Last checked at 19 Sep 2017 16:11
T.F. & J.H. Braime (Holdings) P.L.C.
("Braime" or the "Company")
Interim Results for the six months ended 30th June 2017
Performance
Group sales revenue for the first six months of 2017 increased by 14% to £15.54M from £13.62M, while profit before tax increased by 28.2 % to £0.59M from £0.46M for the comparable period of 2016.
This performance is partly due to a general improvement in trading but was also enhanced by the fall in the value of Sterling from the higher levels prevailing in the early part of 2016, which increased the value of group earnings from overseas businesses when consolidated in Sterling.
Dividends
The directors have decided to increase the interim dividend to 3.10p per share. This dividend will be paid on 20th October to the Ordinary and 'A' Ordinary shareholders on the register on the 13th October 2017. The associated ex-dividend date will be 12th October 2017.
Braime Pressings Limited
Sales volume increased substantially but the short-term costs of meeting these increases in sales has been greater than expected and is a situation the directors are continuing to address.
The key to success in manufacturing, as always, lies in the continuous improvement in productivity.
4B division
Overall the subsidiaries in the material handling division have performed well with improvements in both sales and margins. Most of our markets in our sector, even in Europe, are gradually coming out of the recent recession.
Cash flow
The cash position at the start of the period was tight but has steadily improved and is expected to further improve in the second half of the year as the trade receivables are recovered in line with payment terms. The group is committed to some substantial investments and needs to finance these investments from cash flow until the new equipment is fully commissioned. The group continues to operate within its bank facility agreed with HSBC.
As the business continues to expand, the directors remain focused in ensuring that our working capital requirements, particularly for stock, are carefully monitored and controlled.
Forecast for the second half of 2017
The group overall is ahead of both last year and budget and currently we would expect the result for the full year to be ahead of 2016. However, our group, with so much of its earnings coming from overseas markets, is always exposed to the unpredictable fluctuations in global exchange rates and to the vagaries in individual markets.
For further information please contact:
T.F. & J.H. Braime (Holdings) P.L.C.
P. Tiffany - Financial Director
0113 245 7491
W. H. Ireland Limited
Katy Mitchell LLB
0113 394 6628
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated income statement
For the six months ended 30th June 2017
Note | Unaudited 6 months to 30th June 2017 | Unaudited 6 months to 30th June 2016 | Audited year to 31st December 2016 | |
£ | £ | £ | ||
Revenue | 15,540,422 | 13,619,008 | 28,415,449 | |
Changes in inventories of finished goods and work in progress |
(36,382) |
224,198 |
337,116 | |
Raw materials and consumables used | (8,413,376) | (7,625,329) | (15,890,401) | |
Employee benefits costs | (3,636,686) | (3,151,829) | (6,726,428) | |
Depreciation expense | (369,231) | (390,290) | (801,376) | |
Other expenses | (2,426,300) | (2,148,239) | (3,940,015) | |
Profit from operations | 658,447 | 527,519 | 1,394,345 | |
Profit on disposal of tangible fixed assets | - | - | - | |
Finance costs | (68,417) | (64,523) | (150,142) | |
Finance income | 2,043 | 580 | 29,902 | |
Profit before tax | 592,073 | 463,576 | 1,274,105 | |
Tax expense | (178,576) | (139,289) | (419,588) | |
Profit for the period | 413,497 | 324,287 | 854,517 | |
Profit attributable to : | ||||
Owners of the parent | 448,429 | 384,521 | 932,101 | |
Non-controlling interests | (34,932) | (60,234) | (77,584) | |
413,497 | 324,287 | 854,517 | ||
Basic and diluted earnings per share | 2 | 28.72p | 22.52p | 59.34p |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of comprehensive income
For the six months ended 30th June 2017
Unaudited 6 months to 30th June 2017 | Unaudited 6 months to 30th June 2016 | Audited year to 31st December 2016 | |
£ | £ | £ | |
Profit for the period | 413,497 | 324,287 | 854,517 |
Items that will not be reclassified subsequently to profit or loss | |||
Net pension remeasurement gain on post employment benefits | - | - | 10,000 |
Items that may be reclassified subsequently to profit or loss | |||
Foreign exchange (losses)/gains on re-translation of overseas operations | (167,670) | (151,517) | 597,976 |
Other comprehensive income for the period | (167,670) | (151,517) | 607,976 |
Total comprehensive income for the period | 245,827 | 172,770 | 1,462,493 |
Total comprehensive income attributable to: | |||
Owners of the parent | 280,759 | 233,004 | 1,540,077 |
Non-controlling interests | (34,932) | (60,234) | (77,584) |
245,827 | 172,770 | 1,462,493 |
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 2017
Unaudited 6 months to 30th June 2017 | Unaudited 6 months to 30th June 2016 | Audited year to 31st December 2016 | |
£ | £ | £ | |
Non-current assets | |||
Property, plant and equipment | 5,232,599 | 5,285,297 | 5,357,772 |
Goodwill | 12,270 | 12,270 | 12,270 |
Financial assets | - | 26,180 | - |
Total non-current assets | 5,244,869 | 5,323,747 | 5,370,042 |
Current assets | |||
Inventories | 6,383,147 | 5,887,955 | 6,119,495 |
Trade and other receivables | 6,506,409 | 5,712,176 | 5,213,019 |
Financial assets | - | 50,918 | 51,877 |
Cash and cash equivalents | 13,933 | 1,243,172 | 742,474 |
Total current assets | 12,903,489 | 12,894,221 | 12,126,865 |
Total assets | 18,148,358 | 18,217,968 | 17,496,907 |
Current liabilities | |||
Bank overdraft | - | (1,517,675) | - |
Trade and other payables | (4,705,966) | (4,173,632) | (4,181,683) |
Other financial liabilities | (1,952,905) | (1,981,539) | (1,730,288) |
Corporation tax liability | (52,548) | (177,586) | (146,703) |
Total current liabilities | (6,711,419) | (7,850,432) | (6,058,674) |
Non-current liabilities | |||
Financial liabilities | (1,205,986) | (1,425,702) | (1,360,947) |
Deferred income tax liability | (117,724) | (230,235) | (117,724) |
Total non-current liabilities | (1,323,710) | (1,655,937) | (1,478,671) |
Total liabilities | (8,035,129) | (9,506,369) | (7,537,345) |
Total net assets | 10,113,229 | 8,711,599 | 9,959,562 |
Capital and reserves | |||
Share capital | 360,000 | 360,000 | 360,000 |
Capital reserve | 257,319 | 257,319 | 257,319 |
Foreign exchange reserve | 371,725 | (210,098) | 539,395 |
Retained earnings | 9,361,797 | 8,489,708 | 9,005,528 |
Total equity attributable to the shareholders of the parent company |
10,350,841 |
8,896,929 |
10,162,242 |
Non-controlling interests | (237,612) | (185,330) | (202,680) |
Total equity | 10,113,229 | 8,711,599 | 9,959,562 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated cash flow statement
For the six months ended 30th June 2017
|
Note | Unaudited 6 months to 30th June 2017 | Unaudited 6 months to 30th June 2016 | Audited year to 31st December 2016 | |
£ | £ | £ | |||
Operating activities | |||||
Net profit | 413,497 | 324,287 | 854,517 | ||
Adjustments for: | |||||
Depreciation | 369,231 | 390,290 | 801,376 | ||
Grants amortised | - | (6,568) | (6,568) | ||
Foreign exchange losses | (167,670) | (151,517) | 525,324 | ||
Finance income | (2,043) | (580) | (29,902) | ||
Finance expense | 68,417 | 64,523 | 150,142 | ||
Gain on sale of plant, machinery and motor vehicles | - | - | (12,538) | ||
Adjustment in respect of defined benefit scheme | - | - | 12,000 | ||
Income tax expense | 178,576 | 139,289 | 419,588 | ||
Income taxes paid | (272,731) | (28,557) | (491,778) | ||
Operating activities before changes in working capital and provisions |
587,277 |
731,167 |
2,222,161 | ||
Increase in trade and other receivables | (1,293,390) | (707,077) | (207,920) | ||
Increase in inventories | (263,652) | (168,301) | (399,841) | ||
Increase in trade and other payables | 780,374 | 444,450 | 272,025 | ||
(776,668) | (430,928) | (335,736) | |||
Cash generated from operations | (189,391) | 300,239 | 1,886,425 | ||
Investing activities | |||||
Purchases of property, plant, machinery and motor vehicles |
(126,770) |
(657,387) |
(998,617) | ||
Sale of plant, machinery and motor vehicles | - | - | 12,538 | ||
Interest received | 2,043 | 580 | 27,902 | ||
(124,727) | (656,807) | (958,177) | |||
Financing activities | |||||
Proceeds from long term borrowings | - | - | - | ||
Loan financing repaid | 51,877 | 32,556 | 57,777 | ||
Repayment of borrowings | (172,374) | (35,464) | (101,917) | ||
Repayment of hire purchase creditors | (133,349) | (77,204) | (176,432) | ||
Interest paid | (68,417) | (64,523) | (150,142) | ||
Dividends paid | (92,160) | (89,280) | (131,040) | ||
(414,423) | (233,915) | (501,754) | |||
Decrease in cash and cash equivalents | (728,541) | (590,483) | 426,494 | ||
Cash and cash equivalents, beginning of period | 742,474 | 315,980 | 315,980 | ||
Cash and cash equivalents (including overdrafts), end of period |
3 |
13,933 |
(274,503) |
742,474 | |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity
For the six months ended 30th June 2017
Share Capital |
Capital Reserve | Foreign Exchange Reserve |
Retained Earnings |
Total |
Minority Interests |
Total Equity | |
£ | £ | £ | £ | £ | £ | £ | |
Balance at 1st January 2017 |
360,000 |
257,319 |
539,395 |
9,005,528 |
10,162,242 |
(202,680) |
9,959,562 |
Comprehensive income | |||||||
Profit | - | - | - | 448,429 | 448,429 | (34,932) | 413,497 |
Other comprehensive income | |||||||
Foreign exchange losses on re- translation of overseas operations |
- |
- |
(167,670) |
- |
(167,670) |
- |
(167,670) |
Total other comprehensive income |
- |
- |
(167,670) |
- |
(167,670) |
- |
(167,670) |
Total comprehensive income |
- |
- |
(167,670) |
448,429 |
280,759 |
(34,932) |
245,827 |
Transactions with owners | |||||||
Dividends | - | - | - | (92,160) | (92,160) | - | (92,160) |
Total transactions with owners |
- |
- |
- |
(92,160) |
(92,160) |
- |
(92,160) |
Balance at 30th June 2017 |
360,000 |
257,319 |
371,725 |
9,361,797 |
10,350,841 |
(237,612) |
10,113,229 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity
For the six months ended 30th June 2017
Share Capital |
Capital Reserve | Foreign Exchange Reserve |
Retained Earnings |
Total |
Minority Interests |
Total Equity | |
£ | £ | £ | £ | £ | £ | £ | |
Balance at 1st January 2016 |
360,000 |
257,319 |
(58,581) |
8,194,467 |
8,753,205 |
(125,096) |
8,628,109 |
Comprehensive income | |||||||
Profit | - | - | - | 384,521 | 384,521 | (60,234) | 324,287 |
Other comprehensive income | |||||||
Foreign exchange losses on re- translation of overseas operations |
- |
- |
(151,517) |
- |
(151,517) |
- |
(151,517) |
Total other comprehensive income |
- |
- |
(151,517) |
- |
(151,517) |
- |
(151,517) |
Total comprehensive income |
- |
- |
(151,517) |
384,521 |
233,004 |
(60,234) |
172,770 |
Transactions with owners | |||||||
Dividends | - | - | - | (89,280) | (89,280) | - | (89,280) |
Total transactions with owners |
- |
- |
- |
(89,280) |
(89,280) |
- |
(89,280) |
Balance at 30th June 2016 |
360,000 |
257,319 |
(210,098) |
8,489,708 |
8,896,929 |
(185,330) |
8,711,599 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity - continued
For the six months ended 30th June 2017
Share Capital |
Capital Reserve | Foreign Exchange Reserve |
Retained Earnings |
Total |
Minority Interests |
Total Equity | |
£ | £ | £ | £ | £ | £ | £ | |
Balance at 1st January 2016 |
360,000 |
257,319 |
(58,581) |
8,194,467 |
8,753,205 |
(125,096) |
8,628,109 |
Comprehensive income | |||||||
Profit | - | - | - | 932,101 | 932,101 | (77,584) | 854,517 |
Other comprehensive income | |||||||
Net pension remeasurement gain recognised directly in equity |
- |
- |
- |
10,000 |
10,000 |
- |
10,000 |
Foreign exchange gains on re- translation of overseas operations |
- |
- |
597,976 |
- |
597,976 |
- |
597,976 |
Total other comprehensive income |
- |
- |
597,976 |
10,000 |
607,976 |
- |
607,976 |
Total comprehensive income |
- |
- |
597,976 |
942,101 |
1,540,077 |
(77,584) |
1,462,493 |
Transactions with owners | |||||||
Dividends | - | - | - | (131,040) | (131,040) | - | (131,040) |
Total transactions With owners |
- |
- |
- |
(131,040) |
(131,040) |
- |
(131,040) |
Balance at 31st December 2016 |
360,000 |
257,319 |
539,395 |
9,005,528 |
10,162,242 |
(202,680) |
9,959,562 |
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 2016 and those which management expects to apply in the group's full financial statements to 31st December 2017.
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 2016 but is derived from the accounts. Statutory accounts for the period ended 31st December 2016 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 2016, 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.
The weighted average number of outstanding shares used for basic earnings per share amounted to 1,440,000 (2016 - 1,440,000). There are no potentially dilutive shares in issue.
6 months to 30th June 2017 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 6.40p per share paid on 12th May 2017 | 30,720 |
'A' Ordinary shares | |
Interim of 6.40p per share paid on 12th May 2017 | 61,440 |
Total dividends paid | 92,160 |
Year to 31st December 2016 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 6.20p per share paid on 12th May 2016 | 29,760 |
Interim of 2.90p per share paid on 21st October 2016 | 13,920 |
43,680 | |
'A' Ordinary shares | |
Interim of 6.20p per share paid on 12th May 2016 | 59,520 |
Interim of 2.90p per share paid on 12th October 2016 | 27,840 |
87,360 | |
Total dividends paid | 131,040 |
T.F. & J.H. Braime (Holdings) P.L.C.
Notes to the interim financial report - continued
3. Cash and cash equivalents
Unaudited 6 months to 30th June 2017 | Unaudited 6 months to 30th June 2016 | Audited year to 31st December 2016 | |
£ | £ | £ | |
Cash at bank and in hand | 13,933 | 1,243,172 | 742,474 |
Bank overdrafts | - | (1,517,675) | - |
13,933 | (274,503) | 742,474 |
4. Segmental information
Unaudited 6 months to 30th June 2017 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 2,004,199 | 13,536,223 | 15,540,422 |
Inter company | 355,227 | 1,126,847 | 2,237,514 | 3,719,588 |
Total | 355,227 | 3,131,046 | 15,773,737 | 19,260,010 |
Profit | ||||
EBITDA | 236,409 | (624,192) | 1,415,461 | 1,027,678 |
Finance costs | (45,245) | (11,515) | (11,657) | (68,417) |
Finance income | 1,469 | 175 | 399 | 2,043 |
Depreciation | (206,932) | - | (162,299) | (369,231) |
Tax expense | - | - | (178,576) | (178,576) |
(Loss)/profit for the period | (14,299) | (635,532) | 1,063,328 | 413,497 |
Assets | ||||
Total assets | 4,000,762 | 709,717 | 13,437,878 | 18,148,357 |
Additions to non current assets | 222,479 | - | 21,579 | 244,058 |
Liabilities | ||||
Total liabilities | 980,330 | 2,185,462 | 4,869,336 | 8,035,128 |
T.F. & J.H. Braime (Holdings) P.L.C.
Notes to the interim financial report - continued
4. Segmental information - continued
Unaudited 6 months to 30th June 2016 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 1,793,834 | 11,825,174 | 13,619,008 |
Inter company | 111,138 | 1,036,547 | 1,785,464 | 2,933,149 |
Total | 111,138 | 2,830,381 | 13,610,638 | 16,552,157 |
Profit | ||||
EBITDA | 42,855 | (219,819) | 1,094,773 | 917,809 |
Finance costs | (27,760) | (17,133) | (19,630) | (64,523) |
Finance income | - | 267 | 313 | 580 |
Depreciation | (35,765) | (176,568) | (177,957) | (390,290) |
Tax expense | (13,072) | - | (126,217) | (139,289) |
(Loss)/profit for the period | (33,742) | (413,253) | 771,282 | 324,287 |
Assets | ||||
Total assets | 4,489,887 | 2,163,769 | 11,564,312 | 18,217,968 |
Additions to non current assets | - | 754,777 | 243,354 | 998,131 |
Liabilities | ||||
Total liabilities | 1,352,359 | 2,906,318 | 5,247,692 | 9,506,369 |
Audited year to 31st December 2016 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 3,564,987 | 24,850,462 | 28,415,449 |
Inter company | 472,671 | 2,659,476 | 4,443,233 | 7,575,380 |
Total | 472,671 | 6,224,463 | 29,293,695 | 35,990,829 |
Profit | ||||
EBITDA | (143,881) | 180,991 | 2,158,611 | 2,195,721 |
Finance costs | (73,959) | (25,867) | (50,316) | (150,142) |
Finance income | - | 2,489 | 27,413 | 29,902 |
Depreciation | (279,022) | (140,585) | (381,769) | (801,376) |
Tax expense | (40,740) | 98,242 | (477,090) | (419,588) |
(Loss)/profit for the period | (537,602) | 115,270 | 1,276,849 | 854,517 |
Assets | ||||
Total assets | 4,497,238 | 1,008,429 | 11,991,240 | 17,496,907 |
Additions to non current assets | 1,022,501 | - | 347,010 | 1,369,511 |
Liabilities | ||||
Total liabilities | 1,022,777 | 2,139,638 | 4,374,930 | 7,537,345 |