Braime (T.F.& J.H.) - Interim Results - six months ended 30th June 2018

Braime

21/09/2018 07:00

RNS Number : 4623B

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

21 September 2018

 

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

("Braime" or the "Company")

Interim Results for the six months ended 30th June 2018

 

 

Performance

Performance for the first half of the year is very positive.  Group sales revenue for the first six months of 2018 increased by 16% to £18.07M compared to £15.54M for the same period in 2017, while profit before tax increased by 96% to £1.16M from £0.59M for the same period.

 

Dividends

On the basis of the positive results, the directors have decided to increase the interim dividend to 3.50p per share.  This dividend will be paid on 19th October to the Ordinary and 'A' Ordinary shareholders on the register on the 5th October 2018.  The associated ex-dividend date is 4th October 2018.

 

Braime Pressings Limited

External sales increased by 31% compared to the same period.  Significant work has been undertaken to review costs.  Compared to 2018, the first half of 2017 saw Braime Pressings bear a number of central costs which have now been reallocated.

 

4B division

Overall the subsidiaries in the material handling division have performed very well in the first half of 2018, with sales up by 14% and margins maintained.  In particular, we are seeing significant growth in the Australasia market. We have very recently opened a new subsidiary, 4B China, based in Changzhou Province, to expand and support our sales in the region.  The new subsidiary will take time before it makes a positive contribution to the group financially, but we believe it will provide significant long-term growth.

 

Cash flow

Net profit improved by £0.41M on the same period for 2017.  The group also benefitted from foreign exchange movement and from better control of working capital, resulting in cash flow from operations of £0.99M, an improvement of £1.18M when compared to the same period in 2017.  The group has invested this back into operations, primarily in new manufacturing facilities in Morton, USA our largest subsidiary, and in new presses for Braime Pressings.  The group is committed to some substantial investment and cash flow is expected to become tighter in the second half of the year.  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 working capital requirements, particularly for stock, are carefully monitored and controlled.

 

Forecast for the second half of 2018

The group is ahead of both last year and budget and we would expect the result for the full year to be ahead of 2017.  However, our group, with so much of its earnings coming from overseas, is always exposed to the unpredictable fluctuations in global exchange rates and to changes in the political and economic conditions in individual markets.  Depending on the form Brexit finally takes, as a major exporter, the actual event is likely to cause some degree of short-term disruption.  However, given that the majority of our sales presence, and continuing growth is already outside the EU, we believe the long-term effects are unlikely to be significant for the group.

 

 

For further information please contact:

 

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

Nicholas Braime  - Chairman

C Cartwright - Group Finance 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 2018
Note
Unaudited 
 6 months to
30th June 
 2018
Unaudited 
 6 months to
30th June 
 2017
Audited
year to
31st December
2017
£'000
£'000
£'000
Revenue
18,069
15,540
31,449
Changes in inventories of finished goods and work in progress
558
(36)
114
Raw materials and consumables used
(10,332)
(8,414)
(16,955)
Employee benefits costs
(3,287)
(3,637)
(7,449)
Depreciation expense
(305)
(369)
(803)
Other expenses
(3,522)
(2,426)
(4,015)
Profit from operations
1,181
658
2,341
Finance costs
(19)
(68)
(143)
Finance income
-
2
3
Profit before tax
1,162
592
2,201
Tax expense
(340)
(179)
(621)
Profit for the period
822
413
1,580
Profit attributable to :
Owners of the parent
830
448
1,719
Non-controlling interests
(8)
(35)
(139)
822
413
1,580
Basic and diluted earnings per share
2
57.08p
28.72p
109.73p

 

T.F & J.H Braime (Holdings) P.L.C.
Consolidated statement of comprehensive income for the six months
ended 30th June 2018
Unaudited
6 months to
30th June
2018
Unaudited
6 months to
30th June
2017
Audited
year to
31st December
2017
£'000
£'000
£'000
Profit for the period
822
413
1,580
Items that will not be reclassified subsequently to profit or loss
Net pension remeasurement gain on post employment benefits
-
-
45
Items that may be reclassified subsequently to profit or loss
Foreign exchange (losses)/gains on re-translation of overseas operations
85
(167)
(472)
Other comprehensive income for the period
85
(167)
(427)
Total comprehensive income for the period
907
246
1,153
Total comprehensive income attributable to:
Owners of the parent
918
281
1,299
Non-controlling interests
(11)
(35)
(146)
907
246
1,153

 

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 2018
Unaudited
6 months to
30th June
2018
Unaudited
6 months to
30th June
2017
Audited
year to 31st
December
2017
£
£
£
Non-current assets
Property, plant and equipment
5,921
5,233
5,238
Intangible assets
71
12
58
Total non-current assets
5,992
5,245
5,296
Current assets
Inventories
6,989
6,383
6,431
Trade and other receivables
7,512
6,506
5,911
Cash and cash equivalents
938
14
1,145
Total current assets
15,439
12,903
13,487
Total assets
21,431
18,148
18,783
Current liabilities
Bank overdraft
-
-
164
Trade and other payables
5,847
4,706
4,391
Other financial liabilities
3,363
1,953
1,983
Corporation tax liability
331
52
195
Total current liabilities
9,541
6,711
6,733
Non-current liabilities
Financial liabilities
39
1,206
988
Deferred income tax liability
71
118
87
Total non-current liabilities
110
1,324
1,075
Total liabilities
9,651
8,035
7,808
Total net assets
11,780
10,113
10,975
Capital and reserves
Share capital
360
360
360
Capital reserve
257
257
257
Foreign exchange reserve
162
372
74
Retained earnings
11,361
9,362
10,633
Total equity attributable to the shareholders of the parent
company
12,140
10,351
11,324
Non-controlling interests
(360)
(238)
(349)
Total equity
11,780
10,113
10,975

 

T.F & J.H Braime (Holdings) P.L.C.
Consolidated cashflow statement for the six months
ended 30th June 2018
Note
Unaudited
6 months to
30th June
2018
Unaudited
6 months to
30th June
2017
Audited
year to
31st December
2017
£'000
£'000
£'000
Operating activities
Net profit
822
413
1,580
Adjustments for:
Depreciation
305
369
803
Foreign exchange gains/( losses)
61
(167)
(443)
Finance income
-
(2)
(3)
Finance expense
19
68
143
Gain on sale of plant, machinery and motor vehicles
-
-
4
Adjustment in respect of defined benefit scheme
-
-
45
Income tax expense
340
179
621
Income taxes paid
(216)
(273)
(617)
Operating activities before changes in working capital and provisions
1,331
587
2,133
Increase in trade and other receivables
(1,602)
(1,293)
(698)
Increase in inventories
(558)
(264)
(312)
Increase in trade and other payables
1,817
780
356
(343)
(777)
(654)
Cash generated from operations
988
(190)
1,479
Investing activities
Purchases of property, plant, machinery and motor
vehicles
(990)
(127)
(618)
Sale of plant, machinery and motor vehicles
10
-
14
Interest received
-
2
3
(980)
(125)
(601)
Financing activities
Proceeds from long term borrowings
-
-
165
Loan financing repaid
-
52
52
Repayment of borrowings
254
(172)
(329)
Repayment of hire purchase creditors
(184)
(133)
(247)
Interest paid
(19)
(68)
(143)
Dividends paid
(102)
(92)
(137)
(51)
(413)
(639)
Decrease in cash and cash equivalents
(43)
(728)
239
Cash and cash equivalents, beginning of period
981
742
742
Cash and cash equivalents (including overdrafts), end of period
3
938
14
981

 

 

T.F & J.H Braime (Holdings) P.L.C.
Consolidated statement of changes in equity for the six months ended 30th June 2018
Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Minority
Interests
Total
Equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1st
January 2018
360
257
74
10,633
11,324
(349)
10,975
Comprehensive
income
Profit
-
-
-
830
830
(8)
822
Other
comprehensive
income
Foreign exchange
losses on re-
translation of
overseas operations
-
-
88
-
88
(3)
85
Total other
comprehensive
income
-
-
88
-
88
(3)
85
Total
comprehensive
income
-
-
88
830
918
(11)
907
Transactions with
owners
Dividends
-
-
-
(102)
(102)
-
(102)
Total transactions
with owners
-
-
-
(102)
(102)
-
(102)
Balance at 30th
June 2018
360
257
162
11,361
12,140
(360)
11,780


 

 

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
257
539
9,006
10,162
(203)
9,959
Comprehensive
income
Profit
-
-
-
448
448
(35)
413
Other
comprehensive
income
Foreign exchange
losses on re-
translation of
overseas operations
-
-
(167)
-
(167)
-
(167)
Total other
comprehensive
income
-
-
(167)
-
(167)
-
(167)
Total
comprehensive
income
-
-
(167)
448
281
(35)
246
Transactions with
owners
Dividends
-
-
-
(92)
(92)
-
(92)
Total transactions
with owners
-
-
-
(92)
(92)
-
(92)
Balance at 30th
June 2017
360
257
372
9,362
10,351
(238)
10,113


 

 

 

T.F & J.H Braime (Holdings) P.L.C.
Consolidated statement of changes in equity for the year ended 31st December 2017
Share
Capital
Capital
Reserve
Foreign
Exchange
Reserve
Retained
Earnings
Total
Minority
Interests
Total
Equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1st
January 2017
360
257
539
9,006
10,162
(203)
9,959
Comprehensive
income
Profit
-
-
-
1,719
1,719
(139)
1,580
Other
comprehensive
income
Net pension
remeasurement
gain recognised
directly in equity
-
-
-
45
45
-
45
Foreign exchange
gains on re-
translation of
overseas operations
-
-
(465)
-
(465)
(7)
(472)
Total other
comprehensive
income
-
-
(465)
45
(420)
(7)
(427)
Total
comprehensive
income
-
-
(465)
1,764
1,299
(146)
1,153
Transactions with
owners
Dividends
-
-
-
(137)
(137)
-
(137)
Total transactions
With owners
-
-
-
(137)
(137)
-
(137)
Balance at 31st
December 2017
360
257
74
10,633
11,324
(349)
10,975


 

 

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

Notes to the Financial Statements

 

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 2017 and those which management expects to apply in the group's full financial statements to 31st December 2018.

 

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 2017 but is derived from the accounts.  Statutory accounts for the period ended 31st December 2017 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 2017, 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 (2017 - 1,440,000).  There are no potentially dilutive shares in issue.

 

6 months to
30th June
2018
£'000
Dividends paid on equity shares
Ordinary shares
Interim of 7.10p per share paid on 18th May 2018
34
'A' Ordinary shares
Interim of 7.10p per share paid on 18th May 2018
68
Total dividends paid
102
Year to
31st December
2017
£
Dividends paid on equity shares
Ordinary shares
Interim of 6.40p per share paid on 12th May 2017
31
Interim of 3.10p per share paid on 20th October 2017
15
46
'A' Ordinary shares
Interim of 6.40p per share paid on 12th May 2017
61
Interim of 3.10p per share paid on 20th October 2017
30
91
Total dividends paid
137

 

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

Notes to the Financial Statements

 

3.Cash and cash equivalents

Unaudited
6 months to
30th June
2018
Unaudited
6 months to
30th June
2017
Audited
year to 31st
December
2017
£'000
£'000
£'000
Cash at bank and in hand
3,834
14
1,145
Bank overdrafts
(2,896)
-
(164)
938
14
981

 

4.Segmental information

Unaudited 6 months to 30th June 2018
Central
Manufacturing
Distribution
Total
£'000
£'000
£'000
£'000
Revenue
External
-
2,641
15,428
18,069
Inter company
347
1,589
2,269
4,205
Total
347
4,230
17,697
22,274
Profit
EBITDA
(1)
76
1,411
1,486
Finance costs
(38)
(14)
33
(19)
Finance income
-
-
-
-
Depreciation
(228)
-
(77)
(305)
Tax expense
-
-
(340)
(340)
(Loss)/profit for the period
(267)
62
1,027
822
Assets
Total assets
4,789
2,331
14,311
21,431
Additions to non current assets
211
-
769
980
Liabilities
Total liabilities
2,826
3,653
3,172
9,651

 

 

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

Notes to the Financial Statements

 

4.Segmental information - continued

Unaudited 6 months to
30th June 2017
Central
Manufacturing
Distribution
Total
£'000
£'000
£'000
£'000
Revenue
External
-
2,004
13,536
15,540
Inter company
355
1,127
2,238
3,720
Total
355
3,131
15,774
19,260
Profit
EBITDA
236
(624)
1,415
1,027
Finance costs
(45)
(12)
(11)
(68)
Finance income
1
-
1
2
Depreciation
(207)
-
(162)
(369)
Tax expense
-
-
(179)
(179)
(Loss)/profit for the period
(15)
(636)
1,064
413
Assets
Total assets
4,001
709
13,438
18,148
Additions to non current assets
222
-
22
244
Liabilities
Total liabilities
980
2,186
4,869
8,035

 

Audited year to
31st December 2017
Central
Manufacturing
Distribution
Total
£
£
£
£
Revenue
External
-
4,150
27,299
31,449
Inter company
706
3,211
5,172
9,089
Total
706
7,361
32,471
40,538
Profit
EBITDA
393
146
2,605
3,144
Finance costs
(92)
(23)
(28)
(143)
Finance income
1
1
1
3
Depreciation
(465)
-
(338)
(803)
Tax expense
(20)
(8)
(593)
(621)
(Loss)/profit for the period
(183)
116
1,647
1,580
Assets
Total assets
4,593
2,397
11,793
18,783
Additions to non current assets
490
-
222
712
Liabilities
Total liabilities
1,742
3,664
2,402
7,808

 

 

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END

 

 

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