Braime Ord Regulatory News (BMTO)

21 Sep 2010 11:34

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

("Braime" or the "company")

Interim results for the six months ended 30th June 2010

Group sales revenue for the first six months of 2009 increased by 7% from £ 7.77m in 2009 to £8.32m for 2010 and the company made a profit before tax for the first half of 2010 of £396,000 compared to £216,000 in 2009 for the same period.

The directors have decided to pay an interim dividend of 2.40p per share on 15th October 2010 to the Ordinary and `A' Ordinary shareholders whose names are on the register on 1st October 2010. This compares to the interim dividend of 1.50p paid on 16th October 2009.

Performance of group companies

4B division

The subsidiary companies comprising this division enjoyed a successful start to the year and, taken together, produced results above both last year and budget. Our US subsidiary had a particularly good first six months.

The profitability of this division continued to benefit from favourable exchange rates and from the continuing expansion of our product range.

Pressings division

The fundamental restructuring of the manufacturing business in 2009 has resulted in a substantial reduction in the level of losses in this division, although the result for the first six months fell short of budget.

Sales volumes of existing contracts were well ahead of expectations but the benefit of this contribution was offset by delays in the start up of new contracts, due largely to late changes by customers in product specification. We now have full approval for the components required for the second new major contract and start up of full production is scheduled for the beginning of November 2010. Launch of the third major new product line is on target for January 2011.

In 2010 huge progress has been made in continuing the modernisation of the factory and the installation of new product lines. This has been achieved by a very small management and maintenance team.

Outlook

The positive start made by the 4B division has continued into the second half and, providing exchange rates remain at current levels, we would expect to maintain the progress achieved in recent years.

The result for the full year in the pressings division very much rests on the successful start up of the second major contract in November.

Condensed consolidated income statement for the six months ended 30th June 2010

Note Unaudited Unaudited Year to 6 months to 6 months to 31st December 30th June 30th June 2009 2010 2009 £ £ £ Revenue 8,317,924 7,767,714 15,685,218 Cost of sales 6,379,779 6,058,988 12,248,094 Gross profit 1,938,145 1,708,726 3,437,124 Other operating expenses 1,513,886 1,457,991 2,737,843 Operating profit 424,259 250,735 699,281 Finance expense (151,235) (144,284) (285,338) Finance income 122,982 109,689 211,049 Profit before tax 396,006 216,140 624,992 Income tax expenses (110,042) (60,519) (237,905) Profit after tax 285,964 155,621 387,087

Basic and diluted earnings per 2 19.86p 10.81p 26.88p share

Consolidated statement of comprehensive income for the six months ended 30th June 2010 Unaudited Unaudited Year to 6 months to 6 months to 31st December 30th June 30th June 2009 2009 2010 £ £ £ Profit for the period 285,964 155,621 387,087 Actuarial gains recognised directly in - - 76,000 equity

Foreign exchange gains/(losses) on 25,717 (146,101) (107,605) re-translation of overseas operations

Adjustment in respect of minimum - - (149,000)funding requirement per IFRIC14

Total comprehensive income for the 25,717 (146,101) (180,605) period

Total comprehensive income for the 311,681 9,520 206,482 period Consolidated statement of financial positionat 30th June 2010 Unaudited Unaudited Year to 6 months to 6 months to 31st 30th June 30th June December 2010 2009 2009 £ £ £ Non-current assets Property, plant and equipment 1,207,447 768,183 1,249,460 Goodwill 12,270 12,270 12,270 Employee benefits - 111,000 - Total non-current assets 1,219,717 891,453 1,261,730 Current assets Inventories 2,995,554 3,072,095 2,862,149 Trade and other receivables 3,282,853 3,160,953 2,400,384 Cash and cash equivalents 1,592,740 1,571,485 1,947,207 Total current assets 7,871,147 7,804,533 7,209,740 Total assets 9,090,864 8,695,986 8,471,470 Current liabilities Bank overdraft 1,106,334 1,561,734 1,159,966 Trade and other payables 2,385,993 2,275,414 2,019,053 Other financial liabilities 314,985 277,523 344,339 Corporation tax liability 110,042 60,519 - Total current liabilities 3,917,354 4,175,190 3,523,358 Non-current liabilities Financial liabilities 445,896 237,025 488,979 Total non-current liabilities 445,896 237,025 488,979 Total liabilities 4,363,250 4,412,215 4,012,337 Total net assets 4,727,614 4,283,771 4,459,133 Capital and reserves Share capital 360,000 360,000 360,000 Capital reserve 77,319 77,319 77,319 Foreign exchange reserve 345,263 281,050 319,546 Retained earnings 3,945,032 3,565,402 3,702,268

Total equity attributable to equity 4,727,614 4,283,771 4,459,133 shareholders

of the company

Consolidated statement of changes in equity for the six months ended 30th June

2010 Share Capital Foreign Retained Total Capital Reserve Exchange Earnings Reserve £ £ £ £ £ Balance at 1st January 360,000 77,319 319,546 3,702,268 4,459,133 2010 Comprehensive income Profit - - - 285,964 285,964 Other comprehensive income Actuarial gains - - - - - recognised directly in equity Foreign exchange losses - - 25,717 - 25,717 on re-translation of overseas operations Adjustment in respect of - - - - - minimum funding requirement per IFRIC14 Total other comprehensive - - 25,717 - 25,717 income Total comprehensive - - 25,717 285,964 311,681 income Transaction with owners Dividends - - - (43,200) (43,200) Total transactions with - - - (43,200) (43,200)owners

Balance at 30th June 2010 360,000 77,319 345,263 3,945,032 4,727,614

Balance at 1st January 360,000 77,319 427,151 3,431,381 4,295,851 2009 Comprehensive income Profit - - - 155,621 155,621 Other comprehensive income Actuarial gains - - - - - recognised directly in equity Foreign exchange losses - - (146,101) - (146,101)on re-translation of overseas operations Adjustment in respect of - - - - - minimum funding requirement per IFRIC14 Total other comprehensive - - (146,101) - (146,101)income Total comprehensive - - (146,101) 155,621 9,520 income Transaction with owners Dividends - - - (21,600) (21,600) Total transactions with - - - (21,600) (21,600)owners

Balance at 30th June 2009 360,000 77,319 281,050 3,565,402 4,283,771

Balance at 1st January 360,000 77,319 427,151 3,431,381 4,295,851 2009 Comprehensive income Profit - - - 387,087 387,087 Other comprehensive income Actuarial gains - - - 76,000 76,000 recognised directly in equity Foreign exchange losses - - (107,605) - (107,605)on re-translation of overseas operations Adjustment in respect of - - - (149,000) (149,000)minimum funding requirement per IFRIC14 Total other comprehensive - - (107,605) (73,000) (180,605)income Total comprehensive - - (107,605) 314,087 206,482 income Transaction with owners Dividends - - - (43,200) (43,200) Total transactions with - - - (43,200) (43,200)owners

Balance at 31st December 360,000 77,319 319,546 3,702,268 4,459,133 2009

Consolidated cash flow statementfor thesix months ended 30th June 2010 Note Unaudited Unaudited Year to 6 months to 6 months to 31st December 30th June 30th June 2009 2010 2009 £ £ £ Operating activities Net profit from ordinary 285,964 155,621 387,087 activities Adjustments for: Depreciation 139,045 139,803 302,865 Grants amortised (828) (828) (1,656) Foreign exchange loss/(gain) 15,977 (139,656) (119,426) Investment income (122,982) (109,689) (211,049) Interest expense 151,235 144,284 285,338 Gain on sale of plant and (11,808) - (8,748)equipment Decrease in provisions and 3,000 22,000 57,000 employee benefits Income tax expense 110,042 60,519 237,905 Operating profit before 569,645 272,054 929,316 changes in working capital and provisions (Increase)/decrease in trade (882,469) (516,578) 243,991 and other receivables (Increase)/decrease in (133,405) 271,916 481,862 inventories Increase in trade and other 495,894 297,992 89,643 payables (519,980) 53,330 815,496 Cash generated from operations 49,665 325,384 1,744,812 Income taxes paid (128,954) (112,413) (375,533) Investing activities Purchases of plant, machinery (50,718) (63,673) (326,902)and motor vehicles Sale of plant, machinery and 14,458 - 8,750 motor vehicles Interest received 1,982 8,689 11,049 (34,278) (54,984) (307,103) Financing activities Repayment of hire purchase (110,833) (58,112) (124,157)creditors Interest paid (33,235) (36,284) (75,338) Dividend paid (43,200) (21,600) (43,200) (187,268) (115,996) (242,695) (Decrease)/increase in cash 3 (300,835) 41,991 819,481 and cash equivalents Cash and cash equivalents 3 787,241 (32,240) (32,240)(including overdrafts), beginning of period Cash and cash equivalents 486,406 9,751 787,241 (including overdrafts), end of period

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 2009 and those which management expects to apply in the group's full financial statements to 31st December 2010.

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 2009 but is derived from the accounts. Statutory accounts for the period ended 31st December 2009 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 2009, 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 pershare amounted to 1,440,000 (2009 - 1,440,000). There are no potentiallydilutive shares in issue. 2010 £ Dividends paid Equity shares Ordinary shares Interim of 3.00p per share paid on 1st April 2010 14,400 `A' Ordinary shares Interim of 3.00p per share paid on 1st April 2010 28,800 Total dividends paid 43,200 2009 £ Dividends paid Equity shares Ordinary shares Interim of 1.50p per share paid on 3rd April 2009 7,200 Interim of 1.50p per share paid on 16th October 2009 7,200 14,400 `A' Ordinary shares Interim of 1.50p per share paid on 3rd April 2009 14,400 Interim of 1.50p per share paid on 16th October 2009 14,400 28,800 Total dividends paid 43,200 3. Cash and cash equivalents Unaudited Unaudited Year to 6 months to 6 months to 31st December 30th June 30th June 2009 2010 2009 £ £ £ Cash at bank and in hand 1,592,740 1,571,485 1,947,207 Bank overdrafts 1,106,334 1,561,734 1,159,966 486,406 9,751 787,241 4. Segmental information Unaudited 6 months to 30th June 2010 Central Manufacturing Distribution Total £ £ £ £ Revenue External - 1,093,574 7,224,350 8,317,924 Inter 33,638 784,058 419,824 1,237,520 company Total 33,638 1,877,632 7,644,174 9,555,444 Profit EBITDA (8,914) (31,596) 603,814 563,304 Finance (6,815) (134,692) (9,728) (151,235)costs Finance 749 122,233 - 122,982 income Depreciation - (111,600) (27,445) (139,045) Tax expense (9,419) - (100,623) (110,042) (Loss)/ (24,399) (155,655) 466,018 285,964 profit for the period Assets Total assets 778,974 2,974,686 5,337,204 9,090,864 Additions to - 80,050 23,718 103,768 non current assets Liabilities Total 337,324 1,830,652 2,195,274 4,363,250 liabilities Unaudited 6 months to 30th June 2009 Central Manufacturing Distribution Total £ £ £ £ Revenue External - 746,123 7,021,591 7,767,714 Inter company 29,816 983,395 322,611 1,335,822 Total 29,816 1,729,518 7,344,202 9,103,536 Profit EBITDA (20,531) (214,934) 626,003 390,538 Finance costs (7,273) (125,606) (11,405) (144,284) Finance income 3,620 106,063 6 109,689 Depreciation - (109,618) (30,185) (139,803) Tax expense (8,348) - (52,171) (60,519) (Loss)/profit for the (32,532) (344,095) 532,248 155,621 period Assets Total assets 788,751 1,993,882 5,913,353 8,695,986 Additions to non - 59,421 4,252 63,673 current assets Liabilities Total liabilities 368,236 1,713,468 2,202,067 4,412,215 Audited year to 31st December 2009 Central Manufacturing Distribution Total £ £ £ £ Revenue External - 2,474,259 13,210,959 15,685,218 Inter company 59,770 1,982,160 1,423,421 3,465,351 Total 59,770 4,456,419 14,634,380 19,150,569 Profit EBITDA (15,460) (211,880) 1,229,486 1,002,146 Finance costs (13,947) (250,004) (21,387) (285,338) Finance income 4,710 206,333 6 211,049 Depreciation - (251,315) (51,550) (302,865) Tax expense (21,021) - (216,884) (237,905) (Loss)/profit for the (45,718) (506,866) 939,671 387,087 period Assets Total assets 774,354 2,412,351 5,284,765 8,471,470 Additions to non - 673,321 31,935 705,256 current assets Liabilities Total liabilities 376,807 1,581,023 2,054,507 4,012,337 21st September 2010

A copy of this interim statement has been sent to all shareholders and is available on the company's web-site (www.braimegroup.com).

For further information please contact:

T.F & J.H. Braime (Holdings) P.L.C.

David H. Brown FCA - Financial Director

0113 245 7491W. H. Ireland LimitedKaty Mitchell LLB0113 3946628