9th Sep 2014 15:20
LONDON (Alliance News) - Metal presswork business T.F. & J.H. Braime Holdings PLC Tuesday raised its interim dividend after posting a higher pretax profit for the first-half of 2014, boosted by strong growth in revenue.
The company said its pretax profit for the six months to June 30 increased to GBP512,854, up from GBP391,379 a year earlier, as revenue rose 7.7% to GBP12.1 million, up from GBP11.2 million last year.
The company raised its interim dividend to 2.90 pence per share, up from 2.40 pence in 2013, and gave a confident outlook for the remainder of the year, although warned on currency moves.
"The directors believe that the trend of the past six months will continue in the second half of the year. The main concern currently is over the exchange rate and the effect this may have on the final result for the year. The exchange rates with our main markets is something over which we have no control, although the group takes steps to mitigate against the short term," it said.
The group said trading at its manufacturing business Braime Pressings Ltd continues to improve, albeit at a slower pace than hoped. It said that most of the recent large investments in capital equipment have been commissioned.
"The challenge remains to fully capitalise on those investments and to achieve the necessary on going improvements in efficiency and profitability," the company said.
The company said its 4B Division, its distribution companies, have also enjoyed a positive start to the year, although current sterling strength hit profits.
"The rise in the value of sterling has increased both the purchase cost in local currency of those products our subsidiaries import from the UK and reduces the value of the profits made when the subsidiary's profits are translated back into sterling for consolidation in the group accounts. This situation highlights the dependence of the group on exports which brings both considerable benefits - but also challenges," the company said.
The group said it was cash negative in the first-half, using GBP194,000 more than it generated, having invested GBP264,000 in machinery and equipment.
Shares in the company were up 5.9% at 630.000 pence per share Tuesday late afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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