RNS Number : 7341C
Braime (T.F.& J.H.) (Hldgs) PLC
04 September 2008
Interim results for the six months ended 30th June 2008
Group sales revenue for the first six months of 2008 increased by 24% from �5.89m to �7.28m and the company made a profit before tax for
the first half of 2008 of �125,000. This compares to a profit of �67,000 in 2007 and a loss of �218,000 in 2006 in the same period.
The group was cash negative in the first half of 2008. This was caused by an increase in trade debtors, following the significant
increase in sales revenue, and an increase in inventories, due to the sudden and steep rise in the cost of raw materials. The company
continues to trade well within its borrowing facilities and we expect the group to be cash generative for the full year, ending 31st
December 2008.
The sizeable accumulated losses in 2005 and 2006 have put considerable strain on the company's financial resources, as has the need to
finance the recent large increase in group revenue. As a result, the directors have reluctantly decided that it would not be appropriate to
pay an interim dividend in 2008.
The profitability of the group continues to improve and, providing this is sustained, the directors plan to progressively restore
dividend payments to the shareholders.
Performance of group companies
4B division
The subsidiaries distributing our 4B brand of components to the material handling sector worldwide have all enjoyed substantial growth
and we expect this to continue in the second half of the year. We are fortunate that over 80% of sales of "4B" products are in overseas
markets and are primarily to customers in the agro industry or process industries, sectors benefiting from the surge in commodity prices,
insulating us from most of the consequences of the current economic problems in the UK.
The downside is that we have also seen unprecedented inflation in the cost of some of our raw materials, with UK steel prices rising 50%
and world plastic prices increasing by 100% since the start of 2008. Given our complex product mix, passing on price increases to customers
on a continuous basis is both time consuming and destabilizing and the inevitable delays in the acceptance by our customers of such large
price increases has had a short term negative effect on our margins.
Pressings division
The sales revenue of Braime Pressings has remained largely unchanged from the first half of 2007 and the losses in this company have not
been reduced. This is hugely disappointing.
Through no fault of our own, the start up of the new major product line for an automotive components supplier has been repeatedly
delayed by our customer but is now scheduled finally to come on stream from September 2008. We have made a significant capital investment in
this project and the long delay has had a serious effect on the performance of Braime Pressings both in 2007 and 2008. Equally, once this
project commences, it will have a substantial long term positive impact both on the result of Braime Pressings and of the group.
Relocation
While the company is still receiving enquiries from parties interested in developing our site in Leeds, the effect of the downturn in
the housing market makes it unlikely that a realistic offer, based on the primarily residential brief approved by the planning officers,
will be forthcoming in the foreseeable future. The company still wishes to relocate its manufacturing business to more economic premises, as
soon as this becomes a viable option, and continues to explore other alternatives.
Outlook
The UK economy appears to be entering a recession and across the world the huge inflation in commodity prices is creating economic
instability. In spite of this unfavourable general economic background, the directors believe that the group will be able to continue the
progress made over the past 18 months.
Condensed Consolidated Income Statement for the six months ended 30th June 2008
30th June 2008 30th June 2007 31st December 2007
� � �
(unaudited) (unaudited) (audited)
Revenue 7,277,564 5,887,371 11,838,813
Profit from operations 152,203 78,025 167,352
Finance costs (161,247) (162,913) (321,762)
Finance income 133,623 151,996 292,467
Result for the period before 124,579 67,108 138,057
tax
Tax expense @ 28% (2007 - 30%) (34,882) (20,132) (128,793)
for interim figures
Net result for the period 89,697 46,976 9,264
Basic profit per share 6.23p 3.26p 0.01p
Condensed Consolidated Statement of Recognised Income and Expense for the six months ended 30th June 2008
30th June 2008 30th June 2007 31st December 2007
� � �
(unaudited) (unaudited) (audited)
Exchange difference on 1,236 (9,684) 17,557
translation of foreign
operations
Actuarial gains recognised - - 118,000
directly in equity
Total income and expense 1,236 (9,684) 135,557
recognised in equity
Net income/(expense) 1,236 (9,684) 135,557
recognised in equity
Profit for period 89,697 46,976 9,264
Total recognised income and 90,933 37,292 144,821
expense for the period
Attributable to:
Equity holders of T.F. & J.H. 90,933 37,292 144,821
Braime (Holdings) P.L.C.
Consolidated Balance Sheet at 30th June 2008
30th June 2008 30th June 2007 31st December
2007
� � �
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Property, plant and equipment 802,916 689,748 862,998
Employee benefits 74,000 - 97,000
Total non-current assets 876,916 689,748 959,998
Current assets
Inventories 2,656,962 2,521,209 2,535,671
Trade and other receivables 3,315,784 3,001,803 2,713,165
Cash and cash equivalents 1,419,603 1,429,619 1,493,734
Total current assets 7,392,349 6,952,631 6,742,570
Total assets 8,269,265 7,642,379 7,702,568
Liabilities
Current liabilities
Bank overdraft 1,368,047 1,294,875 1,387,668
Trade and other payables 2,604,927 2,346,046 2,162,084
Other financial liabilities 273,114 182,166 231,645
Corporation tax liability 34,882 20,132 35,667
Total current liabilities 4,280,970 3,843,219 3,817,064
Non-current liabilities
Financial liabilities 349,212 327,539 337,354
Employee benefits - 31,000 -
Total non-current liabilities 349,212 358,539 337,354
Total liabilities 4,630,182 4,201,758 4,154,418
Total net assets 3,639,083 3,440,621 3,548,150
Capital and reserves
attributable to equity holders
of the parent company
Share capital 360,000 360,000 360,000
Capital reserve 77,319 77,319 77,319
Foreign exchange reserve (7,756) (36,233) (8,992)
Retained earnings 3,209,520 3,039,535 3,119,823
Total equity 3,639,083 3,440,621 3,548,150
Consolidated Cash Flow Statement for the six months ended 30thJune 2008
31st December
30th June 2008 30th June 2007 2007
� � �
(unaudited) (unaudited) (audited)
Operating activities
Net profit from ordinary 89,697 46,976 9,264
activities
Adjustments for:
Depreciation 105,021 88,493 168,183
Grants amortised (828) (828) (1,656)
Foreign exchange 1,246 (9,810) 19,535
gains/(losses)
Investment income (133,623) (151,996) (292,467)
Interest expense 161,247 162,913 321,762
Gain on sale of plant, - - (6,123)
machinery and motor vehicles
Income tax expense 34,882 20,132 128,793
Operating profit before 167,945 108,904 338,027
changes in working capital and
provisions
Increase in trade and other (602,619) (390,066) (153,188)
receivables
Increase in inventories (121,291) (323,287) (337,749)
Increase in trade and other 454,170 499,254 327,326
payables
(Increase)/decrease in 27,000 34,000 35,000
provisions and employee
benefits
(242,740) (180,099) (128,611)
Cash generated from operations 14,902 (24,219) 218,680
Income taxes paid (35,667) (33,063) (131,397)
Investing activities
Purchases of plant, machinery (32,657) (53,682) (163,474)
and motor vehicles
Sale of plant, machinery and 35,843 8,922 10,375
motor vehicles
Interest received 28,623 27,996 59,467
31,809 (16,764) (93,632)
Financing activities
Repayment of hire purchase (47,597) (20,500) (56,026)
creditors
Interest paid (60,247) (53,913) (114,762)
Loan received 42,300 - -
(65,544) (74,413) (170,788)
Decrease in cash and cash (54,500) (148,459) (177,137)
equivalents
Cash and cash equivalents 106,066 283,203 283,203
(including overdrafts),
beginning of period
Cash and cash equivalents 51,566 134,744 106,066
(including overdrafts), end of
period
Notes to the interim financial report
Accounting policies
Basis of preparation
This 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 2007 and those which management expects to apply in the group's full financial statements to 31st
December 2008.
This interim financial report in 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 2007 but is derived from the accounts. Statutory accounts for
the period ended 31st December 2007 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 237(2) or (3) Companies Act 1985.
4th September 2008
For further information please contact:
T.F. & J.H. Braime (Holdings) P.L.C.
David H. Brown FCA - Financial Director
0113 245 7491
W. H. Ireland Limited
Katy Mitchell LLB
0113 3946628
This information is provided by RNS
The company news service from the London Stock Exchange
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