Final Results

Braime (T.F.& J.H.) (Hldgs) PLC 28 April 2006 At a meeting of the directors held here today, the accounts for the year ended 31st December 2005 were submitted and approved by the directors. The preliminary profits statement is as follows: Consolidated Income Statement for the year ended 31st December 2005 Note Unaudited 2005 2004 £ £ Revenue 9,699,124 9,330,733 Changes in inventories of finished goods and work in progress 383,972 (43,807) Raw materials and consumables used (5,250,183) (4,708,104) Employee benefits costs (3,098,576) (2,812,754) Depreciation expense (114,728) (64,743) Other expenses (1,870,790) (1,679,398) (Loss)/profit from operations (251,181) 21,927 Finance costs (244,903) (217,238) Finance income 267,643 240,363 (Loss)/profit before tax (228,441) 45,052 UK corporation tax 13,289 116 Foreign corporation tax (82,579) (15,087) (Loss)/profit for the year (297,731) 30,081 Basic (loss)/earnings per share 1 (20.7p) 2.10p Consolidated Statement of Recognised Income and Expense for the year ended 31st December 2005 Unaudited 2005 2004 £ £ (Loss)/profit for the year (297,731) 30,081 Foreign exchange gains/(losses) on re-translation of overseas operations 17,958 (9,137) Actuarial gains and losses recognised directly in equity (163,000) 365,000 Total recognised income and expense for the year (442,773) 385,944 Consolidated Balance Sheet at 31st December 2005 Unaudited Unaudited Note 2005 2005 2004 2004 £ £ £ £ Assets Non-current assets Property, plant and equipment 737,867 555,488 Employee benefits - 85,000 Total non-current assets 737,867 640,488 Current assets Inventories 2,342,363 2,115,681 Trade and other receivables 1,832,979 2,450,028 Cash and cash equivalents 1,567,840 1,415,832 Total current assets 5,743,182 5,981,541 Total assets 6,481,049 6,622,029 Liabilities Current liabilities Bank overdraft 1,410,300 1,080,600 Trade and other payables 861,945 1,083,030 Other financial liabilities 177,170 151,588 Corporation tax liability 33,033 10,000 Total current liabilities 2,482,448 2,325,218 Non-current liabilities Financial liabilities 347,526 257,763 Employee benefits 98,000 - Total non-current liabilities 445,526 257,763 Total liabilities 2,927,974 2,582,981 Total net assets 3,553,075 4,039,048 Capital and reserves attributable to equity holders of the parent company Share capital 360,000 360,000 Capital reserve 77,319 77,319 Foreign exchange reserve 8,821 (9,137) Retained earnings 3,106,935 3,610,866 Total equity 2 3,553,075 4,039,048 Consolidated Cash Flow Statement for the year ended 31st December 2005 Unaudited Note 2005 2004 £ £ Operating activities Result for the year before interest and tax (251,181) 21,927 Adjustments Changes in inventories (226,682) (225,482) Change in trade and other receivables 595,747 (549,681) Change in trade and other payables (206,464) 94,690 Employer contribution (118,000) (110,000) Current service cost 170,000 156,000 Depreciation 114,728 64,397 (Profit)/loss on sale of fixed assets (6,216) 346 Grants amortised (1,656) (1,656) Taxes paid (39,576) (27,059) Taxes recovered - 21,185 Foreign exchange differences 14,919 (8,757) 296,800 (586,017) Investing activities Additions to property, plant and equipment (142,306) (37,841) Proceeds from disposals of property, plant and equipment 6,768 8,626 Interest received 47,643 50,363 (87,895) 21,148 Financing activities Repayment of hire purchase liabilities (35,313) - Interest paid (56,903) (32,238) Dividends paid (43,200) (57,600) (135,416) (89,838) Cash and cash equivalents, beginning of period 3 335,232 968,012 Net decrease in cash and cash equivalents (177,692) (632,780) Cash and cash equivalents, end of period 3 157,540 335,232 Notes 1. 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 (2004 - 1,440,000). There are no potentially dilutive shares in issue. During the twelve months to 31st December 2005, T.F. & J.H. Braime (Holdings) P.L.C. paid dividends of £43,200 to its equity shareholders (2004 - £57,600). This represents a payment of 3.0p per share (2004 - 4.0p per share). Unaudited 2. Changes in shareholders' equity 2005 2004 £ £ Total recognised income and expense (442,773) 385,944 Equity dividends paid (43,200) (57,600) Capital and reserves attributable to equity holders of the parent company 4,039,048 3,710,704 at the beginning of the period Capital and reserves attributable to equity holders of the parent company 3,553,075 4,039,048 at the end of the period 3. Cash and cash equivalents 2005 2004 £ £ Cash at bank and in hand 1,567,840 1,415,832 Bank overdrafts 1,410,300 1,080,600 157,540 335,232 4. Major non-cash transaction During the year the group acquired £156,450 of tangible assets under hire purchase agreements. 5. Basis of preparation The results incorporated in the preliminary announcement have been prepared in accordance with International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the EU and with those parts of the Companies Act 1985 applicable to companies preparing their accounts under IFRS. The financial information set out above does not constitute the company's statutory accounts within the meaning of section 240 of the Companies Act 1985. The 2005 figures are based on unaudited accounts for the year ended 31st December 2005. The auditors do not expect to issue a qualified report on the statutory accounts which will be finalised on the basis of the financial information presented by the directors in the preliminary announcement and which will be delivered to the Registrar of Companies following the company's annual general meeting. The 2004 comparatives have been adjusted in accordance with IFRS, a full explanation of which will appear in the statutory accounts. No final dividend will be proposed at the annual general meeting which will be held on Friday 16th June 2006. Review of business The group made a loss, before tax, of £228,000 for the year ending 31st December 2005, compared to a profit of £45,000 in 2004. After paying tax of £69,000 on profits made in the USA, this loss increased to £297,000, compared to the small after tax profit of £30,000 in 2004. Braime Pressings Limited After a positive start to the year, sales fell away sharply as short-term seasonal contracts came to an end and new business, which had been anticipated, did not materialise. Although turnover in 2005 was up by 10% resulting from the sale of outsourced tooling, margins on manufacturing suffered badly mainly due to large increases in raw material costs which could not be fully passed on to customers, and the company made a large loss. A number of initiatives have been taken to turn the manufacturing business around:- • We have made substantial reductions in our fixed costs by reducing personnel in service departments, initially through natural wastage and sadly, in January this year, by compulsory redundancies. In particular, our tool room has been reduced to a small team of toolmakers responsible for maintaining production. • In February 2006, Braime Pressings Limited gained accreditation under ISO9002 and this has opened up a number of opportunities for additional volume business. • An operations manager, with a track record of securing major business in our industry, has been recruited and we are in negotiation with a number of new potential customers. • In October we acquired the equipment and tooling to manufacture specialized fasteners for distribution through our own existing channels. The transfer and installation of the machinery was completed in December and the new product line is now in full production. Braime Elevator Components Limited Sales rose by 17% and the trading profit increased, although margins continued to be squeezed by very fierce competition in the market for our principal product, elevator buckets. A significant investment was made in a new web site www.go4b.com. This will benefit all the group subsidiaries supplying components to the bulk material handling industry by promoting the group's products. As of April 2006, the company has been appointed by a French group, MLT, as their exclusive UK distributor for a range of conveyor belt fasteners for supply to our existing customer base, providing extra benefit for a relatively low investment in stock and additional marketing. Sarl S.E.T.E.M. Against a background of the very difficult economic conditions prevailing in France, particularly in the agricultural sector, sales at SETEM fell by 13%. This coincided with a significant investment made in opening a branch office in Germany. Due to a legal dispute, now resolved, the effective start up of this office was severely hampered for the first six months of 2005. The effect of lower sales in France, investment in a new major product line and the high investment in the new office in Germany combined to create a large loss at SETEM. Sales in both France and export are now running at significantly higher levels than at this time last year and the new German office will more than cover its costs in 2006. 4B Sudamerica S.A. Sales did not advance. The Argentinean peso remains weak. This continuing situation makes it extremely difficult to compete against local manufacturers. Although both the level of activity and the results at 4B SA has no effect of significance on the group, we have decided to re-structure our activities. While we will continue to manufacture plastic buckets there for re-export, we will withdraw from our distribution activities within Argentina. 4B Elevator Components Limited Our US subsidiary enjoyed a very good year. Sales increased by 12% and this resulted in a significant improvement in the level of profit. Margins also benefited from the strengthening of the US Dollar. The new year has begun very strongly and we expect sales to be boosted still further by the improvements and additions to our product range, which we plan to launch later this year. Outlook Sales have begun positively in all the group subsidiaries whose principal activity is the sale of components to the bulk handling industry and we expect these subsidiaries to have a successful year. The market for presswork remains difficult. The re-structuring that is being undertaken puts the company in a better position to secure profitable long-term new business and to return the overall business to profit. The company's auditors have agreed to this statement being notified to a regulatory information service. D. H. Brown Company Secretary T.F. & J.H. Braime (Holdings) P.L.C. 28th April 2006 This information is provided by RNS The company news service from the London Stock Exchange AKFKDQBKDCQB

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