TXH.L Regulatory News (TXH)

Further to the announcement of 31st July 2019, the Company confirms that its annual report for the 12 months ended 31st December 2018 is now available at Companies House and has been submitted to the Financial Conduct Authority through the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM. The Annual Report is also available on the Company's website www.tex-holdings.co.uk

The Company also includes below extracts from the Annual Report:

CHAIRMAN'S STATEMENT

Results for year ended 31st December 2018

Results and operations

Tex Group sales were £40m (2017: £42m). Gross margins reduce from 28.4% to 25%.

The Plastics Division profits have reduced marginally as a result of increased labour and power costs, partly compensated by increased volumes. The Engineering Division had a very challenging year and produced a significant loss with trading issues around sales volumes and mix in some companies, after incurring further relocation costs, write-off of design and other costs relating to contracts expected to be shipped in 2019 and provision against debtor balances. The Boards & Panels Division performance was down on the previous year as a result of increased costs of gearing up for the expanded operations within the new factory currently under construction at the Brigg site.

The Group reported a pre-tax trading loss of £180k for the year (2017: profit £927k), but this was increased by an exceptional IAS19 adjustment for GMP equalisation of £543k which took the total reported pre-tax loss for the year to £714k.

The challenging conditions in the Engineering Division were largely responsible for the Group breaching certain banking covenants and then in early 2019 having trading in its shares suspended. More detail about these events are given in the Strategic Report.

The Group's net assets per share have decreased from 168p to 140p, driven by the increase in the pension scheme deficit and the reported loss for the current year.

Prospects and dividends

The Plastics Division has continued to trade profitably as expected in 2019. Opening orders have been strong within the Engineering Division with the Group order book in excess of £10,000,000 and the Board is confident that appropriate steps have been taken to address the issues seen during 2018 referred to later. The overall Group performance for the first five months remains challenging, however the Board look forward to reporting an improved position for the full 2019 based on an anticipated improved Engineering Division performance once delayed projects go ahead.

We recommend a final dividend of Nil (2017: 6.0 pence), making an overall payment in respect of the year of 2.5 pence (2017: 8.5 pence).

Staff

I would like to thank staff at all levels in the Group for their contribution to the result for the year.

G C Gray

Chairman

31st July 2019

RESULTS IN BRIEF

Consolidated Income Statement

for the year ended 31st December 2018

Consolidated Statement of Comprehensive Income

for the year ended 31st December 2018

Consolidated Balance Sheets

at 31st December 2018

These financial statements were approved by the Board of Directors on 31st July 2019 and were signed on its behalf by:

GC Gray CA Parker

Director Director

Registered number: 00405838Consolidated Statements of Changes in Equity

at 31st December 2018

Consolidated Cash Flow Statements

for the year ended 31st December 2018

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. 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 2018 annual report.

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 which resulted in a £90,782 decrease to profit and retained earnings as at 1st January 2018, reflecting the re-allocation of the profit recognition on the aircraft carrier project, now based on completion rather than percentage of expenditure at the average margin on the project.

3. Related party transactions

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

ARB Burrows has an interest in Edward Le Bas Properties Limited through which the Group rents properties. Transactions during the period ended 31st December 2018 that require disclosure are detailed below:

Rentals paid (excluding recharge of ancillary costs) £460,914 (31st December 2017: £383,904)

Other property related expenditure £186,374 (31st December 2017: £144,162)

Trade payables £22,333 (31st December 2017: £17,777)

ARB Burrows has an interest in IS&G Steel Stockholders Limited through which the Group purchases steel. Transactions during the period ended 31st December 2018 that require disclosure are detailed below:

Purchases £193,151 (31st December 2017: £173,391)

Trade payables £62,109 (31st December 2017: £52,305)

ARB Burrows has an interest in Le Bas Investment Trust Limited through which the Group has borrowed a short-term loan. Transactions during the period ended 31st December 2018 that require disclosure are detailed below:

Interest (3.75%) £4,675 (31st December 2017: £Nil)

Loan balance £1,300,000 (31st December 2017: £Nil)

ARB 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.

The statement of Directors' responsibilities is set out on pages 18 and 19 of the Company's annual report and financial statements for the year ended 31st December 2018.

Notes:

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31st December 2017 or 31st December 2018. The auditor has reported on the statutory accounts for 31st December 2018 and their report was a disclaimer of opinion. The full audit report is contained on pages 27 - 36 of the Company's annual report and financial statements for the year ended 31st December 2018. The statutory accounts for 31st December 2018 have been delivered to the Registrar of Companies.

Statutory accounts for 2017 were delivered to the Registrar of Companies. The previous auditor reported on the accounts for 2017 and their report was unqualified.