Braime Holdings Regulatory News (BMT)

28 Apr 2006 14:31

Braime (T.F.& J.H.) (Hldgs) PLC28 April 2006 At a meeting of the directors held here today, the accounts for the year ended31st December 2005 were submitted and approved by the directors. Thepreliminary 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 116Foreign 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) 365,000Total 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 £ £ £ £AssetsNon-current assetsProperty, plant and equipment 737,867 555,488Employee benefits - 85,000Total non-current assets 737,867 640,488 Current assetsInventories 2,342,363 2,115,681Trade and other receivables 1,832,979 2,450,028Cash and cash equivalents 1,567,840 1,415,832Total current assets 5,743,182 5,981,541 Total assets 6,481,049 6,622,029 LiabilitiesCurrent liabilitiesBank overdraft 1,410,300 1,080,600Trade and other payables 861,945 1,083,030Other financial liabilities 177,170 151,588Corporation tax liability 33,033 10,000Total current liabilities 2,482,448 2,325,218 Non-current liabilitiesFinancial liabilities 347,526 257,763Employee 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 parentcompanyShare capital 360,000 360,000Capital reserve 77,319 77,319Foreign 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 activitiesResult for the year before interest and tax (251,181) 21,927 AdjustmentsChanges in inventories (226,682) (225,482)Change in trade and other receivables 595,747 (549,681)Change in trade and other payables (206,464) 94,690Employer contribution (118,000) (110,000)Current service cost 170,000 156,000Depreciation 114,728 64,397(Profit)/loss on sale of fixed assets (6,216) 346Grants amortised (1,656) (1,656)Taxes paid (39,576) (27,059)Taxes recovered - 21,185Foreign exchange differences 14,919 (8,757) 296,800 (586,017) Investing activitiesAdditions to property, plant and equipment (142,306) (37,841)Proceeds from disposals of property, plant and equipment 6,768 8,626Interest received 47,643 50,363 (87,895) 21,148 Financing activitiesRepayment 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 3 335,232 968,012Net 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 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 (2004 - 1,440,000). There are no potentiallydilutive 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). Unaudited2. 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 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 within the meaning of section 240 of the Companies Act 1985.The 2005 figures are based on unaudited accounts for the year ended 31stDecember 2005. The auditors do not expect to issue a qualified report on thestatutory accounts which will be finalised on the basis of the financialinformation presented by the directors in the preliminary announcement and whichwill be delivered to the Registrar of Companies following the company's annualgeneral meeting. The 2004 comparatives have been adjusted in accordance with IFRS, a fullexplanation of which will appear in the statutory accounts. No final dividendwill be proposed at the annual general meeting which will be held on Friday 16thJune 2006. Review of business The group made a loss, before tax, of £228,000 for the year ending 31st December2005, compared to a profit of £45,000 in 2004. After paying tax of £69,000 onprofits made in the USA, this loss increased to £297,000, compared to the smallafter tax profit of £30,000 in 2004. Braime Pressings Limited After a positive start to the year, sales fell away sharply as short-termseasonal 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 thesale of outsourced tooling, margins on manufacturing suffered badly mainly dueto large increases in raw material costs which could not be fully passed on tocustomers, and the company made a large loss. A number of initiatives have beentaken 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 continuedto be squeezed by very fierce competition in the market for our principalproduct, elevator buckets. A significant investment was made in a new web site www.go4b.com. This willbenefit all the group subsidiaries supplying components to the bulk materialhandling industry by promoting the group's products. As of April 2006, the company has been appointed by a French group, MLT, astheir exclusive UK distributor for a range of conveyor belt fasteners for supplyto our existing customer base, providing extra benefit for a relatively lowinvestment in stock and additional marketing. Sarl S.E.T.E.M. Against a background of the very difficult economic conditions prevailing inFrance, particularly in the agricultural sector, sales at SETEM fell by 13%.This coincided with a significant investment made in opening a branch office inGermany. Due to a legal dispute, now resolved, the effective start up of thisoffice was severely hampered for the first six months of 2005. The effect oflower sales in France, investment in a new major product line and the highinvestment in the new office in Germany combined to create a large loss atSETEM. Sales in both France and export are now running at significantly higher levelsthan at this time last year and the new German office will more than cover itscosts in 2006. 4B Sudamerica S.A. Sales did not advance. The Argentinean peso remains weak. This continuingsituation makes it extremely difficult to compete against local manufacturers.Although both the level of activity and the results at 4B SA has no effect ofsignificance on the group, we have decided to re-structure our activities.While we will continue to manufacture plastic buckets there for re-export, wewill withdraw from our distribution activities within Argentina. 4B Elevator Components Limited Our US subsidiary enjoyed a very good year. Sales increased by 12% and thisresulted in a significant improvement in the level of profit. Margins alsobenefited from the strengthening of the US Dollar. The new year has begun very strongly and we expect sales to be boosted stillfurther by the improvements and additions to our product range, which we plan tolaunch later this year. Outlook Sales have begun positively in all the group subsidiaries whose principalactivity is the sale of components to the bulk handling industry and we expectthese subsidiaries to have a successful year. The market for presswork remains difficult. The re-structuring that is beingundertaken puts the company in a better position to secure profitable long-termnew business and to return the overall business to profit. The company's auditors have agreed to this statement being notified to aregulatory 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