Braime Ord Regulatory News (BMTO)

31 Aug 2007 15:45

Braime (T.F.& J.H.) (Hldgs) PLC31 August 2007 Interim results for the six months ended 30th June 2007 We are pleased to report, that after two years of losses, the company made aprofit before tax for the first half of 2007 of £67,000 compared to a loss of£218,000 for the same period in 2006 on a turnover up 13% to £5.9m. While thislevel of profit remains far from satisfactory, it is indicative of significantprogress being made in restoring long term profitability to the business. The need to recommence regular dividend payments to shareholders as soon aspossible remains a major priority of the board. Nevertheless, the directors havedecided that, after an extended period of losses which has reduced the group'sreserves, it would not be prudent to pay a dividend until the return toprofitability has been more firmly established. Performance of group companies All the subsidiary companies which distribute our 4B brand of components for thematerial handling industry have had an excellent first six months and have alltraded well above forecast. Although we are concerned by both the continuingweakness of the US dollar and the economic downturn in the USA, we remainconfident that we can maintain the increase in overseas sales as a result of ourongoing investment in new products. In contrast, the manufacturing business has continued to sustain heavy losses.However, we are making substantive progress in restructuring this business. Thefirst major automated production cell has now been successfully commissioned andoutput from this cell will now ramp up to reach full production in March of nextyear. Additionally, we have recently secured, from new and existing customers,five further packages of long term business. The combined impact of thisadditional business is forecast to increase sales by over 50% in 2008 comparedto 2007 and will very significantly improve the trading position of BraimePressings Limited. This will give us a further year to complete and consolidatethis turnaround before embarking on the move to more cost effective premises,currently targeted for 2010. Move to AIM The move to the AIM market was successfully completed on 27th June 2007. Onjoining AIM, we set up a new web site for T.F. & J.H. Braime (Holdings) P.L.C.www.braimegroup.com to provide shareholders with detailed information abouttheir company, including the latest financial statements and, in future, allcompany announcements will be posted to this site. Also included on the holding company site are links to our new site for themanufacturing business, www.braimepressings.com and the existing site for the 4Brange of material handling components, www.go4b.com. We hope that shareholders,who visit these sites, will find them both interesting and informative. Relocation As announced shortly before the AGM, we have reached agreement with the planningofficers of Leeds City Council, supported by English Heritage, on a detailedplanning brief for the development of our Hunslet Road site. We have appointedKnight Frank and Swift Property Services as joint selling agents. ENCIA, a firmof specialist consultants, are currently carrying out a detailed environmentalstudy prior to the site being marketed to potential developments in earlyOctober 2007. We would hope to be receiving offers in January 2008, although anyoffers are likely to be conditional on formal planning approval, a process whichmay take a further twelve months. Given the uncertainties attached to both the realisable value and timing of anysale, the board does not plan to enter into any firm commitments regardingrelocation until the position on the sale is clarified. Outlook Providing all parts of the group continue to trade at their current levels, weexpect a positive result for the full year. Condensed Consolidated Income Statement for the six months ended 30th June 2007 2007 2006 £ £ (unaudited) (unaudited) Revenue 5,887,371 5,210,460 ------------ ------------ Profit/(loss) from operations 78,025 (224,932)Finance costs (162,913) (140,514)Finance income 151,996 147,204 ------------ ------------Result for the period before tax 67,108 (218,242)Tax expense @ 30% (20,132) - ------------ ------------Net result for the period 46,976 (218,242) ------------ ------------ Basic profit/(loss) per share 3.26p (15.16p) ------------ ------------ Condensed Consolidated Statement of Recognised Income and Expense for the six months ended 30th June 2007 2007 2006 £ £ (unaudited) (unaudited) Exchange difference on translation of foreignoperations (9,684) (8,152) --------- ----------- Net income recognised in equity (9,684) (8,152)Profit/(loss) for period 46,976 (218,242) --------- -----------Total recognised income and expense for the period 37,292 (226,394) --------- ----------- Attributable to:Equity holders of T.F. & J.H. Braime (Holdings) P.L.C. 37,292 (226,394) --------- ----------- Consolidated Balance Sheet at 30th June 2007 30th June 2007 30th June 2006 31st December 2006 £ £ £ (unaudited) (unaudited)AssetsNon-current assetsProperty, plant andequipment 689,748 703,696 733,481 --------- --------- ---------Total non-current assets 689,748 703,696 733,481 --------- --------- --------- Current assetsInventories 2,521,209 2,220,453 2,197,922Trade and other payables 3,001,803 2,280,117 2,611,737Cash and cash equivalents 1,429,619 1,441,823 1,629,317 --------- --------- ---------Total current assets 6,952,631 5,942,393 6,438,976 --------- --------- --------- Total assets 7,642,379 6,646,089 7,172,457 --------- --------- --------- LiabilitiesCurrent liabilitiesBank overdraft 1,294,875 1,603,102 1,346,114Trade and other payables 2,346,046 1,094,099 1,846,792Other financial liabilities 182,166 178,008 182,292Corporation tax liability 20,132 - 33,063 --------- --------- ---------Total current liabilities 3,843,219 2,875,209 3,408,261 --------- --------- --------- Non-current liabilitiesFinancial liabilities 327,539 326,199 348,867Employee benefits 31,000 118,000 12,000 --------- --------- ---------Total non-currentliabilities 358,539 444,199 360,867 --------- --------- --------- Total liabilities 4,201,758 3,319,408 3,769,128 --------- --------- --------- Total net assets 3,440,621 3,326,681 3,403,329 --------- --------- --------- Capital and reserves attributableto equity holders of the parentcompanyShare capital 360,000 360,000 360,000Capital reserve 77,319 77,319 77,319Foreign exchange reserve (36,233) 669 (26,549)Retained earnings 3,039,535 2,888,693 2,992,559 --------- --------- ---------Total equity 3,440,621 3,326,681 3,403,329 --------- --------- --------- Consolidated Cash Flow Statement for the six months ended 30thJune 2007 2007 2007 2006 2006 £ £ £ £ (unaudited) (unaudited) (unaudited) (unaudited)OperatingactivitiesNet profit/(loss) from ordinaryactivities 46,976 (218,242)Adjustments for:Depreciation 88,493 66,305Grants amortised (828) (828)Foreign exchangelosses (9,810) (7,314)Investment (151,996) (147,204)incomeInterest expense 162,913 140,514Income tax expense 20,132 - ---------- ----------Operating profitbefore changesin working capital and provisions 108,904 51,473Increase intrade and otherreceivables (390,066) (447,138)(Increase)/decrease in inventories (323,287) 121,910Increase intrade and other payables 499,254 232,154Decrease inprovisions and employee benefits 34,000 41,000 ----------- ----------- (180,099) (52,074) ----------- ---------- Cash generatedfrom operations (24,219) (218,843) Income taxes paid (33,063) (33,033) Investing activitiesPurchases ofplant, machinery and motor vehicles (53,682) (41,294)Sale of plant,machinery andmotor vehicles 8,922 9,160Interest received 27,996 23,204 ----------- ----------- (16,764) (8,930)FinancingactivitiesRepayment ofhire purchase (20,500) (20,499)creditorsInterest paid (53,913) (37,514) ---------- ---------- (74,413) (58,013) ---------- ---------- Decrease in cashand cash equivalents (148,459) (318,819)Cash and cashequivalents(includingoverdrafts), beginning of period 283,203 157,540 ---------- ---------- Cash and cashequivalents(includingoverdrafts), end of period 134,744 (161,279) ---------- ----------- 31st August 2007 For further information please contact: T.F. & J.H. Braime (Holdings) P.L.C.David Brown - Financial Director0113 245 7491 W. H. Ireland LimitedRichard Lindley0113 394 6628 END This information is provided by RNS The company news service from the London Stock Exchange