TIDMHTIG
RNS Number : 0977J
Hightex Group PLC
09 June 2014
9th June 2014
Hightex Group plc
("Hightex" or "the Group" or "the Company")
Results for the Year Ended 31 December 2013
Hightex Group plc (AIM: HTIG), a leading systems designer and
installer of large area, cable supported membrane roofs and façades
worldwide, announces its results for the year ended 31 December
2013.
Financial Overview:
-- Turnover of EUR9.9 million (2012: EUR17.1 million)
-- Gross profit of EUR0.6 million (2012: gross profit of EUR2.4 million)
-- Pre tax loss from continuing operations of EUR2.8 million
(2012: pre-tax loss of EUR1.1 million)
-- Loss for the year of EUR1.7 million (2012: loss of EUR1.2 million)
-- Result per share of a loss of 0.61 cents (2012: loss of 0.43 cents)
-- Gross cash balances of EUR0.9 million (2012: EUR0.9 million)
-- Operating costs fell by EUR124,000 to EUR2,385,000. The
majority this decrease is explained by cost savings mainly in
selling and distribution and in research and development of EUR0.4
million while unrealized currency losses of EUR0.3 million almost
cancelled out this saving
-- Post year end loan facility signed with TCA Global Credit
Master Fund LP for up to USD 10million
Membrane and Façade division:
-- Installation work on the projects won by Hightex in Brazil
was largely completed during 2013, with the final work being
executed in the first quarter of 2014.
-- The Maracanã Stadium in Rio de Janeiro has already hosted the
special opening game in May 2013 and the FIFA Confederations Cup in
June 2013, one year ahead of the FIFA World Championship 2014.
-- The majority of the Group's revenues in 2013 were earned from contracts in Brazil.
-- Difficulties in obtaining financial information and payment
from its Brazilian joint venture SEPA Hightex Coberturas Ltda.
triggered material uncertainty over Brazilian receivables and
difficulties in Hightex's working capital. This was alleviated by
the sale of 50.15% of the Group's shares in SolarNext AG during
2013 and by signing a loan facility with TCA Global Credit Master
Fund LP for up to USD 10 million in March 2014.
-- The Group continues to pursue promising opportunities to win
further membrane contracts in the United Kingdom, Continental
Europe, the Middle East and the Americas.
Solar Cooling division
-- After its strategic review in 2012, the solar cooling
business was focused on larger scale industrial applications.
-- After significant sales growth in 2012, revenues in 2013 were
disappointing, reaching EUR209,000 (2012: EUR534,000). As a result
the loss at EBIT level increased by EUR184,000, from EUR118,000 in
2012 to EUR302,000 in 2013.
-- Sales in the first four months of 2014 have shown a material
increase, and SolarNext has already taken orders with a higher
value than all of 2013.
-- Following the sale of a majority stake as detailed above, the
Company now owns 49.85% of SolarNext.
Charles DesForges, Executive Chairman, commented:
"2013 has proved to be a most difficult year for the Company
principally as a consequence of operational problems in the
Brazilian joint venture company, but the Company successfully took
action to alleviate the working capital strains by the sale of
50.15% of the issued share capital of SolarNext and negotiating a
loan facility of up to USD 10 million of which USD 1.8 million has
been drawn down. Hightex's reputation for innovative expertise in
membrane structures, coupled with the gradual improvement in global
economic conditions, have led Hightex to submit tenders for several
interesting projects and the Directors are cautiously optimistic
about one or more contract wins in the second half of 2014".
For further information:
Hightex Group plc
Charles DesForges, Executive Chairman Tel: +44 (0) 20 7603 1515
Frank Molter, Chief Executive Officer www.hightexworld.com
FinnCap
Geoff Nash, Henrik Persson - Corporate Tel: +44 (0) 20 7600 1658
Finance
Mia Gardner - broking www.finncapitalmarkets.com
Chairman's statement
Introduction
Hightex continues to work as a global, innovative leader in the
systems design and installation of large area architectural tensile
polymer membrane roofs and façades by using advanced cable
engineering, but the year ended 31 December 2013 did not compare
well with 2012. Aggregate revenues fell by 42% to EUR9.9 million.
Whereas profitability was restored at the gross profit level, the
financial result before tax showed a loss of EUR2.8 million (2012:
loss of EUR1.1 million).
The directors' firm objective is to continue to work at winning
contracts by pursuing active opportunities and thus to achieve a
break even EBIT result and positive cash flow in the year ending 31
December 2014.
Financial overview
The environment in which Hightex is operating continues to be
most challenging as global economic problems are still present and
specific problems in Latin America add to these difficulties.
Difficulties in obtaining financial information from its
Brazilian joint venture SEPA Hightex Coberturas Ltda. triggered
material uncertainty over Brazilian receivables. In its accounts
for the full year to 31 December 2013, Hightex has made a provision
for its Brazilian receivables and has included in this provision an
estimate for all further anticipated expenses.
The unwelcome consequence of this uncertainty was to exacerbate
difficulties in Hightex's working capital. The Board acted to
alleviate these difficulties by the sale of 50.15% of the Group's
shares in SolarNext AG during 2013 and by signing a loan facility
with TCA Global Credit Master Fund LP ("TCA") for up to USD
10,000,000 in February 2014. Following these actions, the delayed
interims were announced on 26 March 2014, when the suspension from
trading Hightex's shares on AIM was lifted.
In order to help to ensure better corporate governance over its
Brazilian joint venture SEPA Hightex Coberturas Ltda. Hightex has
changed its representative director at SEPA Hightex Coberturas
Ltda. This should give Hightex a better understanding of the joint
venture.
Aggregate revenues in the year 2013, which are calculated by the
percentage of completion method, fell by EUR7.2 million to EUR9.9
million (2012: EUR17.1 million). The majority of the Group's
revenues were earned from its contracts in Brazil, where the 2014
FIFA World Cup competition will take place in June. In addition,
the maintenance business earned revenues of EUR0.2 million (2012:
EUR0.2 million).
The gross profit fell to EUR0.6 million (2012: EUR2.4 million)
in line with the decrease in sales.
Aggregate operating expenses amounted to EUR2.4 million, a
reduction of EUR0.1 million from EUR2.5 million in 2012. While
selling and distribution costs were reduced by EUR0.4 million from
EUR0.8 million to EUR0.4 million and research and development costs
decreased from EUR0.2 million to EUR0.1 million, administrative
expenses increased by EUR0.4 million to EUR1.9 million. The fact
that administrative expenses (before the deconsolidation reduction)
were increased masks two offsetting features: personnel expenses
including the Board management and administrative functions
decreased by EUR0.1 million, but legal and IT expenses increased by
EUR0.1 million. In addition, mainly unrealised currency losses of
approximately EUR0.3 million cancelled out these savings and
increased the administrative expenses.
At the EBITDA level, the Group recorded a loss of EUR1.8 million
from the continuing operations (2012: loss of EUR0.1 million),
which represents a set-back for the Group's turnaround efforts. The
result before tax for the full year was a loss of EUR1.7 million
after including the profit of EUR1.1 million on the sale of
discontinued operations, compared with a loss before tax of EUR1.1
million in 2012. Expressed in per share terms, the 2013 result
amounted to a loss of 0.61 cents, compared with a loss per share of
0.43 cents in 2011.
Shareholders' funds were EUR6.3 million, compared with EUR7.7
million at 31 December 2012. Gross cash balances as at 31 December
2012 were EUR0.9 million, compared with EUR0.9 million as at 31
December 2012, of which EUR0.7 million is restricted (2012: EUR0.8
million).
Following the year end the Company has secured capital from TCA
Global Credit Master Fund LP for up to USD 10 million, of which USD
1.8m was drawn down in March 2014. This has provided much needed
working capital as the Board looks to pursue a number of tender
opportunities.
Thermal cooling business
After its strategic review in 2012, the solar cooling business
was focused on large-scale industrial applications and consequently
extended and renamed the thermal cooling business. After
significant sales growth in 2012, the revenues in 2013 were
disappointing, reaching EUR209,000 in 2012 compared to EUR534,000
in 2012. As a result the loss at EBIT level increased by
EUR184,000, from EUR118,000 in 2012 to EUR302,000 in 2013.
The market for thermal cooling was adversely affected by the
exceptionally cold weather in continental Europe during the spring
of 2013. In the second half of 2013, sales continued at a low level
because of political uncertainty on the governmental energy policy
in Germany. These factors led to most potential customers putting
investment plans on hold until the political complexion of the new
government became clear. However, in the early weeks of 2014, a
major recovery was seen in sales and SolarNext has already taken
orders with a higher value than for all of 2013.
As a consequence of the working capital constraints caused by
difficulties in Brazil, the Group raised cash in December 2013
through the sale of 50.15% of the issued share capital of SolarNext
to a group of investors. Accordingly, as at 31 December 2013
Hightex Group owned 49.85% of the issued share capital of
SolarNext, and the accounts therefore reflect the deconsolidation
of SolarNext, and its inclusion as an investment in an
associate.
The new shareholder group is committed to provide additional
working capital to SolarNext to match the expected increase in
turnover.
Composition of the Board
Charles Sebag-Montefiore, having served as a non-executive
director for eight years, is retiring from the Board at the
conclusion of the forthcoming Annual General Meeting. The Board
thanks him for his steadfast contribution to the Company during his
period in office. The Board intends to appoint a non-executive
director as soon as practical.
Prospects and Conclusion
2013 has proved to be a most difficult year for the Company,
principally as a consequence of operational problems in the
Brazilian joint venture company, which was created in order to be
able to bid for contracts associated with the vast stadia
renovation and construction programme for the 2014 FIFA World Cup
competition. It was particularly pleasing that once again the final
game will be played under a "Hightex" roof as was the case in 2006
and 2010 and this is a testament to the engineering excellence for
which the Company is renowned. The portfolio of major structures,
which the Company has established in various continents over the
past 15 years, provides a basis on which future growth can be
planned.
New opportunities, which will allow the Company's engineering
skills to be fully used, have been identified either indirectly in
conjunction with architectural and engineering practices or
directly with general contractors. Tenders are being submitted for
contracts on which decisions will be made this year and in 2015.
The Directors have reviewed in depth the possible obstacles to
growth and have concluded that a stronger balance sheet would be of
great value in detailed contract negotiation. Ideally this would be
the result of agreements on sources of bank finance, either within
Europe or in the country/region where the specific projects are
located. The global financial problems arising from the economic
recession, which started in 2008/09, are still not solved and many
small to medium companies have suffered in consequence. One
specific solution for Hightex might be to identify a partner with
the appropriate financial strength which would complement the
well-recognised, innovative construction engineering skills for
which the Company is renowned. The Directors continue to
investigate this possibility.
As part of a strategic assessment of the future financial needs
of the Company, the Directors have reviewed the potential of the
thermal engineering technology developed by SolarNext both in terms
of the geographical location of markets and the investment required
to realise this potential. The difference in technology between
that used in SolarNext and its markets and the cable and membrane
engineering operation have led the Directors to conclude that it
should no longer be the main focus of the Group. It was
consequently decided that external investment in SolarNext was
essential to finance its growth. In future the Company will hold
only a minority stake in SolarNext. Steps to create a separate
management team are to be taken in conjunction with the new
investors.
Hightex's reputation for innovative expertise in membrane
structures, coupled with the gradual improvement in global economic
conditions, have led Hightex to submit tenders for several
interesting projects and the Directors are cautiously optimistic
about one or more contract wins in the second half of 2014.
Charles DesForges
Executive Chairman
Consolidated statement of comprehensive income
For the year ended 31 December 2013
2013 2012
Notes EUR000 EUR000
---------- ----------
Continuing operations
Revenue 4 9,867 17,154
Cost of sales (9,242) (14,725)
---------- ----------
Gross profit 625 2,429
Operating expenses:
Selling and distribution costs (446) (825)
Research and development costs (88) (168)
Administrative expenses (1,851) (1,517)
Underlying (loss) before interest,
tax, depreciation and amortisation (1,760) (81)
Depreciation and amortisation (699) (801)
Operating (loss) (2,459) (882)
Share option charge (1) (2)
Finance income 20 21
Finance costs (350) (310)
Share of the profit of associates (14) 93
---------- ----------
(Loss) before tax (2,804) (1,080)
Income tax (charge) / credit 6 (7) (3)
---------- ----------
(Loss) for the year from continuing
operations (2,811) (1,083)
---------- ----------
Discontinued operations
Profit from discontinued operations,
net of tax 11 1,066 (129)
---------- ----------
(Loss) for the year (1,745) (1,212)
---------- ----------
Consolidated statement of comprehensive income (continued)
2013 2012
Notes EUR000 EUR000
(Loss) for the year attributable
to:
Equity holders (1,745) (1,212)
(1,745) (1,212)
---------- ----------
(Loss) per ordinary share (cents):
Basic 7 (0.61) (0.43)
Diluted 7 (0.61) (0.43)
(Loss) per ordinary share from
continuing operations (cents):
Basic 7 (0.99) (0.38)
Diluted 7 (0.99) (0.38)
Profit / (loss) per ordinary share
from discontinued operations (cents):
Basic 7 0.38 (0.05)
Diluted 7 0.38 (0.05)
Other comprehensive income
2013 2012
EUR000 EUR000
---------- ----------
(Loss) for the year (1,745) (1,212)
Other comprehensive income for
the year, net of tax:
Exchange differences on translating
foreign operations 337 34
---------- ----------
Total comprehensive loss for the
year (1,408) (1,178)
---------- ----------
Total comprehensive loss attributable
to:
Equity holders (1,408) (1,178)
(1,408) (1,178)
---------- ----------
Consolidated statement of financial position
As at 31 December 2013
2013 2012
Notes EUR000 EUR000
--------- ---------
Assets
Non-current assets
Goodwill 6,496 6,722
Other intangible assets 8 1,461 1,716
Property, plant and equipment 4,780 5,081
Other financial assets 17 767
Investment in associates 979 494
Deferred tax assets 1 1
--------- ---------
13,734 14,781
--------- ---------
Current assets
Inventories 192 246
Trade and other receivables 2,452 7,525
Cash and cash equivalents 909 949
3,553 8,720
--------- ---------
Total assets 17,287 23,501
--------- ---------
Equity and liabilities
Shareholders' equity
Share capital 5 3,682 3,682
Share premium 15,059 15,059
Retained losses (12,558) (10,813)
Share option reserve 40 39
Translation reserve 72 (265)
--------- ---------
Total equity attributable to equity
holders of the parent 6,295 7,702
--------- ---------
Current liabilities
Trade and other payables 7,104 11,796
Borrowings 1,478 1,391
8,582 13,187
--------- ---------
Non-current liabilities
Borrowings 2,353 2,555
Deferred tax liability 57 57
--------- ---------
2,410 2,612
--------- ---------
Total liabilities 10,992 15,799
--------- ---------
Total equity and liabilities 17,287 23,501
--------- ---------
Consolidated statement of changes in equity
For the year ended 31 December 2013
Share capital Share Retained Share option Foreign
premium losses reserve currency Total
translation
Group reserve
EUR000 EUR000 EUR000 EUR000 EUR000 EUR000
Balance at
1 January 2012 3,682 15,059 (9,601) 37 (299) 8,878
------------- -------- -------- ------------ ------------ -------
Loss for the year - - (1,212) - - (1,212)
Currency translation
differences - - - - 34 34
------------- -------- -------- ------------ ------------ -------
Total comprehensive
income for the year - - (1,212) - 34 (1,178)
Share option charge - - - 2 - 2
Balance at
31 December 2012 3,682 15,059 (10,813) 39 (265) 7,702
------------- -------- -------- ------------ ------------ -------
Loss for the year - - (1,745) - - (1,745)
Currency translation
differences - - - - 337 337
Total comprehensive
income for the year - - (1,745) - 337 (1,408)
Share option charge - - - 1 - 1
Balance at
31 December 2013 3,682 15,059 (12,558) 40 72 6,295
------------- -------- -------- ------------ ------------ -------
Share premium
The share premium reserve represents the consideration that has
been received in excess of the nominal value of shares on issue of
new ordinary share capital.
Retained losses
The retained losses reserve represents profits and losses
retained in the previous and current periods.
Share option reserve
The share option reserve represents amounts recognised directly
in the statement of comprehensive income in the previous and
current periods relating to the share based payment transactions
granted under the Group's share options schemes.
Foreign currency translation reserve
The foreign currency translation reserve represents the
revaluation of overseas foreign subsidiaries and associates.
Consolidated statement of cash flows
For the year ended 31 December 2013
2013 2012
EUR000 EUR000
------------------------ ---------
Cash flows from operating activities
(Loss) for the year (1,745) (1,212)
Adjustments for:
Share option charge (1) 2
Net interest cost 330 186
Income tax 7 3
Loss / (profit) on disposal of fixed
assets 15 (2)
Gain on sale of discontinued operation,
net of tax (1,391) -
Bad debts written off 317 105
Depreciation 442 521
Amortisation and impairment of intangibles 257 280
------------------------ ---------
Operating cash flows before movements
in (117)
working capital (1,767) (56)
(Increase) / decrease in inventories 151 -
Decrease / (increase) in receivables 4,366 (35)
(Decrease) / increase in payables (3,328) 1,552
------------------------ ---------
Cash generated from operating activities (578) 1,400
Interest paid (350) (311)
Income tax paid (5) (19)
Operating cash flow from discontinuing
operations (53) (3)
------------------------ ---------
Net cash generated from operating
activities (986) 1,067
------------------------ ---------
Cash flows from investing activities
Acquisition of other financial assets - (258)
Acquisition of intangible assets (2) -
Acquisition of property, plant and
equipment (199) (392)
Proceeds from disposal of other financial
assets 750 -
Proceeds from disposal of property, -
plant and equipment 27 -
Proceeds from disposal of discontinued
operation, net of cash disposed of 519 -
Interest received 20 21
Net cash used in investing activities 1,115 (629)
------------------------ ---------
Cash flows from financing activities
Payment of finance lease liabilities (24) (88)
Proceeds from loans 43 27
Repayment of loans (203) (1,654)
Net cash used in financing activities (184) (1,715)
------------------------ ---------
Net decrease in cash and cash equivalents (1,277)
cash equivalents (55) (1,277)
Cash and cash equivalents at the beginning
of the year 917 2,189
Effect of foreign exchange on cash
and 5
cash equivalents brought forward (54) 5
------------------------ ---------
Cash at bank and cash equivalent at 917
the end of the year 808 917
------------------------ ---------
Cash at bank and in hand comprises:
Cash and cash equivalents 235 160
Cash lodged under performance and
warranty bonds 674 789
Bank overdrafts (101) (32)
------------------------ ---------
808 917
------------------------ ---------
Notes to the financial information
For the year ended 31 December 2013
1 Basis of preparation
The Group financial statements are presented in Euros ("EUR")
which, as the Group is expected to transact more of its business in
Euros than any other currency, is also the functional currency of
the Group.
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS"), IFRIC
interpretations and with those parts of the Companies Act 2006
applicable to companies preparing their accounts under IFRS, as
adopted by the European Union, and the Companies Act 2006. The
financial information has been prepared under the historical cost
convention, as modified by revaluations of financial assets and
financial liabilities at fair value through the statement of
comprehensive income. Details of the accounting policies applied
are set out in the financial statements for the year ended 31
December 2012 and have not changed for the year ended 31 December
2013.
The financial information set out in this announcement does not
constitute audited financial statements for the year ended 31
December 2013. The financial information for the year ended 31
December 2012 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The
auditors reported on those accounts: their report was unqualified
and did not draw attention to any matters by way of emphasis and
did not contain a statement under s498 (2) or (3) Companies Act
2006 or equivalent preceding legislation.
The financial information for the year ended 31 December 2013 is
derived from the financial statements, but does not constitute the
Group's financial statements. The Company's auditors have reported
on the statutory financial statements for the year ended 31
December 2013 and their report is unqualified, but, with the
following emphasis of matter.
Emphasis of matter - Going concern
In forming our opinion on the financial statements, which is not
modified, we have considered the adequacy of the disclosure made in
the financial statements concerning the company's ability to
continue as a going concern. The financial statements have been
prepared on the going concern basis, which depends on the timing of
new contracts. These conditions, along with the other matters
explained in the financial statements, indicate the existence of a
material uncertainty which may cast significant doubt about the
company's ability to continue as a going concern. The financial
statements do not include the adjustments that would result if the
company was unable to continue as a going concern.
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in
Section 434(3) of the Companies Act 2006.
The financial information set out in this announcement was
approved by the board on 6th June 2014.
2. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidiaries made up to 31
December each year. The results of subsidiaries acquired or
disposed of during the year are dealt with in the consolidated
income statement from or up to their effective dates of acquisition
or disposal respectively. Control is normally evidenced when the
Company, or a company which it controls, owns more than 50% of the
voting rights of a company's share capital.
All inter-company transactions and balances within the Group are
eliminated on consolidation.
3. Going concern
The financial information has been prepared assuming the Group
will continue as a going concern. Under the going concern
assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations. The assessment has
been made based on the Group's economic prospects which have been
included in the financial budget for the years 2014-2015 and for
managing their working capital and the continued support of their
creditors. In assessing whether the going concern assumption is
appropriate, management takes into account all available
information for the foreseeable future, in particular for the
twelve months from the date of approval of the financial
statements. Should the company be unable to continue trading,
adjustments would have to be made to reduce the value of the assets
to their reasonable amounts, to provide for further liabilities
which might arise, and to classify fixed assets as current.
The nature of the business in which Hightex operates creates a
degree of uncertainty as to the timing of acquisition and value of
new contracts. A number of projects are currently at the tender
stage and the directors are confident that new contracts will be
awarded to the Group in due course. These include contracts in
Americas, the Middle East and in Europe. Based on the directors'
estimated probability that the Group will be awarded a proportion
of the contracts for which it is currently tendering, this would
enable the Group to achieve its forecast revenue and operating
result for 2014 and represent a significant proportion of the
revenue and operating profit forecast to be achieved in 2015.
Further steps have been taken to reduce substantially operating
costs across the Group, with the consequence that the Group now has
a lower level at which it is forecast to break even on an EBIT
level and a positive cash flow.
The Group finances its working capital through financing
facilities with different banks and lenders. The directors have
held and continue to hold discussions with the Company's and group
companies' bankers and other lenders about future borrowing needs
and no matters have been brought to their attention to suggest that
facilities currently available to the Group and included in the
Group's forecasts, will be withdrawn or the terms changed. As a
consequence, the Group's financial forecasts indicate that the
Group and Company should be able to operate within its borrowing
facilities and have adequate resources for the foreseeable future,
being a period not less than 12 months from the date on which these
accounts have been signed.
Based on the above, the directors have formed a judgement that
the going concern basis should be adopted in preparing the
financial statements.
4. Business segments
The Group has adopted IFRS 8 Operating Segments with effect from
1 January 2009. Under IFRS 8, operating segments are based on
internal reports about components of the Group, which are regularly
reviewed and used by Chief Operating Decision Maker ("CODM") for
strategic decision making and resource allocation, in order to
allocate resources to the segment and to assess its performance.
The CODM is Frank Molter, CEO of the Group. The Group's reportable
operating segments are as follows:
i) Membrane Business
ii) Thermal Cooling Business, conducted through SolarNext
As a consequence of the working capital constraints caused by
difficulties in Brazil, the Group raised cash in December 2013
through the sale of 50.15% of the issued share capital of SolarNext
to a group of investors. Accordingly, as at 31 December 2013
Hightex Group owned 49.85% of the issued share capital of
SolarNext, and the accounts therefore reflect the deconsolidation
of SolarNext, and its inclusion as an investment in an
associate.
The CODM monitors the operating results of each segment for the
purpose of performance assessments and making decisions on resource
allocation. Performance is based on external and internal revenue
generations and profit before tax, which the CODM believes are the
most relevant in evaluating the results relative to other entities
in the industry.
Information regarding each of the operations of each reportable
segment is included below.
Membrane Thermal Other Deconsolidation Consoli-dation
Business cooling Solar Total
Business Business
EUR000 EUR000 EUR000 EUR000 EUR000 EUR000
---------- ---------- ------- ---------------- --------------- --------
2013
External revenue 9,867 209 - (209) - 9,867
Internal revenue 374 - - (374) -
Total revenue 10,241 209 - (209) (374) 9,867
Finance income 20 - - - - 20
Finance costs (366) (23) - 23 16 (350)
Depreciation
and amortisation 699 19 - (19) - 699
Share of the
loss of associates - - (14) - - (14)
(Loss) / profit
before tax (2,788) (325) - 1,391 - (1,722)
Income tax (7) - - - - (7)
(Loss) / profit
after tax (2,795) (325) - 1,391 - (1,729)
Total assets 17,287 258 - (258) - 17,287
Membrane Thermal Other Consoli-dation
Business Cooling Total
Business
EUR000 EUR000 EUR000 EUR000 EUR000
---------- ---------- ------- --------------- --------
2012
External revenue 17,154 534 - 17,688
Internal revenue 792 24 (816) -
Total revenue 17,946 558 (816) 17,688
Finance income 21 - - - 21
Finance costs (310) (1) - - (311)
Depreciation and
amortisation 801 22 - - 823
Share of the profit
of associates - - 93 - 93
(Loss) / profit
before tax (1,080) (129) - - (1,209)
Income tax (3) - - - (3)
(Loss) / profit
after tax (1,083) (129) - - (1,212)
Total assets 23,232 269 - - 23,501
The Group's revenue from external customers and information
about its segment assets (non-current assets excluding investments
in associates, deferred tax assets and other financial assets) by
geographical location are detailed below:
Revenue from external Non-current assets
customers
2013 2012 2013 2012
EUR000 EUR000 EUR000 EUR000
----------- ----------- ---------- ---------
UK - 10 - 2
Rest of Europe 123 2,066 12,737 13,517
North America 19 10 - -
South America 9,645 15,200 - -
Middle East 44 351 - -
Rest of the world 36 51 - -
----------- ----------- ---------- ---------
9,867 17,688 12,737 13,519
In 2013 98% of the Group's external revenue was derived from
three customers (2012: 92% from three customers).
5. Share capital
Issued
2013 2012
EUR000 EUR000
-------- --------
282,820,727
(2012: 282,820,727)
Ordinary shares of
1 penny each 3,682 3,682
-------- --------
No new ordinary shares were issued in 2013.
6. Taxation
Group
2013 2012
EUR000 EUR000
------- -------
Current taxation (credit) / charge
- current year 7 1
Current taxation credit - prior year - 21
------- -------
7 22
Deferred taxation (credit) / charge
- current year - (19)
Deferred taxation charge - prior year - -
------- -------
(19)
------- -------
Income tax (credit) / charge 7 3
------- -------
Analysis of factors influencing the tax charge:
2013 2012
EUR000 EUR000
-------- --------
(Loss) before taxation (2,788) (1,080)
(Loss) on ordinary activities at 27% (753) (291)
(2013: 27%)
Adjusted tax rate for German construction
business to 15.83% 347 89
International tax rate differences 47 37
Adjustment of current tax - prior
years - 21
Losses for the year not provided for
in deferred tax 358 205
Adjustment of deferred tax - prior
years - (18)
Non taxable income - (26)
Expenditure not deductible for tax
purposes (1) (20)
Other adjustments 9 -
-------- --------
Income tax (credit) / charge 7 3
-------- --------
The rate of taxation on ordinary activities of 27% is derived
from the composite rate of tax applicable in Germany, where the
majority of the Group's operational activities take place.
7. Earnings per share
(i) Basic and diluted earnings
The basic and diluted earnings per share is calculated by
reference to the earnings attributable to ordinary shareholders
divided by the number of shares in issues as at 31 December as
follows:
2013 2012
Loss for the purposes of basic
and diluted earnings per share (EUR1,745,000) (EUR1,212,000)
being:
Net loss for the year from continuing (EUR2,811,000) (EUR1,083,000)
operations attributable to equity
holders of the parent EUR1,066,000 (EUR129,000)
Net profit / (loss) for the year
from discontinued operations attributable
to equity holders of the parent
Number of shares Number of
shares
Weighted average number of shares
for the purpose of calculating
basic earnings per share 282,820,727 282,820,727
(ii) Effect of potential ordinary shares
Share options -
Warrants -
Weighted average number of shares
for the purpose of calculating
diluted earnings per share. 282,820,727 282,820,727
Basic and diluted loss per share (0.61) cents (0.43) cents
Basic and diluted loss per share (0.99) cents (0.38) cents
from continuing operations
Basic and diluted earnings / (loss) 0.38 cents (0.05) cents
per share based from discontinued
operations
In accordance with IAS 33 and as the average share price in the
year is lower than the exercise price, the share options do not
have a dilutive impact on earnings per share for the year ended 31
December 2013.
8. Intangible fixed assets
Movements in the cost, amortisation and net book value of the
assets are as follows:
2013 Development Software Total
Group EUR000 EUR000 EUR000
------------ --------- -------
Cost
As at 1 January 2013 2,775 286 3,061
Addition - 2 2
Deconsolidation (775) (9) (784)
Disposal - (3) (3)
------------ --------- -------
As at 31 December 2013 2,000 276 2,276
------------ --------- -------
Accumulated amortisation
As at 1 January 2013 1,066 279 1,345
Charge for the year 250 7 257
Disposal (775) (12) (787)
As at 31 December 2013 541 274 815
------------ --------- -------
Net book value
As at 31 December 2013 1,459 2 1,461
------------ --------- -------
2012 Development Software Total
Group EUR000 EUR000 EUR000
------------ --------- -------
Cost
As at 1 January 2012 2,775 286 3,061
Addition - - -
Disposal - - -
------------ --------- -------
As at 31 December 2012 2,775 286 3,061
------------ --------- -------
Accumulated amortisation
As at 1 January 2012 816 249 1,065
Charge for the year 250 30 280
Disposal - -
------------ --------- -------
As at 31 December 2012 1,066 279 1,345
------------ --------- -------
Net book value
As at 31 December 2012 1,709 7 1,716
------------ --------- -------
In 2011 the Group capitalised development expenses of
EUR2,000,000 resulting from the development of the technology of
the new retractable cushion roof which was developed for the B.C.
Place Stadium in Vancouver, Canada. The innovative component of
this development lies in the ability to provide thermal insulation
within the roof as and when desired via the retracting mechanism.
The demands for energy efficiency and particularly for conservation
of energy are increasing each year, and this type of structure has
been developed in response to these demands. The potential for the
wider use of this technology, specifically developed by Hightex, is
judged to be significant.
Development expenses are being amortised over the estimated
useful life which is assessed by management as eight years.
9. Commitments under operating leases
As at 31 December, the Group had total minimum lease payments
under non-cancellable operating leases as follows:
Group
2013 2012
EUR000 EUR000
Land and Buildings:
Within one year 24 24
More than one and less than five years 96 95
------- -------
120 119
------- -------
Other:
Within one year 4 5
More than one and less than five years - -
------- -------
4 5
------- -------
Office premises in Bernau: In 2011 the Group acquired its office
building and the adjacent factory hall in Bernau, Bavaria. These
premises bring a liability under a 99-year-lease to make an annual
payment to the owner of the land of EUR24,000 per annum. This lease
expires on 26 February 2105.
10. Contingent liabilities
At 31 December, the Group had contingent liabilities under
contracted performance, warranty bonds and advance payments as
follows:
Group
2013 2012
EUR000 EUR000
Total contingent liabilities under performance
bonds and warranties 1,269 529
-------- -------
1,269 529
-------- -------
Included within cash at bank and in hand in the balance sheet is
aggregate cash of EUR674,000 (2012: EUR789,000) lodged under the
terms of performance, warranty bonds and advance payments. Access
to cash balances lodged under the terms of such bonds is
restricted.
11. Discontinued operations
In December 2013 Hightex Group sold 50.15% of the issued share
capital of SolarNext AG, which conducts the Thermal Cooling
Business.
Results of discontinued operations
2013 2012
EUR000 EUR000
--------------------- -------
Revenue 209 558
Expenses (534) (688)
Results from operating activities (325) (130)
--------------------- -------
Income tax - -
Results from operating activities
net of tax (325) (130)
--------------------- -------
Gain on sale of discontinued operation 1,391 -
Income tax on gain on sale of discontinued
operations - -
Profit of the year 1,066 (130)
--------------------- -------
Cash flows from (used in) discontinued operations
2013 2012
EUR000 EUR000
--------------------- -------
Net cash used in operating activities (354) -
Net cash from investing activities 519 -
Net cash provided by financing
activities - -
Net cash flow for the year 165 -
--------------------- -------
Effect of disposal on the financial position of the Group
2013
EUR000
---------------------
Property, plant and equipment (8)
Long term receivables (8)
Inventories (150)
Trade and other receivables (86)
Cash and cash equivalents (6)
Trade and other payables 1,124
Net assets and liabilities 866
---------------------
Consideration received, satisfied
in cash 525
Cash and cash equivalents disposed
of (6)
Net cash in flow 519
---------------------
12. Nature of financial information
These preliminary results will be available from 9th June 2014
on the Company's website www.hightexworld.com. Further copies can
be obtained from the registered office at Masters House, 107
Hammersmith Road, London W14 0QH.
The Company anticipates posting its audited report and accounts
shortly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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