Last checked at 9 Sep 2014 15:57
T.F. & J.H. Braime (Holdings) P.L.C.
(the "Company")
Interim Results
For the six months ended 30th June 2014
Performance
Group sales revenue for the first six months of 2014 rose by 7.7% to £12,088,000 (2013 - £11, 224,000).
Profit before tax increased more substantially to £513,000 (2013 - £391,000), and profit after tax to £364,000 (2013 - £266,000). This improved performance was achieved against the background of a subdued global economy.
Dividends
The directors have decided to increase the next interim dividend from 2.40p in 2013 to 2.90p per share. This dividend will be paid on 17th October 2014 to the Ordinary and `A` Ordinary shareholders on the register on 3rd October 2014. The associated ex-dividend date will be 1st October 2014.
The decision to increase the dividend reflects the improvement in performance but the decision on the level of increase has been made to restore a better balance between the first and second interim dividends. It should not be taken as any indication that the second interim may be increased by a similar percentage.
Braime Pressings Limited
The performance of our manufacturing business continues to improve but at a slower rate than hoped. Most of the recent large investments in capital equipment have been commissioned and those that remain should be completed by the end of the current year. The challenge remains to fully capitalise on those investments and to achieve the necessary on going improvements in efficiency and profitability.
4B Division
Our distribution companies have enjoyed a positive start to the year. However, the rise in the value of Sterling has increased both the purchase cost in local currency of those products our subsidiaries import from the UK and reduces the value of the profits made when the subsidiary`s profits are translated back into Sterling for consolidation in the group accounts. This situation highlights the dependence of the group on exports which brings both considerable benefits - but also challenges.
Cash and Investments
The company was cash negative, using £194,000 more than it generated in the first six months. Inventories increased by £293,000, 6.1%, roughly in line with the increase in revenue, and there was a small increase in the difference between our trade assets and our liabilities needed to finance the higher sales revenue.
However, the main reason for the company being cash negative was the investment of £264,000, largely in machinery & equipment. The company continues its policy of investing in our production facilities in order to increase both the capacity and services we can offer to our customers and to improve the efficiency of our operations.
The director`s believe that the group has a strong financial position, access to borrowing facilities, where required for capital investment, and has the full support of our bankers for this policy.
Outlook
The directors believe that the trend of the past six months will continue in the second half of the year. The main concern currently is over the exchange rate and the effect this may have on the final result for the year. The exchange rates with our main markets is something over which we have no control, although the group takes steps to mitigate against the short term effects on our results as well as trying to reduce any long term negative impacts on our business.
For further information please contact:
T.F. & J.H. Braime (Holdings) P.L.C
M. L. Mills - 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
Interim results
For the six months ended 30th June 2014
Note | Unaudited 6 months to 30th June 2014 | Unaudited 6 months to 30th June 2013 | Audited year to 31st December 2013 | |
£ | £ | £ | ||
Revenue | 12,088,143 | 11,224,157 | 22,953,805 | |
Changes in inventories of finished goods and work in progress |
329,014 |
356,006 |
311,144 | |
Raw materials and consumables used | (7,087,247) | (6,760,517) | (12,942,829) | |
Employee benefits costs | (2,481,461) | (2,423,752) | (5,021,454) | |
Depreciation expense | (238,243) | (241,255) | (520,945) | |
Other expenses | (2,041,763) | (1,731,995) | (3,704,402) | |
Profit from operations | 568,443 | 422,644 | 1,075,319 | |
Profit on disposal of tangible fixed assets | - | 13,239 | 32,551 | |
Finance costs | (55,632) | (44,778) | (100,967) | |
Finance income | 43 | 274 | 3,330 | |
Profit before tax | 512,854 | 391,379 | 1,010,233 | |
Tax expense | (149,241) | (125,241) | (258,167) | |
Profit for the year attributable to equity shareholders of the parent company |
363,613 |
266,138 |
752,066 | |
Basic and diluted earnings per share | 2 | 25.25p | 18.48p | 52.23p |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of comprehensive income
For the six months ended 30th June 2014
Unaudited 6 months to 30th June 2014 | Unaudited 6 months to 30th June 2013 | Audited year to 31st December 2013 | |
£ | £ | £ | |
Profit for the period | 363,613 | 266,138 | 752,066 |
Items that will not be reclassified subsequently to profit or loss | |||
Remeasurement gain on post employment benefits | - | - | 6,000 |
Adjustment in respect of minimum funding requirement per IFRIC14 | - | - | 25,000 |
Items that may be reclassified subsequently to profit or loss | |||
Foreign exchange losses on re-translation of overseas operations | (26,226) | (24,516) |
(199,729) |
Other comprehensive income for the period | (26,226) | (24,516) | (168,729) |
Total comprehensive income for the period | 337,387 | 241,622 | 583,337 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated balance sheet
At 30th June 2014
Unaudited 6 months to 30th June 2014 | Unaudited 6 months to 30th June 2013 | Audited year to 31st December 2013 | |
£ | £ | £ | |
Non-current assets | |||
Property, plant and equipment | 3,142,566 | 2,531,097 | 3,119,378 |
Goodwill | 12,270 | 12,270 | 12,270 |
Total non-current assets | 3,154,836 | 2,543,367 | 3,131,648 |
Current assets | |||
Inventories | 5,112,346 | 4,794,271 | 4,819,200 |
Trade and other receivables | 5,017,522 | 4,597,832 | 3,948,734 |
Cash and cash equivalents | 720,100 | 637,041 | 567,226 |
Total current assets | 10,849,968 | 10,029,144 | 9,335,160 |
Total assets | 14,004,804 | 12,572,511 | 12,466,808 |
Current liabilities | |||
Bank overdraft | 837,994 | 392,403 | 490,944 |
Trade and other payables | 3,662,158 | 3,221,111 | 3,146,004 |
Other financial liabilities | 1,241,095 | 1,285,701 | 828,414 |
Corporation tax liability | 190,588 | 119,714 | 43,494 |
Total current liabilities | 5,931,835 | 5,018,929 | 4,508,856 |
Non-current liabilities | |||
Financial liabilities | 1,037,833 | 1,189,708 | 1,170,923 |
Deferred income tax liability | 116,000 | - | 116,000 |
Total non-current liabilities | 1,153,833 | 1,189,708 | 1,286,923 |
Total liabilities | 7,085,668 | 6,208,637 | 5,795,779 |
Total net assets | 6,919,136 | 6,363,874 | 6,671,029 |
Capital and reserves | |||
Share capital | 360,000 | 360,000 | 360,000 |
Capital reserve | 77,319 | 77,319 | 77,319 |
Foreign exchange reserve | 51,196 | 252,635 | 77,422 |
Retained earnings | 6,430,621 | 5,673,920 | 6,156,288 |
Total equity attributable to equity shareholders of the company |
6,919,136 |
6,363,874 |
6,671,029 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated cash flow statement
For the six months ended 30th June 2014
|
Note | Unaudited 6 months to 30th June 2014 | Unaudited 6 months to 30th June 2013 | Audited year to 31st December 2013 | |
£ | £ | £ |
| ||
Operating activities |
| ||||
Net profit from ordinary activities | 363,613 | 266,137 | 752,066 |
| |
| |||||
Adjustments for: |
| ||||
Depreciation | 238,243 | 241,255 | 520,945 |
| |
Grants amortised | (828) | (828) | (1,656) |
| |
Non-cash operating charges | - | - | 56,000 |
| |
Foreign exchange losses | (24,057) | (30,871) | (186,189) |
| |
Finance income | (43) | (274) | (3,330) |
| |
Finance expense | 55,632 | 44,778 | 100,967 |
| |
Gain on sale of plant and equipment | - | (13,239) | (32,551) |
| |
Adjustment in respect of defined benefit scheme | - | - | 34,000 |
| |
Income tax expense | 149,241 | 125,241 | 258,167 |
| |
Operating profit before changes in working capital and provisions |
781,801 |
632,199 |
1,498,419 |
| |
| |||||
Increase in trade and other receivables | (1,066,255) | (1,378,117) | (718,157) |
| |
Increase in inventories | (293,146) | (406,968) | (431,897) |
| |
Increase in trade and other payables | 991,247 | 1,084,954 | 590,038 |
| |
| |||||
(368,154) | (700,131) | (560,016) |
| ||
| |||||
Cash generated from operations | 413,647 | (67,932) | 938,403 |
| |
| |||||
Income taxes paid | (4,680) | (5,527) | (109,535) |
| |
| |||||
Investing activities |
| ||||
Purchases of property, plant, machinery and motor vehicles |
(263,599) |
(1,272,127) |
(2,205,287) |
| |
Sale of land and buildings, plant, machinery and motor vehicles |
- |
13,239 |
32,551 |
| |
Interest received | 43 | 274 | 330 |
| |
| |||||
(263,556) | (1,258,614) | (2,172,406) |
| ||
| |||||
Financing activities |
| ||||
Proceeds from long term borrowings | - | 890,443 | 1,081,989 |
| |
Repayment of borrowings | (91,348) | (6,782) | (141,574) |
| |
Repayment of hire purchase creditors | (103,327) | (118,203) | (241,099) |
| |
Interest paid | (55,632) | (44,778) | (100,967) |
| |
Dividend paid | (89,280) | (77,760) | (112,320) |
| |
| |||||
(339,587) | 642,920 | 486,029 |
| ||
| |||||
Decrease in cash and cash equivalents | (194,176) | (689,153) | (857,509) |
| |
Cash and cash equivalents (including overdrafts), beginning of period |
|
76,282 |
933,791 |
933,791 |
|
Cash and cash equivalents (including overdrafts), end of period |
3 |
(117,894) |
244,638 |
76,282 |
|
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity
For the six months ended 30th June 2014
Share Capital |
Capital Reserve | Foreign Exchange Reserve |
Retained Earnings |
Total | |
£ | £ | £ | £ | £ | |
Balance at 1st January 2014 | 360,000 | 77,319 | 77,422 | 6,156,288 | 6,671,029 |
Comprehensive income | |||||
Profit | - | - | - | 363,613 | 363,613 |
Other comprehensive income | |||||
Remeasurement gain recognised directly in equity |
- |
- |
- |
- |
- |
Foreign exchange losses on re-translation of overseas operations |
- |
- |
(26,226) |
- |
(26,226) |
Adjustment in respect of minimum funding requirement per IFRIC14 |
- |
- |
- |
- |
- |
Total other comprehensive income |
- |
- |
(26,226) |
- |
(26,226) |
Total comprehensive income | - | - | (26,226) | 363,613 | 337,387 |
Transaction with owners | |||||
Dividends | - | - | - | (89,280) | (89,280) |
Total transactions with owners | - | - | - | (89,280) | (89,280) |
Balance at 30th June 2014 | 360,000 | 77,319 | 51,196 | 6,430,621 | 6,919,136 |
Balance at 1st January 2013 | 360,000 | 77,319 | 277,151 | 5,485,542 | 6,200,012 |
Comprehensive income | |||||
Profit | - | - | - | 266,138 | 266,138 |
Other comprehensive income | |||||
Remeasurement gain recognised directly in equity |
- |
- |
- |
- |
- |
Foreign exchange losses on re-translation of overseas operations |
- |
- |
(24,516) |
- |
(24,516) |
Adjustment in respect of minimum funding requirement per IFRIC14 |
- |
- |
- |
- |
- |
Total other comprehensive income |
- |
- |
(24,516) |
- |
(24,516) |
Total comprehensive income | - | - | (24,516) | 266,138 | 241,622 |
Transaction with owners | |||||
Dividends | - | - | - | (77,760) | (77,760) |
Total transactions with owners | - | - | - | (77,760) | (77,760) |
Balance at 30th June 2013 | 360,000 | 77,319 | 252,635 | 5,673,920 | 6,363,874 |
T.F. & J.H. Braime (Holdings) P.L.C.
Consolidated statement of changes in equity - continued
For the six months ended 30th June 2014
Share Capital |
Capital Reserve | Foreign Exchange Reserve |
Retained Earnings |
Total | |
£ | £ | £ | £ | £ | |
Balance at 1st January 2013 | 360,000 | 77,319 | 277,151 | 5,485,542 | 6,200,012 |
Comprehensive income | |||||
Profit | - | - | - | 752,066 | 752,066 |
Other comprehensive income | |||||
Remeasurement gain recognised directly in equity |
- |
- |
- |
6,000 |
6,000 |
Foreign exchange losses on re-translation of overseas operations |
- |
- |
(199,729) |
- |
(199,729) |
Adjustment in respect of minimum funding requirement per IFRIC14 |
- |
- |
- |
25,000 |
25,000 |
Total other comprehensive income |
- |
- |
(199,729) |
31,000 |
(168,729) |
Total comprehensive income | - | - | (199,729) | 783,066 | 583,337 |
Transaction with owners | |||||
Dividends | - | - | - | (112,320) | (112,320) |
Total transactions with owners | - | - | - | (112,320) | (112,320) |
Balance at 31st December 2013 | 360,000 | 77,319 | 77,422 | 6,156,288 | 6,671,029 |
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 2013 and those which management expects to apply in the group's full financial statements to 31st December 2014.
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 2013 but is derived from the accounts. Statutory accounts for the period ended 31st December 2013 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 2013, 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 (2013 - 1,440,000). There are no potentially dilutive shares in issue.
6 months to 30th June 2014 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 6.20p per share paid on 4th April 2014 | 29,760 |
'A' Ordinary shares | |
Interim of 6.20p per share paid on 4th April 2014 | 59,520 |
Total dividends paid | 89,280 |
Year to 31st December 2013 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 5.40p per share paid on 4th April 2013 | 25,920 |
Interim of 2.40p per share paid on 9th October 2013 | 11,520 |
37,440 | |
'A' Ordinary shares | |
Interim of 5.40p per share paid on 4th April 2013 | 51,840 |
Interim of 2.40p per share paid on 9th October 2013 | 23,040 |
74,880 | |
Total dividends paid | 112,320 |
3. Cash and cash equivalents
Unaudited 6 months to 30th June 2014 | Unaudited 6 months to 30th June 2013 | Audited year to 31st December 2013 | |
£ | £ | £ | |
Cash at bank and in hand | 720,100 | 637,041 | 567,226 |
Bank overdrafts | 837,994 | 392,403 | 490,944 |
(117,894) | 244,638 | 76,282 |
4. Segmental information
Unaudited 6 months to 30th June 2014 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 1,760,143 | 10,328,000 | 12,088,143 |
Inter company | 55,443 | 1,211,576 | 1,337,345 | 2,604,364 |
Total | 55,443 | 2,971,719 | 11,665,345 | 14,692,507 |
Profit | ||||
EBITDA | 3,333 | 98,662 | 704,691 | 806,686 |
Finance costs | (14,542) | (22,774) | (18,316) | (55,632) |
Finance income | - | - | 43 | 43 |
Depreciation | (3,150) | (116,598) | (118,495) | (238,243) |
Tax expense | (15,750) | - | (133,491) | (149,241) |
(Loss)/profit for the period | (30,109) | (40,710) | 434,432 | 363,613 |
Assets | ||||
Total assets | 1,298,767 | 3,194,579 | 9,511,458 | 14,004,804 |
Additions to non current assets | - | 217,330 | 46,269 | 263,599 |
Liabilities | ||||
Total liabilities | 552,846 | 2,348,710 | 4,184,111 | 7,085,667 |
4. Segmental information - continued
Unaudited 6 months to 30th June 2013 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 1,682,274 | 9,541,883 | 11,224,157 |
Inter company | 20,000 | 1,306,284 | 1,300,717 | 2,627,001 |
Total | 20,000 | 2,988,558 | 10,842,600 | 13,851,158 |
Profit | ||||
EBITDA | (45,532) | 112,694 | 609,976 | 677,138 |
Finance costs | (9,399) | (18,722) | (16,657) | (44,778) |
Finance income | 201 | - | 73 | 274 |
Depreciation | - | (167,697) | (73,558) | (241,255) |
Tax expense | (5,200) | - | (120,041) | (125,241) |
(Loss)/profit for the period | (59,930) | (73,725) | 399,793 | 266,138 |
Assets | ||||
Total assets | 1,214,383 | 2,232,335 | 9,125,793 | 12,572,511 |
Additions to non current assets | 1,187,465 | 31,406 | 53,256 | 1,272,127 |
Liabilities | ||||
Total liabilities | 492,760 | 1,676,445 | 4,039,432 | 6,208,637 |
Audited year to 31st December 2013 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 3,010,216 | 19,943,589 | 22,953,805 |
Inter company | 74,866 | 2,976,179 | 3,422,562 | 6,473,607 |
Total | 74,866 | 5,986,395 | 23,366,151 | 29,427,412 |
Profit | ||||
EBITDA | (40,251) | 387,263 | 1,249,252 | 1,596,264 |
Gain on sale of land & buildings | - | 20,239 | 12,312 | 32,551 |
Finance costs | (24,848) | (40,703) | (35,416) | (100,967) |
Finance income | 201 | 3,000 | 129 | 3,330 |
Depreciation | (3,675) | (343,184) | (174,086) | (520,945) |
Tax expense | (15,690) | 250,339 | (492,816) | (258,167) |
(Loss)/profit for the period | (84,263) | 276,954 | 559,375 | 752,066 |
Assets | ||||
Total assets | 1,283,313 | 2,329,357 | 8,854,138 | 12,466,808 |
Additions to non current assets | 1,274,526 | 441,571 | 489,190 | 2,205,287 |
Liabilities | ||||
Total liabilities | 395,378 | 1,541,182 | 3,859,219 | 5,795,779 |
T.F. & J.H. Braime (Holdings) P.L.C.
Contact details
For further information please contact:
T.F. & J.H. Braime (Holdings) P.L.C.
O. N. A. Braime - Chairman
0113 245 7491
W. H. Ireland Limited
Katy Mitchell LLB
0113 394 6628