Braime Holdings Regulatory News (BMT)

3 Apr 2007 17:18

Braime (T.F.& J.H.) (Hldgs) PLC03 April 2007 At a meeting of the directors held here today, the accounts for the year ended31st December 2006 were submitted and approved by the directors. Thepreliminary profits statement is as follows: Consolidated Income Statement for the year ended 31st December 2006 Note 2006 2005 £ £Revenue 11,119,745 9,699,124 Changes in inventories of finished goods andwork in progress 4,676 383,972Raw materials and consumables used (6,011,478) (5,250,183)Employee benefits costs (3,225,406) (3,098,576)Depreciation expense (125,623) (114,728)Other expenses (1,887,710) (1,870,790) Loss from operations (125,796) (251,181) Finance costs (282,913) (244,903)Finance income 292,509 267,643 Loss before tax (116,200) (228,441) UK corporation tax 12,800 13,289Foreign corporation tax (83,976) (82,579) Loss for the year attributable to (187,376) (297,731)shareholders Basic loss per share 1 (13.0p) (20.7p) Consolidated Statement of Recognised Income and Expense for the year ended 31st December 2006 2006 2005 £ £Foreign exchange gains/(losses) on re-translation of overseas operations (35,370) 17,958Actuarial gains and losses recognised directly in equity 73,000 (163,000) Total income and expense recognised in equity 37,630 (145,042) Loss for the year (187,376) (297,731) Total recognised income and expense for the year (149,746) (442,773) Consolidated Balance Sheet at 31st December 2006 Note 2006 2006 2005 2005 £ £ £ £ AssetsNon-current assetsProperty, plant and 733,481 737,867equipmentTotal non-current 733,481 737,867assets Current assetsInventories 2,197,922 2,342,363Trade and other 2,611,737 1,832,979receivablesCash and cash 1,629,317 1,567,840equivalentsTotal current assets 6,438,976 5,743,182 Total assets 7,172,457 6,481,049 LiabilitiesCurrent liabilitiesBank overdraft 1,346,114 1,410,300Trade and other 1,846,792 861,945payablesOther financial 182,292 177,170liabilitiesCorporation tax 33,063 33,033liabilityTotal current 3,408,261 2,482,448liabilities Non-currentliabilitiesFinancial liabilities 348,867 347,526Employee benefits 12,000 98,000Total non-current 360,867 445,526liabilities Total liabilities 3,769,128 2,927,974 Total net assets 3,403,329 3,553,075 Capital and reservesattributable to equityholders of the parentcompanyShare capital 360,000 360,000Capital reserve 77,319 77,319Foreign exchange (26,549) 8,821reserveRetained earnings 2,992,559 3,106,935 Total equity 2 3,403,329 3,553,075 Consolidated Cash Flow Statement for the year ended 31st December 2006 Note 2006 2006 2005 2005 £ £ £ £Operating activitiesNet loss from ordinary (187,376) (297,731)activitiesAdjustments for:Depreciation 125,623 114,728Grants amortised (1,656) (1,656)Foreign exchange (losses)/ (34,791) 14,919gainsInvestment income (292,509) (267,643)Interest expense 282,913 244,903Gain on sale of plant, (9,394) (6,216)machinery and motor vehicles Income tax expense 71,176 69,290Operating profit before 141,362 168,325changes in working capital and provisions (Increase)/decrease in (726,998) 595,747trade and other receivables Decrease/(increase) in 144,441 (226,682)inventoriesIncrease/(decrease) in 982,205 (206,464)trade and other payables Decrease in provisions and 36,000 52,000employee benefits 435,648 214,601 Cash generated from 389,634 85,195operations Income taxes paid (71,146) (39,576) Investing activitiesPurchases of plant, (142,730) (142,306)machinery and motor vehicles Sale of plant, machinery 30,308 6,768and motor vehicles Interest received 48,509 47,643 (63,913) (87,895) Financing activitiesRepayment of hire purchase (40,999) (35,313)creditorsInterest paid (87,913) (56,903)Dividends paid to equity - (43,200)shareholders (128,912) (135,416)Increase/(decrease) in 125,663 (177,692)cash and cash equivalents Cash and cash equivalents, 157,540 335,232beginning of period Cash and cash equivalents, 283,203 157,540end of period Notes 1. Earnings per share and dividends Both the basic and diluted earnings per share have been calculated using the netresults attributable to shareholders of T.F. & J.H. Braime (Holdings) P.L.C. asthe numerator. The weighted average number of outstanding shares used for basic earnings pershare amounted to 1,440,000 (2005 - 1,440,000). There are no potentiallydilutive shares in issue. During the twelve months to 31st December 2006, T.F. & J.H. Braime (Holdings)P.L.C. paid dividends of £Nil to its equity shareholders (2005 - £43,200). Thisrepresents a payment of 0.00p per share (2005 - 3.0p per share). 2. Changes in shareholders' equity 2006 2005 £ £ Total recognised income and expense (149,746) (442,773) Equity dividends paid - (43,200) Capital and reserves attributable to equity holders 3,553,075 4,039,048 of the parent company at the beginning of the period Capital and reserves attributable to equity holders 3,403,329 3,553,075 of the parent company at the end of the period 3. Cash and cash equivalents 2006 2005 £ £ Cash at bank and in hand 1,629,317 1,567,840 Bank overdrafts 1,346,114 1,410,300 283,203 157,540 4. Major non-cash transaction During the year the group acquired £156,450 of tangible assets under hirepurchase agreements. 5. Basis of preparation The results incorporated in the preliminary announcement have been prepared inaccordance with International Financial Reporting Standards (IFRS and IFRICinterpretations) issued by the International Accounting Standards Board (IASB)as adopted by the EU and with those parts of the Companies Act 1985 applicableto companies preparing their accounts under IFRS. The financial information set out above does not constitute the company'sstatutory accounts for the years ended 31st December 2006 or 2005. Statutoryaccounts for 2005 have been delivered to the Registrar of Companies. Thestatutory accounts for 2006 will be delivered to the Registrar of Companiesfollowing the company's annual general meeting. The auditors have reported onthe 2006 and 2005 accounts; their reports were unqualified, did not includereferences to any matters to which the auditors drew attention by way ofemphasis without qualifying their reports and did not contain a statement underS237(2) or (3) of the Companies Act 1985. Chairman's statement Review of business Although group sales increased by 15% to £11.12m (2005 - £9.70m), the group madea loss before tax of £116,000 for the year ending 31st December 2006, comparedto a loss of £228,000 in 2005. After incurring tax of £71,000 on profits madein the USA, this loss increased to £187,000 (2005 - £298,000). While this result is very disappointing, the loss in 2006 was largely due to theone off costs involved in the necessary restructuring of the business.Moreover, the result for the whole year indicates a significant improvement fromthe position at the half year, when the pre-tax loss for the first six monthsending 30th June 2006 stood at £218,000. Following the changes in our manufacturing operation put in place in 2006, thegroup is on course to return to profit in 2007, providing other groupsubsidiaries continue to meet forecasts. Nevertheless, in view of the result for 2006, the directors have decided, withregret, that it would not be prudent to pay a dividend to the Ordinary and 'A'Ordinary shareholders. Braime Pressings Limited The trading position of Braime Pressings Limited continued to deteriorate in theearly part of 2006 as a result of falling sales volume as yet more of ourtraditional customer base either resourced requirements overseas or closed theirUK manufacturing operations altogether. The loss from trading was exacerbatedby the exceptional costs of redundancies and restructuring undertaken tosignificantly reduce our overheads. The sudden and rapid exodus of so much of UK engineering has proved an enormouschallenge to the business; our customer list today is almost entirely differentfrom three years ago. Our strategy is to seek out major new partners amongcompanies who do remain committed to manufacturing in the UK and who can be seento be actively continuing to invest in their UK facilities and, with them, tosign long term agreements which enable us to invest with confidence in costeffective dedicated machinery. We also continue to look for products whichinvolve assembly and offer higher added value. We are currently investing in the installation of two large automated productioncells to supply two new major customers. We are also in the process ofinstalling a new management information system which will give us much tightercontrol over all elements of our manufacturing. New valuable work was securedin 2006 and a second major new contract will come on stream in 2007. This newhigh volume business, combined with our reduction in overheads and improvementsin productivity, should significantly improve the future trading position ofBraime Pressings Limited. Braime Elevator Components Limited The company had an excellent year, benefiting from sales increases which wereconcentrated on newer product lines, particularly electronic monitoring sensorsand systems. Along with the other subsidiaries distributing our range of material handlingcomponents under the 4B brand, the company has benefited from the investment inour website. Major new contracts for monitoring systems have already been secured for 2007and consequently we expect a further improvement in profitability in the currentyear. Sarl S.E.T.E.M. (France and Germany) Sales increased by 50%. A much improved result was spoilt by an exceptionalloss caused when our largest customer went into administration. Despite thisset back, Setem is expected to make further progress in 2007. 4B Elevator Components Limited (USA) Overall sales grew by 16%, primarily due to the continuing and substantial yearon year growth in the sales of our monitoring systems. Having strengthened theteam supporting the sales and servicing of these products, we expect this trendto continue in 2007, albeit at a slower rate. Cash flow and debt Given the unwelcome combination of two years of consecutive group losses and theneed to continue to pay tax on profits made in the USA, we have had to pay veryparticular attention to our cash flow and to the management of our debt. Despite an increase in group turnover, we have been successful in significantlyreducing stocks of raw material in our manufacturing business, while maintainingfinished stocks across the group at levels marginally below those in 2005,creating a net reduction in total group inventories of £144,000. The consolidated balance sheet shows a net increase of £230,000 in our currentliabilities less current assets. This is primarily a result of the significantgrowth in sales in the last quarter of 2006 compared to 2005. The cash flowstatement shows a positive improvement in our position of £126,000. During the year, we re-negotiated our borrowings with National Westminster Bankby replacing some of our previous overdraft facilities with an invoicediscounting facility. This has both reduced the cost of servicing our debt andgiven us more flexibility. We are operating well within our borrowing facilityand our forecast for 2007 shows no substantial change in this position. Outlook We expect that all the subsidiaries selling 4B material handling components willmake further progress in 2007. The prospects for Braime Pressings Limited, our manufacturing business haveimproved following the restructuring undertaken during 2006. Significantadditional business has been found and we believe we now have a more securecustomer base. The challenge now is to bring the new business on stream and tosecure the necessary additional volume to restore this part of the group toprofit. Overall we believe that the group will return to profit in 2007. D. H. BrownCompany SecretaryT.F. & J.H. Braime (Holdings) P.L.C. 3rd April 2007 This information is provided by RNS The company news service from the London Stock Exchange