TIDMBMTO
RNS Number : 2963X
Braime (T.F.& J.H.) (Hldgs) PLC
29 April 2019
T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
("Braime" or the "Company" and with its subsidiaries the
"Group")
ANNUAL RESULTS FOR THE YEARED 31ST DECEMBER 2018
At a meeting of the directors held today, the accounts for the
year ended 31st December 2018 were submitted and approved by the
directors. The accounts statement is as follows:
Chairman's statement
Review of the year
I am delighted to report that the Group's sales revenue
increased in 2018 by 13.6% to GBP35.7m from GBP31.4m in 2017 and
the profit from operations increased to GBP3.2m, compared to
GBP2.3m last year. After adjusting for finance income and expenses,
the profit before tax is GBP3.0m. Deducting tax of GBP0.8m, the
profit after tax is GBP2.2m, well ahead of last year's result of
GBP1.6m.
Unusually, all parts of the Group individually enjoyed a
successful year and this, alongside other factors, such as
favourable exchange rates and the strength of the US market
combined to produce what is a record result. As a group, we
continue to benefit from our long-term strategy of investment in
continually developing new products and new markets.
Further detail and analysis of our financial result, and
consideration of the major challenges and risks currently facing
the Company, can be found in the Group Strategic Report.
Without wishing to deflect from the extremely positive result in
2018, it is necessary to add a note of caution. While our budget
for 2019, prepared at the end of last year, shows continuing
growth, we are now seeing early signs of a slow-down in activity.
The general consensus is that Europe is entering a period of, at
best, an economic slow-down and, at worst, a recession. The Chinese
economy, long a major driver of growth and a major contributor to
our 2018 result, has begun to slow considerably; some of our
markets in agriculture, for example both in Australia and South
America, were severely hit by drought last year, resulting in a
reduction in investment in handling and storage and we have fears
that the US agro market may well be negatively affected by the
current trade war with China.
In spite of these factors the underlying strength of the Group
remains and we intend to continue with our long-term strategy of
investing our funds in improving production, developing new
products and extending our distribution.
Dividends
In October 2018, we paid an increased dividend of 3.50p (October
2017- 3.10p). On the basis of our full 2018 result, the directors
have decided to also increase the 2nd interim dividend to 8.00p,
(May 2017 - 7.10p), which will be paid on the 17th May 2019 to the
holders of Ordinary and 'A' Ordinary shares on the register on 10th
May 2019. Taken together, the overall dividend paid on the 2018
results will be 11.50p, compared to the 10.20p paid in 2017, an
increase of 12.75%. The directors remain committed to increasing
the dividends paid to shareholders to reflect improvements in the
long- term performance of the Group, while balancing the need to
support the ongoing investments in plant, facilities, and products,
on which such growth depends.
Capex
In 2018, the Group invested GBP1.8m in plant and equipment
(compared to GBP0.7m in 2017) and this is commented on further in
the Group Strategic Report. We plan to make further major
investments in the current year in both the manufacturing of
presswork for our external customers and in the manufacture of the
material handling components for our subsidiaries for distribution
to their customers worldwide. We believe the successful future for
both parts of the business depend on continuing to achieve
improvements in our productivity.
Braime Pressings Limited
This is the direct successor to the original business founded in
1888. The Company specialises in deep drawn presswork, originally
supplied to a very wide range of industries but now concentrated on
the automotive sector. This provides the volume necessary to enable
investment in the dedicated equipment necessary to remaining
competitive, but volume which comes at a price. Pricing is subject
to the constant pressure of "cost downs" which are a reality in the
automotive industry. Survival is through continual process
improvements achieved by teamwork and investment. 2018 saw an
increase in volume and reductions in overhead costs to maintain
profit.
4B material handling division
This division, based originally solely in the UK is now made up
of a number of overseas subsidiaries, all of which enjoyed growth
both in terms of sales and profitability in 2018. The division
opened a new subsidiary, 4B China, to exploit the opportunity
identified to sell our niche products in a rapidly developing
agro-industrial market. China has now also become a major exporter
of grain handling and storage equipment, including becoming a new
manufacturing base for many of our existing OEM customers elsewhere
who have now also located manufacturing in China. As well as
extending our distribution globally, we continue to develop new
innovative product designed to solve specific niche problems which
we have identified in the bulk material handling industry. We
continue to concentrate on creating products which are true to the
division's logo "better by design".
Staff
In 2018 the Company passed its 130th anniversary and in February
of this current year we were proud to be awarded by the Yorkshire
Society a commemorative plaque celebrating our 130 years of
"Engineering Excellence". This gave us an opportunity to involve
all our staff in celebrating this considerable achievement, an
achievement which is the direct result of the hard work and loyalty
of our current staff and the generations before them.
We rely on the contribution, ideas, enthusiasm and teamwork of
our staff to prosper in an ever more challenging global business
environment and I would like to take this opportunity to thank
everyone for their hard work.
Brexit
This is a subject we would all like to avoid, whatever our
individual views. To adapt a phrase - any decision would have been
better than no decision. After a clear, if contentious decision, we
have been let down by our politicians of all parties. As a major
exporter, we have wasted time, energy and money trying to help
ourselves and our customers mitigate against the unknown. Business
needs a clear decision and strong leadership.
Change of name
At the AGM we are proposing to the shareholders that the name of
the Company is changed from T.F. & J.H. Braime (Holdings)
P.L.C. to Braime Group PLC.
We continue to have enormous respect for the achievement of the
founder, Tom Braime, and of his younger brother, Harry Braime, my
grandfather, both young engineers and entrepreneurs. Together they
built this Company from nothing but their own ambition, ingenuity,
drive and work ethic. However, the directors now believe that the
name Braime Group PLC better reflects the activities and ambitions
of today's global company.
Summary and outlook
2018 was a record year however we are cautious about the
possible effects of the current deteriorating economic situation in
general, and specifically so in our particular markets.
Nevertheless long-term, while we will always face both risks and
challenges - in particular our exposure to significant currency
fluctuations - the pursuit of a clear strategy of continuously
investing in improving productivity, developing new products and
extending our market reach, continues to open up further
opportunities for growth.
Nicholas Braime, Chairman
26th April 2019
For further information please contact:
T.F. & J.H. Braime (Holdings) P.L.C.
Nicholas Braime/Cielo Cartwright
0113 245 7491
W. H. Ireland Limited
Katy Mitchell/Nick Prowting
0113 394 6628
The directors present their strategic report of the Company and
the Group for the year ended 31st December 2018.
Principal activities
The principal activities of the Group during the year under
review was the manufacture of deep drawn metal presswork and the
distribution of material handling components and monitoring
equipment. Manufacturing activity is delivered through the Group's
subsidiary Braime Pressings Limited and the distribution activity
through the Group's 4B division.
Braime Pressings specialises in metal presswork, including deep
drawing, multi-stage progression and transfer presswork. Founded in
1888, the business has over 130 years of manufacturing experience.
The metal presswork segment operates across several industries
including the automotive sector and supplies external as well as
group customers.
The material handling components subsidiaries are industry
leaders in developing high quality, innovative and dependable
material handling components for the agricultural and industrial
sectors. They provide a range of complementary products including
elevator buckets, elevator and conveyor belting, elevator bolts and
belt fasteners, forged chain, level monitors and sensors and
controllers for monitoring safety and providing preventative
maintenance systems which facilitate handling and minimise the risk
of explosion in hazardous areas. The subsidiaries in the 4B
division have operations in the Americas, Europe, Asia, Australia
and Africa and export to over fifty countries.
Performance highlights
For the year ended 31st December 2018, the Group generated
revenue of GBP35.7m, up GBP4.3m from prior year. Profit from
operations was GBP3.2m, up GBP0.9m from prior year. EBITDA was
GBP4.0m. At 31st December 2018, the Group had net assets of
GBP13.3m.
Cash flow
Inventories increased by GBP1.4m and trade receivables by
GBP0.4m reflecting the increased sales activity. These calls on
working capital were partly offset by an increase in our trade
payables of GBP0.3m. In total the business generated funds from
operations of GBP2.4m net of the movement in working capital (2017
- GBP1.5m). After the payment of other financial costs and the
dividend, the cash balance (net of overdraft) was GBP1.5m, an
increase of GBP0.5m from prior year.
Bank facilities
The Group's operating banking facilities are renewed annually.
The arrangements with HSBC provide sufficient headroom to the Group
and have allowed us to make the necessary investments in the year.
As part of our contingency planning for Brexit, we have held
discussions with our bankers and have received confirmation of a
temporary increase in headroom beyond our current limits, to help
fund our pre-Brexit strategy of building enhanced stock levels as
the additional needs arise.
Taxation
Tax charge for the year was GBP0.8m, with an effective rate of
tax of 26% (2017 - 28%). The effective rate is above the standard
UK tax rate of 19.00% (2017 - 19.25%) due to the blending effect of
the different rates of tax applied by each of the countries in
which the Group operates, in particular, our operations in the US.
In any financial year the effective rate will depend on the mix of
countries in which profits are made, however the Group continues to
review its tax profile to minimise the impact.
Capital expenditure
In 2018, the Group invested GBP1.8m (2017 - GBP0.7m) in plant
and equipment. A significant proportion of this was our new
manufacturing facilities in the USA, which will substantially
enhance our in-house capabilities. Other major investments relate
to installation of robotics machinery in the UK, in line with our
strategy to improve efficiency and quality through automation.
During 2019, the Group plans to make further tactical investments
in key equipment to maximise productivity and we have the headroom
within our current banking facilities to do so.
Balance sheet
Net assets of the Group have increased to GBP13.3m (2017 -
GBP11.0m). This is due to the strong profit performance in the
year. A foreign exchange gain of GBP0.2m (2017 - loss of GBP0.5m)
was recorded on the re-translation of the net assets of the
overseas operations, which has increased retained earnings in the
year.
Principal exchange rates
The Group reports its results in sterling, its presentational
currency. The Group operates in five other currencies and the
principal exchange rates in use during the year and as at 31st
December 2018 are shown in the table below. During the year the
sterling weakened against many of the currencies in which we
operate and consequently the Group's reserves increased by GBP0.2m
from gains in foreign currency translations.
Average Average Closing Closing
Currency Symbol rate rate rate rate
Full year Full year 31st Dec 31st Dec
2018 2017 2018 2017
Australian Dollar AUD 1.787 1.692 1.809 1.728
Chinese Renminbi (Yuan) CNY 8.700 - 8.676 -
Euro EUR 1.130 1.143 1.115 1.127
South African Rand ZAR 17.627 17.134 18.364 16.631
Thai Baht THB 42.962 44.031 41.301 44.016
United States Dollar USD 1.332 1.303 1.277 1.351
Our business model
The two segments of the Group are very different operations and
serve different markets, however together they provide
diversification, strength and balance to the Group.
The focus of the manufacturing business is to produce quality,
technically demanding components. The use of automated equipment
allows us to produce in high volumes whilst maintaining flexibility
to respond to customer demands.
The material handling components business operates from a number
of locations around the globe allowing us to be close to our core
markets. The focus of the business is to provide innovative
solutions drawing on our expertise in material handling and access
to a broad product range.
Performance of Braime Pressings Limited, manufacturer of deep
drawn metal presswork
Braime Pressings Limited had a busy year supplying our other
subsidiaries. External revenue saw a small growth in 2018 and
earnings before interest and depreciation (EBITDA) also saw an
increase. However, profit for the period remained static at GBP0.1m
(2017 - GBP0.1m). The manufacturing arm continues to face pricing
pressures in a highly competitive environment, however it continues
to add strategic value through its supply to the 4B division.
Performance of the 4B division, world wide distributor of
components and monitoring systems for the material handling
industry
The combined revenues of our subsidiaries grew strongly in 2018.
External revenue increased to GBP31.4m up 15% on prior year, which
has fed through to EBITDA. The growth reflects the Group's
investment in this division's activities over the past three years,
and the strengthening power of the 4B brand. In July 2018, we
launched our newest operations in Changzhou, China, continuing our
investment in strategic markets.
We continue to enhance features of our secure, cloud based
industrial monitoring solution, Hazardmon which is revolutionary
for introducing greater levels of transparency and record
keeping.
The outlook for 2019 remains positive and we look to further
growth across all subsidiaries.
Key performance indicators
The Group uses the following key performance indicators to
assess the performance of the Group as a whole and of the
individual businesses:
Key performance indicator Note 2018 2017
Turnover growth 1 13.6% 10.7%
Gross margin 2 48.4% 46.4%
Operating profit 3 GBP3.24m GBP2.34m
Stock days 4 141 days 136 days
Debtor days 5 56 days 58 days
Notes to KPI's
1. Turnover growth
The Group aims to increase shareholder value by measuring the
year on year growth in Group revenue. We are pleased with the level
of growth achieved during 2018.
2. Gross margin
Gross profit (revenue less change in inventories and raw
materials used) as a percentage of revenue is monitored to maximise
profits available for reinvestment and distribution to
shareholders. The year on year improvement in margin has resulted
from operational efficiency and gains from movement in foreign
exchange rates.
3. Operating profit
Sustainable growth in operating profit is a strategic priority
to enable ongoing investment and increase shareholder value. Year
on year improvement in operating profits resulting from the
improvement in gross margin and also efficient cost control over
operating expenses.
4. Stock days
The average value of inventories divided by raw materials and
consumables used and changes in inventories of finished goods and
work in progress expressed as a number of days is monitored to
ensure the right level of stocks are held in order to meet customer
demands whilst not carrying excessive amounts which impacts upon
working capital requirements. Stock days have increased in part due
to contingency planning for Brexit.
5. Debtor days
The average value of trade receivables divided by revenue
expressed as a number of days. This is an important indicator of
working capital requirements. Debtor days still average within the
standard payment terms of 60 days, however senior management are
focused on reducing this to improve cash.
Other metrics monitored weekly or monthly include quality
measures (such as customer complaints), raw materials buying
prices, capital expenditure, line utilisation, reportable accidents
and near-misses.
Principal risks and uncertainties
The market remains challenging for our manufacturing division,
due to pricing pressures throughout the supply chain. The
maintenance of the TS16949 quality standard is important to the
Group and allows it to access growing markets within the automotive
and other sectors. A process of continual improvement in systems
and processes reduces this risk as well as providing increased
flexibility to allow the business to respond to customer
requirements.
Our 4B division maintains its competitive edge in a price
sensitive market through the provision of engineering expertise and
by working closely with our suppliers to design and supply
innovative components of the highest standard. In addition, ranges
of complementary products are sold into different industries. The
monitoring systems are developed and improved on a regular
basis.
The directors receive monthly reports on key customer and
operational metrics from subsidiary management and review these.
The potential impact of business risks and actions necessary to
mitigate the risks, are also discussed and considered at the
monthly board meetings. The more significant risks and
uncertainties faced by the Group are set out below:-
-- Raw material price fluctuation:- The Group is exposed to
fluctuations in steel and other raw material prices and to mitigate
this volatility, the Group fixes its prices with suppliers where
possible.
-- Reputational risk:- As the Group operates in relatively small
markets any damage to, or loss of reputation could be a major
concern. Rigorous management attention and quality control
procedures are in place to maximise right first time and on time
delivery. Responsibility is taken for ensuring swift remedial
action on any issues and complaints.
-- Damage to warehouse or factory:- Any significant damage to a
factory or warehouse will cause short-term disruption. To mitigate
these risks, the Group has arrangements with key suppliers to step
up supply in the event of a disruption.
-- Brexit impact:- The Group, along with other businesses, faces
economic and political uncertainty in the future resulting from the
UK vote to leave the EU. However, the directors consider that its
operations in Europe provide the group with further trading options
and the fact that 56% of the Group's revenues are derived from
markets outside the EU provides the Group with some resilience to
any impact.
-- Economic fluctuations:- The Group derives a significant
proportion of its profits from outside the UK and is therefore
sensitive to fluctuations in the economic conditions of overseas
operations including foreign currency fluctuations.
Financial instruments
The operations expose the Group to a variety of financial risks
including the effect of changes in interest rates on debt, foreign
exchange rates, credit risk and liquidity risk.
The Group's exposure in the areas identified above are discussed
in note 16 of the financial statements.
The Group's principal financial instruments comprise sterling
and foreign cash and bank deposits, bank loans and overdrafts,
other loans and obligations under finance leases together with
trade debtors and trade creditors that arise directly from
operations.
The main risks arising from the Group's financial instruments
can be analysed as follows:
Price risk
The Group has no significant exposure to securities price risk,
as it holds no listed equity instruments.
Foreign currency risk
The Group has a centralised treasury function which manages the
Group's banking facilities and all lines of funding. Forward
contracts are used to hedge against foreign exchange differences
arising on cash flows in currencies that differ from the
operational entity's reporting currency.
Financial instruments (continued)
Credit risk
The Group's principal financial assets are bank balances, cash
and trade receivables, which represent the Group's maximum exposure
to credit risk in relation to financial assets.
The Group's credit risk is primarily attributable to its trade
receivables. Credit risk is mitigated by a stringent management of
customer credit limits by monitoring the aggregate amount and
duration of exposure to any one customer depending upon their
credit rating. The Group also has credit insurance in place. The
amounts presented in the balance sheet are net of allowance for
doubtful debts, estimated by the Group's management based on prior
experience and their assessment of the current economic
environment.
The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings assigned by
international credit-rating agencies. The Group has no significant
concentration of credit risk, with exposure spread over a large
number of counterparties and customers.
Liquidity risk
The Group's policy has been to ensure continuity of funding
through acquiring an element of the Group's fixed assets under
finance leases and arranging funding for operations via medium-term
loans and overdrafts to aid short term flexibility.
Cash flow interest rate risk
Interest rate bearing assets comprise cash and bank deposits,
all of which earn interest at a fixed rate. The interest rate on
the bank overdraft is at market rate and the Group's policy is to
keep the overdraft within defined limits such that the risk that
could arise from a significant change in interest rates would not
have a material impact on cash flows. The Group's policy is to
maintain other borrowings at fixed rates to fix the amount of
future interest cash flows.
The directors monitor the level of borrowings and interest costs
to limit any adverse effects on financial performance of the
Group.
Health and safety
We maintain healthy and safe working conditions on our sites and
measure our ability to keep employees and visitors safe. We
continuously aim to improve our working environments to ensure we
are able to provide a safe occupational health and safety standards
to our employees and visitors. The directors receive monthly
H&S reports and we carry out regular risk management audits to
identify areas for improvement and to minimise safety risks.
Business ethics and human rights
We are committed to conducting our business ethically and
responsibly, and treating employees, customers, suppliers and
shareholders in a fair, open and honest manner. As a business, we
receive audits by both our independent auditors and by our
customers and we look to source from suppliers who share our
values. We encourage our employees to provide feedback on any
issues they are concerned about and have a whistle-blowing policy
that gives our employees the chance to report anything they believe
is not meeting our required standards.
The Group is similarly committed to conducting our business in a
way that is consistent with universal values on human rights and
complying with the Human Rights Act 1998. The Group gives
appropriate consideration to human rights issues in our approach to
supply chain management, overseas employment policies and
practices. Where appropriate, we support community partnering.
Environment
The Group's policy with regard to the environment is to
understand and effectively manage the actual and potential
environmental impact of our activities. Operations are conducted
such that we comply with all legal requirements relating to the
environment in all areas where we carry out our business. The Group
continuously looks for ways to harness energy reduction
(electricity and gas) and water. During the period of this report
the Group has not incurred any fines or penalties or been
investigated for any breach of environmental regulations.
Social and community matters
We recognise our responsibility to work in partnership with the
communities in which we operate and we encourage active employee
support for their community in particular, in aid of technical
awareness and training. During the year, we participated in a
number of education events encouraging interest in engineering in
young people. It is our policy not to provide political
donations.
Employees
The quality and commitment of our people has played a major role
in our business success. This has been demonstrated in many ways,
including improvements in customer satisfaction, the development of
our product lines and the flexibility they have shown in adapting
to changing business requirements. Employee performance is aligned
to the achievement of goals set within each subsidiary and is
rewarded accordingly. Employees are encouraged to use their skills
to best effect and are offered training either externally or
internally to achieve this. As a global business, the Group fully
recognises and seeks to harness the benefits of diversity within
its work force.
Research and development
The Group continues to invest in research and development. This
has resulted in improvements in the products which will benefit the
Group in the medium to long term.
Consolidated income statement for the year ended 31st December
2018 (audited)
2018 2017
GBP'000 GBP'000
Revenue 35,718 31,449
Changes in inventories of finished goods and work
in progress 1,229 114
Raw materials and consumables used (19,677) (16,955)
Employee benefits costs (8,300) (7,449)
Depreciation and amortisation expense (788) (803)
Other expenses (4,940) (4,015)
--------------------------------------------------- ----------- -----------
Profit from operations 3,242 2,341
Finance expense (227) (143)
Finance income 2 3
--------------------------------------------------- ----------- -----------
Profit before tax 3,017 2,201
Tax expense (788) (621)
--------------------------------------------------- ----------- -----------
Profit for the year 2,229 1,580
--------------------------------------------------- ----------- -----------
Profit attributable to:
Owners of the parent 2,178 1,719
Non-controlling interests 51 (139)
--------------------------------------------------- ----------- -----------
2,229 1,580
--------------------------------------------------- ----------- -----------
Basic and diluted earnings per share 154.79p 109.73p
--------------------------------------------------- ----------- -----------
Consolidated statement of comprehensive income for the year
ended 31st December 2018 (audited)
2018 2017
GBP'000 GBP'000
Profit for the year 2,229 1,580
Items that will not be reclassified subsequently
to profit or loss
Net pension remeasurement gain on post employment
benefits 76 45
Items that may be reclassified subsequently to
profit or loss
Foreign exchange gains/(losses) on re-translation
of overseas operations 206 (472)
--------------------------------------------------- -------- --------
Other comprehensive income for the year 282 (427)
Total comprehensive income for the year 2,511 1,153
--------------------------------------------------- -------- --------
Total comprehensive income attributable to:
Owners of the parent 2,481 1,299
Non-controlling interests 30 (146)
--------------------------------------------------- -------- --------
2,511 1,153
--------------------------------------------------- -------- --------
Consolidated balance sheet at 31st December 2018 (audited)
2018 2017
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 6,232 5,238
Intangible assets 61 58
Total non-current assets 6,293 5,296
Current assets
Inventories 7,872 6,431
Trade and other receivables 6,820 5,911
Cash and cash equivalents 2,313 1,145
-------------------------------------------------- -------- --------
Total current assets 17,005 13,487
-------------------------------------------------- -------- --------
Total assets 23,298 18,783
-------------------------------------------------- -------- --------
Liabilities
Current liabilities
Bank overdraft 832 164
Trade and other payables 5,493 4,391
Other financial liabilities 1,870 1,983
Corporation tax liability 249 195
-------------------------------------------------- -------- --------
Total current liabilities 8,444 6,733
Non-current liabilities
Financial liabilities 1,256 988
Deferred income tax liability 265 87
-------------------------------------------------- -------- --------
Total non-current liabilities 1,521 1,075
-------------------------------------------------- -------- --------
Total liabilities 9,965 7,808
-------------------------------------------------- -------- --------
Total net assets 13,333 10,975
-------------------------------------------------- -------- --------
Share capital 360 360
Capital reserve 257 257
Foreign exchange reserve 301 74
Retained earnings 12,734 10,633
-------------------------------------------------- -------- --------
Total equity attributable to the shareholders of
the parent 13,652 11,324
Non-controlling interests (319) (349)
-------------------------------------------------- -------- --------
Total equity 13,333 10,975
-------------------------------------------------- -------- --------
Consolidated cash flow statement for the year ended 31st
December 2018 (audited)
2018 2017
GBP'000 GBP'000
Operating activities
Net profit 2,229 1,580
Adjustments for:
Depreciation and amortisation 788 803
Foreign exchange gains/(losses) 158 (443)
Finance income (2) (3)
Finance expense 227 143
Loss on sale of land and buildings, plant, machinery
and motor vehicles 15 4
Adjustment in respect of defined benefits scheme 158 45
Income tax expense 788 621
Income taxes paid (871) (617)
------------------------------------------------------ -------- --------
1,261 553
------------------------------------------------------ -------- --------
Operating profit before changes in working capital
and provisions 3,490 2,133
Increase in trade and other receivables (580) (698)
Increase in inventories (1,441) (312)
Increase in trade and other payables 977 356
(1,044) (654)
------------------------------------------------------ -------- --------
Cash generated from operations 2,446 1,479
Investing activities
Purchases of property, plant, machinery and motor
vehicles and intangible assets (1,767) (618)
Sale of land and buildings, plant, machinery and
motor vehicles 32 14
Interest received 2 3
------------------------------------------------------ -------- --------
(1,733) (601)
Financing activities
Proceeds from long term borrowings 792 165
Loan financing repayments - 52
Repayment of borrowings (349) (329)
Repayment of hire purchase creditors (276) (247)
Interest paid (227) (143)
Dividends paid (153) (137)
------------------------------------------------------ -------- --------
(213) (639)
------------------------------------------------------ -------- --------
Increase in cash and cash equivalents 500 239
Cash and cash equivalents, beginning of period 981 742
------------------------------------------------------ -------- --------
Cash and cash equivalents, end of period 1,481 981
------------------------------------------------------ -------- --------
Consolidated statement of changes in equity for the year ended
31st December 2018 (audited)
Foreign Non-
Share Capital Exchange Retained Controlling Total
Capital Reserve Reserve Earnings Total Interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 losses
on re-translation of
overseas subsidiaries
consolidated 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 1st January
2018 360 257 74 10,633 11,324 (349) 10,975
Comprehensive income
Profit - - - 2,178 2,178 51 2,229
Other comprehensive
income
Net pension remeasurement
gain recognised directly
in equity - - - 76 76 - 76
Foreign exchange gains
on re-translation of
overseas subsidiaries
consolidated operations - - 227 - 227 (21) 206
--------------------------- ---- ---- ------ ------- ------- ------- -------
Total other comprehensive
income - - 227 76 303 (21) 282
Total comprehensive
income - - 227 2,254 2,481 30 2,511
--------------------------- ---- ---- ------ ------- ------- ------- -------
Transactions with owners
Dividends - - - (153) (153) - (153)
Total transactions with
owners - - - (153) (153) - (153)
--------------------------- ---- ---- ------ ------- ------- ------- -------
Balance at 31st December
2018 360 257 301 12,734 13,652 (319) 13,333
--------------------------- ---- ---- ------ ------- ------- ------- -------
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 shares (2017 - 1,440,000).
There are no potentially dilutive shares in issue.
Dividends paid 2018 2017
GBP'000 GBP'000
Equity shares
Ordinary shares
Interim of 7.10p (2017 - 6.40p) per share paid
on 18th May 2018 34 31
Interim of 3.50p (2017 - 3.10p) per share paid
on 19th October 2018 17 15
------------------------------------------------ -------- --------
51 46
------------------------------------------------ -------- --------
'A' Ordinary shares
Interim of 7.10p (2017 - 6.40p) per share paid
on 18th May 2018 68 61
Interim of 3.50p (2017 - 3.10p) per share paid
on 19th October 2018 34 30
------------------------------------------------ -------- --------
102 91
------------------------------------------------ -------- --------
Total dividends paid 153 137
------------------------------------------------ -------- --------
An interim dividend of 8.0p per Ordinary and 'A' Ordinary share
will be paid 17th May 2019.
2. SEGMENTAL INFORMATION
Central Manufacturing Distribution Total
2018 2018 2018 2018
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External - 4,291 31,427 35,718
Inter Company 695 3,891 6,452 11,038
--------------------------------- -------- -------------- ------------- --------
Total 695 8,182 37,879 46,756
--------------------------------- -------- -------------- ------------- --------
Profit
EBITDA 387 187 3,456 4,030
Finance costs (116) (36) (75) (227)
Finance income - - 2 2
Depreciation and amortisation (464) - (324) (788)
Tax expense (19) (55) (714) (788)
Profit/(loss) for the period (212) 96 2,345 2,229
--------------------------------- -------- -------------- ------------- --------
Assets
Total assets 5,009 3,202 15,087 23,298
Additions to non current assets 650 - 1,149 1,799
Liabilities
Total liabilities 3,713 2,127 4,125 9,965
Central Manufacturing Distribution Total
2017 2017 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000
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
3. BASIS OF PREPARATION
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union (IFRSs as adopted by the EU), IFRIC
interpretations and the Companies Act 2006 applicable to companies
reporting under IFRS. The consolidated financial statements have
been prepared under the historical cost convention. The accounting
policies adopted are consistent with those of the annual financial
statements for the year ended 31st December 2018 as described in
those financial statements.
4. ANNUAL GENERAL MEETING
The Annual General Meeting of the members of the company will be
held at the registered office of the company at Hunslet Road,
Leeds, LS10 1JZ on Thursday 20th June 2019 at 11.45am. The annual
report and financial statements will be sent to shareholders by
17th May 2019 and will also be available on the company's website
(www.braimegroup.com) from that date.
5. PRELIMINARY STATEMENT
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined by
section 434 of the Company Act 2006. The financial information for
the year ended 31st December 2018 has been extracted from the
Group's financial statements upon which the auditor's opinion is
unqualified, does not include reference to any matters to which
they wish to draw attention by way of emphasis without qualifying
their report, and does not include any statement under section 498
of the Companies Act 2006. Statutory accounts for the year ended
31st December 2017 have been delivered to the Registrar of
Companies, and those for 2018 will be delivered in due course.
6. EVENTS AFTER THE REPORTING PERIOD
There were no events after the balance sheet date that would
require disclosure in accordance with IAS10, "Events after the
reporting period".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR ZQLFLKZFZBBV
(END) Dow Jones Newswires
April 29, 2019 02:00 ET (06:00 GMT)
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