Interim Results - six months ended 30th June 2018

RNS Number : 4623B
Braime (T.F.& J.H.) (Hldgs) PLC
21 September 2018
 

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

("Braime" or the "Company")

Interim Results for the six months ended 30th June 2018

 

 

Performance

Performance for the first half of the year is very positive.  Group sales revenue for the first six months of 2018 increased by 16% to £18.07M compared to £15.54M for the same period in 2017, while profit before tax increased by 96% to £1.16M from £0.59M for the same period.

 

Dividends

On the basis of the positive results, the directors have decided to increase the interim dividend to 3.50p per share.  This dividend will be paid on 19th October to the Ordinary and 'A' Ordinary shareholders on the register on the 5th October 2018.  The associated ex-dividend date is 4th October 2018.

 

Braime Pressings Limited

External sales increased by 31% compared to the same period.  Significant work has been undertaken to review costs.  Compared to 2018, the first half of 2017 saw Braime Pressings bear a number of central costs which have now been reallocated.

 

4B division

Overall the subsidiaries in the material handling division have performed very well in the first half of 2018, with sales up by 14% and margins maintained.  In particular, we are seeing significant growth in the Australasia market. We have very recently opened a new subsidiary, 4B China, based in Changzhou Province, to expand and support our sales in the region.  The new subsidiary will take time before it makes a positive contribution to the group financially, but we believe it will provide significant long-term growth.

 

Cash flow

Net profit improved by £0.41M on the same period for 2017.  The group also benefitted from foreign exchange movement and from better control of working capital, resulting in cash flow from operations of £0.99M, an improvement of £1.18M when compared to the same period in 2017.  The group has invested this back into operations, primarily in new manufacturing facilities in Morton, USA our largest subsidiary, and in new presses for Braime Pressings.  The group is committed to some substantial investment and cash flow is expected to become tighter in the second half of the year.  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 working capital requirements, particularly for stock, are carefully monitored and controlled.

 

Forecast for the second half of 2018

The group is ahead of both last year and budget and we would expect the result for the full year to be ahead of 2017.  However, our group, with so much of its earnings coming from overseas, is always exposed to the unpredictable fluctuations in global exchange rates and to changes in the political and economic conditions in individual markets.  Depending on the form Brexit finally takes, as a major exporter, the actual event is likely to cause some degree of short-term disruption.  However, given that the majority of our sales presence, and continuing growth is already outside the EU, we believe the long-term effects are unlikely to be significant for the group.

 

 

For further information please contact:

 

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

Nicholas Braime  - Chairman

C Cartwright - Group Finance 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 2018

 

 

 

Note

Unaudited 
6 months to 

30th June 
2018 

Unaudited 
6 months to 

30th June 
2017 

Audited 

year to 

31st December 

2017 



£'000 

£'000 

£'000 






Revenue


18,069 

15,540 

31,449 






Changes in inventories of finished goods and work in progress


 

558 

 

(36)

 

114 

Raw materials and consumables used


(10,332)

(8,414)

(16,955)

Employee benefits costs


(3,287)

(3,637)

(7,449)

Depreciation expense


(305)

(369)

(803)

Other expenses


(3,522)

(2,426)

(4,015)






Profit from operations


1,181

658 

2,341 






Finance costs


(19)

(68)

(143)

Finance income







Profit before tax


1,162 

592 

2,201 






Tax expense


(340)

(179)

(621)






Profit for the period


822 

413 

1,580 






Profit attributable to :





Owners of the parent


830 

448 

1,719 

Non-controlling interests


(8)

(35)

(139)



822 

413 

1,580 






Basic and diluted earnings per share

2

57.08p 

28.72p 

109.73p 

 

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

Consolidated statement of comprehensive income for the six months

 ended 30th June 2018

 

Unaudited 

6 months to 

 30th June 

2018 

Unaudited 

6 months to 

 30th June 

2017 

Audited 

year to 

31st December 

2017 


£'000 

£'000 

£'000 





Profit for the period

822 

413 

1,580 





Items that will not be reclassified subsequently to profit or loss




Net pension remeasurement gain on post employment benefits

45 





Items that may be reclassified subsequently to profit or loss




Foreign exchange (losses)/gains on re-translation of overseas operations

85 

(167)

(472)





Other comprehensive income for the period

85 

(167)

(427)





Total comprehensive income for the period

907 

246 

1,153 





Total comprehensive income attributable to:




Owners of the parent

918 

281 

1,299 

Non-controlling interests

(11)

(35)

(146)


907 

246 

1,153 

 

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 2018

 

Unaudited  

6 months to  

30th June  

2018  

Unaudited  

6 months to  

30th June  

2017  

Audited 

year to 31st 

December 

2017 


£  

£  

£  





Non-current assets




Property, plant and equipment

5,921 

5,233 

5,238 

Intangible assets

71 

12 

58  





Total non-current assets

5,992 

5,245 

5,296 





Current assets




Inventories

6,989 

6,383 

6,431 

Trade and other receivables

7,512 

6,506 

5,911 

Cash and cash equivalents

938 

14 

1,145 





Total current assets

15,439 

12,903 

13,487 





Total assets

21,431 

18,148 

18,783 





Current liabilities




Bank overdraft

164 

Trade and other payables

5,847 

4,706 

4,391 

Other financial liabilities

3,363 

1,953 

1,983 

Corporation tax liability

331 

52 

195 





Total current liabilities

9,541 

6,711 

6,733 





Non-current liabilities




Financial liabilities

39 

1,206 

988 

Deferred income tax liability

71 

118 

87 





Total non-current liabilities

110 

1,324 

1,075 





Total liabilities

9,651 

8,035 

7,808 





Total net assets

11,780 

10,113 

10,975 





Capital and reserves




Share capital

360 

360 

360 

Capital reserve

257 

257 

257 

Foreign exchange reserve

162 

372 

74 

Retained earnings

11,361 

9,362 

10,633 

Total equity attributable to the shareholders of the parent

company

 

12,140 

 

10,351 

 

11,324 

Non-controlling interests

(360)

(238)

(349)

Total equity

11,780 

10,113 

10,975 

 

 

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

Consolidated cashflow statement for the six months

ended 30th June 2018

 

 

 

Note

Unaudited 

6 months to 

30th June 

2018 

Unaudited 

6 months to 

30th June 

2017 

Audited 

year to 

31st December 

2017 



£'000 

£'000 

£'000 

Operating activities





Net profit


822 

413 

1,580 






Adjustments for:





Depreciation


305 

369 

803 

Foreign exchange gains/( losses)


61 

(167)

(443)

Finance income


(2)

(3)

Finance expense


19 

68 

143 

Gain on sale of plant, machinery and motor vehicles


 4 

Adjustment in respect of defined benefit scheme


45 

Income tax expense


340 

179 

621 

Income taxes paid


(216)

(273)

(617)

Operating activities before changes in working capital and provisions


 

1,331 

 

587 

 

2,133 






Increase in trade and other receivables


(1,602)

(1,293)

(698)

Increase in inventories


(558)

(264)

(312)

Increase in trade and other payables


1,817 

780 

356 








(343)

(777)

(654)






Cash generated from operations


988 

(190)

1,479 






Investing activities





Purchases of property, plant, machinery and motor

vehicles


 

(990)

 

(127)

 

(618)

Sale of plant, machinery and motor vehicles


10 

14 

Interest received




(980)

(125)

(601)






Financing activities





Proceeds from long term borrowings


165 

Loan financing repaid


52 

52 

Repayment of borrowings


254 

(172)

(329)

Repayment of hire purchase creditors


(184)

(133)

(247)

Interest paid


(19)

(68)

(143)

Dividends paid


(102)

(92)

(137)



(51)

(413)

(639)

Decrease in cash and cash equivalents


(43)

(728)

239 

Cash and cash equivalents, beginning of period


981 

742 

742 

Cash and cash equivalents (including overdrafts), end of period

 

3

 

938 

 

14 

 

981 

 



 

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

Consolidated statement of changes in equity for the six months ended 30th June 2018

 

Share 

Capital 

 

Capital 

Reserve 

Foreign 

Exchange 

Reserve 

 

Retained 

Earnings 

 

 

Total 

 

Minority 

Interests 

 

Total 

Equity 


£'000 

£'000

£'000 

£'000 

£'000 

£'000 

£'000 

Balance at 1st

January 2018

 

360 

 

257 

 

74 

 

10,633 

 

11,324 

 

(349)

 

10,975 









Comprehensive

income
















Profit

830 

830 

(8)

822 









Other

comprehensive

income
















Foreign exchange

losses on re-

translation of

overseas operations

 

 

 

 

 

 

 

 

 

88 

 

 

 

 

 

 

88 

 

 

 

(3)

 

 

 

85 

Total other

comprehensive

income

 

 

 

 

 

 

88 

 

 

 

 

88 

 

 

(3)

 

 

85 

Total

comprehensive

income

 

 

 

 

 

 

88 

 

 

830 

 

 

918 

 

 

(11)

 

 

907 

Transactions with

owners








Dividends

(102)

(102)

(102)

Total transactions

with owners

 

 

 

 

(102)

 

(102)

 

 

(102)

Balance at 30th

June 2018

 

360 

 

257 

 

162 

 

11,361 

 

12,140 

 

(360)

 

11,780 









 



 

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 

 

257 

 

539 

 

9,006 

 

10,162 

 

(203)

 

9,959 









Comprehensive

income
















Profit

448 

448 

(35)

413 









Other

comprehensive

income
















Foreign exchange

losses on re-

translation of

overseas operations

 

 

 

 

 

 

 

 

 

(167)

 

 

 

 

 

 

(167)

 

 

 

 

 

 

(167)

Total other

comprehensive

income

 

 

 

 

 

 

(167)

 

 

 

 

(167)

 

 

 

 

(167)

Total

comprehensive

income

 

 

 

 

 

 

(167)

 

 

448 

 

 

281 

 

 

(35)

 

 

246 

Transactions with

owners








Dividends

(92)

(92)

(92)

Total transactions

with owners

 

 

 

 

(92)

 

(92)

 

 

(92)

Balance at 30th

June 2017

 

360 

 

257 

 

372 

 

9,362 

 

10,351 

 

(238)

 

10,113 









 



 

 

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

Consolidated statement of changes in equity for the year ended 31st December 2017

 

Share 

Capital 

 

Capital 

Reserve 

Foreign 

Exchange 

Reserve 

 

Retained 

Earnings 

 

 

Total 

 

Minority 

Interests 

 

Total 

Equity 


£'000 

£'000

£'000 

£'000 

£'000 

£'000 

£'000 

Balance at 1st

January 2017

 

360 

 

257 

 

539 

 

9,006 

 

10,162 

 

(203)

 

9,959 









Comprehensive

income
















Profit

1,719 

1,719 

(139)

1,580 









Other

comprehensive

income
















Net pension

remeasurement

gain recognised

directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

45 

 

 

 

45 

 

 

 

 

 

 

45 

Foreign exchange

gains on re-

translation of

overseas operations

 

 

 

 

 

 

 

 

 

(465)

 

 

 

 

 

 

(465)

 

 

 

(7)

 

 

 

(472)

Total other

comprehensive

income

 

 

 

 

 

 

(465)

 

 

45 

 

 

(420)

 

 

(7)

 

 

(427)

Total

comprehensive

income

 

 

 

 

 

 

(465)

 

 

1,764 

 

 

1,299 

 

 

(146)

 

 

1,153 

Transactions with

owners








Dividends

(137)

(137)

(137)

Total transactions

With owners

 

 

 

 

(137)

 

(137)

 

 

(137)

Balance at 31st

December 2017

 

360 

 

257 

 

74 

 

10,633 

 

11,324 

 

(349)

 

10,975 









 



 

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

Notes to the Financial Statements

 

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 2017 and those which management expects to apply in the group's full financial statements to 31st December 2018.

 

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 2017 but is derived from the accounts.  Statutory accounts for the period ended 31st December 2017 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 2017, 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 (2017 - 1,440,000).  There are no potentially dilutive shares in issue.

 


6 months to 

30th June 

2018 


£'000 

Dividends paid on equity shares


Ordinary shares


Interim of 7.10p per share paid on 18th May 2018

34 



'A' Ordinary shares


Interim of 7.10p per share paid on 18th May 2018

68 

Total dividends paid

102 




Year to 

31st December 

2017 


£ 

Dividends paid on equity shares


Ordinary shares


Interim of 6.40p per share paid on 12th May 2017

31 

Interim of 3.10p per share paid on 20th October 2017

15 


46 



'A' Ordinary shares


Interim of 6.40p per share paid on 12th May 2017

61 

Interim of 3.10p per share paid on 20th October 2017

30 


91 

Total dividends paid

137 



 

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

Notes to the Financial Statements

 

3.Cash and cash equivalents


 Unaudited 

6 months to 

30th June 

2018 

 Unaudited 

6 months to 

30th June 

2017 

Audited 

year to 31st 

  December 

2017 


£'000 

£'000 

£'000 

Cash at bank and in hand

3,834 

14 

1,145 

Bank overdrafts

(2,896)

(164)


938 

14 

981 

 

4.Segmental information


Unaudited 6 months to 30th June 2018 


Central 

Manufacturing

Distribution 

Total 


£'000 

£'000 

£'000 

£'000 






Revenue





External

2,641 

15,428 

18,069 

Inter company

347 

1,589 

2,269 

4,205 






Total

347 

4,230 

17,697 

22,274 






Profit





EBITDA

(1)

76 

1,411 

1,486 

Finance costs

(38)

(14)

33 

(19)

Finance income

Depreciation

(228)

(77)

(305)

Tax expense

(340)

(340)






(Loss)/profit for the period

(267)

62 

1,027 

822 






Assets





Total assets

4,789 

2,331 

14,311 

21,431 

Additions to non current assets

211 

769 

980 

Liabilities





Total liabilities

2,826 

3,653 

3,172 

9,651 

 



 

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

Notes to the Financial Statements

 

4.Segmental information - continued


Unaudited 6 months to 

 30th June 2017 


Central 

Manufacturing

Distribution 

Total 


£'000 

£'000 

£'000 

£'000 






Revenue





External

2,004 

13,536 

15,540 

Inter company

355 

1,127 

2,238 

3,720 






Total

355 

3,131 

15,774 

19,260 






Profit





EBITDA

236 

(624)

1,415 

1,027 

Finance costs

(45)

(12)

(11)

(68)

Finance income

Depreciation

(207)

(162)

(369)

Tax expense

(179)

(179)






(Loss)/profit for the period

(15)

(636)

1,064 

413 






Assets





Total assets

4,001 

709 

13,438 

18,148 

Additions to non current assets

222 

22 

244 

Liabilities





Total liabilities

980 

2,186 

4,869 

8,035 

 


Audited year to 

31st December 2017 


Central 

Manufacturing

Distribution 

Total 


£ 

£ 

£ 

£ 






Revenue





External

4,150 

27,299 

31,449 

Inter company

706 

3,211 

5,172 

9,089 






Total

706 

7,361 

32,471 

40,538 






Profit





EBITDA

393 

146 

2,605 

3,144 

Finance costs

(92)

(23)

(28)

(143)

Finance income

Depreciation

(465)

(338)

(803)

Tax expense

(20)

(8)

(593)

(621)






(Loss)/profit for the period

(183)

116 

1,647 

1,580 






Assets





Total assets

4,593 

2,397 

11,793 

18,783 

Additions to non current assets

490 

222 

712 

Liabilities





Total liabilities

1,742 

3,664 

2,402 

7,808 

 

 


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