Half Yearly Report

Braime

25/09/2013 07:00

RNS Number : 7951O

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

25 September 2013

 



 

 

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

 

("Braime" or the "Company")

 

INTERIM REPORT

 

FOR THE SIX MONTHS ENDED 30TH JUNE 2013

 

 

Sales revenue for the first six months of 2013 increased by 6% to £11,224,000 (2012: 10,586,601). Profit before tax increased to £391,000 (2012: £258,000) and the profit after tax increased to £266,000 (2012: £179,000) 2012.

 

Although this modest profit remains well below our target, the improvement in profitability is welcome, particularly given the background of the continuing difficult markets.

 

Cash and investments

After previous periods of strong cash generation, the operating cash flow for the first six months of 2013 was negative due primarily to an increase in both stocks and debtors over and above our trade credit finance.

 

The transfer of our banking arrangements in January of this year to HSBC has both reduced our finance costs and strengthened the group's financial position. This enabled the directors to take up the option to purchase, with the assistance of mortgage funding, new and much larger premises in the US which we had moved into in 2012. The timing also enabled the Company to benefit from the `Roll Over` tax relief on the profit arising on the sale of the previous US property. Over and above the mortgage, the purchase resulted in a net outflow of funds of £297,000, although much of this cash requirement came from the sale in 2012 of our previous US property.

 

Dividends

The directors have taken the decision to maintain the first interim dividend at the same level as 2012. A dividend of 2.40p per share will be paid on 9th October to the Ordinary and `A` Ordinary shareholders on the register on 4th October 2013.  The associated ex-dividend date will be 2nd October 2013.

 

Performance of group companies

 

4B division

The performance of our distribution businesses was mixed, with some subsidiaries reporting a reduction in profitability. While the result in the US was largely flat, the UK operation enjoyed an improvement.  Overall, the operating profitability of the 4B division improved when compared to the first half of 2012. The division is well placed to continue its long term growth.

 

Pressings division

The performance of our manufacturing business in Leeds improved, partly due to a reduction in costs and an increase in sales. We are currently in the midst of a major investment to revise the layout of our facility and introduce a number of new manufacturing cells, including spray painting facilities.  We are hopeful of securing substantial increased business with both existing and new customers.

 

Outlook

There have been early signs that the recession may be coming to an end but these signs are both tentative and fragile. We are cautiously optimistic of being able to continue the gradual improvement in profitability but, given the background of relatively weak demand and the continuing volatility in exchange rates, it is difficult to predict the result for 2013.

 

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
0161 832 2174

Consolidated income statement

For the six months ended 30th June 2013

 

Note
Unaudited 
6 months to
30th June 
2013
Unaudited
6 months to
30th June 2012
Audited
year to 31st December 2012
£
£
£
Revenue
11,224,157
10,586,601
21,211,887
Changes in inventories of finished goods and work in progress
356,006
(95,947)
(23,484)
Raw materials and consumables used
(6,760,517)
(6,004,802)
(11,849,425)
Employee benefits costs
(2,423,752)
(2,306,180)
(4,587,039)
Depreciation expense
(241,255)
(218,072)
(464,539)
Other expenses
(1,731,995)
(1,671,605)
(3,628,799)
Profit from operations
422,644
289,995
658,601
Profit on disposal of tangible fixed assets
13,239
5,900
100,435
Finance costs
(44,778)
(50,016)
(101,541)
Finance income
274
12,273
20,726
Profit before tax
391,379
258,152
678,221
Tax expense
(125,241)
(79,121)
(251,346)
Profit for the year attributable to equity shareholders of the parent company
266,138
179,031
426,875
Basic and diluted earnings per share
2
18.48p
12.43p
29.64p

 

Consolidated statement of comprehensive income

For the six months ended 30th June 2013

 

Unaudited
6 months to
30th June
2013
Unaudited
6 months to
30th June 2012
Audited
year to 31st December 2012
£
£
£
Profit for the period
266,138
179,031
426,875
Actuarial losses recognised directly in equity
-
-
(7,000)
Foreign exchange losses on re-translation of overseas operations
(24,516)
(21,630)
(57,608)
Adjustment in respect of minimum funding requirement per IFRIC14
-
3,000
10,000
Total other comprehensive income for the period
(24,516)
(18,630)
(54,608)
Total comprehensive income for the period
241,622
160,401
372,267

 

Consolidated statement of financial position

At 30th June 2013

 

Unaudited
6 months to
30th June
2013
Unaudited
6 months to
30th June
2012
Audited
year to 31st
December
2012
£
£
£
Non-current assets
Property, plant and equipment
2,531,097
1,711,300
1,504,575
Goodwill
12,270
12,270
12,270
Total non-current assets
2,543,367
1,723,570
1,516,845
Current assets
Inventories
4,794,271
4,381,296
4,387,303
Trade and other receivables
4,597,832
4,116,516
3,219,715
Cash and cash equivalents
637,041
1,972,761
1,576,283
Total current assets
10,029,144
10,470,573
9,183,301
Total assets
12,572,511
12,194,143
10,700,146
Current liabilities
Bank overdraft
392,403
2,055,431
642,492
Trade and other payables
3,221,111
2,642,811
2,478,283
Other financial liabilities
1,285,701
868,517
863,922
Corporation tax liability
119,714
82
-
Total current liabilities
5,018,929
5,566,841
3,984,697
Non-current liabilities
Financial liabilities
1,189,708
604,596
515,437
Total non-current liabilities
1,189,708
604,596
515,437
Total liabilities
6,208,637
6,171,437
4,500,134
Total net assets
6,363,874
6,022,706
6,200,012
Capital and reserves
Share capital
360,000
360,000
360,000
Capital reserve
77,319
77,319
77,319
Foreign exchange reserve
252,635
313,129
277,151
Retained earnings
5,673,920
5,272,258
5,485,542
Total equity attributable to equity shareholders
of the company
6,363,874
6,022,706
6,200,012

 

Consolidated statement of changes in equity

For the six months ended 30th June 2013

 

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
-
-
-
266,138
266,138
Other comprehensive income
Actuarial gains 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
Balance at 1st January 2012
360,000
77,319
334,759
5,167,987
5,940,065
Comprehensive income
Profit
-
-
-
179,031
179,031
Other comprehensive income
Actuarial gains recognised directly in equity
-
-
-
-
-
Foreign exchange gains on re-translation of overseas operations
-
-
(21,630)
-
(21,630)
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
-
3,000
3,000
Total other comprehensive income
-
-
(21,630)
3,000
(18,630)
Total comprehensive income
-
-
(21,630)
182,031
160,401
Transaction with owners
Dividends
-
-
-
(77,760)
(77,760)
Total transactions with owners
-
-
-
(77,760)
(77,760)
Balance at 30th June 2012
360,000
77,319
313,129
5,272,258
6,022,706
Balance at 1st January 2012
360,000
77,319
334,759
5,167,987
5,940,065
Comprehensive income
Profit
-
-
-
426,875
426,875
Other comprehensive income
Actuarial losses recognised directly in equity
-
-
-
(7,000)
(7,000)
Foreign exchange gains on re-translation of overseas operations
-
-
(57,608)
-
(57,608)
Adjustment in respect of minimum funding requirement per IFRIC14
-
-
-
10,000
10,000
Total other comprehensive income
-
-
(57,608)
3,000
(54,608)
Total comprehensive income
-
-
(57,608)
429,875
372,267
Transaction with owners
Dividends
-
-
-
(112,320)
(112,320)
Total transactions with owners
-
-
-
(112,320)
(112,320)
Balance at 31st December 2012
360,000
77,319
277,151
5,485,542
6,200,012

 

Consolidated cash flow statement

For the six months ended 30th June 2013

 

Note
Unaudited
6 months to
30th June
2013
Unaudited
6 months to
30th June
2012
Audited
year to 31st December
2012
£
£
£
Operating activities
Net profit from ordinary activities
266,137
179,031
426,875
Adjustments for:
Depreciation
241,255
218,073
464,539
Grants amortised
(828)
(828)
(1,656)
Foreign exchange losses
(30,871)
(18,825)
(53,182)
Finance income
(274)
(12,273)
(20,726)
Finance expense
44,778
50,016
101,541
Gain on sale of plant and equipment
(13,239)
(5,900)
(100,435)
Adjustment in respect of defined benefit scheme
-
13,000
21,000
Income tax expense
125,241
79,121
251,346
Operating profit before changes in working capital and provisions
632,199
501,415
1,089,302
(Increase)/decrease in trade and other receivables
(1,378,117)
(609,022)
363,898
(Increase)/decrease in inventories
(406,968)
20,437
14,430
Increase in trade and other payables
1,084,954
654,105
444,808
(700,131)
65,520
823,136
Net cash from operating activities
(67,932)
566,935
1,912,438
Income taxes paid
(5,527)
(193,359)
(441,784)
Investing activities
Purchase of property
(1,187,465)
-
-
Purchases of plant, machinery and motor vehicles
(84,662)
(317,507)
(483,734)
Sale of plant, machinery and motor vehicles
13,239
5,900
378,440
Interest received
274
2,273
2,726
(1,258,614)
(309,334)
(102,568)
Financing activities
Proceeds from long term borrowings
890,443
-
-
Repayment of borrowings
(6,782)
(173,137)
(247,065)
Repayment of hire purchase creditors
(118,203)
(106,706)
(234,076)
Interest paid
(44,778)
(50,016)
(101,541)
Dividend paid
(77,760)
(77,760)
(112,320)
642,920
(407,619)
(695,002)
Decrease in cash and cash equivalent
4
(689,153)
(343,377)
673,084
Cash and cash equivalents (including overdrafts), beginning of period
4
933,791
260,707
260,707
Cash and cash equivalents (including overdrafts), end of period
244,638
(82,670)
933,791


 

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 2012 and those which management expects to apply in the group's full financial statements to 31st December 2013.

 

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 2012 but is derived from the accounts.  Statutory accounts for the period ended 31st December 2012 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 2012, 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 (2012 - 1,440,000).  There are no potentially dilutive shares in issue.

 

6 months to 30th June 2013
£
Dividends paid
Equity shares
Ordinary shares
Interim of 5.40p per share paid on 4th April 2013
25,920
'A' Ordinary shares
Interim of 5.40p per share paid on 4th April 2013
51,840
Total dividends paid
77,760
Year to 31st
December
2012
£
Dividends paid
Equity shares
Ordinary shares
Interim of 5.40p per share paid on 2nd April 2012
25,920
Interim of 2.40p per share paid on 10th October 2012
11,520
37,440
'A' Ordinary shares
Interim of 5.40p per share paid on 2nd April 2012
51,840
Interim of 2.40p per share paid on 10th October 2012
23,040
74,880
Total dividends paid
112,320

 

3.    Amendment to comparative figures

Following changes to IAS 19, defined benefit interest costs have been offset against the expected return on scheme assets disclosed within the consolidated income statement.  As a consequence of this change in treatment the comparative figures for finance expenses and income have been reduced by the value of the defined benefit interest cost of £132,000.

 

4.    Cash and cash equivalents

Unaudited
6 months to
30th June
2013
Unaudited
6 months to
30th June
2012
Audited
year to 31st
December
2012
£
£
£
Cash at bank and in hand
637,041
1,972,761
1,576,283
Bank overdrafts
392,403
2,055,431
642,492
244,638
(82,670)
933,791

 

 

5.    Segmental information

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
Unaudited 6 months to 30th June 2012
Central
Manufacturing
Distribution
Total
£
£
£
£
Revenue
External
-
1,381,341
9,205,260
10,586,601
Inter company
31,074
1,511,451
857,751
2,400,276
Total
31,074
2,892,792
10,063,011
12,986,877
Profit
EBITDA
(10,807)
(6,128)
530,903
513,968
Finance costs
(6,913)
(156,718)
(18,385)
(182,016)
Finance income
728
143,475
70
144,273
Depreciation
-
(173,700)
(44,373)
(218,073)
Tax expense
(11,227)
-
(67,894)
(79,121)
(Loss)/profit for the period
(28,219)
(193,071)
400,321
179,031
Assets
Total assets
617,155
3,061,128
8,515,860
12,194,143
Additions to non current assets
-
317,486
185,611
503,097
Liabilities
Total liabilities
463,698
2,513,622
3,194,117
6,171,437

 

 

Audited year to 31st December 2012
Central
Manufacturing
Distribution
Total
£
£
£
£
Revenue
External
-
2,992,202
18,219,685
21,211,887
Inter company
51,390
3,339,322
2,300,456
5,691,168
Total
51,390
6,331,524
20,520,141
26,903,055
Profit
EBITDA
(20,799)
253,679
896,659
1,129,539
Gain on sale of land & buildings
94,036
-
-
94,036
Finance costs
(11,302)
(49,488)
(40,751)
(101,541)
Finance income
1,105
19,505
116
20,726
Depreciation
-
(331,640)
(132,899)
(464,539)
Tax expense
(17,718)
-
(233,628)
(251,346)
(Loss)/profit for the period
45,322
(107,944)
489,497
426,875
Assets
Total assets
625,569
2,250,827
7,823,750
10,700,146
Additions to non current assets
-
439,004
385,546
824,550
Liabilities
Total liabilities
458,973
1,670,820
2,370,341
4,500,134

 

 

24th September 2013

 

This information is provided by RNS

The company news service from the London Stock Exchange

 
  END
 

 
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