Tex Holdings PLC AGM Statement (7311B)
21 June 2016 - 12:22AM
UK Regulatory
TIDMTXH
RNS Number : 7311B
Tex Holdings PLC
20 June 2016
CHAIRMAN'S STATEMENT - 20TH JUNE 2016
I hope you have all received our annual accounts and in due
course I will be happy to answer any questions you may wish to
raise.
To bring you up to date with our trading activities, I will, as
always, start with the good news.
-- Tex Engineering, after many years in the doldrums, continues
to grow its sales and at last is starting to produce a better
figure on the bottom line. We hope this will continue for the rest
of the year.
-- QK Honeycomb Products is trading ahead of budget and if it
can keep up its level of order intake we are hoping it can produce
some good results through to the end of the year. In the past this
company has produced some very satisfactory results, but of late
suffered from low volumes. If it can build its order book it could
become one of our major earners in the years to come.
-- At the AGM last year we were asked as to whether we had any
acquisitions in mind and I am delighted that G&M Tex has joined
the group, contributing to our earnings in the last year and they
will benefit from group representation. It should be a major
addition to our company.
-- Eurotex has suffered from some long lead times on its
conversion from enquiries to orders. A number of decisions are
awaited, which should put the company in a far better position in
the coming year, but overseas politics may delay our return to
profit. We continue to search for new products.
-- As one of our late Prime Ministers, Harold Macmillan, said
exporting is fun. His experience I feel was somewhat doubtful and I
fear the Middle East failed to come into the territory he was
referring to. Tex ATC, which has in the past suffered from a major
difficult contract in Oman, is in the middle of completing a
further contract in that country, taken on a very different basis,
which is at present on line to perform as we would wish. A further
contract in Oman is taking time to be signed, but we continue to be
hopeful. We have some interesting enquiries from new territories,
which we are following up, especially the new Indian aircraft
carrier where we have been invited to quote for.
-- BSP has suffered from a lack of orders in the world of civil
engineering. The Middle East, South America, USA and Europe have
all suffered from lack of confidence, terrorism and politics. We
continue with a substantial level of enquiries, but our level of
conversion has fallen substantially.
-- For a number of years we have received strong results from
Plastics at Barnstaple, but we have struggled to obtain good
results at Derby. I am pleased to report that our management at
Derby have managed to improve our results however Barnstaple is
being pressurized on margins, lower volume and some machine
breakdowns. We are improving this with further investment, but must
be prepared for further costs over the next few years and with
customers demanding cost reductions. We also face substantial
increases in cost due to the minimum wage, but the directors are
exploring ways to improve automation.
In the event of a Brexit we are warned by our Chancellor of
rough times ahead. We have put in place a borrowing facility to
steer us through any stormy waters to come. We have signed up a
term loan, repayable over 5 years, of GBP2m and short term
facilities of GBP2.5m to cover any possible increase in trade.
We continue to make progress with the pension fund. The deficit
has reduced by GBP1.1m our investments have performed in line with
the market or better, but the method of valuing pension fund
deficits has improved our position somewhat.
As a group we have a responsibility to our employees, our
pensioners and, of course, our shareholders. We work hard to make
sure our pensioners receive their well-earned pensions, we receive
great support from our employees and we appreciate their hard work
at the same time we do our best to maximize our earnings for
shareholders.
A.R.B. BURROWS
Chairman
20th June 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
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