RNS Number:1653P
Braime (T.F.& J.H.) (Hldgs) PLC
29 August 2003
HALF-YEARLY REPORT
Group sales for the first six months of the year fell by 9% from #5.25m in 2002
to #4.80m for 2003 and the trading profit fell from #175,000 to #24,000.
Investment income reduced by #3,000 to #27,000. However this was more than
offset by a drop of #6,000 in the interest payable.
Group profit after tax reduced from #129,000 in 2002 to #25,000 for 2003.
After a positive start to the year our principal trading subsidiaries have all
simultaneously been affected by adverse market conditions.
Sales of subcontract presswork by Braime Pressings Limited remain depressed due
to the continuing closure of UK engineering businesses and the drive from
international groups to resource components outside the UK and/or Europe.
The deep recession in continental Europe, particularly in the agricultural
sector, has hit both the sales volume and margins of Braime Elevator Components
Limited and our French subsidiary, Sarl S.E.T.E.M.
Sales at 4B Elevator Components Limited in the USA remain unchanged from last
year but their gross margin has been reduced significantly by the steep fall in
the value of the US$ which has increased the cost of their products, sourced
predominantly in the UK.
Currently 4B Elevator Components Limited are seeing a strong revival in business
but it is too soon to know if this will lead to a sustained recovery.
In very difficult trading conditions, all subsidiaries are concentrating their
efforts on achieving tight control of costs and on trying to increase margins.
However, the trading profit for the full year is likely to be substantially less
than in 2002.
The directors have decided to pay a reduced dividend of 1.80p (2002 - 2.20p) per
Ordinary and 'A' Ordinary share. The dividend will be paid on 6th October 2003
to shareholders whose names appear on the register on 12th September 2003.
Consolidated Profit & Loss Account for the six months ended 30th June 2003
Unaudited results for the Year to
six months ended 30th June 31st December
2003 2002 2002
# # #
Group turnover 4,798,353 5,245,633 9,981,579
Trading profit 23,715 175,332 400,521
Investment income 26,625 29,848 63,873
Profit before interest 50,340 205,180 464,394
Interest payable 14,980 20,995 42,136
Profit before taxation 35,360 184,185 422,258
Taxation at 30% for interim figures 10,608 55,256 72,582
Profit after taxation 24,752 128,929 349,676
Dividends 30,420 36,180 155,880
Retained (loss)/profit (5,668) 92,749 193,796
Earnings per share 1.41p 8.64p 23.65p
Notes to the Interim Report for the six months ended 30th June 2003
The financial information for the six months ended 30th June 2003 has not been
audited, nor has the financial information for the six months ended 30th June
2002. However, the interim report includes a review signed by the auditors.
The comparative figures for the year ended 31st December 2002 do not constitute
the group's statutory accounts for that year, but have been extracted from the
statutory accounts filed with the registrar of companies, and which carried an
unqualified audit report. The report has been prepared in accordance with
applicable accounting standards on a consistent basis using the accounting
policies set out in the 2002 annual report.
Independent review report to T.F. & J.H. Braime (Holdings) P.L.C.
Introduction
We have been instructed by the company to review the financial information set
out on pages 1 to 4 and we have read the other information contained in the
interim report and considered whether it contains any apparent mis-statements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and, based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2003.
John Gordon Walton & Co.
Chartered Accountants
Yorkshire House
Greek Street
Leeds
LS1 5ST
29th August 2003
T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
Consolidated Balance Sheet at 30th June 2003
Unaudited Unaudited
30th June 30th June 31st December
2003 2002 2002
# # #
Fixed assets Intangible assets 11,925 12,064 11,565
Tangible assets 563,685 617,479 623,579
575,610 629,543 635,144
Current assets Stocks 2,066,339 2,044,433 1,913,433
Debtors 2,261,972 2,591,735 1,836,492
Cash at bank and in hand 1,569,501 1,611,328 1,956,323
5,897,812 6,247,496 5,706,248
Creditors Amounts falling due within one year (2,182,227) (2,668,897) (2,033,529)
Net current assets 3,715,585 3,578,599 3,672,719
Total assets less current liabilities 4,291,195 4,208,142 4,307,863
Deferred income (27,268) (28,922) (28,096)
Net assets 4,263,927 4,179,220 4,279,767
Capital and reserves Called up share capital 540,000 540,000 540,000
Reserves 3,723,927 3,639,220 3,739,767
Shareholders' funds 4,263,927 4,179,220 4,279,767
Comprising:
Non-equity shareholders' funds 180,000 180,000 180,000
Equity shareholders' funds 4,083,927 3,999,220 4,099,767
Consolidated Cash Flow Statement for the six months ended 30th June 2003
Unaudited Unaudited Year to
30th June 30th June 31st December
Notes 2003 2002 2002
# # #
Net cash (outflow)/inflow from
operating activities 1 (381,686) (179,204) 409,416
Returns on investments and servicing of finance
Interest received 26,625 29,848 63,873
Interest paid (14,980) (20,995) (42,136)
Non-equity dividends paid (4,500) (4,500) (9,000)
7,145 4,353 12,737
Taxation
UK corporation tax received/(paid) - 9,718 (36,004)
Overseas tax paid (17,900) (41,162) (61,839)
(17,900) (31,444) (97,843)
Capital expenditure
Purchase of tangible fixed assets (5,547) (85,767) (103,795)
Disposal of tangible fixed assets 6,027 22,990 26,946
480 (62,777) (76,849)
Equity dividends paid (115,200) (109,440) (141,120)
Management of liquid resources
Decrease/(increase) in 2 246,787 (104,883) (108,816)
treasury deposits
Decrease in cash 3 (260,374) (483,395) (2,475)
T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
Notes to Consolidated Cash Flow Statement
1. Reconciliation of operating profit Year to
to net cash (outflow)/inflow from Six months ended 30th June 31st December
operating activities 2003 2002 2002
# # #
Operating profit 23,715 175,332 400,521
Depreciation of tangible and intangible assets 77,040 83,235 113,558
Profit on disposal of fixed assets - - (16,372)
Government grants amortised (828) (828) (1,654)
Increase in stocks (152,906) (317,716) (186,716)
(Increase)/decrease in debtors (436,277) (739,684) 26,356
Increase in creditors 125,556 621,434 80,180
Movement in value of assets caused by foreign exchange (17,986) (977) (6,457)
movements
(381,686) (179,204) 409,416
2. Analysis of changes in net funds 31st December 30th June
2002 Cash flow 2003
# # #
Cash at bank and in hand 543,950 (140,035) 403,915
Bank loans and overdrafts (891,765) (130,511) (1,022,276)
(347,815) (270,546) (618,361)
Treasury deposits 1,412,373 (246,787) 1,165,586
1,064,558 (517,333) 547,225
31st December 30th June
2001 Cash flow 2002
# # #
Cash at bank and in hand 722,123 (519,235) 202,888
Bank loans and overdrafts (1,048,619) 17,496 (1,031,123)
(326,496) (501,739) (828,235)
Treasury deposits 1,303,557 104,883 1,408,440
977,061 (396,856) 580,205
3. Reconciliation of net cash flow to movement in net funds 30th June 30th June
2003 2002
# #
Decrease in cash (260,374) (483,395)
Effect of foreign exchange rate changes (10,172) (18,344)
(270,546) (501,739)
(Decrease)/increase in treasury deposits (246,787) 104,883
Movement in net funds in the period (517,333) (396,856)
Net funds at 31st December 2002/2001 1,064,558 977,061
Net funds at 30th June 2003/2002 547,225 580,205
This information is provided by RNS
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