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Interim Results

27th Aug 2008 12:18

RNS Number : 1191C

Tex Holdings PLC

27 August 2008

TEX HOLDINGS PLC

INTERIM STATEMENT

TEX HOLDINGS PLC

INDEX

	Page
Chairman's Statement	2
Consolidated Income Statement	3
Consolidated Statement of Recognised Income and Expense	3
Consolidated Balance Sheet	4
Consolidated Statement of Changes in Equity	5
Consolidated Cash Flow Statement	6

TEX HOLDINGS PLC

CHAIRMAN'S STATEMENT

Tex Group turnover for the six months to 30th June 2008 amounted to £19.3m - an increase of 9% over the comparable figure in 2007. Pre-tax profit totalled £753k which represents a rise of 29% over the previous year.

Sales in the Plastics Division were £10.3m which compares with £10.1m in 2007, a marginal increase, reflecting the first signs of the impact of the current economic downturn. Operating profit earned was £556k down from the comparable periods £663k.

A strategic cost control exercise has commenced along with a targeted sales development plan.

The Engineering Division saw a 31.7% increase in turnover to £5.6m compared to the same period in 2007. Operating profit also increased from £121k to £452k reflecting the impact of the additional sales.

As a result of the markets the Engineering Division operates in, the immediate impact of the economic situation will be limited. The second half is anticipated to remain sound.

In the Boards & Panels Division, turnover has remained at the same level as the comparable period, however the operating profit has reduced from £274k to £216k. As a result of the expected softening of demand in the Division's main markets, a restructuring exercise has been carried out.

Across the Group the current indication is that the softening in demand on the Plastics and Boards & Panels Divisions will be offset by the strengthening of demand in the Engineering Division. The Group order book remains above the long term average.

The Board is proposing to pay an interim dividend of 4.5 pence (2007: 3.5 pence) which will be paid on 13th October 2008 to shareholders on the register as at 19th September 2008.

ARB Burrows

Chairman

27th August 2008 TEX HOLDINGS PLC

CONSOLIDATED INCOME STATEMENT

	Notes	6 months ended 30.06.08 (Unaudited) £000	6 months ended 30.06.07 (Unaudited) £000	Year ended 31.12.07 (Audited) £000

Revenue	3	19,332	17,678	36,873
Cost of sales		(12,636)	(11,781)	(27,659)
Gross profit		6,696	5,897	9,214
Selling and marketing costs		(465)	(410)	(946)
Administrative expenses		(5,342)	(4,744)	(6,838)
Operating profit		889	743	1,430
Finance costs		(136)	(161)	(204)
Profit before tax		753	582	1,226
Taxation		(223)	(172)	(312)
Profit for the period attributable to the equity holders of the parent	3	530	410	914

Basic earnings per share		8.3p	6.5p	14.4p

STATEMENT OF RECOGNISED INCOME AND EXPENSE

	6 months ended 30.06.08 (Unaudited) £000	6 months ended 30.06.07 (Unaudited) £000	Year ended 31.12.07 (Audited) £000

Actuarial gains arising in defined benefit pension scheme	-	-	73
Tax recognised on income and expenses recognised directly in equity	-	-	(22)
Net income recognised directly in equity	-	-	51
Profit for the period	530	410	914
Total recognised income and expense	530	410	965

TEX HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

	Notes	6 months ended 30.06.08 (Unaudited) £000	6 months ended 30.06.07 (Unaudited) £000	Year ended 31.12.07 (Audited) £000

ASSETS
Non-current assets
Property, plant and equipment	7	6,985	7,163	7,117
Goodwill		252	252	252
		7,237	7,415	7,369
Current assets
Stocks		5,822	4,915	5,349
Trade and other receivables		9,147	8,497	9,687
		14,969	13,412	15,036
Total assets		22,206	20,827	22,405
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		5,397	4,788	4,867
Total equity		8,938	8,329	8,408
LIABILITIES
Non-current liabilities
Other interest bearing loans and borrowings		1,845	2,056	1,787
Employee benefits		-	278	-
Deferred tax liabilities		529	480	503
		2,374	2,814	2,290
Current liabilities
Bank overdraft		2,345	2,538	2,333
Other interest bearing loans and borrowings		154	270	326
Trade and other payables		7,868	6,564	8,666
Tax payable		527	312	382
		10,894	9,684	11,707
Total liabilities		13,268	12,498	13,997
Total equity and liabilities		22,206	20,827	22,405

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 2007	635	16	2,890	4,378	7,919
Profit for the period	-	-	-	410	410
Pension fund actuarial movement net of tax	-	-	-	-	-
Dividends paid	-	-	-	-	-
	-	-	-	410	410
Balance at 30 June 2007	635	16	2,890	4,788	8,329

Balance at 1 January 2007	635	16	2,890	4,378	7,919
Profit for the period	-	-	-	914	914
Pension fund actuarial movement net of tax	-	-	-	51	51
Dividends paid	-	-	-	(476)	(476)
	-	-	-	489	489
Balance at 31 December 2007	635	16	2,890	4,867	8,408

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

TEX HOLDINGS PLC

CONSOLIDATED CASH FLOW STATEMENT

	6 months ended 30.06.08 (Unaudited) £000	6 months ended 30.06.07 (Unaudited) £000	Year ended 31.12.07 (Audited) £000
Cash flows from operating activities
Profit for the period	530	410	914
Adjustments for:
Depreciation	526	468	1,004
Financial expense	136	161	204
Profit on sale of property, plant and equipment	-	-	-
Taxation	223	172	312
Operating profit before changes in working capital and provisions	1,415	1,211	2,434
Movement in trade and other receivables	540	(1,095)	(2,285)
Movement in stock	(473)	299	(135)
Movement in trade and other payables	(690)	(22)	2,080
Movement in employee benefits	(108)	(82)	(216)
Cash generated from operations	684	311	1,878
Income tax paid	(52)	1	(68)
Net cash generated from operating activities	632	312	1,810

Cash flows from investing activities
Proceeds from sale of PPE	78	21	57
Purchases of property, plant and equipment (PPE)	(471)	(649)	(1,175)
Net cash used in investing activities	(393)	(628)	(1,118)

Cash flows from financing activities
Interest paid	(136)	(161)	(275)
Repayments of borrowings	(16)	(116)	(234)
New finance leases	-	245
Finance lease payments	(99)	(176)	(26)
Dividends paid to company's shareholders	-	-	(476)
Net cash used in financing activities	(251)	(208)	(1,011)

Net increase in cash and cash equivalents	(12)	(524)	(319)
Cash and cash equivalents at beginning of the period	(2,333)	(2014)	(2,014)
Cash and cash equivalents at end of the period	(2,345)	(2,538)	(2,333)

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. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements as at and for the year ended 31 December 2007.

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 31 December 2007.

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.

2008	Plastics	Engineering	Boards & Panels	Total for continuing operations
	£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

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.

2007	Plastics	Engineering	Boards & Panels	Total for continuing operations
	£000	£000	£000	£000
Revenue
External sales	10,092	4,278	3,308	17,678
Inter segment sales	-	-	-	-
Total revenue from continuing operations	10,092	4,278	3,308	17,678

Result
Segment result from continuing operations	663	121	274	1,058
Expenses pertaining to the Company				(315)
Operating profit				743
Finance costs				(161)
Profit before tax				582
Taxation				(172)
Profit for the year from continuing operations				410

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 2007: 30%)

5. Earnings per share

Basic earnings per share of 8.3p (2007: 6.5p) is based on the following data.

Earnings

6 months ended

30.06.08

(Unaudited)

£000

6 months ended

30.06.07

(Unaudited)

£000

Earnings for the purposes of basic earnings per share (profit for the year attributable to equity holders of the parent)

914

599

Number of shares

6 months ended

30.06.08

(Unaudited)

£000

6 months ended

30.06.07

(Unaudited)

£000

Weighted average number of ordinary shares for the purposes of basic earnings per share

6,351,452

TEX HOLDINGS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6. Dividends

During the interim period no dividends were paid (2007: £Nil).

7. Property, plant and equipment

During the period, the Group spent £471,000 on additions to the plant and equipment.

It also disposed of certain machinery and equipment with a carrying value of £78,000 for proceeds of £78,000.

8. Contingencies and commitments

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.

ARB 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 31 December 2006 that require disclosure are detailed below:

Rentals paid £103,000 (30 June 2007: £103,000)

Trade Creditor £Nil (30 June 2007: £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.

11. Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 27th August 2008.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR UBRARWWRWUAR

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