5th Nov 2008 10:52
Tex Holdings plc
Tex Holdings plc is today issuing its Interim Management Statement for the third quarter's trading.
The Group has, along with all businesses, suffered as a result of the global downturn and the turmoil in the stock market. This has resulted in the expectations for the year being reduced.
Within the Plastics Division, the trading has continued to slow, but cost reduction exercises are in progress to reduce the operating costs to a level that can be supported by the current reduced levels of trading.
The Engineering Division is currently maintaining its performance even against the current economic slowdown.
The BSP International order book remains buoyant, indicating a sound result for the year subject to there being no problems in the supply chain.
Tex Engineering has suffered some slowdown as a result of the economic changes, but the outturn for the year should be in excess of the previous year. An order in excess of £500,000 has been received for shipment in 2009, which should give Tex Engineering a solid start to 2009.
The Boards and Panels Division has suffered the greatest impact of the current economic climate and has seen its major customer's sales drop by more than one third and as a result of this a restructuring exercise is under way to allow the Division to ultimately trade profitably on the much reduced turnover. The estimated cost of this restructuring is £500,000 and will impact the current year results.
Outlook
As noted above the economic climate has impacted on the Group, but the Group order book remains above £10,000,000. The Plastics and Boards and Panels Divisions are suffering most in the current climate, with the Group performance being supported by the Engineering Division.
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