Interim Results

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 2016 was higher than the same period in the previous year, however the pre-tax profit did not achieve the same increase.

The previous year's pattern was reversed with the Plastics Division being the only division to record lower sales in the first six months of 2016 compared to 2015. This reduction in turnover is as a result of reduced call-offs from a number of customers of the Plastics Division who were reviewing their stock holding levels.

The Engineering division benefited from six months trading from G&M TEX Ltd and a strong opening six months from Tex Engineering Limited. The Boards & Panels Division was buoyed by two larger projects for the Quikaboard product.

Since the half year there has been some improvement in the sales volumes in the Plastics Division.

Profits for the first six months trading have not reflected the increased turnover, as a result of a different mix of work, the impact of aborted project costs and the initial costs of the relocation of G&M TEX to new premises.

The Engineering Division also currently has a number of projects in progress that are due to be completed in the second half of the year.

The order book at the half year is in excess of £7,000,000.

In order to provide a foundation for future trading and to give some stability in the current turbulent times post Brexit, the Group has put in place a £2,000,000 term loan.

The Board remains cautious. It is however anticipated that subject to the current political and economic turmoil in the world, the full year trading will maintain its parity with recent results.

As with previous years, cash and cost control remains a corporate priority.

The Board is proposing to pay an interim dividend of 2.5 pence (2015: 2.0 pence) which will be paid on 7th October 2016 to shareholders on the register as at 16th September 2016.

ARB Burrows

Chairman

8th August 2016

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).

A R B Burrows

Chairman

8th August 2016

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.

The comparative figures for the financial year ended 31st December 2015 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) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not 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 2015.

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 20% (6 months ended 30th June 2015: 21%).

5. Earnings per share

Basic earnings per share of 6.2p (2015: 6.1p) 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 (2015: £Nil).

7. Property, plant and equipment

During the period, the Group spent £481,000 on additions.

It also disposed of certain machinery and equipment with a carrying value of £11,000 for proceeds of £11,000.

8. Related party transactions

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

A R B 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 2016 that require disclosure are detailed below:

Rentals paid £149,000 (30th June 2015: £163,000)

Trade Creditor £Nil (30th June 2015: £Nil)

A R B 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 8th August 2016.