Interim Results

    RNS Number : 7341C
  Braime (T.F.& J.H.) (Hldgs) PLC
  04 September 2008
   

    

    Interim results for the six months ended 30th June 2008
    Group sales revenue for the first six months of 2008 increased by 24% from £5.89m to £7.28m and the company made a profit before tax for
the first half of 2008 of £125,000. This compares to a profit of £67,000 in 2007 and a loss of £218,000 in 2006 in the same period.

    The group was cash negative in the first half of 2008. This was caused by an increase in trade debtors, following the significant
increase in sales revenue, and an increase in inventories, due to the sudden and steep rise in the cost of raw materials. The company
continues to trade well within its borrowing facilities and we expect the group to be cash generative for the full year, ending 31st
December 2008.

    The sizeable accumulated losses in 2005 and 2006 have put considerable strain on the company's financial resources, as has the need to
finance the recent large increase in group revenue. As a result, the directors have reluctantly decided that it would not be appropriate to
pay an interim dividend in 2008.

    The profitability of the group continues to improve and, providing this is sustained, the directors plan to progressively restore
dividend payments to the shareholders.

    Performance of group companies
    4B division
    The subsidiaries distributing our 4B brand of components to the material handling sector worldwide have all enjoyed substantial growth
and we expect this to continue in the second half of the year. We are fortunate that over 80% of sales of "4B" products are in overseas
markets and are primarily to customers in the agro industry or process industries, sectors benefiting from the surge in commodity prices,
insulating us from most of the consequences of the current economic problems in the UK.

    The downside is that we have also seen unprecedented inflation in the cost of some of our raw materials, with UK steel prices rising 50%
and world plastic prices increasing by 100% since the start of 2008. Given our complex product mix, passing on price increases to customers
on a continuous basis is both time consuming and destabilizing and the inevitable delays in the acceptance by our customers of such large
price increases has had a short term negative effect on our margins.

    Pressings division
    The sales revenue of Braime Pressings has remained largely unchanged from the first half of 2007 and the losses in this company have not
been reduced. This is hugely disappointing.

    Through no fault of our own, the start up of the new major product line for an automotive components supplier has been repeatedly
delayed by our customer but is now scheduled finally to come on stream from September 2008. We have made a significant capital investment in
this project and the long delay has had a serious effect on the performance of Braime Pressings both in 2007 and 2008. Equally, once this
project commences, it will have a substantial long term positive impact both on the result of Braime Pressings and of the group.

    Relocation
    While the company is still receiving enquiries from parties interested in developing our site in Leeds, the effect of the downturn in
the housing market makes it unlikely that a realistic offer, based on the primarily residential brief approved by the planning officers,
will be forthcoming in the foreseeable future. The company still wishes to relocate its manufacturing business to more economic premises, as
soon as this becomes a viable option, and continues to explore other alternatives.

    Outlook
    The UK economy appears to be entering a recession and across the world the huge inflation in commodity prices is creating economic
instability. In spite of this unfavourable general economic background, the directors believe that the group will be able to continue the
progress made over the past 18 months.

    Condensed Consolidated Income Statement for the six months ended 30th June 2008
                                 30th June 2008   30th June 2007   31st December  2007 
                                              £                £                     £ 
                                    (unaudited)      (unaudited)             (audited) 

 Revenue                              7,277,564        5,887,371            11,838,813 

 Profit from operations                 152,203           78,025               167,352 
 Finance costs                         (161,247)        (162,913)             (321,762)
 Finance income                         133,623          151,996               292,467 
 Result for the period before           124,579           67,108               138,057 
 tax
 Tax expense @ 28% (2007 - 30%)         (34,882)         (20,132)             (128,793)
 for interim figures
 Net result for the period               89,697           46,976                 9,264 

 Basic profit per share                   6.23p            3.26p                 0.01p 

    Condensed Consolidated Statement of Recognised Income and Expense for the six months ended 30th June 2008
                                 30th June 2008   30th June 2007   31st December  2007 
                                              £                £                     £ 
                                    (unaudited)      (unaudited)             (audited) 

 Exchange difference on                   1,236           (9,684)               17,557 
 translation of foreign
 operations
 Actuarial gains recognised                   -                -               118,000 
 directly in equity
 Total income and expense                 1,236           (9,684)              135,557 
 recognised in equity

 Net income/(expense)                     1,236           (9,684)              135,557 
 recognised in equity
 Profit for period                       89,697           46,976                 9,264 
 Total recognised income and             90,933           37,292               144,821 
 expense for the period

 Attributable to:
 Equity holders of T.F. & J.H.           90,933           37,292               144,821 
 Braime (Holdings) P.L.C.

    Consolidated Balance Sheet at 30th June 2008
                                 30th June 2008  30th June 2007   31st December 
                                                                           2007 
                                             £                £               £ 
                                   (unaudited)      (unaudited)       (audited) 
 Assets
 Non-current assets
 Property, plant and equipment         802,916          689,748         862,998 
 Employee benefits                      74,000                -          97,000 
 Total non-current assets              876,916          689,748         959,998 

 Current assets
 Inventories                         2,656,962        2,521,209       2,535,671 
 Trade and other receivables         3,315,784        3,001,803       2,713,165 
 Cash and cash equivalents           1,419,603        1,429,619       1,493,734 
 Total current assets                7,392,349        6,952,631       6,742,570 

 Total assets                        8,269,265        7,642,379       7,702,568 

 Liabilities
 Current liabilities
 Bank overdraft                      1,368,047        1,294,875       1,387,668 
 Trade and other payables            2,604,927        2,346,046       2,162,084 
 Other financial liabilities           273,114          182,166         231,645 
 Corporation tax liability              34,882           20,132          35,667 
 Total current liabilities           4,280,970        3,843,219       3,817,064 

 Non-current liabilities
 Financial liabilities                 349,212          327,539         337,354 
 Employee benefits                           -           31,000               - 
 Total non-current liabilities         349,212          358,539         337,354 

 Total liabilities                   4,630,182        4,201,758       4,154,418 

 Total net assets                    3,639,083        3,440,621       3,548,150 


 Capital and reserves
 attributable to equity holders
 of the parent company
 Share capital                         360,000          360,000         360,000 
 Capital reserve                        77,319           77,319          77,319 
 Foreign exchange reserve               (7,756)         (36,233)         (8,992)
 Retained earnings                   3,209,520        3,039,535       3,119,823 
 Total equity                        3,639,083        3,440,621       3,548,150 

    Consolidated Cash Flow Statement for the six months ended 30thJune 2008
                                                                   31st December 
                                 30th June 2008   30th June 2007            2007 
                                              £                £               £ 
                                    (unaudited)      (unaudited)       (audited) 
 Operating activities
 Net profit from ordinary                89,697           46,976           9,264 
 activities
 Adjustments for:
 Depreciation                           105,021           88,493         168,183 
 Grants amortised                          (828)            (828)         (1,656)
 Foreign exchange                         1,246           (9,810)         19,535 
 gains/(losses)
 Investment income                     (133,623)        (151,996)       (292,467)
 Interest expense                       161,247          162,913         321,762 
 Gain on sale of plant,                      -                 -          (6,123)
 machinery and motor vehicles
 Income tax expense                      34,882           20,132         128,793 
 Operating profit before                167,945          108,904         338,027 
 changes in working capital and
 provisions

 Increase in trade and other           (602,619)        (390,066)       (153,188)
 receivables
 Increase in inventories               (121,291)        (323,287)       (337,749)
 Increase in trade and other            454,170          499,254         327,326 
 payables
 (Increase)/decrease in                  27,000           34,000          35,000 
 provisions and employee
 benefits
                                       (242,740)        (180,099)       (128,611)

 Cash generated from operations          14,902          (24,219)        218,680 

 Income taxes paid                      (35,667)         (33,063)       (131,397)

 Investing activities
 Purchases of plant, machinery          (32,657)         (53,682)       (163,474)
 and motor vehicles
 Sale of plant, machinery and            35,843            8,922          10,375 
 motor vehicles
 Interest received                       28,623           27,996          59,467 
                                         31,809          (16,764)        (93,632)
 Financing activities
 Repayment of hire purchase             (47,597)         (20,500)        (56,026)
 creditors
 Interest paid                          (60,247)         (53,913)       (114,762)
 Loan received                           42,300                -               - 
                                        (65,544)         (74,413)       (170,788)

 Decrease in cash and cash              (54,500)        (148,459)       (177,137)
 equivalents
 Cash and cash equivalents              106,066          283,203         283,203 
 (including overdrafts),
 beginning of period
 Cash and cash equivalents               51,566          134,744         106,066 
 (including overdrafts), end of
 period

    Notes to the interim financial report

    Accounting policies
    Basis of preparation
    This 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 2007 and those which management expects to apply in the group's full financial statements to 31st
December 2008.

    This interim financial report in 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 2007 but is derived from the accounts. Statutory accounts for
the period ended 31st December 2007 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 237(2) or (3) Companies Act 1985.

    4th September 2008

    For further information please contact:

    T.F. & J.H. Braime (Holdings) P.L.C.
    David H. Brown FCA - Financial Director
    0113 245 7491

    W. H. Ireland Limited
    Katy Mitchell LLB
    0113 3946628

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