Annual Results for the Year Ended 31 December 2024
22/04/2025 07:00
RNS Number : 5371F
Braime Group PLC
22 April 2025
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information will be in the public domain.
BRAIME GROUP PLC
("Braime" or the "Company" and with its subsidiaries the "Group")
ANNUAL RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2024
At a meeting of the directors held today, the accounts for the year ended 31st December 2024 were submitted and approved by the directors. The accounts statement is as follows:
Chairman's statement
High level results
I am pleased to announce Group revenue for 2024 of £48.9m and profit before tax of £3.2m. These results are discussed further in the Chief Executives' Business Review and the Group Strategic Report, however I am delighted with the results given the general sentiment about the economic climate at the start of the year.
Dividends
The Company paid an interim dividend of 5.25p in October 2024. Based on the results above the directors propose paying a second interim dividend of 10.0p on the 23rd May 2025 to the holders of the Ordinary and "A" Ordinary Shares on the share register on 9th May 2025. The ex-dividend date is 8th May 2025. This brings the total dividend paid in relation to the 2024 financial year to 15.25p, compared to 14.75p in 2023.
Overall strategy
Our strategy remains largely unchanged, continuing to invest in constantly improving our production processes and exploring new global markets for our niche products and developing new innovations for our customers' engineering challenges.
Staff
I would like to thank all our staff and colleagues who have continued to provide commitment, ideas and enthusiasm throughout the year. In a fast-changing world, the quality and commitment of our people remains at the heart of our business success. This manifests in many ways, including the deepening relationships with our customers and key partners, continual development of our product lines and their flexible adaptation to the ever-changing business landscape.
Current trading and outlook
The Group, as outlined above, is in a relatively strong position, in spite of the already subdued economic situation and the turmoil created by the recent US tariff announcement. Although our main business sector, centred historically on the growth and processing of the basic commodities for food production (particularly surrounding arable farming) is no longer the consistent, universal, and often subsidised growth sector that it has been for the past 50 years, fortunately our markets are diverse. We operate globally and we see a number of opportunities for potential future growth which we are poised to exploit.
However, the current economic and geo-political situation is more fraught than at any time in my lifetime. So the "Outlook" currently for the business is simply and frankly one of uncertainty.
Nicholas Braime, Chairman
17th April 2025
For further information please contact:
Braime Group PLC
Nicholas Braime/Cielo Cartwright
0113 245 7491
W. H. Ireland Limited
Katy Mitchell
0113 394 6628
Business review
Business overview
We are delighted that the Group has had another excellent year with revenue reaching £48.9m in 2024. This is again a record as the business has continued to see year on year growth in sales over the last 5 years, navigating our way through some turbulent global economic conditions since the pandemic. Profit from operations of £3.7m was unchanged from prior year, the increase in employee costs having been offset by improvements in margin.
The USA consolidated the growth in revenue that they generated last year with similar sales of £23m. Sales in the UK and Europe were also in line with prior year as investment has remained subdued against the backdrop of the ongoing war in Ukraine, rising energy costs and continued inflation. We have seen some strong growth in revenue in Africa, Australasia and the Asia Pacific region all of which have benefited from increased interest in the company's range of Hazard monitors and electrical sensors used for predictive maintenance.
Investments made in new business development for products supplied into the construction and building sectors have benefited our UK steel pressings business expanding its product mix and customer base. However, despite increased revenue in these sectors, overall sales fell as the UK and European automobile sector remained sluggish and this continues to represent the largest proportion of sales for our UK business. Intercompany sales of parts for the bulk material handling sector also fell as a consequence of the continuing difficult market conditions experienced across much of Europe.
New business product development
The Group has continued to strengthen its global footprint with the opening of another 4B subsidiary in Indonesia in December of 2024. This follows on from the opening of 4B Middle East in the UAE in 2023 and further extends the company's international presence. The 4B Group now has nine international subsidiaries around the world servicing their local and regional markets enabling faster deliveries and timely engineering and sales support. We are excited about the opportunities in Indonesia which is the fourth most populous country in the world with over 280 million people and therefore represents a very significant and rapidly growing market for the feed and flour milling sectors into which 4B is selling its range of products.
The Group's strategy of investment in innovation continues to drive revenue growth. The Guardflex released in 2023 has allowed our electronics team to capitalize on opportunities in the UK and Africa working with End Users to install comprehensive plant wide hazard monitoring solutions while the Vib-Mil vibration monitoring has enabled us to pursue new applications for condition monitoring. The business has also expanded its range of material handling components. 4B USA extended its range of CC-S plastic elevator buckets with the release of a Jumbo 20x10 inch bucket with a massive 16.78 litre capacity and a 19mm thick back wall. These ultra heavy-duty elevator buckets are typically used in bucket elevators at port terminals handling large volumes of grains, particularly in the US and South American markets. When installed in a triple row configuration these buckets can transport in excess of 2,000 tonnes of grain per hour. Our engineers are excited to be able to explore the high-capacity conveying possibilities that these larger sizes offer with our OEM and End User customers.
New capital investments
In 2024, the Group invested £1.4m in capital investments. £0.66m of this was for the purchase of four acres of land and property adjoining our USA warehouse. This investment will allow for the future expansion of our US facility as the business continues to grow. It enables the business to carry more inventory to support growth in revenue and opens up a number of possibilities to expand its manufacturing operations. In addition to the USA land and property purchase, other investments included a waterjet wire cutter, sealer and heat tunnel to package our plastic buckets in our US moulding facility, new decoilers and robot control systems for our UK steel bucket manufacturing.
In 2025 we look forward to developing the opportunities created by these investments, product developments and expansion into new markets. The company continues to expand globally and strengthen its position to respond to customer demands while the broadening of both our product range and engineering know how builds resilience and competitive advantage ensuring the longevity of our business.
The directors present their strategic report of the Company and the Group for the year ended 31st December 2024.
Principal activities
The principal activities of the Group during the year under review was the manufacture of deep drawn metal presswork and the distribution of material handling components and monitoring equipment. Manufacturing activity is delivered through the Group's subsidiary Braime Pressings Limited and the distribution activity through the Group's 4B division.
Braime Pressings specialises in metal presswork, including deep drawing, multi-stage progression and transfer presswork. Founded in 1888, the business has over 130 years of manufacturing experience. The metal presswork segment operates across several industries including the automotive sector and supplies external as well as group customers.
The subsidiaries within the 4B division are industry leaders in developing high quality, innovative and dependable material handling components for the agricultural and industrial sectors. They provide a range of complementary products including elevator buckets, elevator and conveyor belting, elevator bolts and belt fasteners, forged chain, level monitors and sensors and controllers for monitoring and providing preventative maintenance systems which facilitate handling and minimise the risk of explosion in hazardous areas. The 4B division has operations in the Americas, Europe, the Middle East, Asia, Australia and Africa and in 2024 traded in ninety-six countries. The US subsidiary also has an injection-moulding plant. All injection-moulded products are made wholly for 4B internal consumption and this is classed as 4B division activity rather than included in the manufacturing segment. In December 2024, the Group established a new subsidiary in Indonesia to tap into the opportunities of the large grain industry in the country.
Performance highlights
For the year ended 31st December 2024, the Group generated revenues of £48.9m, up marginally from prior year revenues of £48.2m. Profit from operations was £3.7m, down £16,000 from prior year and EBITDA (Profit from operations, excluding depreciation and amortisation) was £5.1m, down £300,000 from prior year. The board is pleased with the Group results given concerns over the parlous state of the economy at the start of the year.
Profit before tax was £3.2m, down £137,000 from prior year.
At 31st December 2024, the Group had net assets of £23.0m.
Cash flow
Inventories increased by £1.9m as the Group built up stock reserves in light of recent tariff announcements by the new US administration. Trade and other receivables decreased by £20,000 but this was offset by an increase in trade and other payables by the same amount. In total the business generated funds from operations of £2.6m (2023 - £3.2m). During the year, the Group spent £1.4m on property, plant and equipment. £665,000 of this related to the four acres of land and property adjoining our USA warehouse which we purchased in August 2024 as announced in our interim report. Other additions were for plant and machinery and replacement vehicles. After the payment of other financial costs and the dividend, the cash balance (net of overdraft) was £1.9m, a decrease of £245,000 from the prior year.
Bank facilities
The Group's operating banking facilities are renewed annually. At the year end, the available headroom on its operating facilities was £3.1m. The Company has agreed the provisional terms of the development loan of £2.0m to finance the refurbishment of the oilcan roof at Hunslet Road and a further announcement will be made when the bank documentation is signed. The business continues to enjoy good relations with its bankers.
Taxation
The tax charge for the year was £865,000, with an effective rate of tax of 27.0% (2023 - 30.0%). The effective rate is higher than the averaged UK standard tax rate of 25.0% (2023 - 23.5%); this results from the blending effect of the different rates of tax applied by each of the countries in which the Group operates, in particular, our US operations' tax charge affects the blended rate. In any financial year the effective rate will depend on the mix of countries in which profits are made, however the Group continues to review its tax profile to minimise the impact.
Capital expenditure
In 2024, the Group invested £1.4m (2023 - £1.6m) in property, plant and equipment and intangible assets. In addition to the USA land and property purchase, other additions included replacement vehicles, a waterjet wire cutter, sealer and heat tunnel, new decoilers and robot control systems.
Balance sheet
Net assets of the Group have increased to £23.0m (2023 - £20.8m). During the year sterling strengthened against the United States dollar but fell back again at the year end. Consequently, a small foreign exchange gain of £12,000 (2023 - £505,000 loss) was recorded on the re-translation of the net assets of the overseas operations.
Principal exchange rates
The Group reports its results in sterling, its presentational currency. The Group operates in a number of other currencies and the principal exchange rates in use during 2024 and the comparative figures for 2023 are shown in the table below.
| Currency | Symbol | Average rate Full year 2024 | Average rate Full year 2023 | Closing rate 31st Dec 2024 | Closing rate 31st Dec 2023 |
| Australian Dollar | AUD | 1.943 | 1.880 | 2.023 | 1.868 |
| Chinese Renminbi (Yuan) | CNY | 9.128 | 8.821 | 9.077 | 9.041 |
| Euro | EUR | 1.184 | 1.152 | 1.210 | 1.154 |
| South African Rand | ZAR | 23.466 | 23.088 | 23.644 | 23.307 |
| Thai Baht | THB | 44.976 | 43.423 | 42.898 | 43.805 |
| United Arab Emirates Dinar | AED | 4.695 | 4.578 | 4.601 | 4.671 |
| United States Dollar | USD | 1.278 | 1.248 | 1.253 | 1.275 |
| Key performance indicator | Note | 2024 | 2023 |
| Turnover growth | 1 | 1.6% | 7.3% |
| Gross margin | 2 | 47.7% | 46.8% |
| Operating profit | 3 | £3.65m | £3.75m |
| Stock days | 4 | 206 days | 179 days |
| Debtor days | 5 | 52 days | 52 days |
| 2024 | 2023 | |
| £'000 | £'000 | |
| Revenue | 48,947 | 48,155 |
| Changes in inventories of finished goods and work in progress | 1,718 | (426) |
| Raw materials and consumables used | (27,292) | (25,188) |
| Employee benefits costs | (11,956) | (11,009) |
| Depreciation and amortisation expense | (1,474) | (1,678) |
| Other expenses | (6,388) | (6,270) |
| Other operating income | 97 | 164 |
| Profit from operations | 3,652 | 3,748 |
| Finance expense | (513) | (485) |
| Finance income | 59 | 72 |
| Profit before tax | 3,198 | 3,335 |
| Tax expense | (865) | (999) |
| Profit for the year | 2,333 | 2,336 |
| Profit attributable to: | ||
| Owners of the parent | 2,280 | 2,274 |
| Non-controlling interests | 53 | 62 |
| 2,333 | 2,336 | |
| Basic and diluted earnings per share | 158.37p | 157.88p |
| 2024 | 2023 | |
| £'000 | £'000 | |
| Profit for the year | 2,333 | 2,336 |
| Items that will not be reclassified subsequently to profit or loss | ||
| Net pension remeasurement gain on post employment benefits | 6 | 19 |
| Items that may be reclassified subsequently to profit or loss | ||
| Foreign exchange gain/(loss) on re-translation of overseas operations | 12 | (505) |
| Other comprehensive income/(loss) for the year | 18 | (486) |
| Total comprehensive income for the year | 2,351 | 1,850 |
| Total comprehensive income attributable to: | ||
| Owners of the parent | 2,297 | 1,775 |
| Non-controlling interests | 54 | 75 |
| 2,351 | 1,850 |
| 2024 | 2023 | |
| £'000 | £'000 | |
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 10,377 | 10,082 |
| Intangible assets | 342 | 489 |
| Right of use assets | 522 | 717 |
| Total non-current assets | 11,241 | 11,288 |
| Current assets | ||
| Inventories | 14,454 | 12,587 |
| Trade and other receivables | 7,950 | 7,973 |
| Cash and cash equivalents | 2,381 | 2,310 |
| Total current assets | 24,785 | 22,870 |
| Total assets | 36,026 | 34,158 |
| Liabilities | ||
| Current liabilities | ||
| Bank overdraft | 454 | 138 |
| Trade and other payables | 7,080 | 6,991 |
| Other financial liabilities | 2,693 | 3,769 |
| Corporation tax liability | 90 | 52 |
| Total current liabilities | 10,317 | 10,950 |
| Non-current liabilities | ||
| Financial liabilities | 2,610 | 2,325 |
| Deferred income tax liability | 99 | 44 |
| Total non-current liabilities | 2,709 | 2,369 |
| Total liabilities | 13,026 | 13,319 |
| Total net assets | 23,000 | 20,839 |
| Share capital | 360 | 360 |
| Capital reserve | 257 | 257 |
| Foreign exchange reserve | 238 | 221 |
| Retained earnings | 22,250 | 20,182 |
| Total equity attributable to the shareholders of the parent | 23,105 | 21,020 |
| Non-controlling interests | (105) | (181) |
| Total equity | 23,000 | 20,839 |
| 2024 | 2023 | |
| £'000 | £'000 | |
| Operating activities | ||
| Net profit | 2,333 | 2,336 |
| Adjustments for: | ||
| Depreciation and amortisation | 1,474 | 1,678 |
| Foreign exchange gains/(losses) | 118 | (424) |
| Finance income | (59) | (72) |
| Finance expense | 513 | 485 |
| Gain on sale of land and buildings, plant, machinery and motor vehicles | (29) | (80) |
| Adjustment in respect of defined benefit scheme | 58 | 69 |
| Income tax expense | 865 | 999 |
| Income taxes paid | (769) | (1,401) |
| 2,171 | 1,254 | |
| Operating profit before changes in working capital and provisions | 4,504 | 3,590 |
| Decrease in trade and other receivables | 20 | 998 |
| (Increase)/decrease in inventories | (1,867) | 702 |
| Decrease in trade and other payables | (20) | (2,053) |
| (1,867) | (353) | |
| Cash generated from operations | 2,637 | 3,237 |
| Investing activities | ||
| Purchases of property, plant, machinery and motor vehicles | (1,426) | (1,421) |
| Sale of land and buildings, plant, machinery and motor vehicles | 36 | 88 |
| Interest received | 7 | 22 |
| (1,383) | (1,311) | |
| Financing activities | ||
| Proceeds from long term borrowings | - | 977 |
| Repayment of borrowings | (391) | (372) |
| Repayment of lease liabilities | (383) | (455) |
| Bank interest paid | (433) | (404) |
| Lease interest paid | (80) | (81) |
| Dividends paid | (212) | (205) |
| (1,499) | (540) | |
| (Decrease)/increase in cash and cash equivalents | (245) | 1,386 |
| Cash and cash equivalents, beginning of period | 2,172 | 786 |
| Cash and cash equivalents, end of period | 1,927 | 2,172 |
| Share Capital | Capital Reserve | Foreign Exchange Reserve | Retained Earnings | Total | Non- Controlling Interests | Total Equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance at 1st January 2023 | 360 | 257 | 742 | 18,091 | 19,450 | (256) | 19,194 |
| Comprehensive income | |||||||
| Profit | - | - | - | 2,274 | 2,274 | 62 | 2,336 |
| Other comprehensive income | |||||||
| Net pension remeasurement gain recognised directly in equity | - | - | - | 19 | 19 | - | 19 |
| Foreign exchange losses on re-translation of overseas subsidiaries' consolidated operations | - | - | (521) | 3 | (518) | 13 | (505) |
| Total other comprehensive income | - | - | (521) | 22 | (499) | 13 | (486) |
| Total comprehensive income | - | - | (521) | 2,296 | 1,775 | 75 | 1,850 |
| Transactions with owners | |||||||
| Dividends | - | - | - | (205) | (205) | - | (205) |
| Total transactions with owners | - | - | - | (205) | (205) | - | (205) |
| Balance at 1st January 2024 | 360 | 257 | 221 | 20,182 | 21,020 | (181) | 20,839 |
| Comprehensive income | |||||||
| Profit | - | - | - | 2,280 | 2,280 | 53 | 2,333 |
| Other comprehensive income | |||||||
| Net pension remeasurement gain recognised directly in equity | - | - | - | 6 | 6 | - | 6 |
| Foreign exchange gains on re-translation of overseas subsidiaries' consolidated operations | - | - | 17 | (6) | 11 | 1 | 12 |
| Total other comprehensive income | - | - | 17 | - | 17 | 1 | 18 |
| Total comprehensive income | - | - | 17 | 2,280 | 2,297 | 54 | 2,351 |
| Transactions with owners | |||||||
| Share capital introduced by minority | - | - | - | - | - | 22 | 22 |
| Dividends | - | - | - | (212) | (212) | - | (212) |
| Total transactions with owners | - | - | - | (212) | (212) | 22 | (190) |
| Balance at 31st December 2024 | 360 | 257 | 238 | 22,250 | 23,105 | (105) | 23,000 |
| Dividends paid | 2024 | 2023 |
| £'000 | £'000 | |
| Equity shares | ||
| Ordinary shares | ||
| Interim of 9.50p (2023 - 9.00p) per share paid on 24th May 2024 | 46 | 43 |
| Interim of 5.25p (2023 - 5.25p) per share paid on 11th October 2024 | 25 | 25 |
| 71 | 68 | |
| 'A' Ordinary shares | ||
| Interim of 9.50p (2023 - 9.00p) per share paid on 24th May 2024 | 91 | 87 |
| Interim of 5.25p (2023 - 5.25p) per share paid on 11th October 2024 | 50 | 50 |
| 141 | 137 | |
| Total dividends paid | 212 | 205 |
| Central | Presswork Manufacturing | 4B | Total | |
| 2024 | 2024 | 2024 | 2024 | |
| £'000 | £'000 | £'000 | £'000 | |
| Revenue | ||||
| External | - | 5,227 | 43,720 | 48,947 |
| Inter Company | 2,681 | 4,640 | 8,489 | 15,810 |
| Total | 2,681 | 9,867 | 52,209 | 64,757 |
| Profit | ||||
| EBITDA* | 346 | 702 | 4,078 | 5,126 |
| Finance costs | (291) | (92) | (130) | (513) |
| Finance income | - | 52 | 7 | 59 |
| Depreciation and amortisation | (670) | (31) | (773) | (1,474) |
| Tax expense | (1) | - | (864) | (865) |
| (Loss)/profit for the period | (616) | 631 | 2,318 | 2,333 |
| Assets | ||||
| Total assets | 8,035 | 10,993 | 16,998 | 36,026 |
| Additions to non current assets | 1,018 | 43 | 478 | 1,539 |
| Liabilities | ||||
| Total liabilities | 1,860 | 2,729 | 8,437 | 13,026 |
| Central | Presswork Manufacturing | 4B | Total | |
| 2023 | 2023 | 2023 | 2023 | |
| £'000 | £'000 | £'000 | £'000 | |
| Revenue | ||||
| External | - | 5,710 | 42,445 | 48,155 |
| Inter Company | 2,567 | 4,747 | 7,819 | 15,133 |
| Total | 2,567 | 10,457 | 50,264 | 63,288 |
| Profit | ||||
| EBITDA | 490 | 692 | 4,244 | 5,426 |
| Finance costs | (255) | (94) | (136) | (485) |
| Finance income | - | 50 | 22 | 72 |
| Depreciation and amortisation | (720) | (35) | (923) | (1,678) |
| Tax expense | (46) | - | (953) | (999) |
| (Loss)/profit for the period | (531) | 613 | 2,254 | 2,336 |
| Assets | ||||
| Total assets | 7,739 | 10,664 | 15,755 | 34,158 |
| Additions to non current assets | 1,319 | 40 | 879 | 2,238 |
| Liabilities | ||||
| Total liabilities | 2,337 | 3,000 | 7,982 | 13,319 |