25th Sep 2013 12:15
LONDON (Alliance News) - T.F. & J.H. Braime Holdings PLC Wednesday said its half-year pretax profits rose as higher revenues were driven by strong results from its manufacturing business.
Braime, which manufactures metal presswork and distributes bulk-material handling components, said it made a GBP391,379 pretax profit for the six months to June 30, compared with a GBP258,152 pretax profit for the corresponding period the year prior. Braime said its profitability increase was "welcome" though still well below its own target.
Braime said the increase in profitability was a result of a reduction in costs and an increase in sales of its pressings business. Braime said it is in the middle of a major investment to revise the layout of its facility in Leeds, while it is set to expand its number of manufacturing cells. The pressings division gave Braime hope that it would secure "substantial increased business with both existing and new customers".
Meanwhile, Braime described the performance of its distribution business, 4B, as "mixed", because some subsidiaries reported reduced profitability. It said that its results in the US were flat but that the UK division improved, which led to an overall increase in 4B's profitability.
Braime also said the transfer of its banking facilities to HSBC earlier this year resulted in lower finance costs, which enabled the company to take up an option to buy the new and larger premises in the US that it moved into in 2012.
However, Braime said its operating cash flow was negative at GBP67,932, compared with a positive GBP566,935 a year prior, because of an "increase in both stocks and debtors over and above our trade credit finance".
Braime said it would pay an interim dividend equal to that of last year's, at 2.4 pence per share.
Braime ordinary shares were quoted at 630 pence Wednesday afternoon, down 20 pence, or 3.1%.
By Samuel Agini; [email protected]; @samuelagini
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