TIDMBMTO
RNS Number : 8439Z
Braime (T.F.& J.H.) (Hldgs) PLC
22 September 2015
INTERIM REPORT
FOR THE SIX MONTHS ENDED
30TH JUNE 2015
T.F. & J.H. Braime (Holdings) P.L.C.
Management commentary
For the six months ended 30th June 2015
Performance
Group sales revenue for the first six months of 2015 increased
by 11.6% to GBP13,487,000 (2014 - GBP12,088,000) but profit before
tax reduced from GBP513,000 to GBP406,000. Profit after tax fell to
GBP282,000 compared to GBP363,000 for the comparable period of
2014.
This decrease in the group result was largely caused by the
exceptional issues outlined in the divisional trading updates
below.
Dividends
The directors have decided to maintain the first interim
dividend at 2.90p per share (2014 - 2.90p). This dividend will be
paid on the 18th October 2015 to the Ordinary and `A` Ordinary
shareholders on the register on 9th October 2015. The associated
ex-dividend date will be 8th October 2015.
Braime Pressings Limited
Due to unanticipated technical problems with two of the recently
installed production lines, the company was initially unable to
achieve the production rates and the output expected from the two
standard shifts. This led to significant additional labour and
energy costs to satisfy increased demand. This fall in productivity
has slowly begun to be reversed but a substantial and continuing
improvement in productivity is essential for the company to return
to profitability.
Since April 2015, as part of the move to free the area of
buildings being sold to the Leeds Advanced Manufacturing UTC
Limited, who are building the University Technical College (UTC),
Braime Pressings faced exceptional costs of circa GBP110,000 in
condensing and improving its facilities. While major external costs
have been capitalised, these costs have been charged to the Income
Statement.
4B Division
All of the distribution companies in the 4B division, with the
exception of the UK, have enjoyed very positive starts to the year.
Our US division has benefited from the, albeit small, increase in
the value of the US Dollar and the corresponding fall in the costs
of its imported products.
Elsewhere, the fall of local currencies, relative to Sterling,
have reduced the positive effect of otherwise growing local sales
revenue in the consolidated result of the group.
During the period the UK part of our 4B division, operating in
the material handling market, has changed its name from Braime
Elevator Components Limited to 4B Braime Components Limited. This
change was made in order to better reflect the broader range of
products that it now manufactures and distributes
internationally.
4B Braime Components Limited
4B Braime Components makes a significant portion of its overall
sales directly to its exclusive distributors in Europe. These
prices are set in Euros at the start of each year. The Euro fell
against Sterling by about 15% in a very short time frame and this
had a large negative impact on the gross margin.
Overall the result for the first six months of 2015 was well
above the same period for last year but well below budget due to
the negative effect of the changes in exchange rates.
Cash and Investments
On the basis of the sale of 25% of the manufacturing site,
agreed early in 2015, for the planned UTC, the company is
re-investing circa GBP1,100,000, which is the majority of the
expected proceeds, in the modernisation of its UK facility.
T.F. & J.H. Braime (Holdings) P.L.C.
Management commentary - continued
For the six months ended 30th June 2015
Cash and Investments - continued
These improvements will have a positive effect on the operating
performance, particularly of our 4B division. The company has
already vacated the area needed for the UTC and the majority of the
modernisation work will be completed in October this year. The
funds raised by the sale are conditional on the UTC gaining
planning consent from Leeds City Council, this is expected by the
end of September. As a result of the need to finance our investment
in advance of completion of the sale, now expected in October 2015,
our cash flow has had to be very carefully managed and other
investment projects have had to be postponed.
Outlook
Revenues remain strong, although there has been a slowdown in
the UK operating subsidiaries in July and August. The principal
concerns remain the urgent need for productivity improvements in
our UK manufacturing business and the current level of exchange
rates and the corresponding negative effect this may have on the
final result for the year.
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated income statement
Interim results
For the six months ended 30th June 2015
-----------------
Unaudited Unaudited
6 months 6 months Audited
to to year to
Note 30th June 30th June 31st December
2015 2014 2014
GBP GBP GBP
------------------------------------ ------- ------------ ------------ ---------------
Revenue 13,487,175 12,088,143 24,291,700
Changes in inventories of finished
goods and work in progress 424,534 329,014 161,071
Raw materials and consumables
used (7,975,378) (7,087,247) (13,535,766)
Employee benefits costs (2,848,956) (2,481,461) (5,309,357)
Depreciation expense (342,441) (238,243) (564,244)
Other expenses (2,305,874) (2,041,763) (3,807,604)
------------------------------------ ------- ------------ ------------ ---------------
Profit from operations 439,060 568,443 1,235,800
Profit on disposal of tangible
fixed assets 14,750 - 2,796
Finance costs (53,505) (55,632) (115,291)
Finance income 5,870 43 2,164
------------------------------------ ------- ------------ ------------ ---------------
Profit before tax 406,175 512,854 1,125,469
Tax expense (123,833) (149,241) (343,340)
------------------------------------ ------- ------------ ------------ ---------------
Profit for the period 282,342 363,613 782,129
------------------------------------ ------- ------------ ------------ ---------------
Profit attributable to :
Owners of the parent 305,646 363,613 864,011
Non-controlling interests (23,304) - (81,882)
------------------------------------ ------- ------------ ------------ ---------------
282,342 363.613 782,129
------------------------------------ ------- ------------ ------------ ---------------
Basic and diluted earnings per
share 2 19.61p 25.25p 54.31p
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of comprehensive income
For the six months ended 30th June 2015
Unaudited Unaudited
6 months 6 months Audited
to to year to
30th June 30th June 31st December
2015 2014 2014
GBP GBP GBP
--------------------------------------------- ----------- ----------- ---------------
Profit for the period 282,342 363,613 782,129
--------------------------------------------- ----------- ----------- ---------------
Items that will not be reclassified
subsequently to profit or loss
Net remeasurement gain on post employment
benefits - - 44,000
Items that may be reclassified subsequently
to profit or loss
Foreign exchange (losses)/gains on
re-translation of overseas operations (167,627) (26,226) 10,819
Other comprehensive income for the
period (167,627) (26,226) 54,819
--------------------------------------------- ----------- ----------- ---------------
Total comprehensive income for the
period 114,715 337,387 836,948
--------------------------------------------- ----------- ----------- ---------------
Total comprehensive income attributable
to:
Owners of the parent 138,019 337,387 918,830
Non-controlling interests (23,304) - (81,882)
--------------------------------------------- ----------- ----------- ---------------
114,715 337,387 836,948
--------------------------------------------- ----------- ----------- ---------------
(MORE TO FOLLOW) Dow Jones Newswires
September 22, 2015 09:59 ET (13:59 GMT)
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 2015
Unaudited Unaudited Audited
6 months 6 months year to
to to 31st
30th June 30th June December
2015 2014 2014
GBP GBP GBP
Non-current assets
Property, plant and equipment 4,414,976 3,142,566 4,056,506
Goodwill 12,270 12,270 12,270
Financial assets 77,096 - 101,853
Total non-current assets 4,504,342 3,154,836 4,170,629
----------------------------------------------- ------------ ------------ ------------
Current assets
Inventories 5,218,773 5,112,346 4,888,183
Trade and other receivables 5,028,829 5,017,522 4,911,108
Financial assets 49,056 - 98,147
Cash and cash equivalents 801,577 720,100 1,357,769
----------------------------------------------- ------------ ------------ ------------
Total current assets 11,098,235 10,849,968 11,255,207
----------------------------------------------- ------------ ------------ ------------
Total assets 15,602,577 14,004,804 15,425,836
----------------------------------------------- ------------ ------------ ------------
Current liabilities
Bank overdraft 1,094,170 837,994 1,505,988
Trade and other payables 4,178,533 3,662,158 3,752,594
Other financial liabilities 1,278,021 1,241,095 1,323,095
Corporation tax liability 37,867 190,588 187,054
----------------------------------------------- ------------ ------------ ------------
Total current liabilities 6,588,591 5,931,835 6,768,731
----------------------------------------------- ------------ ------------ ------------
Non-current liabilities
Financial liabilities 1,442,491 1,037,833 1,111,045
Deferred income tax liability 191,623 116,000 191,623
----------------------------------------------- ------------ ------------ ------------
Total non-current liabilities 1,634,114 1,153,833 1,302,668
----------------------------------------------- ------------ ------------ ------------
Total liabilities 8,222,705 7,085,668 8,071,399
----------------------------------------------- ------------ ------------ ------------
Total net assets 7,379,872 6,919,136 7,354,437
----------------------------------------------- ------------ ------------ ------------
Capital and reserves
Share capital 360,000 360,000 360,000
Capital reserve 257,319 77,319 257,319
Foreign exchange reserve (79,386) 51,196 88,241
Retained earnings 6,947,125 6,430,621 6,730,759
----------------------------------------------- ------------ ------------ ------------
Total equity attributable to the shareholders
of the parent 7,485,058 6,919,136 7,436,319
Non-controlling interests (105,186) - (81,882)
----------------------------------------------- ------------ ------------ ------------
Total equity 7,379,872 6,919,136 7,354,437
----------------------------------------------- ------------ ------------ ------------
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated cash flow statement
For the six months ended 30th June 2015
Unaudited Unaudited Audited
6 months 6 months year to
to to 31st December
Note 30th June 30th June 2014
2015 2014
GBP GBP GBP
--------------------------------------- ------- ------------ ------------ ---------------
Operating activities
Net profit 282,342 363,613 782,129
--------------------------------------- ------- ------------ ------------ ---------------
Adjustments for:
Depreciation 342,441 238,243 564,244
Grants amortised (828) (828) (1,656)
Non-cash operating charges - - -
Foreign exchange (losses)/gains (163,125) (24,057) 15,279
Finance income (5,870) (43) (2,164)
Finance expense 53,505 55,632 115,291
Gain on sale of plant, machinery
and motor vehicles (14,750) - (2,796)
Adjustment in respect of defined benefit
scheme - - 46,000
Income tax expense 123,833 149,241 343,340
--------------------------------------- ------- ------------ ------------ ---------------
Operating activities before
changes in working capital and
provisions 617,548 781,801 1,859,667
--------------------------------------- ------- ------------ ------------ ---------------
Increase in trade and other receivables (117,721) (1,066,255) (1,044,846)
Increase in inventories (330,590) (293,146) (68,983)
Increase in trade and other
payables 276,825 991,247 1,114,877
(171,486) (368,154) 1,048
--------------------------------------- ------- ------------ ------------ ---------------
Cash generated from operations 446,062 413,647 1,860,715
--------------------------------------- ------- ------------ ------------ ---------------
Income taxes paid (273,020) (4,680) (41,685)
--------------------------------------- ------- ------------ ------------ ---------------
Investing activities
Purchases of property, plant, machinery
and motor vehicles (536,905) (263,599) (1,368,985)
Sale of plant, machinery and
motor vehicles 14,750 - 14,540
Interest received 5,870 43 164
--------------------------------------- ------- ------------ ------------ ---------------
(516,285) (263,556) (1,354,281)
--------------------------------------- ------- ------------ ------------ ---------------
Financing activities
Proceeds from long term borrowings 425,000 - 200,000
Loan financing repaid/(provided) 73,848 - (200,000)
Repayment of borrowings (99,351) (91,348) (272,688)
Repayment of hire purchase creditors (57,843) (103,327) (170,231)
Interest paid (53,505) (55,632) (115,291)
Dividend paid (89,280) (89,280) (131,040)
--------------------------------------- ------- ------------ ------------ ---------------
198,869 (339,587) (689,250)
--------------------------------------- ------- ------------ ------------ ---------------
Decrease in cash and cash equivalents (144,374) (194,176) (224,501)
Cash and cash equivalents, beginning
of period (148,219) 76,282 76,282
--------------------------------------- ------- ------------ ------------ ---------------
Cash and cash equivalents (including
overdrafts), end of period 3 (292,593) (117,894) (148,219)
--------------------------------------- ------- ------------ ------------ ---------------
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity
(MORE TO FOLLOW) Dow Jones Newswires
September 22, 2015 09:59 ET (13:59 GMT)
For the six months ended 30th June 2015
Foreign Non-Controlling
Share Capital Exchange Retained Interests Total
Capital Reserve Reserve Earnings Total Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1(st) January
2015 360,000 257,319 88,241 6,730,759 7,436,319 (81,882) 7,354,437
Comprehensive income
Profit - - - 305,646 305,646 (23,304) 282,342
Other comprehensive income
Net remeasurement gain - - - - - - -
recognised
directly in equity
Foreign exchange losses on
re-translation
of overseas operations - - (167,627) - (167,627) - (167,627)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total other comprehensive
income - - (167,627) - (167,627) - (167,627)
Total comprehensive income - - (167,627) 305,646 138,019 (23,304) 114,715
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Transactions with owners
Dividends - - - (89,280) (89,280) - (89,280)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total Transactions with
owners - - - (89,280) (89,280) - (89,280)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Balance at 30th June 2015 360,000 257,319 (79,386) 6,947,125 7,485,058 (105,186) 7,379,872
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity
For the six months ended 30th June 2015
Foreign Non-Controlling
Share Capital Exchange Retained Interests Total
Capital Reserve Reserve Earnings Total Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1(st) January
2014 360,000 77,319 77,422 6,156,288 6,671,029 - 6,671,029
Comprehensive income
Profit - - - 363,613 363,613 - 363,613
Other comprehensive income
Net remeasurement gain - - - - - - -
recognised
directly in equity
Foreign exchange losses on
re-translation
of overseas operations - - (26,226) - (26,226) - (26,226)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total other comprehensive
income - - (26,226) - (26,226) - (26,226)
Total comprehensive income - - (26,226) 363,613 337,387 - 337,387
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Transactions with owners
Dividends - - - (89,280) (89,280) -
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total Transactions with
owners - - - (89,280) (89,280) - (89,280)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Balance at 30th June 2014 360,000 77,319 51,196 6,430,621 6,919,136 - 6,919,136
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity - continued
For the six months ended 30th June 2015
Foreign Non-Controlling
Share Capital Exchange Retained Interests Total
Capital Reserve Reserve Earnings Total Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1(st) January
2014 360,000 77,319 77,422 6,156,288 6,671,029 - 6,671,029
Comprehensive income
Profit - - - 864,011 864,011 (81,882) 782,129
Other comprehensive income
Net remeasurement gain
recognised
directly in equity - - - 44,000 44,000 - 44,000
Foreign exchange losses on
re-translation
of overseas operations - - 10,819 - 10,819 - 10,819
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total other comprehensive
income - - 10,819 44,000 54,819 - 54,819
Total comprehensive income - - 10,819 908,011 918,830 (81,882) 836,948
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Transactions with owners
Dividends - - - (131,040) (131,040) - (131,040)
Cancellation of Preference
shares - 180,000 - (202,500) (22,500) - (22,500)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Total Transactions with
owners - 180,000 - (333,540) (153,540) - (153,540)
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
Balance at 31(st) December
2014 360,000 257,319 88,241 6,730,759 7,436,319 (81,882) 7,354,437
--------------------------- ---------- ---------- ---------- ----------- ---------- ---------------- ----------
T.F. & J.H. Braime (Holdings) P.L.C.
Notes to the interim financial report
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 2014 and those which
management expects to apply in the group's full financial
statements to 31st December 2015.
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 2014 but is derived from the accounts. Statutory
accounts for the period ended 31st December 2014 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 2014, 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.
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September 22, 2015 09:59 ET (13:59 GMT)
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