RNS Number:2057C
Braime (T.F.& J.H.) (Hldgs) PLC
28 April 2006
At a meeting of the directors held here today, the accounts for the year ended
31st December 2005 were submitted and approved by the directors. The
preliminary profits statement is as follows:
Consolidated Income Statement for the year ended 31st December 2005
Note Unaudited
2005 2004
# #
Revenue 9,699,124 9,330,733
Changes in inventories of finished goods and work in progress 383,972 (43,807)
Raw materials and consumables used (5,250,183) (4,708,104)
Employee benefits costs (3,098,576) (2,812,754)
Depreciation expense (114,728) (64,743)
Other expenses (1,870,790) (1,679,398)
(Loss)/profit from operations (251,181) 21,927
Finance costs (244,903) (217,238)
Finance income 267,643 240,363
(Loss)/profit before tax (228,441) 45,052
UK corporation tax 13,289 116
Foreign corporation tax (82,579) (15,087)
(Loss)/profit for the year (297,731) 30,081
Basic (loss)/earnings per share 1 (20.7p) 2.10p
Consolidated Statement of Recognised Income and Expense for the year ended 31st
December 2005
Unaudited
2005 2004
# #
(Loss)/profit for the year (297,731) 30,081
Foreign exchange gains/(losses) on re-translation of overseas operations 17,958 (9,137)
Actuarial gains and losses recognised directly in equity (163,000) 365,000
Total recognised income and expense for the year (442,773) 385,944
Consolidated Balance Sheet at 31st December 2005
Unaudited Unaudited
Note 2005 2005 2004 2004
# # # #
Assets
Non-current assets
Property, plant and equipment 737,867 555,488
Employee benefits - 85,000
Total non-current assets 737,867 640,488
Current assets
Inventories 2,342,363 2,115,681
Trade and other receivables 1,832,979 2,450,028
Cash and cash equivalents 1,567,840 1,415,832
Total current assets 5,743,182 5,981,541
Total assets 6,481,049 6,622,029
Liabilities
Current liabilities
Bank overdraft 1,410,300 1,080,600
Trade and other payables 861,945 1,083,030
Other financial liabilities 177,170 151,588
Corporation tax liability 33,033 10,000
Total current liabilities 2,482,448 2,325,218
Non-current liabilities
Financial liabilities 347,526 257,763
Employee benefits 98,000 -
Total non-current liabilities 445,526 257,763
Total liabilities 2,927,974 2,582,981
Total net assets 3,553,075 4,039,048
Capital and reserves attributable to equity holders of the parent
company
Share capital 360,000 360,000
Capital reserve 77,319 77,319
Foreign exchange reserve 8,821 (9,137)
Retained earnings 3,106,935 3,610,866
Total equity 2 3,553,075 4,039,048
Consolidated Cash Flow Statement for the year ended 31st December 2005
Unaudited
Note 2005 2004
# #
Operating activities
Result for the year before interest and tax (251,181) 21,927
Adjustments
Changes in inventories (226,682) (225,482)
Change in trade and other receivables 595,747 (549,681)
Change in trade and other payables (206,464) 94,690
Employer contribution (118,000) (110,000)
Current service cost 170,000 156,000
Depreciation 114,728 64,397
(Profit)/loss on sale of fixed assets (6,216) 346
Grants amortised (1,656) (1,656)
Taxes paid (39,576) (27,059)
Taxes recovered - 21,185
Foreign exchange differences 14,919 (8,757)
296,800 (586,017)
Investing activities
Additions to property, plant and equipment (142,306) (37,841)
Proceeds from disposals of property, plant and equipment 6,768 8,626
Interest received 47,643 50,363
(87,895) 21,148
Financing activities
Repayment of hire purchase liabilities (35,313) -
Interest paid (56,903) (32,238)
Dividends paid (43,200) (57,600)
(135,416) (89,838)
Cash and cash equivalents, beginning of period 3 335,232 968,012
Net decrease in cash and cash equivalents (177,692) (632,780)
Cash and cash equivalents, end of period 3 157,540 335,232
Notes
1. 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 (2004 - 1,440,000). There are no potentially
dilutive shares in issue.
During the twelve months to 31st December 2005, T.F. & J.H. Braime (Holdings)
P.L.C. paid dividends of #43,200 to its equity shareholders (2004 - #57,600).
This represents a payment of 3.0p per share (2004 - 4.0p per share).
Unaudited
2. Changes in shareholders' equity 2005 2004
# #
Total recognised income and expense (442,773) 385,944
Equity dividends paid (43,200) (57,600)
Capital and reserves attributable to equity holders of the parent company 4,039,048 3,710,704
at the beginning of the period
Capital and reserves attributable to equity holders of the parent company 3,553,075 4,039,048
at the end of the period
3. Cash and cash equivalents 2005 2004
# #
Cash at bank and in hand 1,567,840 1,415,832
Bank overdrafts 1,410,300 1,080,600
157,540 335,232
4. Major non-cash transaction
During the year the group acquired #156,450 of tangible assets under hire
purchase agreements.
5. Basis of preparation
The results incorporated in the preliminary announcement have been prepared in
accordance with International Financial Reporting Standards (IFRS and IFRIC
interpretations) issued by the International Accounting Standards Board (IASB)
as adopted by the EU and with those parts of the Companies Act 1985 applicable
to companies preparing their accounts under IFRS.
The financial information set out above does not constitute the company's
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The 2005 figures are based on unaudited accounts for the year ended 31st
December 2005. The auditors do not expect to issue a qualified report on the
statutory accounts which will be finalised on the basis of the financial
information presented by the directors in the preliminary announcement and which
will be delivered to the Registrar of Companies following the company's annual
general meeting.
The 2004 comparatives have been adjusted in accordance with IFRS, a full
explanation of which will appear in the statutory accounts. No final dividend
will be proposed at the annual general meeting which will be held on Friday 16th
June 2006.
Review of business
The group made a loss, before tax, of #228,000 for the year ending 31st December
2005, compared to a profit of #45,000 in 2004. After paying tax of #69,000 on
profits made in the USA, this loss increased to #297,000, compared to the small
after tax profit of #30,000 in 2004.
Braime Pressings Limited
After a positive start to the year, sales fell away sharply as short-term
seasonal contracts came to an end and new business, which had been anticipated,
did not materialise. Although turnover in 2005 was up by 10% resulting from the
sale of outsourced tooling, margins on manufacturing suffered badly mainly due
to large increases in raw material costs which could not be fully passed on to
customers, and the company made a large loss. A number of initiatives have been
taken to turn the manufacturing business around:-
* We have made substantial reductions in our fixed costs by reducing
personnel in service departments, initially through natural wastage and
sadly, in January this year, by compulsory redundancies. In particular,
our tool room has been reduced to a small team of toolmakers responsible
for maintaining production.
* In February 2006, Braime Pressings Limited gained accreditation under
ISO9002 and this has opened up a number of opportunities for additional
volume business.
* An operations manager, with a track record of securing major business in
our industry, has been recruited and we are in negotiation with a number of
new potential customers.
* In October we acquired the equipment and tooling to manufacture specialized
fasteners for distribution through our own existing channels. The transfer
and installation of the machinery was completed in December and the new
product line is now in full production.
Braime Elevator Components Limited
Sales rose by 17% and the trading profit increased, although margins continued
to be squeezed by very fierce competition in the market for our principal
product, elevator buckets.
A significant investment was made in a new web site www.go4b.com. This will
benefit all the group subsidiaries supplying components to the bulk material
handling industry by promoting the group's products.
As of April 2006, the company has been appointed by a French group, MLT, as
their exclusive UK distributor for a range of conveyor belt fasteners for supply
to our existing customer base, providing extra benefit for a relatively low
investment in stock and additional marketing.
Sarl S.E.T.E.M.
Against a background of the very difficult economic conditions prevailing in
France, particularly in the agricultural sector, sales at SETEM fell by 13%.
This coincided with a significant investment made in opening a branch office in
Germany. Due to a legal dispute, now resolved, the effective start up of this
office was severely hampered for the first six months of 2005. The effect of
lower sales in France, investment in a new major product line and the high
investment in the new office in Germany combined to create a large loss at
SETEM.
Sales in both France and export are now running at significantly higher levels
than at this time last year and the new German office will more than cover its
costs in 2006.
4B Sudamerica S.A.
Sales did not advance. The Argentinean peso remains weak. This continuing
situation makes it extremely difficult to compete against local manufacturers.
Although both the level of activity and the results at 4B SA has no effect of
significance on the group, we have decided to re-structure our activities.
While we will continue to manufacture plastic buckets there for re-export, we
will withdraw from our distribution activities within Argentina.
4B Elevator Components Limited
Our US subsidiary enjoyed a very good year. Sales increased by 12% and this
resulted in a significant improvement in the level of profit. Margins also
benefited from the strengthening of the US Dollar.
The new year has begun very strongly and we expect sales to be boosted still
further by the improvements and additions to our product range, which we plan to
launch later this year.
Outlook
Sales have begun positively in all the group subsidiaries whose principal
activity is the sale of components to the bulk handling industry and we expect
these subsidiaries to have a successful year.
The market for presswork remains difficult. The re-structuring that is being
undertaken puts the company in a better position to secure profitable long-term
new business and to return the overall business to profit.
The company's auditors have agreed to this statement being notified to a
regulatory information service.
D. H. Brown
Company Secretary
T.F. & J.H. Braime (Holdings) P.L.C.
28th April 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
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