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

Braime

22/09/2015 14:59

RNS Number : 8439Z

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

22 September 2015

 INTERIM REPORT

 FOR THE SIX MONTHS ENDED

 30TH JUNE 2015

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

Management commentary

For the six months ended 30th June 2015

Performance

Group sales revenue for the first six months of 2015 increased by 11.6% to 13,487,000 (2014 - 12,088,000) but profit before tax reduced from 513,000 to 406,000. Profit after tax fell to 282,000 compared to 363,000 for the comparable period of 2014.

This decrease in the group result was largely caused by the exceptional issues outlined in the divisional trading updates below.

Dividends

The directors have decided to maintain the first interim dividend at 2.90p per share (2014 - 2.90p). This dividend will be paid on the 18th October 2015 to the Ordinary and `A` Ordinary shareholders on the register on 9th October 2015. The associated ex-dividend date will be 8th October 2015.

Braime Pressings Limited

Due to unanticipated technical problems with two of the recently installed production lines, the company was initially unable to achieve the production rates and the output expected from the two standard shifts. This led to significant additional labour and energy costs to satisfy increased demand. This fall in productivity has slowly begun to be reversed but a substantial and continuing improvement in productivity is essential for the company to return to profitability.

Since April 2015, as part of the move to free the area of buildings being sold to the Leeds Advanced Manufacturing UTC Limited, who are building the University Technical College (UTC), Braime Pressings faced exceptional costs of circa 110,000 in condensing and improving its facilities. While major external costs have been capitalised, these costs have been charged to the Income Statement.

4B Division

All of the distribution companies in the 4B division, with the exception of the UK, have enjoyed very positive starts to the year. Our US division has benefited from the, albeit small, increase in the value of the US Dollar and the corresponding fall in the costs of its imported products.

Elsewhere, the fall of local currencies, relative to Sterling, have reduced the positive effect of otherwise growing local sales revenue in the consolidated result of the group.

During the period the UK part of our 4B division, operating in the material handling market, has changed its name from Braime Elevator Components Limited to 4B Braime Components Limited. This change was made in order to better reflect the broader range of products that it now manufactures and distributes internationally.

4B Braime Components Limited

4B Braime Components makes a significant portion of its overall sales directly to its exclusive distributors in Europe. These prices are set in Euros at the start of each year. The Euro fell against Sterling by about 15% in a very short time frame and this had a large negative impact on the gross margin.

Overall the result for the first six months of 2015 was well above the same period for last year but well below budget due to the negative effect of the changes in exchange rates.

Cash and Investments

On the basis of the sale of 25% of the manufacturing site, agreed early in 2015, for the planned UTC, the company is re-investing circa 1,100,000, which is the majority of the expected proceeds, in the modernisation of its UK facility.

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

Management commentary - continued

For the six months ended 30th June 2015

Cash and Investments - continued

These improvements will have a positive effect on the operating performance, particularly of our 4B division. The company has already vacated the area needed for the UTC and the majority of the modernisation work will be completed in October this year. The funds raised by the sale are conditional on the UTC gaining planning consent from Leeds City Council, this is expected by the end of September. As a result of the need to finance our investment in advance of completion of the sale, now expected in October 2015, our cash flow has had to be very carefully managed and other investment projects have had to be postponed.

Outlook

Revenues remain strong, although there has been a slowdown in the UK operating subsidiaries in July and August. The principal concerns remain the urgent need for productivity improvements in our UK manufacturing business and the current level of exchange rates and the corresponding negative effect this may have on the final result for the year.

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

Consolidated income statement

Interim results

For the six months ended 30th June 2015

-----------------

Note
Unaudited
6 months to
30th June
2015
Unaudited
6 months to
30th June
2014
Audited
year to 31st December 2014
Revenue
13,487,175
12,088,143
24,291,700
Changes in inventories of finished goods and work in progress
424,534
329,014
161,071
Raw materials and consumables used
(7,975,378)
(7,087,247)
(13,535,766)
Employee benefits costs
(2,848,956)
(2,481,461)
(5,309,357)
Depreciation expense
(342,441)
(238,243)
(564,244)
Other expenses
(2,305,874)
(2,041,763)
(3,807,604)
Profit from operations
439,060
568,443
1,235,800
Profit on disposal of tangible fixed assets
14,750
-
2,796
Finance costs
(53,505)
(55,632)
(115,291)
Finance income
5,870
43
2,164
Profit before tax
406,175
512,854
1,125,469
Tax expense
(123,833)
(149,241)
(343,340)
Profit for the period
282,342
363,613
782,129
Profit attributable to :
Owners of the parent
305,646
363,613
864,011
Non-controlling interests
(23,304)
-
(81,882)
282,342
363.613
782,129
Basic and diluted earnings per share
2
19.61p
25.25p
54.31p

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

Consolidated statement of comprehensive income

For the six months ended 30th June 2015

Unaudited
6 months to
30th June
2015
Unaudited
6 months to
30th June
2014
Audited
year to 31st December 2014
Profit for the period
282,342
363,613
782,129
Items that will not be reclassified subsequently to profit or loss
Net remeasurement gain on post employment benefits
-
-
44,000
Items that may be reclassified subsequently to profit or loss
Foreign exchange (losses)/gains on re-translation of overseas operations
(167,627)
(26,226)
10,819
Other comprehensive income for the period
(167,627)
(26,226)
54,819
Total comprehensive income for the period
114,715
337,387
836,948
Total comprehensive income attributable to:
Owners of the parent
138,019
337,387
918,830
Non-controlling interests
(23,304)
-
(81,882)
114,715
337,387
836,948

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 2015

Unaudited
6 months to
30th June
2015
Unaudited
6 months to
30th June
2014
Audited
year to 31st
December
2014
Non-current assets
Property, plant and equipment
4,414,976
3,142,566
4,056,506
Goodwill
12,270
12,270
12,270
Financial assets
77,096
-
101,853
Total non-current assets
4,504,342
3,154,836
4,170,629
Current assets
Inventories
5,218,773
5,112,346
4,888,183
Trade and other receivables
5,028,829
5,017,522
4,911,108
Financial assets
49,056
-
98,147
Cash and cash equivalents
801,577
720,100
1,357,769
Total current assets
11,098,235
10,849,968
11,255,207
Total assets
15,602,577
14,004,804
15,425,836
Current liabilities
Bank overdraft
1,094,170
837,994
1,505,988
Trade and other payables
4,178,533
3,662,158
3,752,594
Other financial liabilities
1,278,021
1,241,095
1,323,095
Corporation tax liability
37,867
190,588
187,054
Total current liabilities
6,588,591
5,931,835
6,768,731
Non-current liabilities
Financial liabilities
1,442,491
1,037,833
1,111,045
Deferred income tax liability
191,623
116,000
191,623
Total non-current liabilities
1,634,114
1,153,833
1,302,668
Total liabilities
8,222,705
7,085,668
8,071,399
Total net assets
7,379,872
6,919,136
7,354,437
Capital and reserves
Share capital
360,000
360,000
360,000
Capital reserve
257,319
77,319
257,319
Foreign exchange reserve
(79,386)
51,196
88,241
Retained earnings
6,947,125
6,430,621
6,730,759
Total equity attributable to the shareholders
of the parent
7,485,058
6,919,136
7,436,319
Non-controlling interests
(105,186)
-
(81,882)
Total equity
7,379,872
6,919,136
7,354,437

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

Consolidated cash flow statement

For the six months ended 30th June 2015

Note
Unaudited
6 months to
30th June
2015
Unaudited
6 months to
30th June
2014
Audited
year to 31st December
2014
Operating activities
Net profit
282,342
363,613
782,129
Adjustments for:
Depreciation
342,441
238,243
564,244
Grants amortised
(828)
(828)
(1,656)
Non-cash operating charges
-
-
-
Foreign exchange (losses)/gains
(163,125)
(24,057)
15,279
Finance income
(5,870)
(43)
(2,164)
Finance expense
53,505
55,632
115,291
Gain on sale of plant, machinery and motor vehicles
(14,750)
-
(2,796)
Adjustment in respect of defined benefit scheme
-
-
46,000
Income tax expense
123,833
149,241
343,340
Operating activities before changes in working capital and provisions
617,548
781,801
1,859,667
Increase in trade and other receivables
(117,721)
(1,066,255)
(1,044,846)
Increase in inventories
(330,590)
(293,146)
(68,983)
Increase in trade and other payables
276,825
991,247
1,114,877
(171,486)
(368,154)
1,048
Cash generated from operations
446,062
413,647
1,860,715
Income taxes paid
(273,020)
(4,680)
(41,685)
Investing activities
Purchases of property, plant, machinery and motor vehicles
(536,905)
(263,599)
(1,368,985)
Sale of plant, machinery and motor vehicles
14,750
-
14,540
Interest received
5,870
43
164
(516,285)
(263,556)
(1,354,281)
Financing activities
Proceeds from long term borrowings
425,000
-
200,000
Loan financing repaid/(provided)
73,848
-
(200,000)
Repayment of borrowings
(99,351)
(91,348)
(272,688)
Repayment of hire purchase creditors
(57,843)
(103,327)
(170,231)
Interest paid
(53,505)
(55,632)
(115,291)
Dividend paid
(89,280)
(89,280)
(131,040)
198,869
(339,587)
(689,250)
Decrease in cash and cash equivalents
(144,374)
(194,176)
(224,501)
Cash and cash equivalents, beginning of period
(148,219)
76,282
76,282
Cash and cash equivalents (including overdrafts), end of period
3
(292,593)
(117,894)
(148,219)


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

Consolidated statement of changes in equity

For the six months ended 30th June 2015

Share
Capital
Capital Reserve
Foreign Exchange Reserve
Retained Earnings
Total
Non-Controlling
Interests
Total
Equity
Balance at 1st January 2015
360,000
257,319
88,241
6,730,759
7,436,319
(81,882)
7,354,437
Comprehensive income
Profit
-
-
-
305,646
305,646
(23,304)
282,342
Other comprehensive income
Net remeasurement gain recognised directly in equity
-
-
-
-
-
-
-
Foreign exchange losses on re-translation of overseas operations
-
-
(167,627)
-
(167,627)
-
(167,627)
Total other comprehensive income
-
-
(167,627)
-
(167,627)
-
(167,627)
Total comprehensive income
-
-
(167,627)
305,646
138,019
(23,304)
114,715
Transactions with owners
Dividends
-
-
-
(89,280)
(89,280)
-
(89,280)
Total Transactions with owners
-
-
-
(89,280)
(89,280)
-
(89,280)
Balance at 30th June 2015
360,000
257,319
(79,386)
6,947,125
7,485,058
(105,186)
7,379,872

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

Consolidated statement of changes in equity

For the six months ended 30th June 2015

Share
Capital
Capital Reserve
Foreign Exchange Reserve
Retained Earnings
Total
Non-Controlling
Interests
Total
Equity
Balance at 1st January 2014
360,000
77,319
77,422
6,156,288
6,671,029
-
6,671,029
Comprehensive income
Profit
-
-
-
363,613
363,613
-
363,613
Other comprehensive income
Net remeasurement gain recognised directly in equity
-
-
-
-
-
-
-
Foreign exchange losses on re-translation of overseas operations
-
-
(26,226)
-
(26,226)
-
(26,226)
Total other comprehensive income
-
-
(26,226)
-
(26,226)
-
(26,226)
Total comprehensive income
-
-
(26,226)
363,613
337,387
-
337,387
Transactions with owners
Dividends
-
-
-
(89,280)
(89,280)
-
Total Transactions with owners
-
-
-
(89,280)
(89,280)
-
(89,280)
Balance at 30th June 2014
360,000
77,319
51,196
6,430,621
6,919,136
-
6,919,136

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

Consolidated statement of changes in equity - continued

For the six months ended 30th June 2015

Share
Capital
Capital Reserve
Foreign Exchange Reserve
Retained Earnings
Total
Non-Controlling
Interests
Total
Equity
Balance at 1st January 2014
360,000
77,319
77,422
6,156,288
6,671,029
-
6,671,029
Comprehensive income
Profit
-
-
-
864,011
864,011
(81,882)
782,129
Other comprehensive income
Net remeasurement gain recognised directly in equity
-
-
-
44,000
44,000
-
44,000
Foreign exchange losses on re-translation of overseas operations
-
-
10,819
-
10,819
-
10,819
Total other comprehensive income
-
-
10,819
44,000
54,819
-
54,819
Total comprehensive income
-
-
10,819
908,011
918,830
(81,882)
836,948
Transactions with owners
Dividends
-
-
-
(131,040)
(131,040)
-
(131,040)
Cancellation of Preference shares
-
180,000
-
(202,500)
(22,500)
-
(22,500)
Total Transactions with owners
-
180,000
-
(333,540)
(153,540)
-
(153,540)
Balance at 31st December 2014
360,000
257,319
88,241
6,730,759
7,436,319
(81,882)
7,354,437

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 2014 and those which management expects to apply in the group's full financial statements to 31st December 2015.

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 2014 but is derived from the accounts. Statutory accounts for the period ended 31st December 2014 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 2014, 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 (2014 - 1,440,000). There are no potentially dilutive shares in issue.

6 months to 30th June 2015
Dividends paid
Equity shares
Ordinary shares
Interim of 6.20p per share paid on 2nd April 2015
29,760
'A' Ordinary shares
Interim of 6.20p per share paid on 2nd April 2015
59,520
Total dividends paid
89,280
Year to 31st
December
2014
Dividends paid
Equity shares
Ordinary shares
Interim of 6.20p per share paid on 4th April 2014
29,760
Interim of 2.90p per share paid on 17th October 2014
13,920
43,680
'A' Ordinary shares
Interim of 6.20p per share paid on 4th April 2014
59,520
Interim of 2.90p per share paid on 17th October 2014
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
2015
Unaudited
6 months to
30th June
2014
Audited
year to31st
December
2014
Cash at bank and in hand
801,577
720,100
1,357,769
Bank overdrafts
1,094,170
837,994
1,505,988
(292,593)
(117,894)
(148,219)

4. Segmental information

Unaudited 6 months to 30th June 2015
Central
Manufacturing
Distribution
Total
Revenue
External
-
2,023,371
11,463,804
13,487,175
Inter company
60,816
1,361,871
1,636,148
3,058,835
Total
60,816
3,385,242
13,099,952
16,546,010
Profit
EBITDA
(947)
(203,828)
1,001,026
796,251
Finance costs
(19,246)
(15,102)
(19,157)
(53,505)
Finance income
-
355
5,515
5,870
Depreciation
(3,150)
(186,192)
(153,099)
(342,441)
Tax expense
(21,290)
-
(102,543)
(123,833)
(Loss)/profit for the period
(44,633)
(404,767)
731,742
282,342
Assets
Total assets
1,328,215
4,210,758
10,063,604
15,602,577
Additions to non current assets
-
643,810
68,095
711,905
Liabilities
Total liabilities
902,879
3,015,903
4,303,922
8,222,704

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 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

Audited year to 31st December 2014
Central
Manufacturing
Distribution
Total
Revenue
External
-
3,621,626
20,670,074
24,921,700
Inter company
113,568
2,761,536
3,743,664
6,618,768
Total
113,568
6,383,162
24,413,738
30,910,468
Profit
EBITDA
(5,777)
219,116
1,589,501
1,802,840
Finance costs
(27,820)
(46,387)
(41,084)
(115,291)
Finance income
-
2,000
164
2,164
Depreciation
(6,300)
(287,663)
(270,281)
(564,244)
Tax expense
(78,099)
(34,335)
(230,906)
(343,340)
(Loss)/profit for the period
(117,996)
(147,269)
1,047,394
782,129
Assets
Total assets
1,323,858
4,033,070
10,068,908
15,425,836
Additions to non current assets
-
1,118,171
399,405
1,517,576
Liabilities
Total liabilities
520,316
2,868,453
4,682,630
8,071,399

22nd September 2015

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

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