22nd Apr 2025 12:33
(Alliance News) - Braime Group PLC on Tuesday reported lower profit in 2024 and said the "fraught" economic and geopolitical situation means its outlook is "simply and frankly one of uncertainty".
The Leeds, England-based metal press work manufacturer said pretax profit fell 4.1% to GBP3.2 million in 2024 from GBP3.3 million in 2023.
Braime shares fell 5.3% to 710.00 pence in London on Tuesday afternoon.
Revenue increased 1.6% to GBP48.9 million from GBP48.2 million. The cost of raw materials and consumables climbed 8.4% to GBP27.3 million from GBP25.2 million while employee benefits costs grew 8.6% to GBP12.0 million from GBP11.0 million.
Braime said this rise in revenue was as a result of investments made in new business development for products supplied into the construction and building sectors, benefiting the company's pressing business and expanding its product mix and customer base.
However, the company said overall sales fell as the automobile sector "remained sluggish".
"Intercompany sales of parts for the bulk material handling sector also fell as a consequence of the continuing difficult market conditions experienced across much of Europe," Braime said.
The company declared a 10.00 pence second interim dividend, bringing the full-year payout to 15.25 pence, up 3.4% from 14.75 pence the previous year.
Looking ahead, Chair Nicholas Braime said that the company was "in a relatively strong position" despite "the already subdued economic situation and the turmoil created by the recent US tariff announcement".
Braime said its main business sector, based on the growth and processing of commodities for food production is "no longer the consistent, universal, and often subsidised growth sector that it has been for the past 50 years."
Braime said its markets are "diverse" and it sees " a number of opportunities for potential future growth which we are poised to exploit".
"However, the current economic and geo-political situation is more fraught than at any time in my lifetime. So the 'Outlook' currently for the business is simply and frankly one of uncertainty," concluded Chair Nicholas Braime.
By Olivia Mason-Myhill, Alliance News reporter
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