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RNS Number : 6980X Braime Group PLC 02 September 2025
Braime Group PLC
("Braime" or the "Company" and together with its subsidiaries the "Group")
Interim Results for the six months ended 30th June 2025
The Company presents its unaudited interims results for the six months ended
30th June 2025:
Performance
At the time of the Group's announcement of the 2024 results in April 2025,
significant uncertainty faced the global economy, in particular, the
implications and ramifications of the US tariff announcement that were made on
2nd April ("Liberation Day") were yet unknown. The directors are therefore
pleased to report that despite these ongoing uncertainties, Group sales
revenue for the first six months of 2025 was £26.4m, up 7% on the same period
last year and all subsidiaries saw an increase in revenue relative to the
first six months of 2024. Profit from operations for the first six months in
2025 was £2.2m compared to £1.8m for the same period in 2024, an increase of
24%, and profit before tax was £2.0m compared to £1.5m for the same
six-month period last year. These results, which were particularly strong in
the first quarter of the year, were also an improvement when compared to the
second half of 2024.
Dividends
The Group's policy is to balance dividend growth alongside the Group's
requirement for investment in capital, in order to support long-term growth of
the business. Taking careful consideration of this, the directors have decided
to increase the interim dividend from 5.25p to 6.0p. This dividend will be
paid on 17th October 2025 to the Ordinary and 'A' Ordinary shareholders on the
register on the 3rd October 2025. The associated ex-dividend date is 2nd
October 2025.
Braime Pressings Limited
External sales revenue of £3.1m in the first 6 months of 2025 was £387,000
up on the same period last year due to increased demand from new customers.
Intercompany sales were down by £310,000 to £2.1m. The manufacturing
division made a profit after tax of £233,000 in the six-month period to June
2025, down slightly by £3,000 compared to the same period last year. The
business is pleased to report that it recently concluded negotiations for a
key new order for the division, thereby cementing its long-term relationship
with its key customer as well as improving the utilisation of overheads within
the manufacturing division.
4B Division
Our distribution division's external sales revenue of £23.3m increased by
£1.3m or 6% when compared to the same period last year and up £1.7m when
compared to the second half of 2024. Intercompany trading was £5.0m, up 30%
from the corresponding period last year. Profit for the period was
£933,000, down 35% when compared to the first half of 2024 and up by £40,000
compared to the second half of 2024. Our UK, French, African and Australian
operations saw strong growth in sales. Despite the increase in revenues the
results were adversely affected by movements in exchange rates with sterling
strengthening against all the major currencies in which the division operates.
Due to judicious stock purchases made at the end of 2024 in anticipation of
the US tariffs, the division's results have not been as adversely impacted
during the first half of 2025 but the extent to which margins can be sheltered
from the impact of tariffs in the second half of the year remains an
uncertainty for the business.
Balance Sheet
Net assets of the Group as at 30th June 2025 amounted to £23.3m (30th June
2024 - £21.9m). Tangible fixed asset additions during the period amounted
to £1.5m, primarily in respect of the major refurbishment of the oil can roof
at the UK headquarters of £1.1m, announced earlier in the year. In addition
there were investments in equipment and machinery for our new Indonesian
subsidiary, a deep drawing hydraulic press for the UK and other purchases of
IT equipment and plant and machinery.
Inventories increased by £388,000 from the start of the year, debtors
increased by £841,000 and trade creditors decreased by £552,000 giving rise
to a decrease in working capital of £677,000. This reflects the increase in
activity relative to the second half of last year.
Cash flow
The net cash position of the Group at the end of June 2025 was £562,000
compared to £450,000 as at 30th June 2024. Cash generated from operations
before working capital movements was £1.5m compared to £2.2m for the
corresponding period in 2024. Investment in capital projects (primarily the
oil can roof) gave rise to outflows of £1.5m. During the period the group
repaid £321,000 of borrowings and lease liabilities, without taking on
additional loans in the period. Draw-down on the oil can roof loan facility
was not made until after the half-year, in July 2025. Overall, net cash
decreased by £1.4m during the first six months of the year, primarily as a
result of the capital investments. Net cash increased by £112,000 in the
twelve months between the two half-years. The business continues to have good
headroom within its £3.5m bank overdraft facility. Management remain
focused on ensuring that working capital requirements, particularly for stock
and debtors, are carefully monitored and controlled.
Principal exchange rates
The Group reports its results in Sterling, its presentational currency. The
Group operates in eight other currencies and the average of the principal
exchange rates in use during the half year and the closing rates as at 30th
June 2025 are shown in the table below, along with comparatives. A
significant proportion of the Group revenues are derived in the USA and as
sterling strengthened against the US dollar from the start of 2025, our
interim results are reduced accordingly. The total negative impact of
foreign currency translations on cashflow was £947,000 although the holding
Company saw an improvement in its reported profit as liabilities denominated
in US dollars were retranslated to sterling.
The total loss on translation of overseas assets amounted to £930,000 for the
six-month period as compared to the gain of £42,000 for the 2024 interim
period. This is shown in the consolidated statement of comprehensive income
table on page 5.
Avg rate Avg rate Avg rate Closing rate Closing rate Closing rate
Currency Symbol HY 2025 HY 2024 FY 2024 30th Jun 2025 30th Jun 2024 31st Dec 2024
Australian Dollar AUD 2.061 1.923 1.943 2.091 1.893 2.023
Chinese Renminbi (Yuan) CNY 9.430 9.026 9.128 9.830 9.043 9.077
Euro EUR 1.189 1.172 1.184 1.167 1.180 1.210
Indonesian Rupiah IDR 21,548.565 20,281.031 20,343.158 22,298.475 20,745.500 20,332.610
South African Rand ZAR 23.978 23.744 23.466 24.356 23.075 23.644
Thai Baht THB 43.652 46.009 44.976 44.501 46.430 42.898
United Arab Emirates Dirham AED 4.799 4.646 4.695 5.026 4.639 4.601
United States Dollar USD 1.308 1.265 1.278 1.370 1.264 1.253
Key performance indicators
The Group uses the following key performance indicators to assess the
performance of the Group as a whole and of the individual businesses:
Half year Half year Full year
Key performance indicator Note 2025 2024 2024
Turnover growth 1 6.8% 0.2% 1.6%
Gross margin 2 47.2% 48.1% 47.7%
Operating profit 3 £2.23m £1.80m £3.65m
Stock days 4 194 days 183 days 206 days
Debtor days 5 50 days 58 days 52 days
Notes to KPI's
1. Turnover growth
The Group aims to increase shareholder value by measuring the year-on-year
growth in Group revenue. We are pleased that there has been an upturn in
performance when compared to the same period in 2024, and this improvement has
been seen across all of our operating companies.
2. Gross margin
Gross profit (revenue less change in inventories and raw materials used) as a
percentage of revenue is monitored to maximise profits available for
reinvestment and distribution to shareholders. Gross margin of 47.2% is
lower than both the same period last year and the average in 2024, partly as a
result of exchange rate fluctuations and to some extent, the impact of US
tariffs on the purchase price of goods for resale. The directors continue to
monitor the margins carefully for further movement particularly in the light
of continuing uncertainty over US tariff agreements.
3. Operating profit
Sustainable growth in operating profit is a strategic priority to enable
ongoing investment and increase shareholder value. Operating profits
increased compared to the same period last year due to increased revenues,
offset partly by higher costs of goods for resale and increased overheads.
4. Stock days
The value of period-end inventories divided by raw materials and consumables
used and changes in inventories of finished goods and work in progress
expressed as a number of days is monitored to ensure the right level of stocks
are held in order to meet customer demands whilst not carrying excessive
amounts which impacts upon working capital requirements. Stock days have
increased from the level as at June 2024 but decreased compared to stock days
as at December 2024, at which point there had been an inventory build up to
mitigate the impact of potential tariffs following the change in government in
the USA. Management are focused on reducing the level of stock days.
5. Debtor days
The value of period-end trade receivables divided by revenue expressed as a
number of days. This is an important indicator of working capital
requirements. Debtor days at 50 days are lower than the equivalent figure of
58 days as at June 2024 and lower than the figure of 52 days at December
2024. Management remain focused on reducing this to improve cash.
Other metrics monitored weekly or monthly include quality measures (such as
customer complaints), raw materials buying prices, capital expenditure, line
utilisation, reportable accidents and near-misses.
Outlook for the second half of 2025
Most economies globally, including all of the principal markets we supply with
components for the material handling of granular materials, remain very
subdued, with little sign that this situation is likely to change in the
foreseeable future. Given this scenario, the Group interim result is very
positive as nevertheless we have maintained some growth in sales and
profitability. One reason for this that we have recently increased the focus
of our engineering staff in supporting major end users in maintaining their
existing facilities and improving their protection against the risk of
potential hazards. We intend to continue to develop this part of our business.
Historically, the Group's growth has come as a result of global investment in
building new facilities - which obviously has always been the principal
generator of sales volume. While there continues to be new investments in some
markets, such as in South America, there is little sign of the confidence
necessary for major new investments in our most important markets such as
North America and Western Europe, so in the short-term growth is likely to
continue to be limited.
This situation has not been helped by the uncertainty created by the frequent
and largely unpredictable changes in tariffs by the Trump administration and
by the uncertainty regarding the strength of the US dollar. The fall in the
dollar has reduced our reported earnings when consolidated into Sterling in
our Group accounts.
In this landscape, we are hopeful of maintaining some growth and will continue
to try to adapt our strategy to maximise this, but growth is likely to be
limited in the short term by the lack of major new investment projects and the
increased competition for what remains.
For further information please contact:
Nicholas Braime - Chairman
Cielo Cartwright - Chief Financial Officer
0113 245 7491
Zeus Capital Limited
Katy Mitchell
0113 394 6628
Braime Group PLC Unaudited Unaudited Audited
6 months to
6 months to
Consolidated income statement for the six months
year to
30th June 30th June
ended 30th June 2025
2025
2024 31st December
Note 2024
£'000 £'000 £'000
Revenue 26,424 24,750 48,947
Changes in inventories of finished goods and work in progress
(38) 215 1,718
Raw materials and consumables used (13,910) (13,073) (27,292)
Employee benefits costs (6,346) (5,967) (11,956)
Depreciation expense (707) (760) (1,474)
Other expenses (3,228) (3,339) (6,388)
Other operating income 36 (24) 97
Profit from operations 2,231 1,802 3,652
Finance costs (221) (259) (513)
Finance income 4 3 59
Profit before tax 2,014 1,546 3,198
Tax expense (609) (451) (865)
Profit for the period 1,405 1,095 2,333
Profit attributable to:
Owners of the parent 1,404 1,097 2,280
Non-controlling interests 1 (2) 53
1,405 1,095 2,333
Basic and diluted earnings per share 97.53p 76.04p 158.37p
Braime Group PLC Unaudited Unaudited Audited
Consolidated statement of comprehensive income for the six months 6 months to 6 months to year to
ended 30th June 2025 30th June 30th June 31st December
2025 2024 2024
£'000 £'000 £'000
Profit for the period 1,405 1,095 2,333
Items that will not be reclassified subsequently to profit or loss
Net pension remeasurement gain on post-employment benefits - - 6
Items that may be reclassified subsequently to profit or loss
Share capital introduced by minority interest - 22 -
Foreign exchange (losses)/gains on re-translation of overseas operations (930) 12
42
Other comprehensive income for the period (930) 64 18
Total comprehensive income for the period 475 1,159 2,351
Total comprehensive income attributable to:
Owners of the parent 470 1,128 2,297
Non-controlling interests 5 31 54
475 1,159 2,351
The foreign currency movements arise on the re-translation of overseas
subsidiaries' opening balance sheets at closing rates.
Braime Group PLC Unaudited Unaudited Audited
Consolidated balance sheet at 30th June 2025 6 months to 6 months to year to 31st
30th June 30th June December
2025 2024 2024
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 11,463 10,000 10,377
Intangible assets 269 415 342
Right of use assets 453 595 522
Total non-current assets 12,185 11,010 11,241
Current assets
Inventories 14,842 12,875 14,454
Trade and other receivables 8,721 9,479 7,950
Cash and cash equivalents 2,968 2,201 2,381
Total current assets 26,531 24,555 24,785
Total assets 38,716 35,565 36,026
Current liabilities
Bank overdraft 2,406 1,751 454
Trade and other payables 7,406 6,215 7,080
Other financial liabilities 2,854 2,742 2,693
Corporation tax liability 182 18 90
Total current liabilities 12,848 10,726 10,317
Non-current liabilities
Financial liabilities 2,441 2,934 2,610
Deferred income tax liability 96 44 99
Total non-current liabilities 2,537 2,978 2,709
Total liabilities 15,385 13,704 13,026
Total net assets 23,331 21,861 23,000
Capital and reserves
Share capital 360 360 360
Capital reserve 257 257 257
Foreign exchange reserve (730) 253 238
Retained earnings 23,544 21,141 22,250
Total equity attributable to the shareholders of the parent Company 23,431 22,011 23,105
Non-controlling interests (100) (150) (105)
Total equity 23,331 21,861 23,000
Unaudited Unaudited Audited
Braime Group PLC 6 months to 6 months to year to
Consolidated cash flow statement for the six months 30th June 30th June 31st December
ended 30th June 2025 Note 2025 2024 2024
£'000 £'000 £'000
Operating activities
Net profit 1,405 1,095 2,333
Adjustments for:
Depreciation 707 760 1,474
Foreign exchange (losses)/gains (947) 105 118
Finance income (4) (3) (59)
Finance expense 221 259 513
Gain/(loss) on sale of plant, machinery and motor vehicles 1 (9) (29)
Adjustment in respect of defined benefit scheme - - 58
Income tax expense 609 451 865
Income taxes paid (450) (440) (769)
Operating profit before changes in working capital and provisions
1,542 2,218 4,504
(Increase)/decrease in trade and other receivables (841) (1,552) 20
Increase in inventories (388) (288) (1,867)
Increase/(decrease) in trade and other payables 552 (817) (20)
(677) (2,657) (1,867)
Cash generated from operations 865 (439) 2,637
Investing activities
Purchases of property, plant, machinery and motor vehicles (1,548) (500) (1,426)
Sale of plant, machinery and motor vehicles - 14 36
Interest received 4 3 7
(1,544) (483) (1,383)
Financing activities
Repayment of borrowings (132) (197) (391)
Repayment of lease liabilities (189) (208) (383)
Bank interest paid (189) (218) (433)
Lease interest paid (32) (40) (80)
Dividends paid (144) (137) (212)
(686) (800) (1,499)
Decrease in cash and cash equivalents (1,365) (1,722) (245)
Cash and cash equivalents, beginning of period 1,927 2,172 2,172
Cash and cash equivalents (including overdrafts), end of period
562 450 1,927
Braime Group PLC
Consolidated statement of
changes in equity for the Foreign
six months ended Share Capital Exchange Retained Minority Total
30th June 2025 Capital Reserve Reserve Earnings Total Interests Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1st January 2025 360 257 238 22,250 23,105 (105) 23,000
Comprehensive income
Profit - - - 1,404 1,404 1 1,405
Other comprehensive income
Shared capital introduced by minority interest
Foreign exchange (loss)/gain
on re-translation of overseas operations
- - (968) 34 (934) 4 (930)
Total other comprehensive
income - - (968) 34 (934) 4 (930)
Total comprehensive
income - - (968) 1,438 470 5 475
Transactions with owners
Dividends - - - (144) (144) - (144)
Total transactions with owners - - - (144) (144) - (144)
Balance at 30th June 2025 360 257 (730) 23,544 23,431 (100) 23,331
Braime Group PLC
Consolidated statement of
changes in equity for the Foreign
six months ended Share Capital Exchange Retained Minority Total
30th June 2024 Capital Reserve Reserve Earnings Total Interests Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1st January 2024 360 257 221 20,182 21,020 (181) 20,839
Comprehensive income
Profit - - - 1,097 1,097 (2) 1,095
Other comprehensive income
Shared capital introduced by minority interest
- - - - - 22 22
Foreign exchange gain/(loss)
on re-translation of overseas operations
- - 32 (1) 31 11 42
Total other comprehensive
income - - 32 (1) 31 33 64
Total comprehensive
income - - 32 1,096 1,128 31 1,159
Transactions with owners
Dividends - - - (137) (137) - (137)
Total transactions with owners - - - (137) (137) - (137)
Balance at 30th June 2024 360 257 253 21,141 22,011 (150) 21,861
Braime Group PLC
Consolidated statement of
changes in equity for the Foreign
year ended 31st December Share Capital Exchange Retained Minority Total
2024 Capital Reserve Reserve Earnings Total Interests Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1st January 2024 360 257 221 20,182 21,020 (181) 20,839
Comprehensive income
Profit - - - 2,280 2,280 53 2,333
Other comprehensive income
Net pension remeasurement
gain recognised directly in
equity - - - 6 6 - 6
Foreign exchange gain/(loss) on re-translation of overseas
operations
- - 17 (6) 11 1 12
Total other comprehensive
income - - 17 - 17 1 18
Total comprehensive
income - - 17 2,280 2,297 54 2,351
Transactions with owners
Share capital introduced by minority
- - - - - 22 22
Dividends - - - (212) (212) - (212)
Total transactions with owners - - - (212) (212) 22 (190)
Balance at 31st December
2024 360 257 238 22,250 23,105 (105) 23,000
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 2024 and those which management expects to apply
in the Group's full financial statements to 31st December 2025.
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 2024 but is
derived from the accounts. Statutory accounts for the period ended 31st
December 2024 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 2024, which have been applied
consistently throughout the current and preceding periods.
The Group has adopted the following new or amended standards as of 1st January
2025 and beyond:
(a) New and amended standards adopted by the Group:
· Amendments to IAS 21 - Lack of Exchangeability -
Requires a consistent approach to assessing whether a currency is exchangeable
and, when it is not, to determining the exchange rate to use and the
disclosures to provide - effective accounting periods beginning on or after
1st January 2025.
(b) New standards, amendments and interpretations issued but not effective
for the financial year beginning 1st January 2025 and not early adopted:
· Amendments to IFRS 9 and IFRS 7 - Amendments to the
Classification and Measurement of Financial Instruments - Clarifies how
contractual cash flows on financial assets with environmental, social and
governance (ESG) and similar features should be assessed when determining if
they are consistent with a basic lending arrangement and, hence, whether they
are measured at amortised cost or fair value. Clarifies the date on which a
financial asset or financial liability can be derecognised when settlement is
via an electronic cash transfer. Requires additional disclosures for certain
equity investments and financial investments with contingent features -
effective accounting periods beginning on or after 1st January 2026.
· Annual Improvements to IFRS Accounting Standards -
Volume 11 - Minor amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures, IFRS
9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS
7. Statement of Cash Flows - effective accounting periods beginning on or
after 1st January 2026.
· IFRS 18 Presentation and Disclosure in Financial
Statements - Introduces new requirements for classification of income and
expenses in specified categories and presentation of defined subtotals in the
statement of profit or loss, enhanced guidance and requirements for more
useful aggregation and disaggregation of information in the primary financial
statements and in the notes; and additional disclosures about
management-defined performance measures related to the statement of profit or
loss. Supersedes IAS 1 Presentation of Financial Statements - effective
accounting periods beginning on or after 1st January 2027.
· IFRS 19 Subsidiaries without Public Accountability:
Disclosures - Permits eligible subsidiaries to use IFRS Accounting Standards
with reduced disclosure requirements in their consolidated, separate or
individual financial statements - effective accounting periods beginning on or
after 1 January 2027.
The application and interpretations surrounding the new or amended standards
is not expected to have a material impact on the Group's reported financial
performance or position. However, they may give rise to additional
disclosures being made in the financial statements.
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 Braime Group
PLC as the numerator.
The weighted average number of outstanding shares used for
basic earnings per share amounted to 1,440,000 (2024 - 1,440,000). There are
no potentially dilutive shares in issue.
6 months to
30th June
2025
£'000
Dividends paid on equity shares
Ordinary shares
Interim of 10.00p per share paid on 23rd May 2025 48
'A' Ordinary shares
Interim of 10.00p per share paid on 23rd May 2025 96
Total dividends paid 144
Year to
31st December
2024
£'000
Dividends paid on equity shares
Ordinary shares
Interim of 9.50p per share paid on 24th May 2024 46
Interim of 5.25p per share paid on 11th October 2024 25
71
'A' Ordinary shares
Interim of 9.50p per share paid on 24th May 2024 91
Interim of 5.25p per share paid on 11th October 2024 50
141
Total dividends paid 212
3. Cash and cash equivalents
Unaudited Unaudited Audited
6 months to 6 months to year to
30th June 30th June 31st December
2025 2024 2024
£'000 £'000 £'000
Cash at bank and in hand 2,968 2,201 2,381
Bank overdrafts (2,406) (1,751) (454)
562 450 1,927
Other
At 1st New Exchange non-cash At 30th
January 2025 leases differences changes Cashflow June 2025
£'000 £'000 £'000 £'000 £'000 £'000
Cash at bank and in hand 2,381 - - - 587 2,968
Bank overdraft (454) - - - (1,952) (2,406)
1,927 - - - (1,365) 562
Leases (731) (98) 11 (32) 221 (629)
Net cash 1,196 (98) 11 (32) (1,144) (67)
Decrease in cash in the period
(1,365)
New leases (98)
Lease interest (32)
Exchange differences 11
Lease payments 221
Movement in net cash in the period
(1,263)
Net cash at 1st January 2025
1,196
Net cash at 30th June 2025 (67)
4. Segmental information
Unaudited 6 months to
30th June 2025
Central Manufacturing Distribution Total
£'000 £'000 £'000 £'000
Revenue
External - 3,084 23,340 26,424
Inter company 1,205 2,122 5,003 8,330
Total 1,205 5,206 28,343 34,754
Profit
EBITDA 685 292 1,961 2,938
Finance costs (117) (47) (57) (221)
Finance income - 1 3 4
Depreciation (307) (13) (387) (707)
Tax expense (22) - (587) (609)
Profit for the period 239 233 933 1,405
Assets
Total assets 9,363 11,800 17,553 38,716
Additions to non-current assets 1,320 - 327 1,647
Liabilities
Total liabilities 2,201 3,120 10,064 15,385
Unaudited 6 months to
30th June 2024
Central Manufacturing Distribution Total
£'000 £'000 £'000 £'000
Revenue
External - 2,697 22,053 24,750
Inter company 1,274 2,432 3,485 7,191
Total 1,274 5,129 25,538 31,941
Profit
EBITDA (51) 300 2,313 2,562
Finance costs (150) (46) (63) (259)
Finance income - - 3 3
Depreciation (349) (18) (393) (760)
Tax expense (16) - (435) (451)
(Loss)/profit for the period (566) 236 1,425 1,095
Assets
Total assets 7,847 11,557 16,161 35,565
Additions to non-current assets 203 23 311 537
Liabilities
Total liabilities 2,103 2,984 8,617 13,704
Audited year to
31st December 2024
Central Manufacturing Distribution Total
£'000 £'000 £'000 £'000
Revenue
External - 5,227 43,720 48,947
Inter company 2,681 4,640 8,489 15,810
Total 2,681 9,867 52,209 64,757
Profit
EBITDA 346 702 4,078 5,126
Finance costs (291) (92) (130) (513)
Finance income - 52 7 59
Depreciation (670) (31) (773) (1,474)
Tax expense (1) - (864) (865)
(Loss)/profit for the period (616) 631 2,318 2,333
Assets
Total assets 8,035 10,993 16,998 36,026
Additions to non-current assets 1,018 43 478 1,539
Liabilities
Total liabilities 1,860 2,729 8,437 13,026
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