5th Apr 2011 09:22
Tex Holdings plc Preliminary Announcement 31st December 2010 Registered number 405838 |
Results in Brief
| Year ended 31/12/10 | Year ended 31/12/09 |
| £000 | £000 |
Revenue | 33,103 | 33,013 |
Profit before taxation | 688 | 418 |
Taxation | (130) | (134) |
Profit on ordinary activities after taxation | 558 | 284 |
Total equity | 7,438 | 6,329 |
Net assets per share | 117p | 100p |
Basic earnings per share | 8.8p | 4.5p |
Diluted earnings per share | 8.8p | 4.5p |
Dividends per share (based on interim dividend in the year and final dividend proposed) | 2.0p | 2.0p |
Results and Operations
Tex Group sales for the 12 months to 31st December 2010 amounted to £33.1m compared with £33.0m in 2009. The past year has been a year of stabilisation and restructuring to build foundations for the future and to improve the profitability of the sales achieved.
Pre-tax profit earned in 2010 was £688k compared with £418k in 2009.
Both the Plastics Division and the Boards & Panels Division improved their sales levels and also their pre-tax results, with the Plastics Division doubling its operating profit. The Engineering Division contracted further but, as a result of cost control, was able to limit the impact on the operating profit.
Prospects and Dividend
The orders for the first quarter are in line with budget but, with uncertainties in the Middle East, EEC difficulties with many countries in substantial deficits, and the increase in VAT in the UK, the future continues to be unpredictable. However, our order book is at present in excess of £10,000,000. This is ahead of the long-term average and is therefore encouraging.
In the current uncertain climate, the Board feels it is necessary to retain the dividend at the lowly level of 1.0 pence (2009: 1.0 pence) which would make a total of 2.0 pence in 2010 (2009: 2.0 pence), as we wish to strengthen the balance sheet so we have less reliance on the banking sector.
The Group reduced its borrowings by £700,000 in 2010 and we intend to continue this policy for the foreseeable future.
The final dividend will be paid, subject to shareholder approval, on 22nd July 2011 to members on the register as at 17th June 2011.
Staff
It has been another busy and demanding year, and I would like to thank staff at all levels in the Group for their contribution.
Consolidated Income Statement
for the year ended 31st December 2010
Year ended 31/12/10 | Year ended 31/12/09 | ||
£000 | £000 | ||
Revenue | 33,103 | 33,013 | |
Cost of sales | (24,791) | (24,947) | |
Gross profit | 8,312 | 8,066 | |
Selling and marketing costs | (742) | (495) | |
Administrative expenses | (6,717) | (6,880) | |
Operating profit | 853 | 691 | |
Finance costs | (165) | (273) | |
Profit before tax | 688 | 418 | |
Taxation | (130) | (134) | |
Profit for the year attributable to the equity holders of the Parent | 558 | 284 | |
Earnings per share | |||
Basic and diluted | 8.8p | 4.5p |
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 31st December 2010
Group | Year ended 31/12/10 | Year ended 31/12/09 | |
£000 | £000 | ||
Profit for the year | 558 | 284 | |
Actuarial gains and losses on defined benefit pension plans | 941 | 82 | |
Tax recognised on expenses and income recognised directly in equity | (263) | (23) | |
Net income recognised directly in equity | 678 | 59 | |
Total recognised income and expense attributable to the equity holders of the Parent | 1,236 | 343 | |
Balance Sheets
at 31st December 2010
31/12/10 | 31/12/09 | ||||
£000 | £000 | ||||
Assets | |||||
Non-current assets | |||||
Property, plant and equipment | 5,599 | 6,104 | |||
Intangible assets | - | 218 | |||
Investments | - | - | |||
Deferred tax assets | - | 145 | |||
5,599 | 6,467 | ||||
Current assets | |||||
Stocks | 5,626 | 5,234 | |||
Tax receivable | - | - | |||
Trade and other receivables | 7,754 | 7,229 | |||
Cash and cash equivalents | - | 38 | |||
13,380 | 12,501 | ||||
Total assets | 18,979 | 18,968 | |||
Equity | |||||
Capital and reserves attributable to the equity holders of the Parent | |||||
Share capital | 635 | 635 | |||
Other reserves | 2,906 | 2,906 | |||
Retained earnings | 3,897 | 2,788 | |||
Total equity | 7,438 | 6,329 | |||
Liabilities | |||||
Non-current liabilities | |||||
Other interest-bearing loans and borrowings | 1,890 | 2,628 | |||
Employee benefits | 1,137 | 2,206 | |||
Deferred tax liabilities | 12 | - | |||
3,039 | 4,834 | ||||
Current liabilities | |||||
Bank overdrafts | 285 | - | |||
Other interest-bearing loans and borrowings | 919 | 869 | |||
Trade and other payables | 6,889 | 6,647 | |||
Tax payable | 409 | 289 | |||
8,502 | 7,805 | ||||
Total liabilities | 11,541 | 12,639 | |||
Total equity and liabilities | 18,979 | 18,968 | |||
These financial statements were approved by the Board of Directors on 5th April 2011 and were signed on its behalf by:
A R B Burrows M J Cadbury
Director Director
Registered number: 405838Statement of Changes in Equity
at 31st December 2010
Share capital | Capital reserve | Share premium account | Retained earnings | Total | |
Group | £000 | £000 | £000 | £000 | £000 |
Balance at 1st January 2009 | 635 | 16 | 2,890 | 2,572 | 6,113 |
Profit for the period | - | - | - | 284 | 284 |
Pension fund actuarial movement net of tax | - | - | - | 59 | 59 |
Dividends paid | - | - | - | (127) | (127) |
Balance at 1st January 2010 | 635 | 16 | 2,890 | 2,788 | 6,329 |
Profit for the period | - | - | - | 558 | 558 |
Pension fund actuarial movement net of tax | - | - | - | 678 | 678 |
Dividends paid | - | - | - | (127) | (127) |
Balance at 31st December 2010 | 635 | 16 | 2,890 | 3,897 | 7,438 |
The aggregate current and deferred tax relating to items that are charged or credited to equity is £263,000 (2009: £23,000).
Cash Flow Statement
for the year ended 31st December 2010
Year ended 31/12/10 | Year ended 31/12/09 | ||||
£000 | £000 | ||||
Cash flows from operating activities | |||||
Profit for the year | 558 | 284 | |||
Adjustments for : | |||||
Depreciation | 1,014 | 988 | |||
Goodwill impairment | 218 | 100 | |||
Financial expense | 165 | 273 | |||
Profit on sale of property plant and equipment | (18) | - | |||
Taxation | 130 | 134 | |||
2,067 | 1,779 | ||||
(Increase)/decrease in trade and other receivables | (525) | (871) | |||
(Increase)/decrease in stock | (392) | 175 | |||
Increase in trade and other payables | 242 | 139 | |||
Decrease in employee benefits | (150) | (150) | |||
Cash generated from operations | 1,242 | 1,072 | |||
Income tax paid | (116) | (158) | |||
Net cash generated from operating activities | 1,126 | 914 | |||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment (PPE) | (610) | (520) | |||
Purchase of goodwill | - | - | |||
Proceeds from sale of PPE | 119 | 27 | |||
Dividends received | - | - | |||
Investment loans to subsidiaries | - | - | |||
Net cash used in investing activities | (491) | (493) | |||
Cash flows from financing activities | |||||
New borrowings | 207 | 2,219 | |||
Repayments of borrowings | (700) | (367) | |||
Finance lease payments | (195) | (262) | |||
Interest paid | (143) | (143) | |||
Dividends paid to Company's shareholders | (127) | (127) | |||
Net cash used in financing activities | (958) | 1,320 | |||
Net (decrease)/increase in cash and cash equivalents | (323) | 1,741 | |||
Cash and cash equivalents at beginning of the year | 38 | (1,703) | |||
Cash and cash equivalents at end of the year | (285) | 38 | |||
Notes:
1) The financial information set out above does not constitute the Group's statutory
accounts for the years ended 31st December 2009 or 31st December 2010. The statutory accounts for 31st December 2010 will be finalised on the basis of financial information presented by the Directors on this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
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