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

BraimeAnnouncement

21/09/2018 07:05

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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