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

Braime

09/09/2014 15:57

RNS Number : 2333R

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

09 September 2014

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

(the "Company")

Interim Results

For the six months ended 30th June 2014

Performance

Group sales revenue for the first six months of 2014 rose by 7.7% to 12,088,000 (2013 - 11, 224,000).

Profit before tax increased more substantially to 513,000 (2013 - 391,000), and profit after tax to 364,000 (2013 - 266,000). This improved performance was achieved against the background of a subdued global economy.

Dividends

The directors have decided to increase the next interim dividend from 2.40p in 2013 to 2.90p per share. This dividend will be paid on 17th October 2014 to the Ordinary and `A` Ordinary shareholders on the register on 3rd October 2014. The associated ex-dividend date will be 1st October 2014.

The decision to increase the dividend reflects the improvement in performance but the decision on the level of increase has been made to restore a better balance between the first and second interim dividends. It should not be taken as any indication that the second interim may be increased by a similar percentage.

Braime Pressings Limited

The performance of our manufacturing business continues to improve but at a slower rate than hoped. Most of the recent large investments in capital equipment have been commissioned and those that remain should be completed by the end of the current year. The challenge remains to fully capitalise on those investments and to achieve the necessary on going improvements in efficiency and profitability.

4B Division

Our distribution companies have enjoyed a positive start to the year. However, the rise in the value of Sterling has increased both the purchase cost in local currency of those products our subsidiaries import from the UK and reduces the value of the profits made when the subsidiary`s profits are translated back into Sterling for consolidation in the group accounts. This situation highlights the dependence of the group on exports which brings both considerable benefits - but also challenges.

Cash and Investments

The company was cash negative, using 194,000 more than it generated in the first six months. Inventories increased by 293,000, 6.1%, roughly in line with the increase in revenue, and there was a small increase in the difference between our trade assets and our liabilities needed to finance the higher sales revenue.

However, the main reason for the company being cash negative was the investment of 264,000, largely in machinery & equipment. The company continues its policy of investing in our production facilities in order to increase both the capacity and services we can offer to our customers and to improve the efficiency of our operations.

The director`s believe that the group has a strong financial position, access to borrowing facilities, where required for capital investment, and has the full support of our bankers for this policy.

Outlook

The directors believe that the trend of the past six months will continue in the second half of the year. The main concern currently is over the exchange rate and the effect this may have on the final result for the year. The exchange rates with our main markets is something over which we have no control, although the group takes steps to mitigate against the short term effects on our results as well as trying to reduce any long term negative impacts on our business.

For further information please contact:

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

M. L. Mills - 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

Interim results

For the six months ended 30th June 2014

Note
Unaudited
6 months to
30th June
2014
Unaudited
6 months to
30th June 2013
Audited
year to 31st December 2013
Revenue
12,088,143
11,224,157
22,953,805
Changes in inventories of finished goods and work in progress
329,014
356,006
311,144
Raw materials and consumables used
(7,087,247)
(6,760,517)
(12,942,829)
Employee benefits costs
(2,481,461)
(2,423,752)
(5,021,454)
Depreciation expense
(238,243)
(241,255)
(520,945)
Other expenses
(2,041,763)
(1,731,995)
(3,704,402)
Profit from operations
568,443
422,644
1,075,319
Profit on disposal of tangible fixed assets
-
13,239
32,551
Finance costs
(55,632)
(44,778)
(100,967)
Finance income
43
274
3,330
Profit before tax
512,854
391,379
1,010,233
Tax expense
(149,241)
(125,241)
(258,167)
Profit for the year attributable to equity shareholders of the parent company
363,613
266,138
752,066
Basic and diluted earnings per share
2
25.25p
18.48p
52.23p

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

Consolidated statement of comprehensive income

For the six months ended 30th June 2014

Unaudited
6 months to
30th June
2014
Unaudited
6 months to
30th June 2013
Audited
year to 31st December 2013
Profit for the period
363,613
266,138
752,066
Items that will not be reclassified subsequently to profit or loss
Remeasurement gain on post employment benefits
-
-
6,000
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
25,000
Items that may be reclassified subsequently to profit or loss
Foreign exchange losses on re-translation of overseas operations
(26,226)
(24,516)
(199,729)
Other comprehensive income for the period
(26,226)
(24,516)
(168,729)
Total comprehensive income for the period
337,387
241,622
583,337

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

Consolidated balance sheet

At 30th June 2014

Unaudited
6 months to
30th June
2014
Unaudited
6 months to
30th June
2013
Audited
year to 31st
December
2013
Non-current assets
Property, plant and equipment
3,142,566
2,531,097
3,119,378
Goodwill
12,270
12,270
12,270
Total non-current assets
3,154,836
2,543,367
3,131,648
Current assets
Inventories
5,112,346
4,794,271
4,819,200
Trade and other receivables
5,017,522
4,597,832
3,948,734
Cash and cash equivalents
720,100
637,041
567,226
Total current assets
10,849,968
10,029,144
9,335,160
Total assets
14,004,804
12,572,511
12,466,808
Current liabilities
Bank overdraft
837,994
392,403
490,944
Trade and other payables
3,662,158
3,221,111
3,146,004
Other financial liabilities
1,241,095
1,285,701
828,414
Corporation tax liability
190,588
119,714
43,494
Total current liabilities
5,931,835
5,018,929
4,508,856
Non-current liabilities
Financial liabilities
1,037,833
1,189,708
1,170,923
Deferred income tax liability
116,000
-
116,000
Total non-current liabilities
1,153,833
1,189,708
1,286,923
Total liabilities
7,085,668
6,208,637
5,795,779
Total net assets
6,919,136
6,363,874
6,671,029
Capital and reserves
Share capital
360,000
360,000
360,000
Capital reserve
77,319
77,319
77,319
Foreign exchange reserve
51,196
252,635
77,422
Retained earnings
6,430,621
5,673,920
6,156,288
Total equity attributable to equity shareholders
of the company
6,919,136
6,363,874
6,671,029

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

Consolidated cash flow statement

For the six months ended 30th June 2014

Note
Unaudited
6 months to
30th June
2014
Unaudited
6 months to
30th June
2013
Audited
year to 31st December
2013
Operating activities
Net profit from ordinary activities
363,613
266,137
752,066
Adjustments for:
Depreciation
238,243
241,255
520,945
Grants amortised
(828)
(828)
(1,656)
Non-cash operating charges
-
-
56,000
Foreign exchange losses
(24,057)
(30,871)
(186,189)
Finance income
(43)
(274)
(3,330)
Finance expense
55,632
44,778
100,967
Gain on sale of plant and equipment
-
(13,239)
(32,551)
Adjustment in respect of defined benefit scheme
-
-
34,000
Income tax expense
149,241
125,241
258,167
Operating profit before changes in working capital and provisions
781,801
632,199
1,498,419
Increase in trade and other receivables
(1,066,255)
(1,378,117)
(718,157)
Increase in inventories
(293,146)
(406,968)
(431,897)
Increase in trade and other payables
991,247
1,084,954
590,038
(368,154)
(700,131)
(560,016)
Cash generated from operations
413,647
(67,932)
938,403
Income taxes paid
(4,680)
(5,527)
(109,535)
Investing activities
Purchases of property, plant, machinery and motor vehicles
(263,599)
(1,272,127)
(2,205,287)
Sale of land and buildings, plant, machinery and motor vehicles
-
13,239
32,551
Interest received
43
274
330
(263,556)
(1,258,614)
(2,172,406)
Financing activities
Proceeds from long term borrowings
-
890,443
1,081,989
Repayment of borrowings
(91,348)
(6,782)
(141,574)
Repayment of hire purchase creditors
(103,327)
(118,203)
(241,099)
Interest paid
(55,632)
(44,778)
(100,967)
Dividend paid
(89,280)
(77,760)
(112,320)
(339,587)
642,920
486,029
Decrease in cash and cash equivalents
(194,176)
(689,153)
(857,509)
Cash and cash equivalents (including overdrafts), beginning of period
76,282
933,791
933,791
Cash and cash equivalents (including overdrafts), end of period
3
(117,894)
244,638
76,282


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

Consolidated statement of changes in equity

For the six months ended 30th June 2014

Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Balance at 1st January 2014
360,000
77,319
77,422
6,156,288
6,671,029
Comprehensive income
Profit
-
-
-
363,613
363,613
Other comprehensive income
Remeasurement gain recognised directly in equity
-
-
-
-
-
Foreign exchange losses on re-translation of overseas operations
-
-
(26,226)
-
(26,226)
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
-
-
-
Total other comprehensive income
-
-
(26,226)
-
(26,226)
Total comprehensive income
-
-
(26,226)
363,613
337,387
Transaction with owners
Dividends
-
-
-
(89,280)
(89,280)
Total transactions with owners
-
-
-
(89,280)
(89,280)
Balance at 30th June 2014
360,000
77,319
51,196
6,430,621
6,919,136
Balance at 1st January 2013
360,000
77,319
277,151
5,485,542
6,200,012
Comprehensive income
Profit
-
-
-
266,138
266,138
Other comprehensive income
Remeasurement gain recognised directly in equity
-
-
-
-
-
Foreign exchange losses on re-translation of overseas operations
-
-
(24,516)
-
(24,516)
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
-
-
-
Total other comprehensive income
-
-
(24,516)
-
(24,516)
Total comprehensive income
-
-
(24,516)
266,138
241,622
Transaction with owners
Dividends
-
-
-
(77,760)
(77,760)
Total transactions with owners
-
-
-
(77,760)
(77,760)
Balance at 30th June 2013
360,000
77,319
252,635
5,673,920
6,363,874

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

Consolidated statement of changes in equity - continued

For the six months ended 30th June 2014

Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Balance at 1st January 2013
360,000
77,319
277,151
5,485,542
6,200,012
Comprehensive income
Profit
-
-
-
752,066
752,066
Other comprehensive income
Remeasurement gain recognised directly in equity
-
-
-
6,000
6,000
Foreign exchange losses on re-translation of overseas operations
-
-
(199,729)
-
(199,729)
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
-
25,000
25,000
Total other comprehensive income
-
-
(199,729)
31,000
(168,729)
Total comprehensive income
-
-
(199,729)
783,066
583,337
Transaction with owners
Dividends
-
-
-
(112,320)
(112,320)
Total transactions with owners
-
-
-
(112,320)
(112,320)
Balance at 31st December 2013
360,000
77,319
77,422
6,156,288
6,671,029

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 2013 and those which management expects to apply in the group's full financial statements to 31st December 2014.

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 2013 but is derived from the accounts. Statutory accounts for the period ended 31st December 2013 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 2013, 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 (2013 - 1,440,000). There are no potentially dilutive shares in issue.

6 months to 30th June 2014
Dividends paid
Equity shares
Ordinary shares
Interim of 6.20p per share paid on 4th April 2014
29,760
'A' Ordinary shares
Interim of 6.20p per share paid on 4th April 2014
59,520
Total dividends paid
89,280
Year to 31st
December
2013
Dividends paid
Equity shares
Ordinary shares
Interim of 5.40p per share paid on 4th April 2013
25,920
Interim of 2.40p per share paid on 9th October 2013
11,520
37,440
'A' Ordinary shares
Interim of 5.40p per share paid on 4th April 2013
51,840
Interim of 2.40p per share paid on 9th October 2013
23,040
74,880
Total dividends paid
112,320

3. Cash and cash equivalents

Unaudited
6 months to
30th June
2014
Unaudited
6 months to
30th June
2013
Audited
year to31st
December
2013
Cash at bank and in hand
720,100
637,041
567,226
Bank overdrafts
837,994
392,403
490,944
(117,894)
244,638
76,282

4. Segmental information

Unaudited 6 months to 30th June 2014
Central
Manufacturing
Distribution
Total
Revenue
External
-
1,760,143
10,328,000
12,088,143
Inter company
55,443
1,211,576
1,337,345
2,604,364
Total
55,443
2,971,719
11,665,345
14,692,507
Profit
EBITDA
3,333
98,662
704,691
806,686
Finance costs
(14,542)
(22,774)
(18,316)
(55,632)
Finance income
-
-
43
43
Depreciation
(3,150)
(116,598)
(118,495)
(238,243)
Tax expense
(15,750)
-
(133,491)
(149,241)
(Loss)/profit for the period
(30,109)
(40,710)
434,432
363,613
Assets
Total assets
1,298,767
3,194,579
9,511,458
14,004,804
Additions to non current assets
-
217,330
46,269
263,599
Liabilities
Total liabilities
552,846
2,348,710
4,184,111
7,085,667

4. Segmental information - continued

Unaudited 6 months to 30th June 2013
Central
Manufacturing
Distribution
Total
Revenue
External
-
1,682,274
9,541,883
11,224,157
Inter company
20,000
1,306,284
1,300,717
2,627,001
Total
20,000
2,988,558
10,842,600
13,851,158
Profit
EBITDA
(45,532)
112,694
609,976
677,138
Finance costs
(9,399)
(18,722)
(16,657)
(44,778)
Finance income
201
-
73
274
Depreciation
-
(167,697)
(73,558)
(241,255)
Tax expense
(5,200)
-
(120,041)
(125,241)
(Loss)/profit for the period
(59,930)
(73,725)
399,793
266,138
Assets
Total assets
1,214,383
2,232,335
9,125,793
12,572,511
Additions to non current assets
1,187,465
31,406
53,256
1,272,127
Liabilities
Total liabilities
492,760
1,676,445
4,039,432
6,208,637

Audited year to 31st December 2013
Central
Manufacturing
Distribution
Total
Revenue
External
-
3,010,216
19,943,589
22,953,805
Inter company
74,866
2,976,179
3,422,562
6,473,607
Total
74,866
5,986,395
23,366,151
29,427,412
Profit
EBITDA
(40,251)
387,263
1,249,252
1,596,264
Gain on sale of land & buildings
-
20,239
12,312
32,551
Finance costs
(24,848)
(40,703)
(35,416)
(100,967)
Finance income
201
3,000
129
3,330
Depreciation
(3,675)
(343,184)
(174,086)
(520,945)
Tax expense
(15,690)
250,339
(492,816)
(258,167)
(Loss)/profit for the period
(84,263)
276,954
559,375
752,066
Assets
Total assets
1,283,313
2,329,357
8,854,138
12,466,808
Additions to non current assets
1,274,526
441,571
489,190
2,205,287
Liabilities
Total liabilities
395,378
1,541,182
3,859,219
5,795,779

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

Contact details

For further information please contact:

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

O. N. A. Braime - Chairman

0113 245 7491

W. H. Ireland Limited

Katy Mitchell LLB

0113 394 6628

This information is provided by RNS

The company news service from the London Stock Exchange

  END

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