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T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
("Braime" or the "company")
Interim results for the six months ended 30th June 2010
Group sales revenue for the first six months of 2009 increased by 7% from GBP
7.77m in 2009 to GBP8.32m for 2010 and the company made a profit before tax for
the first half of 2010 of GBP396,000 compared to GBP216,000 in 2009 for the same
period.
The directors have decided to pay an interim dividend of 2.40p per share on
15th October 2010 to the Ordinary and `A' Ordinary shareholders whose names are
on the register on 1st October 2010. This compares to the interim dividend of
1.50p paid on 16th October 2009.
Performance of group companies
4B division
The subsidiary companies comprising this division enjoyed a successful start to
the year and, taken together, produced results above both last year and budget.
Our US subsidiary had a particularly good first six months.
The profitability of this division continued to benefit from favourable
exchange rates and from the continuing expansion of our product range.
Pressings division
The fundamental restructuring of the manufacturing business in 2009 has
resulted in a substantial reduction in the level of losses in this division,
although the result for the first six months fell short of budget.
Sales volumes of existing contracts were well ahead of expectations but the
benefit of this contribution was offset by delays in the start up of new
contracts, due largely to late changes by customers in product specification.
We now have full approval for the components required for the second new major
contract and start up of full production is scheduled for the beginning of
November 2010. Launch of the third major new product line is on target for
January 2011.
In 2010 huge progress has been made in continuing the modernisation of the
factory and the installation of new product lines. This has been achieved by a
very small management and maintenance team.
Outlook
The positive start made by the 4B division has continued into the second half
and, providing exchange rates remain at current levels, we would expect to
maintain the progress achieved in recent years.
The result for the full year in the pressings division very much rests on the
successful start up of the second major contract in November.
Condensed consolidated income statement for the six months ended 30th June 2010
Note Unaudited Unaudited Year to
6 months to 6 months to 31st
December
30th June 30th June 2009
2010 2009
GBP GBP GBP
Revenue 8,317,924 7,767,714 15,685,218
Cost of sales 6,379,779 6,058,988 12,248,094
Gross profit 1,938,145 1,708,726 3,437,124
Other operating expenses 1,513,886 1,457,991 2,737,843
Operating profit 424,259 250,735 699,281
Finance expense (151,235) (144,284) (285,338)
Finance income 122,982 109,689 211,049
Profit before tax 396,006 216,140 624,992
Income tax expenses (110,042) (60,519) (237,905)
Profit after tax 285,964 155,621 387,087
Basic and diluted earnings per 2 19.86p 10.81p 26.88p
share
Consolidated statement of comprehensive income for the six months ended
30th June 2010
Unaudited Unaudited Year to
6 months to 6 months to 31st
December
30th June 30th June 2009
2009
2010
GBP GBP GBP
Profit for the period 285,964 155,621 387,087
Actuarial gains recognised directly in - - 76,000
equity
Foreign exchange gains/(losses) on 25,717 (146,101) (107,605)
re-translation of overseas operations
Adjustment in respect of minimum - - (149,000)
funding requirement per IFRIC14
Total comprehensive income for the 25,717 (146,101) (180,605)
period
Total comprehensive income for the 311,681 9,520 206,482
period
Consolidated statement of financial positionat 30th June 2010
Unaudited Unaudited Year to
6 months to 6 months to 31st
30th June 30th June December
2010 2009 2009
GBP GBP GBP
Non-current assets
Property, plant and equipment 1,207,447 768,183 1,249,460
Goodwill 12,270 12,270 12,270
Employee benefits - 111,000 -
Total non-current assets 1,219,717 891,453 1,261,730
Current assets
Inventories 2,995,554 3,072,095 2,862,149
Trade and other receivables 3,282,853 3,160,953 2,400,384
Cash and cash equivalents 1,592,740 1,571,485 1,947,207
Total current assets 7,871,147 7,804,533 7,209,740
Total assets 9,090,864 8,695,986 8,471,470
Current liabilities
Bank overdraft 1,106,334 1,561,734 1,159,966
Trade and other payables 2,385,993 2,275,414 2,019,053
Other financial liabilities 314,985 277,523 344,339
Corporation tax liability 110,042 60,519 -
Total current liabilities 3,917,354 4,175,190 3,523,358
Non-current liabilities
Financial liabilities 445,896 237,025 488,979
Total non-current liabilities 445,896 237,025 488,979
Total liabilities 4,363,250 4,412,215 4,012,337
Total net assets 4,727,614 4,283,771 4,459,133
Capital and reserves
Share capital 360,000 360,000 360,000
Capital reserve 77,319 77,319 77,319
Foreign exchange reserve 345,263 281,050 319,546
Retained earnings 3,945,032 3,565,402 3,702,268
Total equity attributable to equity 4,727,614 4,283,771 4,459,133
shareholders
of the company
Consolidated statement of changes in equity for the six months ended 30th June
2010
Share Capital Foreign Retained Total
Capital
Reserve Exchange Earnings
Reserve
GBP GBP GBP GBP GBP
Balance at 1st January 360,000 77,319 319,546 3,702,268 4,459,133
2010
Comprehensive income
Profit - - - 285,964 285,964
Other comprehensive
income
Actuarial gains - - - - -
recognised directly in
equity
Foreign exchange losses - - 25,717 - 25,717
on re-translation of
overseas operations
Adjustment in respect of - - - - -
minimum funding
requirement per IFRIC14
Total other comprehensive - - 25,717 - 25,717
income
Total comprehensive - - 25,717 285,964 311,681
income
Transaction with owners
Dividends - - - (43,200) (43,200)
Total transactions with - - - (43,200) (43,200)
owners
Balance at 30th June 2010 360,000 77,319 345,263 3,945,032 4,727,614
Balance at 1st January 360,000 77,319 427,151 3,431,381 4,295,851
2009
Comprehensive income
Profit - - - 155,621 155,621
Other comprehensive
income
Actuarial gains - - - - -
recognised directly in
equity
Foreign exchange losses - - (146,101) - (146,101)
on re-translation of
overseas operations
Adjustment in respect of - - - - -
minimum funding
requirement per IFRIC14
Total other comprehensive - - (146,101) - (146,101)
income
Total comprehensive - - (146,101) 155,621 9,520
income
Transaction with owners
Dividends - - - (21,600) (21,600)
Total transactions with - - - (21,600) (21,600)
owners
Balance at 30th June 2009 360,000 77,319 281,050 3,565,402 4,283,771
Balance at 1st January 360,000 77,319 427,151 3,431,381 4,295,851
2009
Comprehensive income
Profit - - - 387,087 387,087
Other comprehensive
income
Actuarial gains - - - 76,000 76,000
recognised directly in
equity
Foreign exchange losses - - (107,605) - (107,605)
on re-translation of
overseas operations
Adjustment in respect of - - - (149,000) (149,000)
minimum funding
requirement per IFRIC14
Total other comprehensive - - (107,605) (73,000) (180,605)
income
Total comprehensive - - (107,605) 314,087 206,482
income
Transaction with owners
Dividends - - - (43,200) (43,200)
Total transactions with - - - (43,200) (43,200)
owners
Balance at 31st December 360,000 77,319 319,546 3,702,268 4,459,133
2009
Consolidated cash flow statementfor thesix months ended 30th June 2010
Note Unaudited Unaudited Year to
6 months to 6 months to 31st
December
30th June 30th June
2009
2010 2009
GBP GBP GBP
Operating activities
Net profit from ordinary 285,964 155,621 387,087
activities
Adjustments for:
Depreciation 139,045 139,803 302,865
Grants amortised (828) (828) (1,656)
Foreign exchange loss/(gain) 15,977 (139,656) (119,426)
Investment income (122,982) (109,689) (211,049)
Interest expense 151,235 144,284 285,338
Gain on sale of plant and (11,808) - (8,748)
equipment
Decrease in provisions and 3,000 22,000 57,000
employee benefits
Income tax expense 110,042 60,519 237,905
Operating profit before 569,645 272,054 929,316
changes in working capital and
provisions
(Increase)/decrease in trade (882,469) (516,578) 243,991
and other receivables
(Increase)/decrease in (133,405) 271,916 481,862
inventories
Increase in trade and other 495,894 297,992 89,643
payables
(519,980) 53,330 815,496
Cash generated from operations 49,665 325,384 1,744,812
Income taxes paid (128,954) (112,413) (375,533)
Investing activities
Purchases of plant, machinery (50,718) (63,673) (326,902)
and motor vehicles
Sale of plant, machinery and 14,458 - 8,750
motor vehicles
Interest received 1,982 8,689 11,049
(34,278) (54,984) (307,103)
Financing activities
Repayment of hire purchase (110,833) (58,112) (124,157)
creditors
Interest paid (33,235) (36,284) (75,338)
Dividend paid (43,200) (21,600) (43,200)
(187,268) (115,996) (242,695)
(Decrease)/increase in cash 3 (300,835) 41,991 819,481
and cash equivalents
Cash and cash equivalents 3 787,241 (32,240) (32,240)
(including overdrafts),
beginning of period
Cash and cash equivalents 486,406 9,751 787,241
(including overdrafts), end of
period
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 2009 and those which management expects to apply in
the group's full financial statements to 31st December 2010.
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 2009 but is
derived from the accounts. Statutory accounts for the period ended 31st
December 2009 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 2009, 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 (2009 - 1,440,000). There are no potentially
dilutive shares in issue.
2010
GBP
Dividends paid
Equity shares
Ordinary shares
Interim of 3.00p per share paid on 1st April 2010 14,400
`A' Ordinary shares
Interim of 3.00p per share paid on 1st April 2010 28,800
Total dividends paid 43,200
2009
GBP
Dividends paid
Equity shares
Ordinary shares
Interim of 1.50p per share paid on 3rd April 2009 7,200
Interim of 1.50p per share paid on 16th October 2009 7,200
14,400
`A' Ordinary shares
Interim of 1.50p per share paid on 3rd April 2009 14,400
Interim of 1.50p per share paid on 16th October 2009 14,400
28,800
Total dividends paid 43,200
3. Cash and cash equivalents
Unaudited Unaudited Year to
6 months to 6 months to 31st
December
30th June 30th June
2009
2010 2009
GBP GBP GBP
Cash at bank and in hand 1,592,740 1,571,485 1,947,207
Bank overdrafts 1,106,334 1,561,734 1,159,966
486,406 9,751 787,241
4. Segmental information
Unaudited 6 months to 30th June 2010
Central Manufacturing Distribution Total
GBP GBP GBP GBP
Revenue
External - 1,093,574 7,224,350 8,317,924
Inter 33,638 784,058 419,824 1,237,520
company
Total 33,638 1,877,632 7,644,174 9,555,444
Profit
EBITDA (8,914) (31,596) 603,814 563,304
Finance (6,815) (134,692) (9,728) (151,235)
costs
Finance 749 122,233 - 122,982
income
Depreciation - (111,600) (27,445) (139,045)
Tax expense (9,419) - (100,623) (110,042)
(Loss)/ (24,399) (155,655) 466,018 285,964
profit for
the period
Assets
Total assets 778,974 2,974,686 5,337,204 9,090,864
Additions to - 80,050 23,718 103,768
non current
assets
Liabilities
Total 337,324 1,830,652 2,195,274 4,363,250
liabilities
Unaudited 6 months to 30th June 2009
Central Manufacturing Distribution Total
GBP GBP GBP GBP
Revenue
External - 746,123 7,021,591 7,767,714
Inter company 29,816 983,395 322,611 1,335,822
Total 29,816 1,729,518 7,344,202 9,103,536
Profit
EBITDA (20,531) (214,934) 626,003 390,538
Finance costs (7,273) (125,606) (11,405) (144,284)
Finance income 3,620 106,063 6 109,689
Depreciation - (109,618) (30,185) (139,803)
Tax expense (8,348) - (52,171) (60,519)
(Loss)/profit for the (32,532) (344,095) 532,248 155,621
period
Assets
Total assets 788,751 1,993,882 5,913,353 8,695,986
Additions to non - 59,421 4,252 63,673
current assets
Liabilities
Total liabilities 368,236 1,713,468 2,202,067 4,412,215
Audited year to 31st December 2009
Central Manufacturing Distribution Total
GBP GBP GBP GBP
Revenue
External - 2,474,259 13,210,959 15,685,218
Inter company 59,770 1,982,160 1,423,421 3,465,351
Total 59,770 4,456,419 14,634,380 19,150,569
Profit
EBITDA (15,460) (211,880) 1,229,486 1,002,146
Finance costs (13,947) (250,004) (21,387) (285,338)
Finance income 4,710 206,333 6 211,049
Depreciation - (251,315) (51,550) (302,865)
Tax expense (21,021) - (216,884) (237,905)
(Loss)/profit for the (45,718) (506,866) 939,671 387,087
period
Assets
Total assets 774,354 2,412,351 5,284,765 8,471,470
Additions to non - 673,321 31,935 705,256
current assets
Liabilities
Total liabilities 376,807 1,581,023 2,054,507 4,012,337
21st September 2010
A copy of this interim statement has been sent to all shareholders and is
available on the company's web-site (www.braimegroup.com).
For further information please contact:
T.F & J.H. Braime (Holdings) P.L.C.
David H. Brown FCA - Financial Director
0113 245 7491
W. H. Ireland Limited
Katy Mitchell LLB
0113 3946628
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