the important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

· the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

G C Gray

Chairman

14th August 2018

TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

TEX HOLDINGS PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of preparation

The condensed consolidated financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards as adopted by EU and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. The condensed consolidated financial statements have not been audited or reviewed.

They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2017 annual report.

The comparative figures for the financial year ended 31st December 2017 are not the statutory financial statements for that financial year. Those financial statements have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

2. Significant accounting policies

The condensed consolidated financial statements have been prepared under the historical cost convention.

The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the preparation of the Group's consolidated financial statements for the year ended 31st December 2017, with the exception of the application of IFRS 15 and IFRS 9 which had no significant impact on the results.

3. Segment information

The following is an analysis of the revenue and results for the period analysed by business segment, the Group's primary basis of segmentation.

All operations are continuing.TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3. Segment information (continued)

Segment information about the Group's continuing operations is presented below.

4. Taxation

Interim period corporation tax is accrued based on the estimated average annual effective income tax rate of 19% (6 months ended 30th June 2017: 20%).

5. Earnings per share

Basic earnings per share of 1.3p (2017: 5.2p) is based on the following data.

TEX HOLDINGS PLC

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6. Dividends

During the interim period, no dividends were paid (2017: £Nil).

7. Property, plant and equipment

During the period, the Group spent £1,204,000 on additions.

It also disposed of certain machinery and equipment with a carrying value of £4,000 for proceeds of £4,000.

8. Related party transactions

The Company has a related party relationship with its subsidiaries and directors.

A R B Burrows has an interest in Edward Le Bas Properties Limited through which the Group rents properties at normal commercial rates. Transactions during the period ended 30th June 2018 that require disclosure are detailed below:

Rentals paid £343,000 (30th June 2017: £159,000)

Trade payables £14,777 (30th June 2017: £Nil)

A R B Burrows has an interest in IS&G Steel Stockholders Limited through which the Group purchases steel. Transactions during the period ended 30th June 2018 that require disclosure are detailed below:

Purchases £92,165 (30th June 2017: £97,379)

Trade payables £52,701 (30th June 2017: £60,588)

A R B Burrows is a trustee and a beneficiary of the Pension and Assurance Scheme of Edward Le Bas Limited, which is a substantial shareholder in the Company.

All intra-group related party transactions and outstanding balances are eliminated in the preparation of the consolidated financial statements of the Group and therefore in accordance with IAS 24 related party disclosures are not disclosed.

9. Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 14th August 2018.