Last checked at 25 Sep 2013 07:00
T.F. & J.H. Braime (Holdings) P.L.C.
("Braime" or the "Company")
INTERIM REPORT
FOR THE SIX MONTHS ENDED 30TH JUNE 2013
Sales revenue for the first six months of 2013 increased by 6% to £11,224,000 (2012: 10,586,601). Profit before tax increased to £391,000 (2012: £258,000) and the profit after tax increased to £266,000 (2012: £179,000) 2012.
Although this modest profit remains well below our target, the improvement in profitability is welcome, particularly given the background of the continuing difficult markets.
Cash and investments
After previous periods of strong cash generation, the operating cash flow for the first six months of 2013 was negative due primarily to an increase in both stocks and debtors over and above our trade credit finance.
The transfer of our banking arrangements in January of this year to HSBC has both reduced our finance costs and strengthened the group's financial position. This enabled the directors to take up the option to purchase, with the assistance of mortgage funding, new and much larger premises in the US which we had moved into in 2012. The timing also enabled the Company to benefit from the `Roll Over` tax relief on the profit arising on the sale of the previous US property. Over and above the mortgage, the purchase resulted in a net outflow of funds of £297,000, although much of this cash requirement came from the sale in 2012 of our previous US property.
Dividends
The directors have taken the decision to maintain the first interim dividend at the same level as 2012. A dividend of 2.40p per share will be paid on 9th October to the Ordinary and `A` Ordinary shareholders on the register on 4th October 2013. The associated ex-dividend date will be 2nd October 2013.
Performance of group companies
4B division
The performance of our distribution businesses was mixed, with some subsidiaries reporting a reduction in profitability. While the result in the US was largely flat, the UK operation enjoyed an improvement. Overall, the operating profitability of the 4B division improved when compared to the first half of 2012. The division is well placed to continue its long term growth.
Pressings division
The performance of our manufacturing business in Leeds improved, partly due to a reduction in costs and an increase in sales. We are currently in the midst of a major investment to revise the layout of our facility and introduce a number of new manufacturing cells, including spray painting facilities. We are hopeful of securing substantial increased business with both existing and new customers.
Outlook
There have been early signs that the recession may be coming to an end but these signs are both tentative and fragile. We are cautiously optimistic of being able to continue the gradual improvement in profitability but, given the background of relatively weak demand and the continuing volatility in exchange rates, it is difficult to predict the result for 2013.
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 | 0161 832 2174
|
Consolidated income statement
For the six months ended 30th June 2013
Note | Unaudited 6 months to 30th June 2013 | Unaudited 6 months to 30th June 2012 | Audited year to 31st December 2012 | |
£ | £ | £ | ||
Revenue | 11,224,157 | 10,586,601 | 21,211,887 | |
Changes in inventories of finished goods and work in progress |
356,006 |
(95,947) |
(23,484) | |
Raw materials and consumables used | (6,760,517) | (6,004,802) | (11,849,425) | |
Employee benefits costs | (2,423,752) | (2,306,180) | (4,587,039) | |
Depreciation expense | (241,255) | (218,072) | (464,539) | |
Other expenses | (1,731,995) | (1,671,605) | (3,628,799) | |
Profit from operations | 422,644 | 289,995 | 658,601 | |
Profit on disposal of tangible fixed assets | 13,239 | 5,900 | 100,435 | |
Finance costs | (44,778) | (50,016) | (101,541) | |
Finance income | 274 | 12,273 | 20,726 | |
Profit before tax | 391,379 | 258,152 | 678,221 | |
Tax expense | (125,241) | (79,121) | (251,346) | |
Profit for the year attributable to equity shareholders of the parent company |
266,138 |
179,031 |
426,875 | |
Basic and diluted earnings per share | 2 | 18.48p | 12.43p | 29.64p |
Consolidated statement of comprehensive income
For the six months ended 30th June 2013
Unaudited 6 months to 30th June 2013 | Unaudited 6 months to 30th June 2012 | Audited year to 31st December 2012 | |
£ | £ | £ | |
Profit for the period | 266,138 | 179,031 | 426,875 |
Actuarial losses recognised directly in equity | - | - | (7,000) |
Foreign exchange losses on re-translation of overseas operations | (24,516) |
(21,630) |
(57,608) |
Adjustment in respect of minimum funding requirement per IFRIC14 | - | 3,000 | 10,000 |
Total other comprehensive income for the period | (24,516) | (18,630) | (54,608) |
Total comprehensive income for the period | 241,622 | 160,401 | 372,267 |
Consolidated statement of financial position
At 30th June 2013
Unaudited 6 months to 30th June 2013 | Unaudited 6 months to 30th June 2012 | Audited year to 31st December 2012 | |
£ | £ | £ | |
Non-current assets | |||
Property, plant and equipment | 2,531,097 | 1,711,300 | 1,504,575 |
Goodwill | 12,270 | 12,270 | 12,270 |
Total non-current assets | 2,543,367 | 1,723,570 | 1,516,845 |
Current assets | |||
Inventories | 4,794,271 | 4,381,296 | 4,387,303 |
Trade and other receivables | 4,597,832 | 4,116,516 | 3,219,715 |
Cash and cash equivalents | 637,041 | 1,972,761 | 1,576,283 |
Total current assets | 10,029,144 | 10,470,573 | 9,183,301 |
Total assets | 12,572,511 | 12,194,143 | 10,700,146 |
Current liabilities | |||
Bank overdraft | 392,403 | 2,055,431 | 642,492 |
Trade and other payables | 3,221,111 | 2,642,811 | 2,478,283 |
Other financial liabilities | 1,285,701 | 868,517 | 863,922 |
Corporation tax liability | 119,714 | 82 | - |
Total current liabilities | 5,018,929 | 5,566,841 | 3,984,697 |
Non-current liabilities | |||
Financial liabilities | 1,189,708 | 604,596 | 515,437 |
Total non-current liabilities | 1,189,708 | 604,596 | 515,437 |
Total liabilities | 6,208,637 | 6,171,437 | 4,500,134 |
Total net assets | 6,363,874 | 6,022,706 | 6,200,012 |
Capital and reserves | |||
Share capital | 360,000 | 360,000 | 360,000 |
Capital reserve | 77,319 | 77,319 | 77,319 |
Foreign exchange reserve | 252,635 | 313,129 | 277,151 |
Retained earnings | 5,673,920 | 5,272,258 | 5,485,542 |
Total equity attributable to equity shareholders of the company |
6,363,874 |
6,022,706 |
6,200,012 |
Consolidated statement of changes in equity
For the six months ended 30th June 2013
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 | - | - | - | 266,138 | 266,138 |
Other comprehensive income | |||||
Actuarial gains 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 |
Balance at 1st January 2012 | 360,000 | 77,319 | 334,759 | 5,167,987 | 5,940,065 |
Comprehensive income | |||||
Profit | - | - | - | 179,031 | 179,031 |
Other comprehensive income | |||||
Actuarial gains recognised directly in equity |
- |
- |
- |
- |
- |
Foreign exchange gains on re-translation of overseas operations |
- |
- |
(21,630) |
- |
(21,630) |
Adjustment in respect of minimum funding requirement per IFRIC14 |
- |
- |
- |
3,000 |
3,000 |
Total other comprehensive income |
- |
- |
(21,630) |
3,000 |
(18,630) |
Total comprehensive income | - | - | (21,630) | 182,031 | 160,401 |
Transaction with owners | |||||
Dividends | - | - | - | (77,760) | (77,760) |
Total transactions with owners | - | - | - | (77,760) | (77,760) |
Balance at 30th June 2012 | 360,000 | 77,319 | 313,129 | 5,272,258 | 6,022,706 |
Balance at 1st January 2012 | 360,000 | 77,319 | 334,759 | 5,167,987 | 5,940,065 |
Comprehensive income | |||||
Profit | - | - | - | 426,875 | 426,875 |
Other comprehensive income | |||||
Actuarial losses recognised directly in equity |
- |
- |
- |
(7,000) |
(7,000) |
Foreign exchange gains on re-translation of overseas operations |
- |
- |
(57,608) |
- |
(57,608) |
Adjustment in respect of minimum funding requirement per IFRIC14 |
- |
- |
- |
10,000 |
10,000 |
Total other comprehensive income |
- |
- |
(57,608) |
3,000 |
(54,608) |
Total comprehensive income | - | - | (57,608) | 429,875 | 372,267 |
Transaction with owners | |||||
Dividends | - | - | - | (112,320) | (112,320) |
Total transactions with owners | - | - | - | (112,320) | (112,320) |
Balance at 31st December 2012 | 360,000 | 77,319 | 277,151 | 5,485,542 | 6,200,012 |
Consolidated cash flow statement
For the six months ended 30th June 2013
|
Note | Unaudited 6 months to 30th June 2013 | Unaudited 6 months to 30th June 2012 | Audited year to 31st December 2012 | |
£ | £ | £ |
| ||
Operating activities |
| ||||
Net profit from ordinary activities | 266,137 | 179,031 | 426,875 |
| |
| |||||
Adjustments for: |
| ||||
Depreciation | 241,255 | 218,073 | 464,539 |
| |
Grants amortised | (828) | (828) | (1,656) |
| |
Foreign exchange losses | (30,871) | (18,825) | (53,182) |
| |
Finance income | (274) | (12,273) | (20,726) |
| |
Finance expense | 44,778 | 50,016 | 101,541 |
| |
Gain on sale of plant and equipment | (13,239) | (5,900) | (100,435) |
| |
Adjustment in respect of defined benefit scheme |
- |
13,000 |
21,000 |
| |
Income tax expense | 125,241 | 79,121 | 251,346 |
| |
| |||||
Operating profit before changes in working capital and provisions |
632,199 |
501,415 |
1,089,302 |
| |
| |||||
(Increase)/decrease in trade and other receivables | (1,378,117) | (609,022) | 363,898 |
| |
(Increase)/decrease in inventories | (406,968) | 20,437 | 14,430 |
| |
Increase in trade and other payables | 1,084,954 | 654,105 | 444,808 |
| |
| |||||
(700,131) | 65,520 | 823,136 |
| ||
| |||||
Net cash from operating activities | (67,932) | 566,935 | 1,912,438 |
| |
| |||||
Income taxes paid | (5,527) | (193,359) | (441,784) |
| |
| |||||
Investing activities |
| ||||
Purchase of property | (1,187,465) | - | - |
| |
Purchases of plant, machinery and motor vehicles | (84,662) | (317,507) | (483,734) |
| |
Sale of plant, machinery and motor vehicles | 13,239 | 5,900 | 378,440 |
| |
Interest received | 274 | 2,273 | 2,726 |
| |
| |||||
(1,258,614) | (309,334) | (102,568) |
| ||
| |||||
Financing activities |
| ||||
Proceeds from long term borrowings | 890,443 | - | - |
| |
Repayment of borrowings | (6,782) | (173,137) | (247,065) |
| |
Repayment of hire purchase creditors | (118,203) | (106,706) | (234,076) |
| |
Interest paid | (44,778) | (50,016) | (101,541) |
| |
Dividend paid | (77,760) | (77,760) | (112,320) |
| |
| |||||
642,920 | (407,619) | (695,002) |
| ||
|
| ||||
Decrease in cash and cash equivalent | 4 | (689,153) | (343,377) | 673,084 |
|
Cash and cash equivalents (including overdrafts), beginning of period |
4 |
933,791 |
260,707 |
260,707 |
|
Cash and cash equivalents (including overdrafts), end of period |
244,638 |
(82,670) |
933,791 |
| |
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 2012 and those which management expects to apply in the group's full financial statements to 31st December 2013.
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 2012 but is derived from the accounts. Statutory accounts for the period ended 31st December 2012 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 2012, 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 (2012 - 1,440,000). There are no potentially dilutive shares in issue.
6 months to 30th June 2013 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 5.40p per share paid on 4th April 2013 | 25,920 |
'A' Ordinary shares | |
Interim of 5.40p per share paid on 4th April 2013 | 51,840 |
Total dividends paid | 77,760 |
Year to 31st December 2012 | |
£ | |
Dividends paid | |
Equity shares | |
Ordinary shares | |
Interim of 5.40p per share paid on 2nd April 2012 | 25,920 |
Interim of 2.40p per share paid on 10th October 2012 | 11,520 |
37,440 | |
'A' Ordinary shares | |
Interim of 5.40p per share paid on 2nd April 2012 | 51,840 |
Interim of 2.40p per share paid on 10th October 2012 | 23,040 |
74,880 | |
Total dividends paid | 112,320 |
3. Amendment to comparative figures
Following changes to IAS 19, defined benefit interest costs have been offset against the expected return on scheme assets disclosed within the consolidated income statement. As a consequence of this change in treatment the comparative figures for finance expenses and income have been reduced by the value of the defined benefit interest cost of £132,000.
4. Cash and cash equivalents
Unaudited 6 months to 30th June 2013 | Unaudited 6 months to 30th June 2012 | Audited year to 31st December 2012 | |
£ | £ | £ | |
Cash at bank and in hand | 637,041 | 1,972,761 | 1,576,283 |
Bank overdrafts | 392,403 | 2,055,431 | 642,492 |
244,638 | (82,670) | 933,791 |
5. Segmental information
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
|
Unaudited 6 months to 30th June 2012 | ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 1,381,341 | 9,205,260 | 10,586,601 |
Inter company | 31,074 | 1,511,451 | 857,751 | 2,400,276 |
Total | 31,074 | 2,892,792 | 10,063,011 | 12,986,877 |
Profit | ||||
EBITDA | (10,807) | (6,128) | 530,903 | 513,968 |
Finance costs | (6,913) | (156,718) | (18,385) | (182,016) |
Finance income | 728 | 143,475 | 70 | 144,273 |
Depreciation | - | (173,700) | (44,373) | (218,073) |
Tax expense | (11,227) | - | (67,894) | (79,121) |
(Loss)/profit for the period | (28,219) | (193,071) | 400,321 | 179,031 |
Assets | ||||
Total assets | 617,155 | 3,061,128 | 8,515,860 | 12,194,143 |
Additions to non current assets | - | 317,486 | 185,611 | 503,097 |
Liabilities | ||||
Total liabilities | 463,698 | 2,513,622 | 3,194,117 | 6,171,437 |
Audited year to 31st December 2012
| ||||
Central | Manufacturing | Distribution | Total | |
£ | £ | £ | £ | |
Revenue | ||||
External | - | 2,992,202 | 18,219,685 | 21,211,887 |
Inter company | 51,390 | 3,339,322 | 2,300,456 | 5,691,168 |
Total | 51,390 | 6,331,524 | 20,520,141 | 26,903,055 |
Profit | ||||
EBITDA | (20,799) | 253,679 | 896,659 | 1,129,539 |
Gain on sale of land & buildings | 94,036 | - | - | 94,036 |
Finance costs | (11,302) | (49,488) | (40,751) | (101,541) |
Finance income | 1,105 | 19,505 | 116 | 20,726 |
Depreciation | - | (331,640) | (132,899) | (464,539) |
Tax expense | (17,718) | - | (233,628) | (251,346) |
(Loss)/profit for the period | 45,322 | (107,944) | 489,497 | 426,875 |
Assets | ||||
Total assets | 625,569 | 2,250,827 | 7,823,750 | 10,700,146 |
Additions to non current assets | - | 439,004 | 385,546 | 824,550 |
Liabilities | ||||
Total liabilities | 458,973 | 1,670,820 | 2,370,341 | 4,500,134 |
24th September 2013