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 2014 was down by 9% over the same period in the previous year. This potential shortfall in profit was recovered as a result of the absence of further significant costs on the Muscat project and the rental income from the 40 tonne hammer.

With the exception of the Boards & Panels Division, all divisions saw a decrease in sales compared to the first six months of 2013.

Profit in the Plastics Division has improved as a result of mix of work. Engineering was a mixed picture with BSP trading strongly on the back of the rental and sale of the 40 tonne hammer, this being offset by the underperformance of the balance of the Division as a result of, in the case of Eurotex, delayed contracts, and in Tex Engineering, lower than anticipated margins. An exercise to review the margins within Tex Engineering has been undertaken and it is anticipated that this subsidiary should recover to a breakeven position. The Boards & Panels Division continues to improve on a further modest increase in sales.

The current order book is down on last year, however enquiries are at the prior year's level and the rate of conversion is consistent with previous years; it is the time-period from quote to order that is extending as the markets remain nervous.

This, along with the current political turmoil in the world and the continued strengthening of Sterling, tempers any optimism that the Board could draw from the first half results. The current indications are for the full year trading to be consistent with recent full year results.

The Board are also mindful of the impact a significant drop in the FTSE would have on the Pension Scheme deficit and therefore the Group balance sheet.

Cash and cost control remain a corporate priority.

The Board is proposing to pay an interim dividend of 2.0 pence (2013: 1.5 pence) which will be paid on 6th October 2014 to shareholders on the register as at 12th September 2014.

ARB Burrows

Chairman

8th August 2014

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).

A R B Burrows

Chairman

8th August 2014

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.

The comparative figures for the financial year ended 31st December 2013 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 2013.

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 21% (6 months ended 30th June 2013: 26%).

5. Earnings per share

Basic earnings per share of 5.6p (2013: 3.8p) 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 (2013: £Nil).

7. Property, plant and equipment

During the period, the Group spent £490,000 on additions to the plant and equipment.

It also disposed of certain machinery and equipment with a carrying value of £386,000 for proceeds of £386,000.

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 2014 that require disclosure are detailed below:

Rentals paid £163,000 (30 June 2013: £150,000)

Trade Creditor £Nil (30 June 2013: £Nil)

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 8th August 2014.