Half-year Report

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 2019 was higher in comparison to the same period in the previous year. However, as a consequence of lower margins and additional professional fees, the half year result is a pre-tax loss.

The Plastics Division, with a small increase in turnover increased the operating profit by eight percent.

The Boards & Panels Division had a static turnover year on year, but the operating profit has increased as a result of improved margins following the recruitment of a new Production Director, as noted in last year's report.

The new factory in Brigg has now been completed. The new Edging Machine has also been installed and initial production has commenced.

The Engineering Division turnover has increased by seventeen percent due to the despatch of a number of significant orders received in 2018. However, the Division has produced a loss due to the mix of sales with a lower margin. The Division has entered the second half of the year with an order book in excess of £5,000,000 which is expected to consist of an improvement in the mix of business with increased margins.

The contracts to supply "flat pack" air traffic control rooms to Nigeria, to be supplied by the Tex A.T.C. Division, have been delayed. Customers are awaiting funds from the Nigerian Government; these funds are now understood to have been released.

The Group has been offered a £7,000,000 term loan from associates of the major shareholder. A circular is due to be issued shortly calling an extraordinary general meeting for shareholders to approve the transaction.

The Group has experienced a slow-down in the UK domestic and European markets due to the uncertainty and general lack of confidence surrounding the Brexit issue.

The Board, whilst remaining cautious, anticipates that investments in assets and acquisitions will result in an improvement in trading performance, albeit with higher working capital.

The Board is not proposing to pay an interim dividend (2018: 2.5 pence).

G C Gray

Chairman

28th August 2019

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

28th August 2019

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 2018 annual report.

The comparative figures for the financial year ended 31st December 2018 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) a disclaimer of opinion, (ii) did include a reference to any matters to which the auditors drew attention by way of emphasis, and (iii) did 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 2018, with the exception of the application of IFRS 16 which increased the loss by £19,000.

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 2018: 19%).

5. Earnings per share

Basic earnings per share of (4.2)p (2018: 1.3p) 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 (2018: £Nil).

7. Property, plant and equipment

During the period, the Group spent £272,000 on additions.

It also disposed of certain machinery and equipment with a carrying value of £Nil for proceeds of £2,000.

8. 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 at normal commercial rates. Transactions during the period ended 30th June 2019 that require disclosure are detailed below:

Rentals paid £257,000 (30th June 2018: £213,000)

Other property related expenditure £93,000 (30th June 2018: £130,000)

Trade payables £14,692 (30th June 2018: £14,777)

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 2019 that require disclosure are detailed below:

Purchases £139,274 (30th June 2018: £92,165)

Trade payables £63,074 (30th June 2018: £52,701)

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%) £24,719 (31st December 2017: £Nil)

Loan balance £1,700,000 (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.

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 28th August 2019.