Braime (T.F.& J.H.) - Half-year Report

Braime

19/09/2017 16:11

RNS Number : 2015R

Braime (T.F.& J.H.) (Hldgs) PLC

19 September 2017

T.F. & J.H. Braime (Holdings) P.L.C.

("Braime" or the "Company")

Interim Results for the six months ended 30th June 2017

Performance

Group sales revenue for the first six months of 2017 increased by 14% to 15.54M from 13.62M, while profit before tax increased by 28.2 % to 0.59M from 0.46M for the comparable period of 2016.

This performance is partly due to a general improvement in trading but was also enhanced by the fall in the value of Sterling from the higher levels prevailing in the early part of 2016, which increased the value of group earnings from overseas businesses when consolidated in Sterling.

Dividends

The directors have decided to increase the interim dividend to 3.10p per share. This dividend will be paid on 20th October to the Ordinary and 'A' Ordinary shareholders on the register on the 13th October 2017. The associated ex-dividend date will be 12th October 2017.

Braime Pressings Limited

Sales volume increased substantially but the short-term costs of meeting these increases in sales has been greater than expected and is a situation the directors are continuing to address.

The key to success in manufacturing, as always, lies in the continuous improvement in productivity.

4B division

Overall the subsidiaries in the material handling division have performed well with improvements in both sales and margins. Most of our markets in our sector, even in Europe, are gradually coming out of the recent recession.

Cash flow

The cash position at the start of the period was tight but has steadily improved and is expected to further improve in the second half of the year as the trade receivables are recovered in line with payment terms. The group is committed to some substantial investments and needs to finance these investments from cash flow until the new equipment is fully commissioned. The group continues to operate within its bank facility agreed with HSBC.

As the business continues to expand, the directors remain focused in ensuring that our working capital requirements, particularly for stock, are carefully monitored and controlled.

Forecast for the second half of 2017

The group overall is ahead of both last year and budget and currently we would expect the result for the full year to be ahead of 2016. However, our group, with so much of its earnings coming from overseas markets, is always exposed to the unpredictable fluctuations in global exchange rates and to the vagaries in individual markets.

For further information please contact:

T.F. & J.H. Braime (Holdings) P.L.C.

P. Tiffany - Financial Director

0113 245 7491

W. H. Ireland Limited

Katy Mitchell LLB

0113 394 6628

T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated income statement

For the six months ended 30th June 2017

Note
Unaudited
6 months to
30th June
2017
Unaudited
6 months to
30th June
2016
Audited
year to 31st December
2016
Revenue
15,540,422
13,619,008
28,415,449
Changes in inventories of finished goods and work in progress
(36,382)
224,198
337,116
Raw materials and consumables used
(8,413,376)
(7,625,329)
(15,890,401)
Employee benefits costs
(3,636,686)
(3,151,829)
(6,726,428)
Depreciation expense
(369,231)
(390,290)
(801,376)
Other expenses
(2,426,300)
(2,148,239)
(3,940,015)
Profit from operations
658,447
527,519
1,394,345
Profit on disposal of tangible fixed assets
-
-
-
Finance costs
(68,417)
(64,523)
(150,142)
Finance income
2,043
580
29,902
Profit before tax
592,073
463,576
1,274,105
Tax expense
(178,576)
(139,289)
(419,588)
Profit for the period
413,497
324,287
854,517
Profit attributable to :
Owners of the parent
448,429
384,521
932,101
Non-controlling interests
(34,932)
(60,234)
(77,584)
413,497
324,287
854,517
Basic and diluted earnings per share
2
28.72p
22.52p
59.34p

T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated statement of comprehensive income

For the six months ended 30th June 2017

Unaudited
6 months to
30th June
2017
Unaudited
6 months to
30th June
2016
Audited
year to 31st December 2016
Profit for the period
413,497
324,287
854,517
Items that will not be reclassified subsequently to profit or loss
Net pension remeasurement gain on post employment benefits
-
-
10,000
Items that may be reclassified subsequently to profit or loss
Foreign exchange (losses)/gains on re-translation of overseas operations
(167,670)
(151,517)
597,976
Other comprehensive income for the period
(167,670)
(151,517)
607,976
Total comprehensive income for the period
245,827
172,770
1,462,493
Total comprehensive income attributable to:
Owners of the parent
280,759
233,004
1,540,077
Non-controlling interests
(34,932)
(60,234)
(77,584)
245,827
172,770
1,462,493

The foreign currency movements arise on the re-translation of overseas subsidiaries' opening balance sheets at closing rates.

T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated balance sheet

At 30th June 2017

Unaudited
6 months to
30th June
2017
Unaudited
6 months to
30th June
2016
Audited
year to 31st
December
2016
Non-current assets
Property, plant and equipment
5,232,599
5,285,297
5,357,772
Goodwill
12,270
12,270
12,270
Financial assets
-
26,180
-
Total non-current assets
5,244,869
5,323,747
5,370,042
Current assets
Inventories
6,383,147
5,887,955
6,119,495
Trade and other receivables
6,506,409
5,712,176
5,213,019
Financial assets
-
50,918
51,877
Cash and cash equivalents
13,933
1,243,172
742,474
Total current assets
12,903,489
12,894,221
12,126,865
Total assets
18,148,358
18,217,968
17,496,907
Current liabilities
Bank overdraft
-
(1,517,675)
-
Trade and other payables
(4,705,966)
(4,173,632)
(4,181,683)
Other financial liabilities
(1,952,905)
(1,981,539)
(1,730,288)
Corporation tax liability
(52,548)
(177,586)
(146,703)
Total current liabilities
(6,711,419)
(7,850,432)
(6,058,674)
Non-current liabilities
Financial liabilities
(1,205,986)
(1,425,702)
(1,360,947)
Deferred income tax liability
(117,724)
(230,235)
(117,724)
Total non-current liabilities
(1,323,710)
(1,655,937)
(1,478,671)
Total liabilities
(8,035,129)
(9,506,369)
(7,537,345)
Total net assets
10,113,229
8,711,599
9,959,562
Capital and reserves
Share capital
360,000
360,000
360,000
Capital reserve
257,319
257,319
257,319
Foreign exchange reserve
371,725
(210,098)
539,395
Retained earnings
9,361,797
8,489,708
9,005,528
Total equity attributable to the shareholders of the parent
company
10,350,841
8,896,929
10,162,242
Non-controlling interests
(237,612)
(185,330)
(202,680)
Total equity
10,113,229
8,711,599
9,959,562

T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated cash flow statement

For the six months ended 30th June 2017

Note
Unaudited
6 months to
30th June
2017
Unaudited
6 months to
30th June
2016
Audited
year to 31st December
2016
Operating activities
Net profit
413,497
324,287
854,517
Adjustments for:
Depreciation
369,231
390,290
801,376
Grants amortised
-
(6,568)
(6,568)
Foreign exchange losses
(167,670)
(151,517)
525,324
Finance income
(2,043)
(580)
(29,902)
Finance expense
68,417
64,523
150,142
Gain on sale of plant, machinery and motor vehicles
-
-
(12,538)
Adjustment in respect of defined benefit scheme
-
-
12,000
Income tax expense
178,576
139,289
419,588
Income taxes paid
(272,731)
(28,557)
(491,778)
Operating activities before changes in working capital and provisions
587,277
731,167
2,222,161
Increase in trade and other receivables
(1,293,390)
(707,077)
(207,920)
Increase in inventories
(263,652)
(168,301)
(399,841)
Increase in trade and other payables
780,374
444,450
272,025
(776,668)
(430,928)
(335,736)
Cash generated from operations
(189,391)
300,239
1,886,425
Investing activities
Purchases of property, plant, machinery and motor
vehicles
(126,770)
(657,387)
(998,617)
Sale of plant, machinery and motor vehicles
-
-
12,538
Interest received
2,043
580
27,902
(124,727)
(656,807)
(958,177)
Financing activities
Proceeds from long term borrowings
-
-
-
Loan financing repaid
51,877
32,556
57,777
Repayment of borrowings
(172,374)
(35,464)
(101,917)
Repayment of hire purchase creditors
(133,349)
(77,204)
(176,432)
Interest paid
(68,417)
(64,523)
(150,142)
Dividends paid
(92,160)
(89,280)
(131,040)
(414,423)
(233,915)
(501,754)
Decrease in cash and cash equivalents
(728,541)
(590,483)
426,494
Cash and cash equivalents, beginning of period
742,474
315,980
315,980
Cash and cash equivalents (including overdrafts), end of period
3
13,933
(274,503)
742,474


T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated statement of changes in equity

For the six months ended 30th June 2017

Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Minority
Interests
Total
Equity
Balance at 1st
January 2017
360,000
257,319
539,395
9,005,528
10,162,242
(202,680)
9,959,562
Comprehensive
income
Profit
-
-
-
448,429
448,429
(34,932)
413,497
Other
comprehensive
income
Foreign exchange
losses on re-
translation of
overseas operations
-
-
(167,670)
-
(167,670)
-
(167,670)
Total other
comprehensive
income
-
-
(167,670)
-
(167,670)
-
(167,670)
Total
comprehensive
income
-
-
(167,670)
448,429
280,759
(34,932)
245,827
Transactions with
owners
Dividends
-
-
-
(92,160)
(92,160)
-
(92,160)
Total transactions
with owners
-
-
-
(92,160)
(92,160)
-
(92,160)
Balance at 30th
June 2017
360,000
257,319
371,725
9,361,797
10,350,841
(237,612)
10,113,229


T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated statement of changes in equity

For the six months ended 30th June 2017

Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Minority
Interests
Total
Equity
Balance at 1st
January 2016
360,000
257,319
(58,581)
8,194,467
8,753,205
(125,096)
8,628,109
Comprehensive
income
Profit
-
-
-
384,521
384,521
(60,234)
324,287
Other
comprehensive
income
Foreign exchange
losses on re-
translation of
overseas operations
-
-
(151,517)
-
(151,517)
-
(151,517)
Total other
comprehensive
income
-
-
(151,517)
-
(151,517)
-
(151,517)
Total
comprehensive
income
-
-
(151,517)
384,521
233,004
(60,234)
172,770
Transactions with
owners
Dividends
-
-
-
(89,280)
(89,280)
-
(89,280)
Total transactions
with owners
-
-
-
(89,280)
(89,280)
-
(89,280)
Balance at 30th
June 2016
360,000
257,319
(210,098)
8,489,708
8,896,929
(185,330)
8,711,599


T.F. & J.H. Braime (Holdings) P.L.C.

Consolidated statement of changes in equity - continued

For the six months ended 30th June 2017

Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Minority
Interests
Total
Equity
Balance at 1st
January 2016
360,000
257,319
(58,581)
8,194,467
8,753,205
(125,096)
8,628,109
Comprehensive
income
Profit
-
-
-
932,101
932,101
(77,584)
854,517
Other
comprehensive
income
Net pension
remeasurement
gain recognised
directly in equity
-
-
-
10,000
10,000
-
10,000
Foreign exchange
gains on re-
translation of
overseas operations
-
-
597,976
-
597,976
-
597,976
Total other
comprehensive
income
-
-
597,976
10,000
607,976
-
607,976
Total
comprehensive
income
-
-
597,976
942,101
1,540,077
(77,584)
1,462,493
Transactions with
owners
Dividends
-
-
-
(131,040)
(131,040)
-
(131,040)
Total transactions
With owners
-
-
-
(131,040)
(131,040)
-
(131,040)
Balance at 31st
December 2016
360,000
257,319
539,395
9,005,528
10,162,242
(202,680)
9,959,562


T.F. & J.H. Braime (Holdings) P.L.C.

Notes to the interim financial report

1. Accounting policies

 Basis of preparation

The interim financial report has been prepared using accounting policies that are consistent with those used in the preparation of the full financial statements to 31st December 2016 and those which management expects to apply in the group's full financial statements to 31st December 2017.

This interim financial report is unaudited. The comparative financial information set out in this interim financial report does not constitute the group's statutory accounts for the period ended 31st December 2016 but is derived from the accounts. Statutory accounts for the period ended 31st December 2016 have been delivered to the Registrar of Companies. The auditors have reported on those accounts. Their audit report was unqualified and did not contain any statements under Section 498 of the Companies Act 2006.

The group's condensed interim financial information has been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted for the use in the European Union and in accordance with IAS 34 'Interim Financial Reporting' and the accounting policies included in the Annual Report for the year ended 31st December 2016, which have been applied consistently throughout the current and preceding periods.

2. Earnings per share and dividends

 Both the basic and diluted earnings per share have been calculated using the net results attributable to shareholders of T.F. & J.H. Braime (Holdings) P.L.C. as the numerator.

 The weighted average number of outstanding shares used for basic earnings per share amounted to 1,440,000 (2016 - 1,440,000). There are no potentially dilutive shares in issue.

6 months to30th June 2017
Dividends paid
Equity shares
Ordinary shares
Interim of 6.40p per share paid on 12th May 2017
30,720
'A' Ordinary shares
Interim of 6.40p per share paid on 12th May 2017
61,440
Total dividends paid
92,160
Year to 31st
December
2016
Dividends paid
Equity shares
Ordinary shares
Interim of 6.20p per share paid on 12th May 2016
29,760
Interim of 2.90p per share paid on 21st October 2016
13,920
43,680
'A' Ordinary shares
Interim of 6.20p per share paid on 12th May 2016
59,520
Interim of 2.90p per share paid on 12th October 2016
27,840
87,360
Total dividends paid
131,040

T.F. & J.H. Braime (Holdings) P.L.C.

Notes to the interim financial report - continued

3. Cash and cash equivalents

Unaudited
6 months to
30th June
2017
Unaudited
6 months to
30th June
2016
Audited
year to31st
December
2016
Cash at bank and in hand
13,933
1,243,172
742,474
Bank overdrafts
-
(1,517,675)
-
13,933
(274,503)
742,474

4. Segmental information

Unaudited 6 months to 30th June 2017
Central
Manufacturing
Distribution
Total
Revenue
External
-
2,004,199
13,536,223
15,540,422
Inter company
355,227
1,126,847
2,237,514
3,719,588
Total
355,227
3,131,046
15,773,737
19,260,010
Profit
EBITDA
236,409
(624,192)
1,415,461
1,027,678
Finance costs
(45,245)
(11,515)
(11,657)
(68,417)
Finance income
1,469
175
399
2,043
Depreciation
(206,932)
-
(162,299)
(369,231)
Tax expense
-
-
(178,576)
(178,576)
(Loss)/profit for the period
(14,299)
(635,532)
1,063,328
413,497
Assets
Total assets
4,000,762
709,717
13,437,878
18,148,357
Additions to non current assets
222,479
-
21,579
244,058
Liabilities
Total liabilities
980,330
2,185,462
4,869,336
8,035,128

T.F. & J.H. Braime (Holdings) P.L.C.

Notes to the interim financial report - continued

4. Segmental information - continued

Unaudited 6 months to 30th June 2016
Central
Manufacturing
Distribution
Total
Revenue
External
-
1,793,834
11,825,174
13,619,008
Inter company
111,138
1,036,547
1,785,464
2,933,149
Total
111,138
2,830,381
13,610,638
16,552,157
Profit
EBITDA
42,855
(219,819)
1,094,773
917,809
Finance costs
(27,760)
(17,133)
(19,630)
(64,523)
Finance income
-
267
313
580
Depreciation
(35,765)
(176,568)
(177,957)
(390,290)
Tax expense
(13,072)
-
(126,217)
(139,289)
(Loss)/profit for the period
(33,742)
(413,253)
771,282
324,287
Assets
Total assets
4,489,887
2,163,769
11,564,312
18,217,968
Additions to non current assets
-
754,777
243,354
998,131
Liabilities
Total liabilities
1,352,359
2,906,318
5,247,692
9,506,369

Audited year to 31st December 2016
Central
Manufacturing
Distribution
Total
Revenue
External
-
3,564,987
24,850,462
28,415,449
Inter company
472,671
2,659,476
4,443,233
7,575,380
Total
472,671
6,224,463
29,293,695
35,990,829
Profit
EBITDA
(143,881)
180,991
2,158,611
2,195,721
Finance costs
(73,959)
(25,867)
(50,316)
(150,142)
Finance income
-
2,489
27,413
29,902
Depreciation
(279,022)
(140,585)
(381,769)
(801,376)
Tax expense
(40,740)
98,242
(477,090)
(419,588)
(Loss)/profit for the period
(537,602)
115,270
1,276,849
854,517
Assets
Total assets
4,497,238
1,008,429
11,991,240
17,496,907
Additions to non current assets
1,022,501
-
347,010
1,369,511
Liabilities
Total liabilities
1,022,777
2,139,638
4,374,930
7,537,345

This information is provided by RNS

The company news service from the London Stock Exchange

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