25 Aug 2009 10:41
TEX HOLDINGS PLC
INTERIM STATEMENT
TEX HOLDINGS PLC
INDEX
| Page | |
| Chairman's Statement | 2 |
| Responsibility Statement | 3 |
| Consolidated Statement of Comprehensive Income | 4 |
| Consolidated Statement of Financial Position | 5 |
| Consolidated Statement of Changes in Equity | 6 |
| Consolidated Statement of Cash Flows | 7 |
| Notes to the Condensed Consolidated Financial Statements | 8-10 |
TEX HOLDINGS PLC
CHAIRMAN'S STATEMENT
Tex Group turnover for the six months to 30th June 2009 amounted to £17m, a decrease of 10% over the comparable figure in 2008. Pre-tax profit totalled £523K which represents a reduction of 31% over the previous year.
Sales in the Plastics Division were £8.0m which compares with £10.3m in 2008, a decrease reflecting the impact of the economic slowdown and resulting reduced trading levels. Operating profit earned was £93k in 2009 down from the comparable period's £556k. This represents the impact of the loss of volume and the cost of reorganization to operate at the reduced volumes.
The Engineering Division saw a 35% increase in turnover to £7.6m compared to the same period in 2008. Operating profit also increased from £452k to £852k reflecting the impact of the additional sales. The economic slowdown is now impacting sales levels, but the Division is expected to remain profitable.
In the Boards & Panels Division turnover dropped by 45% to £1.8m, resulting in the Division making an operating loss of £106k compared to a profit of £216k. The previous year's restructuring exercise has seen the losses in the first half controlled and further restructuring is being evaluated.
The Group order book has reduced in line with the general market downturn and the absence of the proposed governmental expenditure on schools and roads. At present the Board feel the second half trading will continue to be tough.
These exceptional economic conditions make forecasting the next twelve months difficult. However management is concentrating on controlling costs in line with the expected trading levels.
Cash continues to be prioritised and has been in line with budgeted expectations.
The Board is proposing to pay an interim dividend of 1.0 pence (2008: 4.5 pence) which will be paid on 12th October 2009 to shareholders on the register as at 18th September 2009.
ARB Burrows
Chairman
25th August 2009
TEX HOLDINGS PLC
RESPONSIBILITY STATEMENT
in respect of the interim financial report
We confirm that to the best of our knowledge:
the condensed set of financial statements has 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
25th August 2009
TEX HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Notes | 6 months ended 30.06.09 (Unaudited) £000 | 6 months ended 30.06.08 (Unaudited) £000 | Year ended 31.12.08 (Audited) £000 | |
| Revenue | 3 | 17,463 | 19,332 | 35,761 |
| Cost of sales | (11,830) | (12,636) | (26,741) | |
| Gross profit | 5,633 | 6,696 | 9,020 | |
| Selling and marketing costs | (346) | (465) | (879) | |
| Other administrative expenses | (4,611) | (5,342) | (7,256) | |
| Restructuring costs | - | - | (377) | |
| Administrative expenses | (4,611) | (5,342) | (7,633) | |
| Operating profit | 676 | 889 | 508 | |
| Finance costs | (153) | (136) | (109) | |
| Profit before tax | 523 | 753 | 399 | |
| Taxation | (153) | (223) | (280) | |
| Profit for the period attributable to the equity holders of the parent | 370 | 530 | 119 | |
| Other comprehensive income: | ||||
| Actuarial losses arising in defined benefit pension scheme | - | - | (2,604) | |
| Tax recognised on actuarial losses in defined pension scheme | - | - | 729 | |
| Total Comprehensive Income for the period | 370 | 530 | (1,756) | |
| Basic earnings per share | 5.8p | 8.3p | 1.9p |
TEX HOLDINGS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Notes | 30.06.09 (Unaudited) £000 | 30.06.08 (Unaudited) £000 | 31.12.08 (Audited) £000 | |
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 7 | 6,307 | 6,985 | 6,599 |
| Goodwill | 268 | 252 | 318 | |
| Deferred tax assets | 125 | - | 125 | |
| 6,700 | 7,237 | 7,042 | ||
| Current assets | ||||
| Stocks | 5,567 | 5,822 | 5,409 | |
| Trade and other receivables | 7,457 | 9,147 | 6,358 | |
| Cash | 334 | - | - | |
| 13,358 | 14,969 | 11,767 | ||
| Total assets | 20,058 | 22,206 | 18,809 | |
| EQUITY | ||||
| Capital and reserves attributable to the equity holders of the parent | ||||
| Share capital | 635 | 635 | 635 | |
| Other reserves | 2,906 | 2,906 | 2,906 | |
| Retained earnings | 2,942 | 5,397 | 2,572 | |
| Total equity | 6,483 | 8,938 | 6,113 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Other interest bearing loans and borrowings | 3,387 | 1,845 | 1,692 | |
| Employee benefits | 2,408 | - | 2,308 | |
| Deferred tax liabilities | - | 529 | - | |
| 5,795 | 2,374 | 4,000 | ||
| Current liabilities | ||||
| Bank overdraft | - | 2,345 | 1,703 | |
| Other interest bearing loans and borrowings | 531 | 154 | 215 | |
| Trade and other payables | 6,832 | 7,868 | 6,508 | |
| Tax payable | 417 | 527 | 270 | |
| 7,780 | 10,894 | 8,696 | ||
| Total liabilities | 13,575 | 13,268 | 12,696 | |
| Total equity and liabilities | 20,058 | 22,206 | 18,809 |
TEX HOLDINGS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Share Capital £000 | Capital Redemption Reserve £000 | Share Premium Account £000 | Retained Earnings £000 | Total Equity £000 | |
| Balance at 1 January 2008 | 635 | 16 | 2,890 | 4,867 | 8,408 |
| Profit for the period | - | - | - | 530 | 530 |
| Pension fund actuarial movement net of tax | - | - | - | - | - |
| Dividends Paid | - | - | - | - | - |
| - | - | - | 530 | 530 | |
| Balance at 30 June 2008 | 635 | 16 | 2,890 | 5,397 | 8,938 |
| Balance at 1 January 2008 | 635 | 16 | 2,890 | 4,867 | 8,408 |
| Profit for the period | - | - | - | 119 | 119 |
| Pension fund actuarial movement net of tax | - | - | - | (1,875) | (1,875) |
| Dividends paid | - | - | - | (539) | (539) |
| - | - | - | (2,295) | (2,295) | |
| Balance at 31 December 2008 | 635 | 16 | 2,890 | 2,572 | 6,113 |
| Balance at 1 January 2009 | 635 | 16 | 2,890 | 2,572 | 6,113 |
| Profit for the period | - | - | - | 370 | 370 |
| Pension fund actuarial movement net of tax | - | - | - | - | - |
| Dividends paid | - | - | - | - | - |
| - | - | - | 370 | 370 | |
| Balance at 30 June 2009 | 635 | 16 | 2,890 | 2,942 | 6,483 |
TEX HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
| 6 months ended 30.06.09 (Unaudited) £000 | 6 months ended 30.06.08 (Unaudited) £000 | Year ended 31.12.08 (Audited) £000 | |
| Cash flows from operating activities | |||
| Profit for the period | 370 | 530 | 119 |
| Adjustments for: | |||
| Depreciation | 484 | 526 | 1,043 |
| Goodwill impairment | 50 | - | 102 |
| Financial expense | 153 | 136 | 109 |
| Loss on sale of property, plant and equipment | - | - | 182 |
| Taxation | 153 | 223 | 280 |
| Operating profit before changes in working capital and provisions | 1,210 | 1,415 | 1,835 |
| Movement in trade and other receivables | (1,099) | 540 | 3,329 |
| Movement in stock | (158) | (473) | (60) |
| Movement in trade and other payables | 324 | (690) | (2,158) |
| Movement in employee benefits | 100 | (108) | (178) |
| Cash generated from operations | 377 | 684 | 2,768 |
| Income tax paid | (6) | (52) | (290) |
| Net cash generated from operating activities | 371 | 632 | 2,478 |
| Cash flows from investing activities | |||
| Proceeds from sale of PPE | 49 | 78 | 98 |
| Purchase of goodwill | - | - | (168) |
| Purchases of property, plant and equipment (PPE) | (241) | (471) | (805) |
| Net cash used in investing activities | (192) | (393) | (875) |
| Cash flows from financing activities | |||
| Interest paid | (153) | (136) | (228) |
| Repayments of borrowings | (16) | (16) | (33) |
| New borrowings | 2,000 | - | - |
| New finance leases | 128 | - | - |
| Finance lease payments | (101) | (99) | (173) |
| Dividends paid to company's shareholders | - | - | (539) |
| Net cash used in financing activities | 1,858 | (251) | (973) |
| Net increase in cash and cash equivalents | 2,037 | (12) | 630 |
| Cash and cash equivalents at beginning of the period | (1,703) | (2,333) | (2,333) |
| Cash and cash equivalents at end of the period | 334 | (2,345) | (1,703) |
TEX HOLDINGS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The condensed 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 comparative figures for the financial year ended 31st December 2008 are not the Company's statutory accounts for that financial year. Those accounts 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 financial statements have been prepared under the historical cost convention, except for the revaluation of certain properties and financial instruments.
The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31st December 2008.
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.
| Plastics | Engineering | Boards & Panels | Total for continuing operations | ||
| 2009 | £000 | £000 | £000 | £000 | |
| Revenue | |||||
| External Sales | 7,988 | 7,630 | 1,845 | 17,463 | |
| Inter segment sales | - | - | - | - | |
| Total revenue from continuing operations | 7,988 | 7,630 | 1,845 | 17,463 | |
| Result | |||||
| Segment result from continuing operations | 93 | 852 | (106) | 839 | |
| Expenses pertaining to the Company | (163) | ||||
| Operating profit | 676 | ||||
| Finance costs | (153) | ||||
| Profit before tax | 523 | ||||
| Taxation | (153) | ||||
| Profit for the year from continuing operations | 370 |
TEX HOLDINGS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. Segment information (continued)
Segment information about the Group's continuing operations is presented below.
| Plastics | Engineering | Boards & Panels | Total for continuing operations | ||
| 2008 | £000 | £000 | £000 | £000 | |
| Revenue | |||||
| External sales | 10,354 | 5,632 | 3,346 | 19,332 | |
| Inter segment sales | - | - | - | - | |
| Total revenue from continuing operations | 10,354 | 5,632 | 3,346 | 19,332 | |
| Result | |||||
| Segment result from continuing operations | 556 | 452 | 216 | 1,224 | |
| Expenses pertaining to the Company | (335) | ||||
| Operating profit | 889 | ||||
| Finance costs | (136) | ||||
| Profit before tax | 753 | ||||
| Taxation | (223) | ||||
| Profit for the year from continuing operations | 530 |
4. Income tax (charge) credit
Interim period income tax is accrued based on the estimated average annual effective income tax rate of 30% (6 months ended 30 June 2008: 30%).
5. Earnings per share
Basic earnings per share of 5.8p (2008: 8.3p) is based on the following data.
| Earnings | 6 months ended 30.06.09 (Unaudited) £000 | 6 months ended 30.06.08 (Unaudited) £000 | |
| Earnings for the purposes of basic earnings per share (profit for the period attributable to equity holders of the parent) | 370 | 530 |
| Number of shares | 6 months ended 30.06.09 (Unaudited) | 6 months ended 30.06.08 (Unaudited) | |
| Weighted average number of ordinary shares for the purposes of basic earnings per share | 6,351,452 | 6,351,452 |
TEX HOLDINGS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6. Dividends
During the interim period no dividends were paid (2008: £Nil).
7. Property, plant and equipment
During the period, the Group spent £241,000 on additions to the plant and equipment.
It also disposed of certain machinery and equipment with a carrying value of £49,000 for proceeds of £49,000.
None to report.
9. Events after the balance sheet date
None to report.
10. Related party transactions
The Company has a related party relationship with its subsidiaries and directors.
A R B Burrows was a director of Edward Le Bas Properties Limited through which the Group rents properties at normal commercial rates. Transactions during the period ended 30th June 2009 that require disclosure are detailed below:
Rentals paid £103,000 (30 June 2008: £103,000)
Trade Creditor £Nil (30 June 2008: £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.
11. Approval of interim financial statements
The interim financial statements were approved by the Board of Directors on 24th August 2009.