REG - Braime Group PLC - Interim Results for the period to 30 June 2020

BraimeAnnouncement

18/09/2020 07:00

RNS Number : 3667Z
  
Braime Group PLC
  
18 September 2020
  
 

Braime Group PLC
("Braime" or the "Company" and together with its subsidiaries the "Group")
 
Interim Results for the six months ended 30th June 2020
 
 
The Company presents its unaudited interims results for the six months ended 30 June 2020:
 
Performance
Group sales revenue for the first six months of 2020 fell 5.6% to £16.1m when compared to £17.1m for the same period in 2019, while profit before tax decreased to £372,000 compared to £1.1m for the same period in 2019.  In view of the havoc that the Covid-19 pandemic has wreaked on the global economy, the directors are pleased to report that sales volumes have held up better than expected.  In the first quarter of the year, as country after country went into lockdown, our subsidiaries resolutely found ways to maintain operations, where necessary at times operating remotely from home.  We have thus as a Group remained open throughout the pandemic and continued to serve and supply our customers.  However, there is not much scope for reducing our base costs without cutting into our core business, and therefore the reduction in sales has had a direct consequence on our profitability.  During this difficult time, we have carefully sought to avoid short-term cost-stripping which we consider would harm future strategic growth, whilst tactically managing our cashflow which has remained positive.
 
Dividends
In line with the Group's policy to maintain dividend growth, balanced alongside the Group's requirement for investment in capital to support long term growth, the directors have decided to increase the interim dividend to 4.00p per share.  This dividend will be paid on 16th October 2020 to the Ordinary and 'A' Ordinary shareholders on the register on the 2nd October 2020.  The associated ex-dividend date is 1st October 2020.
 
Braime Pressings Limited
External sales revenue of £2.0m in the first 6 months of 2020 was slightly up on the same period last year as customers increased orders for replacement parts.  Intercompany sales also increased by £268,000.  The manufacturing division made a small loss of £34,000 for the period as price competition remains high in the automotive sector.  At the beginning of the year the business recruited a new sales manager to develop new markets however his activities were severely curtailed as a result of the lockdown restrictions and prospecting has only just recommenced.
 
4B Division
Our distribution division's external sales revenue of £14.2m fell by 6.6% when compared to £15.2m for the same period last year.  Nonetheless, management consider this to be very positive results, given the economic upheaval of the Covid-19 pandemic. Intercompany trading reduced by 17.2% to £2.4m (£2.9m for the same period in 2019).  This downturn is partly a result of the impact of Covid-19 but also due to the fact that the prior year sales were boosted by additional trading in the light of Brexit preparations.  We are pleased to see strong growth in 4B Australia which is 10% above the same period last year. The freeze in US-Sino relations has continued to affect our subsidiary in China but we believe in its strategic location for future growth.  The £1.0m reduction in external sales has directly impacted profit, with profit after tax for the 4B division for the six-month period reduced to £307,000 as compared to £883,000 for the same period last year.
 
Balance Sheet
Total net assets as at 30th June 2020 amount to £14.9m (30th June 2019 - £13.9m).  Capital asset additions of £855,000 during the period relate primarily to the land purchased in Villers Bretonneux together with the warehouse under construction of £548,000 for 4B France, as announced earlier in the year.  Other additions relate to the purchase of a 400-ton capacity press in the UK, various quality monitoring systems and tooling.   Inventory has increased by £159,000 when compared to 30th June 2019 and by £554,000 when compared to 31st December 2019.  Trade receivables of £6.6m is in line with 30th June 2019 but increased by £915,000 when compared to 31st December 2019.  The increase in long-term borrowings during the year relates primarily to the take up of new loans; firstly £455,000 in the USA where our subsidiary has successfully applied for funding from the government Paycheck Protection Program (PPP) for Covid-19.  The PPP aid, granted in the form of a loan on 16th April 2020, carries an interest rate of 1% and matures two years from the date of receipt, however the loan may be forgiven if employees are retained.  Secondly £300,000 relates to the partial draw-down of the €1.7m loan facility in 4B France with Credit du Nord and BPI-France which as mentioned in 2019 annual report was obtained to fund the warehouse construction.
 
Cash flow
Cash at the end of the period was £822,000.  Cash generated from operations before working capital movements was £1.4m during the period.  An increase in trade receivables of £915,000 and an increase in inventories of £554,000 saw working capital reduce by £682,000 since the year end.  These are a consequence of the reduced sales volume during the period.  Investment in capital projects mentioned above gave rise to capital outflows of £855,000 and new loans of £755,000 in the USA and France mentioned above provided proceeds from borrowings.  Overall, net cash increased by £159,000 during the six months to 30th June 2020.   Management remains focused in ensuring that working capital requirements, particularly for stock, are carefully monitored and controlled.  
 
Principal exchange rates
The Group reports its results in sterling, its presentational currency.  The Group operates in six other currencies and the average of the principal exchange rates in use during the half year and as at the 30th June 2020 are shown in the table below, along with comparatives.  Since a significant proportion of the Group revenues are in the USA, the Group has benefitted from the weakening of sterling against the US dollar since 31st December 2019.   However, at the time of writing, the sterling has rallied strongly, and we expect to see the gains in the first half of the year reversing in the second half.
 




 
Currency


 
Symbol


Avg rate
HY 2020


Avg rate
HY 2019


Avg rate
FY 2019


Closing rate
30th Jun 2020


Closing rate
30th Jun 2019


Closing rate
31st Dec 2019




Australian Dollar


AUD


1.922


       1.832


       1.840


1.795


       1.814


       1.883




Chinese Renminbi (Yuan)


CNY


8.857


8.770


8.810


8.714


8.711


9.150




Euro


EUR


1.140


1.148


       1.144


1.100


       1.118


       1.177




South African Rand


ZAR


21.334


18.319


     18.453


21.468


     17.950


     18.548




Thai Baht


THB


39.993


40.808


     39.578


38.152


     39.069


     39.346




United States Dollar


USD


1.259


1.297


1.281


1.236


       1.273


       1.321




 
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:
 




 
Key performance indicator


 
Note


 
Half year
2020 


 
Half year
2019 


 
Full year
2019 




Turnover growth


1


(5.6%)


(5.5%)


(6.4%) 




Gross margin


2


47.4% 


48.9% 


49.1%  




Operating profit


3


£0.45m 


£1.29m 


£2.21m  




Stock days


4


191 days 


165 days 


176 days  




Debtor days


5


63 days 


60 days 


57 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.  Revenues are down due to the current global economic climate.  The directors consider the results positive in the light of the current global crisis.
 
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 has decreased slightly over the same period last year.  The directors continue to monitor the margins carefully for further movement. 
 
3.             Operating profit
Sustainable growth in operating profit is a strategic priority to enable ongoing investment and increase shareholder value.  Operating profits have reduced as a direct result of the reduction in sales which is primarily due to the economic uncertainty following the Covid 19 pandemic. 
 
4.             Stock days
The average value of 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 in part due to a slow-down of sales compared to prior period. 
 
5.             Debtor days
The average value of trade receivables divided by revenue expressed as a number of days.  This is an important indicator of working capital requirements.  Debtor days at 63 days are slightly above the standard payment terms of 60 days.  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.
 
Impact of Covid-19 pandemic
At our year end announcement, we noted the need to prepare for the likelihood of lower demand while the world economy struggles to recover from the pandemic.  Our businesses have not been as harshly affected, in the way that certain sectors such as travel, retail, the hospitality and entertainment sectors, have been.  We are therefore heartened that sales revenues are only 5.6% down compared to the same period last year but we are very mindful that small changes in volume have a more significant impact on our profits.   
 
The pandemic has required all our businesses to adapt to new ways of working; we are very alert to the health risks posed by the virus and we have therefore taken all necessary steps to protect our employees including providing equipment for homeworking, implementing and observing stringent social distancing and extensive disinfecting and sanitizing measures on-site.  Many of these provisions have the unintended consequence of reducing operational efficiencies particularly in the factory and warehouse.  Staying close to our customers is at the heart of our policy and this is made more challenging when site visits have been restricted or banned.  The costs of these new distancing, hygiene and risk reduction measures may not in isolation appear significant when quantified directly but without doubt they indirectly contribute to the overall reduction in profitability.  We have received some government aid but the benefit to our profit for the period is minimal, being £35,000 in respect of furloughed employees in the UK who were shielding, and £13,000 in France. The government assistance received in the USA mentioned above has been booked as a loan and thus has not improved or impacted our reported profit. 
 
Outlook for the second half of 2020
Given the current exceptional situation, it is even more difficult than usual to comment on the outlook for the Group. Our forward order books and the current level of enquiries in all parts of the Group are at unusually low levels.  Nevertheless, each month our actual sales have exceeded our expectations and, in some parts of the Group, have exceeded last year's figures for the same period, and offset shortfalls elsewhere in the Group.  On average we continue to achieve over 85% of our original budget set last year, but as in most businesses, our profits come from the top slice of our revenue, so our net earnings are likely to remain weak in the short term.  
 
The Group is fortunate that a large part of our sales is made to the supply chain involved in handling and processing food related product and the demand for spares still remains strong. However, we expect that investment in new facilities and in new processing machinery in this sector, which have both driven our recent growth, is likely to be subdued until confidence returns to the general economy. If and when business confidence returns, we expect the sector to return rapidly to previous levels of investment because the food sector remains a growth area of the global economy although there will inevitably be a delay while new orders for the components that we supply start to flow through to us.  Despite the current climate, our finances remain strong and we continue to invest resource to find new ways of marketing, and in developing new product, so we remain optimistic about the long-term prospect for the Group.
 
Our employees at all levels and in all parts of the group have coped admirably with the considerable additional challenges and stress created by the epidemic. Thanks to the fortitude and flexibility shown by our staff, our manufacturing and distribution businesses have been able to find new ways of working and enabled us to continue to supply our customers almost without interruption. In some important respects, this experience has bought our local teams and our group as a whole, closer together and revealed new and better ways of working. We plan to maintain and build on the changes we have made which will benefit the group in the long term.
 
 
For further information please contact: 
 
Nicholas Braime/Cielo Cartwright
0113 245 7491 
 
W. H. Ireland Limited 
Katy Mitchell 
0113 394 6628 
 
 




Braime Group PLC
Consolidated income statement for the six months
ended 30th June 2020


 
 
 
Note


Unaudited 

6 months to 
30th June 

2020 


Unaudited 

6 months to 
30th June 

2019 


Audited 
year to 
31st December 
2019 




 


 


£'000 


£'000 


£'000 




 


 


 


 


 




Revenue


 


16,114 


17,077 


33,433 




 


 


 


 


 




Changes in inventories of finished goods and work in progress


 


 
492 


 
1,174 


 
959 




Raw materials and consumables used


 


(8,954)


(9,901)


(17,986)




Employee benefits costs


 


(4,406)


(4,090)


(8,530)




Depreciation expense


 


(646)


(536)


(1,236)




Other expenses


 


(2,146)


(2,438)


(4,737)




Other operating income


 


                          - 


- 


318 




 


 


 


 


 




Profit from operations


 


454 


1,286 


2,221 




 


 


 


 


 




Finance costs


 


(82)


(218)


(477)




Finance income


 


                          - 


1 


2 




 


 


 


 


 




Profit before tax


 


372 


1,069 


1,746 




 


 


 


 


 




Tax expense


 


(114)


(315)


(397)




 


 


 


 


 




Profit for the period


 


258 


754 


1,349 




 


 


 


 


 




Profit attributable to:


 


 


 


 




Owners of the parent


 


242 


749 


1,360 




Non-controlling interests


 


16 


5 


(11)




 


 


258 


754 


1,349 




 


 


 


 


 




Basic and diluted earnings per share


2


16.81p 


52.00p 


94.44p 




 
 




Braime Group PLC
Consolidated statement of comprehensive income for the six months
ended 30th June 2020


Unaudited 
6 months to 
 30th June 
2020 


Unaudited 
6 months to 
 30th June 
2019 


Audited 
year to 
31st December 
2019 




 


£'000 


£'000 


£'000 




 


 


 


 




Profit for the period


258 


754 


1,349 




 


 


 


 




Items that will not be reclassified subsequently to profit or loss


 


 


 




Net pension remeasurement gain on post-employment benefits


- 


- 


178 




 


 


 


 




Items that may be reclassified subsequently to profit or loss


 


 


 




Foreign exchange gains/(losses) on re-translation of overseas operations


404 


(13)


(323)




 


 


 


 




Other comprehensive income for the period


404 


(13)


(145)




 


 


 


 




Total comprehensive income for the period


662 


741 


1,204 




 


 


 


 




Total comprehensive income attributable to:


 


 


 




Owners of the parent


656 


754 


1,231 




Non-controlling interests


6 


(13)


(27)




 


662 


741 


1,204 




 
The foreign currency movements arise on the re-translation of overseas subsidiaries' opening balance sheets at closing rates.
 




Braime Group PLC
Consolidated balance sheet at 30th June 2020


Unaudited   
6 months to  
30th June  
2020  


Unaudited   
6 months to  
30th June  
2019  


Audited  
year to 31st 
December 
2019 




 


£'000  


£'000  


£'000 




 


 


 


 




Non-current assets


 


 


 




Property, plant and equipment


7,246 


6,485 


6,824 




Intangible assets


44 


56 


48 




Right of use assets


190 


213 


278 




 


 


 


 




Total non-current assets


7,480 


6,754 


7,150 




 


 


 


 




Current assets


 


 


 




Inventories


9,127 


8,968 


8,573 




Trade and other receivables


6,554 


6,605 


5,697 




Cash and cash equivalents


1,558 


935 


1,679 




 


 


 


 




Total current assets


17,239 


16,508 


15,949 




 


 


 


 




Total assets


24,719 


23,262 


23,099 




 


 


 


 




Current liabilities


 


 


 




Bank overdraft


736 


508 


1,016 




Trade and other payables


4,586 


4,881 


3,808 




Other financial liabilities


2,042 


2,219 


2,163 




Corporation tax liability


47 


1 


19 




 


 


 


 




Total current liabilities


7,411 


7,609 


7,006 




 


 


 


 




Non-current liabilities


 


 


 




Financial liabilities


2,031 


1,449 


1,384 




Deferred income tax liability


382 


266 


360 




 


 


 


 




Total non-current liabilities


2,413 


1,715 


1,744 




 


 


 


 




Total liabilities


9,824 


9,324 


8,750 




 


 


 


 




Total net assets


14,895 


13,938 


14,349 




 


 


 


 




Capital and reserves


 


 


 




Share capital


360 


360 


360 




Capital reserve


257 


257 


257 




Foreign exchange reserve


408 


306 


(6)




Retained earnings


14,211 


13,347 


14,084 




Total equity attributable to the shareholders of the parent
company


 
 15,236 


 
14,270 


 
14,695 




Non-controlling interests


                  (341)


(332)


(346)




Total equity


14,895 


13,938 


14,349 




 
 




 
Braime Group PLC
Consolidated cash flow statement for the six months
ended 30th June 2020


 
 
 
Note


Unaudited 
6 months to 
30th June 
2020 


Unaudited 
6 months to 
30th June 
2019 


Audited 
year to 
31st December 
2019 




 


 


£'000 


£'000 


£'000  




Operating activities


 


 


 


 




Net profit


 


258 


754 


1,349 




 


 


 


 


 




Adjustments for:


 


 


 


 




Depreciation


 


646 


536 


1,236 




Foreign exchange gains/(losses)


 


  299 


(17)


(255)




Finance income


 


                            - 


(1)


(2)




Finance expense


 


82 


218 


477 




Gain on sale of plant, machinery and motor vehicles


 


                            - 


- 


 (12)




Adjustment in respect of defined benefit scheme


 


                            - 


- 


93 




Income tax expense


 


114 


315 


397 




Income taxes paid


 


(8)


(243)


(451)




Operating profit before changes in working capital and provisions


 


 
1,391 


 
1,562 


 
2,832 




 


 


 


 


 




(Increase)/decrease in trade and other receivables


 


(915)


(107)


1,044 




Increase in inventories


 


(554)


(1,096)


(701)




Increase/(decrease) in trade and other payables


 


787 


(381)


(1,499)




 


 


 


 


 




 


 


(682)


(1,584)


(1,156)




 


 


 


 


 




Cash generated from operations


 


709 


(22)


1,676 




 


 


 


 


 




Investing activities


 


 


 


 




Purchases of property, plant, machinery and motor vehicles


 


(855)


 (679)


 (1,660)




Sale of plant, machinery and motor vehicles


 


8 


- 


27 




Interest received


 


- 


1 


2 




 


 


(847)


(678)


(1,631)




 


 


 


 


 




Financing activities


 


 


 


 




Proceeds from long term borrowings


 


900 


- 


728 




Proceeds from new hire purchase borrowings


 


- 


421 


- 




Repayment of lease liabilities


 


(172)


(101)


(210)




Repayment of borrowings


 


(116)


(199)


(459)




Repayment of hire purchase creditors


 


(118)


(142)


(281)




Interest paid


 


(63)


(204)


(426)




Lease interest paid


 


(19)


(14)


(48)




Dividends paid


 


(115)


(115)


(167)




 


 


297 


(354)


(863)




Increase/(decrease) in cash and cash equivalents


 


159 


(1,054)


(818)




Cash and cash equivalents, beginning of period


 


663 


1,481 


1,481 




Cash and cash equivalents (including overdrafts), end of period


 
3


 
822 


 
427 


 
663 




 
 




Braime Group PLC
Consolidated statement of
changes in equity for the
six months ended
30th June 2020


 
 
 
Share 
Capital 


 
 
 
Capital 
Reserve 


 
 
Foreign 
Exchange 
Reserve 


 
 
 
Retained 
Earnings 


 
 
 
 
Total 


 
 
 
Minority 
Interests 


 
 
 
Total 
Equity 




 


£'000 


£'000 


£'000 


£'000 


£'000 


£'000 


£'000 




Balance at 31st December
2019


 
360 


 
257 


 
(6)


 
14,084 


 
14,695 


 
(346)


 
14,349 




 


 


 


 


 


 


 


 




Comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Profit


- 


- 


- 


242 


242 


16 


258 




 


 


 


 


 


 


 


 




Other comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Foreign exchange gain/(loss) 
on re-translation of overseas operations


 
 
- 


 
 
- 


 
 
414 


 
 
- 


 
 
414 


 
 
(11)


 
 
403 




Total other comprehensive
income


 
- 


 
- 


 
414 


 
- 


 
414 


 
(11)


 
403 




Total comprehensive
income


 
- 


 
- 


 
414 


 
242 


 
656 


 
5 


 
661 




Transactions with owners


 


 


 


 


 


 


 




Dividends


- 


- 


- 


(115)


(115)


- 


(115)




Total transactions with owners


- 


- 


- 


(115)


(115)


- 


(115)




Balance at 30th June 2020


360 


257 


408 


14,211 


15,236 


(341)


14,895




 


 


 


 


 


 


 


 




 
 




Braime Group PLC
Consolidated statement of
changes in equity for the
six months ended
30th June 2019


 
 
 
Share 
Capital 


 
 
 
Capital 
Reserve 


 
 
Foreign 
Exchange 
Reserve 


 
 
 
Retained 
Earnings 


 
 
 
 
Total 


 
 
 
Minority 
Interests 


 
 
 
Total 
Equity 




 


£'000 


£'000 


£'000 


£'000 


£'000 


£'000 


£'000 




Balance at 31st December 2018


 
360 


 
257 


 
301 


 
12,734 


 
13,652 


 
(319)


 
13,333 




 


 


 


 


 


 


 


 




Impact of change in accounting standard - IFRS 16


 
- 


 
- 


 
- 


 
(21)


 
(21)


 
- 


 
(21)




Restated total equity at 1st January 2019


 
360 


 
257 


 
301 


 
12,713 


 
13,631 


 
(319)


 
13,312 




 


 


 


 


 


 


 


 




Comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Profit


- 


- 


- 


749 


749 


5 


754 




 


 


 


 


 


 


 


 




Other comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Foreign exchange gain/(loss) on re-translation of overseas 
operations


 
 
- 


 
 
- 


 
 
5 


 
 
- 


 
 
5 


 
 
(18)


 
 
(13)




Total other comprehensive
income


 
- 


 
- 


 
5 


 
- 


 
5 


 
(18)


 
(13)




Total comprehensive
income


 
- 


 
- 


 
5 


 
749 


 
754 


 
(13)


 
741 




Transactions with owners


 


 


 


 


 


 


 




Dividends


- 


- 


- 


(115)


(115)


- 


(115)




Total transactions with owners


 
- 


 
- 


 
- 


 
(115)


 
(115)


 
- 


 
(115)




Balance at 30th June 2019


360 


257 


306 


13,347 


14,270 


(332)


13,938 




 


 


 


 


 


 


 


 




 




Braime Group PLC
Consolidated statement of
changes in equity for the
year ended 31st December
2019


 
 
 
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 2019


360 


257 


301 


12,734 


13,652 


(319)


13,333 




 


 


 


 


 


 


 


 




Impact of change in accounting standard - IFRS16


 
- 


 
- 


 
- 


 
 (21)


 
 (21)


 
- 


 
 (21)




Restated total equity at 1st January 2019


 
360 


 
257 


 
301 


 
12,713 


 
13,631 


 
(319)


 
13,312 




 


 


 


 


 


 


 


 




Comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Profit


- 


- 


- 


1,360 


1,360 


(11)


1,349 




 


 


 


 


 


 


 


 




Other comprehensive income


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Net pension remeasurement
gain recognised directly in 
equity


 
 
- 


 
 
- 


 
 
- 


 
 
178 


 
 
178 


 
 
- 


 
 
178 




Foreign exchange gains on 
re-translation of overseas 
operations


 
 
- 


 
 
- 


 
 
(307)


 
 
- 


 
 
(307)


 
 
(16)


 
 
(323)




Total other comprehensive
income


 
- 


 
- 


 
(307)


 
178 


 
(129)


 
(16)


 
(145)




Total comprehensive
income


 
- 


 
- 


 
(307)


 
1,538 


 
1,231 


 
(27)


 
1,204 




Transactions with owners


 


 


 


 


 


 


 




Dividends


- 


- 


- 


(167)


(167)


- 


(167)




Total transactions with owners


- 


- 


- 


 (167)


 (167)


- 


 (167)




Balance at 31st December 
2019


 
360 


 
257 


 
(6)


 
14,084 


 
14,695 


 
(346)


 
14,349 




 


 


 


 


 


 


 


 




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 2019 and those which management expects to apply in the Group's full financial statements to 31st December 2020.
 
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 2019 but is derived from the accounts.  Statutory accounts for the period ended 31st December 2019 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 2019, which have been applied consistently throughout the current and preceding periods.  The Group has adopted the following new and amended standards as of 1st January 2020 -
 
·         Amendments to IFRS3 - Definition of a Business - clarifies whether a transaction should be accounted for as a business combination or an asset acquisition - effective on or after 1st January 2020
·           Amendments to IAS1 and IAS8 - Definition of Material - aligns definitions across IFRS and other IASB publications - effective on or after 1st January 2020
·          Conceptual Frameworks for Financial reporting - provides concepts to help preparers develop consistent accounting policies when no standard applies or there is a choice of policies - effective on or after 1st January 2020
·          Amendments to Conceptual frameworks - minor amendments to various standards to reflect the revised issue - effective from 1 January 2020
 
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 (2019 - 1,440,000).  There are no potentially dilutive shares in issue.
 




 


6 months to 
30th June 
2020 




 


£'000 




Dividends paid on equity shares


 




Ordinary shares


 




Interim of 8.00p per share paid on 5th June 2020


38 




 


 




'A' Ordinary shares


 




Interim of 8.00p per share paid on 5th June 2020


77 




Total dividends paid


115 




 


 




 


Year to  
31st December 
2019 




 


£'000 




Dividends paid on equity shares


 




Ordinary shares


 




Interim of 8.00p per share paid on 17th May 2019


38 




Interim of 3.60p per share paid on 18th October 2019


17 




 


55 




 


 




'A' Ordinary shares


 




Interim of 8.00p per share paid on 17th May 2019


77 




Interim of 3.60p per share paid on 18th October 2019


35 




 


112 




Total dividends paid


167 




 
3.      Cash and cash equivalents




 


 Unaudited 
6 months to 
30th June 
2020 


 Unaudited 
6 months to 
30th June 
2019 


Audited 
year to 
  31st December 
2019 




 


£'000 


£'000 


£'000 




Cash at bank and in hand


1,558 


935  


1,679 




Bank overdrafts


(736)


(508)


(1,016)




 


822 


427 


663 




 
4.      Segmental information




 


Unaudited 6 months to 
30th June 2020 




 


Central 


Manufacturing


Distribution 


Total 




 


£'000 


£'000 


£'000 


£'000 




 


 


 


 


 




Revenue


 


 


 


 




External


- 


1,953 


14,161 


16,114 




Inter company


1,016 


1,695 


2,381 


5,092 




 


 


 


 


 




Total


1,016 


3,648 


16,542 


21,206 




 


 


 


 


 




Profit


 


 


 


 




EBITDA


352 


(18)


767  


1,101 




Finance costs


(53)


(15)


(14) 


(82)




Finance income


- 


- 


- 


- 




Depreciation


(300)


(11)


(335) 


(646)




Tax expense


(14)


10 


(111) 


(115)




 


 


 


 


 




(Loss)/profit for the period


(15)


(34)


307 


258 




 


 


 


 


 




Assets


 


 


 


 




Total assets


5,449 


4,551 


14,719 


24,719 




Additions to non-current assets


242 


2 


634 


878 




Liabilities


 


 


 


 




Total liabilities


926 


2,384 


6,514 


9,824 




 
In 2019, we revised PLC intercompany charges across the Group to align recharges with the business activity resulting in a larger recharge to 4B division. 
 




 


Unaudited 6 months to 
 30th June 2019 




 


Central 


Manufacturing


Distribution 


Total 




 


£'000 


£'000 


£'000 


£'000 




 


 


 


 


 




Revenue


 


 


 


 




External


- 


1,913 


15,164 


17,077 




Inter company


997 


1,427 


2,877 


5,301 




 


 


 


 


 




Total


997 


3,340 


18,041 


22,378 




 


 


 


 


 




Profit


 


 


 


 




EBITDA


115 


133 


1,574 


1,822 




Finance costs


(110)


(11)


(97)


(218)




Finance income


- 


- 


1 


1 




Depreciation


(248)


(8)


(280)


(536)




Tax expense


- 


- 


(315)


(315)




 


 


 


 


 




(Loss)/profit for the period


(243)


114 


883 


754 




 


 


 


 


 




Assets


 


 


 


 




Total assets


5,668 


1,994 


15,600 


23,262 




Additions to non-current assets


560 


- 


119 


679 




Liabilities


 


 


 


 




Total liabilities


1,332 


2,916 


5,076 


9,324 




 




 


Audited year to 
31st December 2019 




 


Central 


Manufacturing


Distribution 


Total 




 


£'000 


£'000 


£'000 


£'000 




 


 


 


 


 




Revenue


 


 


 


 




External


- 


3,416 


30,017 


33,433 




Inter company


2,104 


3,440 


6,224 


11,768 




 


 


 


 


 




Total


2,104 


6,856 


36,241 


45,201 




 


 


 


 


 




Profit


 


 


 


 




EBITDA


851 


(244)


2,850 


3,457 




Finance costs


(305)


(27)


(145)


(477)




Finance income


- 


- 


2 


2 




Depreciation


(607)


(18)


(611)


(1,236)




Tax expense


(114)


39 


(322)


(397)




 


 


 


 


 




(Loss)/profit for the period


(175)


(250)


1,774 


1,349 




 


 


 


 


 




Assets


 


 


 


 




Total assets


5,529 


3,657 


13,913 


23,099 




Additions to non-current assets


1,138 


76 


607 


1,821 




Liabilities


 


 


 


 




Total liabilities


852 


1,768 


6,130 


8,750 




 
 
 

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