21st Sep 2018 07:00
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 | - | 2 | 3 | |
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 | - | 2 | 3 | |
(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 | 1 | - | 1 | 2 |
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 | 1 | 1 | 1 | 3 |
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 |
Related Shares:
Braime Ord