Tex Holdings PLC Chairman's Statement (5070S)
June 25 2018 - 9:58AM
UK Regulatory
TIDMTXH
RNS Number : 5070S
Tex Holdings PLC
25 June 2018
TEX HOLDINGS PLC - CHAIRMAN'S STATEMENT - 25 JUNE 2018
I expect you have had time to read our annual accounts and I
will be happy to address any questions you may have in due
course.
I will now give you a short report of the trading companies.
The Plastics Division is trading in line with expectations. The
work that was anticipated to be lost following a price increase has
not yet to go.
The increases in minimum wage continues to put pressure on
results and to limit this, the Division is exploring additional
automation.
Within the Engineering Division, Tex Engineering has again
opened the year strongly on the back of increased demand for a
number of its product lines. With margin and overheads under
control we should see the company report another solid profit this
year.
Eurotex are trading at expected levels and are awaiting the
decision on a number of quotations and tenders. This company could
be positively affected by the decision to extend the operational
lives of a number fisheries protection ships pending the UK's
departure from the EU.
The A.T.C. Division continues to work towards the completion of
the Air Craft Carrier project, whilst in the meantime quoting for a
number of air traffic control rooms, both UK and overseas. The
company has recovered strongly from the shock of losing Mike
McCarthy last August. Currently, the company anticipates receiving
a number of orders from Nigeria for air traffic control rooms on
projects that were "stalled" a number of years ago.
BSP has opened the year steadily in line with corporate budgets.
Enquiry levels continue above the long-term average, but customers
continue to be hesitant to place orders in the current economic
climate.
G&M TEX opened the year slowly but now has a large order
book, unfortunately over GBP1,000,000 of these orders are not
scheduled for delivery until early 2019. As a result of this,
G&M TEX is expected to make a loss.
QK Honeycomb Products are trading strongly with turnover up on
budget. The company is in negotiations with a major customer, the
outcome of which is expected substantially to increase the
turnover. The current trading has been affected by operational
costs. A new Production Manager has been recruited to streamline
the two operations to return this company's profits to respectable
levels.
As a Board, we take our responsibilities in supporting our
pensioners very seriously. I am pleased to report the pension fund
deficit has decreased, this is partly due to the current record
stock market levels. We continue to monitor the most cost-efficient
way of controlling this liability. The potential cost of buying out
the pension scheme liabilities continues to be monitored. The
Pension Trustees continue to apply pressure for the company
covenant to be maintained.
We will continue to protect the interests of both our pensioners
and those who have given many years of good service to the Group,
we as your Directors will continue to act in the best interest of
our shareholders in both good and difficult times.
I am delighted to hand over the reins to Chris Gray.
Chris has spent many years in the international shipping and
transportation industry.
Chris is a former Managing Director of the Port of Felixstowe
and Chief Executive of Hutchinson Ports UK and Hutchinson Ports
Bahamas.
In October 2017, Chris was appointed as Director of Red Funnel
Ltd and Red Funnel Holdings Ltd.
I am sure he will be a very capable and enthusiastic
successor.
A.R.B. Burrows
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END
AGMDMGZVDKRGRZM
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