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Share Name Share Symbol Market Type Share ISIN Share Description
Braime Group Plc LSE:BMTO London Ordinary Share GB0001185056 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1,650.00 1,300.00 2,000.00 1,650.00 1,650.00 1,650.00 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 33.4 1.7 94.4 17.5 10

Braime Group PLC Interim Results for the six months ended 30 Jun 19

19/09/2019 12:10pm

UK Regulatory (RNS & others)


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TIDMBMTO

RNS Number : 9889M

Braime Group PLC

19 September 2019

Braime Group PLC

("Braime" or the "Company" and together with its subsidiaries the "Group")

Interim Results for the six months ended 30th June 2019

The Company presents its unaudited interims results for the six months ended 30 June 2019:

Performance

Group sales revenue for the first six months of 2019 is down 5.5% to GBP17.1m compared to GBP18.1m for the same period in 2018, while profit before tax fell to GBP1.1m compared to GBP1.2m for the same period in 2018. Performance for the first half of the year is less than we had hoped for based on our growth in previous years, but it is better than we feared, given the current uncertainties in the global and local economic and political environment. In particular, the USA operation, which is a very significant contributor to Group profitability, has seen a significant softening in the agricultural market, from customers, end users and equipment manufacturers, unprecedented in recent times, caused by the deterioration in US-Sino trade relations.

Dividends

It is the Group's policy to maintain dividend growth, balanced alongside the Group's requirement for investment in capital to support long term growth. The directors have decided to increase the interim dividend to 3.60p per share. This dividend will be paid on 18th October 2019 to the Ordinary and 'A' Ordinary shareholders on the register on the 4th October 2019. The associated ex-dividend date is 3rd October 2019.

Braime Pressings Limited

External sales revenue fell to GBP1.9m in the first 6 months of 2019, as compared to GBP2.6m for the same period last year, which had been boosted by an exceptional order, albeit with a low margin. We have continued to improve operating efficiencies and productivity and this has led to a rise in profit for the period to GBP116,000 from GBP62,000 for the equivalent period last year. We are continuing to look for further ways to improve efficiencies and we are pleased to report we have recently installed a 190KW solar PV on our property on Hunslet Road, Leeds. This will generate around 25% of our current electricity requirements, and is of course, good for the environment.

4B Division

Our distribution division's external sales revenue fell slightly to GBP15.2m compared to GBP15.3m for the same period last year. Intercompany trading rose by 26.8% to GBP2.9m (GBP2.3m for the same period in 2018) buoyed up by Brexit preparations. We are pleased to see strong growth in 4B Africa which is 28% above the same period last year. However, the African market is a relatively small proportion of our total market and cannot compensate for the lack of growth experienced elsewhere. Our new subsidiary in China has also been adversely affected by the US-Sino trade wars and will require time before it makes a positive contribution to the Group financially, but we believe it is strategically placed to provide significant long-term growth. Profit for the division for the six-month period was GBP883,000 as compared to GBP1.0m for the same period last year. This stems from new costs arising from additional depreciation due to our recent investment our new moulding facilities and the strengthening of some sectors of our management structure, necessary to maintain future growth.

Balance Sheet

Total net assets as at 30th June 2019 amount to GBP13.9m (30th June 2018 - GBP11.8m). Inventory has increased by GBP2.0m when compared to 30th June 2018 and by GBP1.1m when compared to 31st December 2018, partly due to the Group's contingency planning for Brexit and the slower than expected sales, mentioned above. Trade receivables are in line with the 2018 year end, and reduced compared to 30th June 2018. The increase in long-term borrowings since June 2018 relates primarily to new loans taken up to fund our moulding plant in the USA in the second half of 2018.

Included for the first time in the accounts are a new category of non-current assets called Right of Use (RoU) assets. These arise from the new accounting standard for Leases, IFRS 16, which came into force on 1st January 2019. The standard requires that certain leases, such as property rentals, which were previously accounted for as operating expenses in the profit and loss account, are now capitalised in the balance sheet as RoU assets and then depreciated. However, the changes in the IFRS standard does not have any material impact on the reported operating profit of the Group, because the total cost of operating lease rentals of GBP103,000 is materially the same as the total depreciation charge on the RoU assets.

Cash flow

Net profit generated after tax was GBP756,000 compared to GBP822,000 for the same period last year. However, our Brexit preparations have seen our inventories increase by GBP1.1m over the six-month period from 31st December 2018, and a corresponding decrease in our trade payables of GBP381,000. We continue to invest in capital projects, this year adding three new presses in the UK, as well as items of new equipment in our overseas operations. The Group is committed to making further substantial investments and cash flow is expected to remain tight 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.

Principal exchange rates

The Group reports its results in sterling, its presentational currency. The Group operates in six other currencies and the average of the principal exchange rates in use during the half year and as at the 30th June 2019 are shown in the table below, along with comparatives.

 
                                  Avg rate    Avg rate      Avg rate       Closing       Closing       Closing 
   Currency              Symbol    HY 2019     HY 2018       FY 2018          rate          rate          rate 
                                                                          30th Jun      30th Jun      31st Dec 
                                                                              2019          2018          2018 
-------------------  ----------  ---------  ----------  ------------  ------------  ------------  ------------ 
 Australian Dollar          AUD      1.832       1.788         1.787         1.814         1.788         1.809 
 Chinese Renminbi 
  (Yuan)                    CNY      8.770       8.743         8.700         8.711         8.731         8.676 
 Euro                       EUR      1.148       1.137         1.130         1.118         1.131         1.115 
 South African 
  Rand                      ZAR     18.319      16.989        17.627        17.950        18.105        18.364 
 Thai Baht                  THB     40.808      43.604        42.962        39.069        43.649        41.301 
 United States 
  Dollar                    USD      1.297       1.372         1.332         1.273         1.320         1.277 
-------------------  ----------  ---------  ----------  ------------  ------------  ------------  ------------ 
 

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     Half year     Half year     Full year 
                                                2019          2018          2018 
-----------------------------  -------  ------------  ------------  ------------ 
 Turnover growth                     1        (5.5%)         16.3%         13.6% 
 Gross margin                        2         45.4%         45.9%         48.4% 
 Operating profit                    3      GBP1.29m      GBP1.18m      GBP3.24m 
 Stock days                          4      165 days      125 days      141 days 
 Debtor days                         5       60 days       62 days       56 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. Revenues are down due to the current global economic climate.

   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. Gross margin is in line with the same period last year.

   3.             Operating profit 

Sustainable growth in operating profit is a strategic priority to enable ongoing investment and increase shareholder value. Despite the fall in revenues, operating profits have improved as a result of the 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 and slower sales take up.

   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, and better than the same period last year. Management remain 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.

Outlook for the second half of 2019

Last year's very positive economic environment boosted our growth, however this year, indications are that the second half of the year will remain very challenging. This is due to uncertainties surrounding the ongoing trade conflict between the US and China, and the escalating tariff war, which is not only affecting America and China but also reverberating around the global markets, so we do not currently anticipate repeating the strong results seen in the second half of last year.

Closer to home, Brexit remains frustratingly, an unknown quantity. We have prepared as well as any business can under the circumstances, but the actual impact is difficult to ascertain, not just with regards to trading but also to foreign currency fluctuations. As much of our income derives from overseas earnings, a weak sterling will boost reported earnings when retranslated. However, should sterling strengthen significantly, the converse would apply. 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, we consider that as the majority of our sales presence and projected growth is already outside the EU, the long-term effects are unlikely to be significant for the Group.

For further information please contact:

Nicholas Braime/Cielo Cartwright

0113 245 7491

W. H. Ireland Limited

Katy Mitchell

0113 394 6628

 
                                                    Unaudited    Unaudited 
 Braime Group PLC                                    6 months     6 months          Audited 
  Consolidated income statement for                        to           to          year to 
  the six months                            Note    30th June    30th June    31st December 
  ended 30th June 2019                                   2019         2018             2018 
                                                      GBP'000      GBP'000          GBP'000 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Revenue                                               17,077       18,069           35,718 
 
 Changes in inventories of finished 
  goods and work in progress                            1,174          558            1,229 
 Raw materials and consumables used                  (10,501)     (10,332)         (19,677) 
 Employee benefits costs                              (3,719)      (3,287)          (8,300) 
 Depreciation expense (see Note below)                  (536)        (305)            (788) 
 Other expenses                                       (2,209)      (3,522)          (4,940) 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Profit from operations                                 1,286        1,181            3,242 
 
 Finance costs                                          (216)         (19)            (227) 
 Finance income                                             1            -                2 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Profit before tax                                      1,071        1,162            3,017 
 
 Tax expense                                            (315)        (340)            (788) 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Profit for the period                                    756          822            2,229 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Profit attributable to: 
 Owners of the parent                                     751          830            2,178 
 Non-controlling interests                                  5          (8)               51 
---------------------------------------  -------  -----------  -----------  --------------- 
                                                          756          822            2,229 
---------------------------------------  -------  -----------  -----------  --------------- 
 
 Basic and diluted earnings per share          2       52.49p       57.08p          154.79p 
 

Note: The Group has initially applied IFRS 16 at 1st January 2019 using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. The IFRS does not have any material impact on the reported operating profit of the Group, because the total cost of operating lease rentals of GBP103,000 is materially the same as the total depreciation charge on the Right of use (RoU) assets.

 
                                                       Unaudited    Unaudited 
 Braime Group PLC                                       6 months     6 months          Audited 
  Consolidated statement of comprehensive                     to           to          year to 
  income for the six months                            30th June    30th June    31st December 
  ended 30th June 2019                                      2019         2018             2018 
                                                         GBP'000      GBP'000          GBP'000 
---------------------------------------------------  -----------  -----------  --------------- 
 
 Profit for the period                                       756          822            2,229 
---------------------------------------------------  -----------  -----------  --------------- 
 
 Items that will not be reclassified subsequently 
  to profit or loss 
 Net pension remeasurement gain on post-employment 
  benefits                                                     -            -               76 
 
 Items that may be reclassified subsequently 
  to profit or loss 
 Foreign exchange (losses)/gains on re-translation 
  of overseas operations                                    (13)           85              206 
 
 Other comprehensive income for the period                  (13)           85              282 
---------------------------------------------------  -----------  -----------  --------------- 
 
 Total comprehensive income for the period                   743          907            2,511 
---------------------------------------------------  -----------  -----------  --------------- 
 
 Total comprehensive income attributable 
  to: 
 Owners of the parent                                        756          918            2,481 
 Non-controlling interests                                  (13)         (11)               30 
---------------------------------------------------  -----------  -----------  --------------- 
                                                             743          907            2,511 
---------------------------------------------------  -----------  -----------  --------------- 
 

The foreign currency movements arise on the re-translation of overseas subsidiaries' opening balance sheets at closing rates.

 
                                                   Unaudited    Unaudited     Audited 
                                                    6 months     6 months     year to 
 Braime Group PLC                                         to           to        31st 
  Consolidated balance sheet at 30th June          30th June    30th June    December 
  2019                                                  2019         2018        2018 
                                                     GBP'000      GBP'000     GBP'000 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Non-current assets 
 Property, plant and equipment                         6,485        5,921       6,232 
 Intangible assets                                        56           71          61 
 Right of use assets (see Note below)                    213            -           - 
 
 Total non-current assets                              6,754        5,992       6,293 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Current assets 
 Inventories                                           8,968        6,989       7,872 
 Trade and other receivables                           6,605        7,512       6,820 
 Cash and cash equivalents                               935          938       2,313 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total current assets                                 16,508       15,439      17,005 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total assets                                         23,262       21,431      23,298 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Current liabilities 
 Bank overdraft                                          508            -         832 
 Trade and other payables                              4,881        5,847       5,493 
 Other financial liabilities                           2,219        3,363       1,870 
 Corporation tax liability                                 1          331         249 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total current liabilities                             7,609        9,541       8,444 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Non-current liabilities 
 Financial liabilities                                 1,449           39       1,256 
 Deferred income tax liability                           266           71         265 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total non-current liabilities                         1,715          110       1,521 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total liabilities                                     9,324        9,651       9,965 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Total net assets                                     13,938       11,780      13,333 
-----------------------------------------------  -----------  -----------  ---------- 
 
 Capital and reserves 
 Share capital                                           360          360         360 
 Capital reserve                                         257          257         257 
 Foreign exchange reserve                                306          162         301 
 Retained earnings                                    13,347       11,361      12,734 
-----------------------------------------------  -----------  -----------  ---------- 
 Total equity attributable to the shareholders 
  of the parent 
  company                                             14,270       12,140      13,652 
 Non-controlling interests                             (332)        (360)       (319) 
-----------------------------------------------  -----------  -----------  ---------- 
 Total equity                                         13,938       11,780      13,333 
-----------------------------------------------  -----------  -----------  ---------- 
 

Note: The Group has initially applied IFRS 16 at 1st January 2019 using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. The impact of IFRS 16 on these accounts is to recognise GBP311,000 of opening net book value of Right of use (RoU) assets and GBP334,000 of lease liabilities.

 
                                                         Unaudited    Unaudited          Audited 
   Braime Group PLC                                       6 months     6 months          year to 
   Consolidated cash flow statement                             to           to    31st December 
   for the six months                            Note    30th June    30th June             2018 
   ended 30th June 2019                                       2019         2018 
                                                           GBP'000      GBP'000          GBP'000 
--------------------------------------------  -------  -----------  -----------  --------------- 
 Operating activities 
 Net profit                                                    756          822            2,229 
--------------------------------------------  -------  -----------  -----------  --------------- 
 
 Adjustments for: 
 Depreciation                                                  536          305              788 
 Foreign exchange (losses)/gains                              (17)           61              158 
 Finance income                                                (1)            -              (2) 
 Finance expense                                               216           19              227 
 Gain on sale of plant, machinery 
  and motor vehicles                                             -            -               15 
 Adjustment in respect of defined 
  benefit scheme                                                 -            -              158 
 Income tax expense                                            315          340              788 
 Income taxes paid                                           (243)        (216)            (871) 
--------------------------------------------  -------  -----------  -----------  --------------- 
 Operating activities before changes 
  in working capital and provisions                          1,562        1,331            3,490 
--------------------------------------------  -------  -----------  -----------  --------------- 
 
 Increase in trade and other receivables                     (107)      (1,602)            (580) 
 Increase in inventories                                   (1,096)        (558)          (1,441) 
 (Decrease)/increase in trade and 
  other payables                                             (381)        1,817              977 
 
                                                           (1,584)        (343)          (1,044) 
--------------------------------------------  -------  -----------  -----------  --------------- 
 
 Cash generated from operations                               (22)          988            2,446 
--------------------------------------------  -------  -----------  -----------  --------------- 
 
 Investing activities 
 Purchases of property, plant, machinery 
  and motor vehicles                                         (679)        (990)          (1,767) 
 Sale of plant, machinery and motor 
  vehicles                                                       -           10               32 
 Interest received                                               1            -                2 
--------------------------------------------  -------  -----------  -----------  --------------- 
                                                             (678)        (980)          (1,733) 
--------------------------------------------  -------  -----------  -----------  --------------- 
 
 Financing activities 
 Proceeds from long term borrowings                              -            -              792 
 Proceeds from new hire purchase borrowings                    421            -                - 
 Repayment of Right of use liability                         (103)            -                - 
  (see Note below) 
 Repayment of borrowings                                     (199)          254            (349) 
 Repayment of hire purchase creditors                        (142)        (184)            (276) 
 Interest paid                                               (216)         (19)            (227) 
 Dividends paid                                              (115)        (102)            (153) 
--------------------------------------------  -------  -----------  -----------  --------------- 
                                                             (354)         (51)            (213) 
--------------------------------------------  -------  -----------  -----------  --------------- 
 Decrease in cash and cash equivalents                     (1,054)         (43)              500 
 Cash and cash equivalents, beginning 
  of period                                                  1,481          981              981 
--------------------------------------------  -------  -----------  -----------  --------------- 
 Cash and cash equivalents (including 
  overdrafts), end of period                        3          427          938            1,481 
--------------------------------------------  -------  -----------  -----------  --------------- 
 

Note: Prior to the adoption of IFRS 16, repayment of lease liabilities were deemed operating as opposed to financing activities.

 
 Braime Group PLC 
  Consolidated statement 
  of                                                     Foreign 
  changes in equity               Share     Capital     Exchange     Retained                 Minority      Total 
  for the                       Capital     Reserve      Reserve     Earnings      Total     Interests     Equity 
  six months ended 
  30th June 2019 
                                GBP'000     GBP'000      GBP'000      GBP'000    GBP'000       GBP'000    GBP'000 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Balance at 31st 
  December 
  2018                              360         257          301       12,734     13,652         (319)     13,333 
 
 Impact of change 
  in accounting standard 
  - IFRS 16                           -           -            -         (23)       (23)             -       (23) 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Restated total equity 
  at 
  1st January 2019                  360         257          301       12,711     13,629         (319)     13,310 
 
 Comprehensive income 
 
 Profit                               -           -            -          751        751             5        756 
 
 Other comprehensive 
  income 
 
 Foreign exchange 
  gain/(loss) 
  on re-translation 
  of overseas operations              -           -            5            -          5          (18)       (13) 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Total other comprehensive 
  income 
 Total comprehensive 
  income                              -           -            5          751        756          (13)        743 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Transactions with 
  owners 
 Dividends                            -           -            -        (115)      (115)             -      (115) 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Total transactions 
  with owners                         -           -            -        (115)      (115)             -      (115) 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 Balance at 30th 
  June 2019                         360         257          306       13,347     14,270         (332)     13,938 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 
 
 
 Braime Group PLC 
  Consolidated statement 
  of                                                     Foreign 
  changes in equity               Share     Capital     Exchange     Retained                Minority      Total 
  for the                       Capital     Reserve      Reserve     Earnings     Total     Interests     Equity 
  six months ended 
  30th June 2018 
                                GBP'000     GBP'000      GBP'000      GBP'000   GBP'000       GBP'000    GBP'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 
---------------------------  ----------  ----------  -----------  -----------  --------  ------------  --------- 
 
 
 
 Braime Group PLC 
  Consolidated statement 
  of                                                     Foreign 
  changes in equity               Share     Capital     Exchange     Retained                 Minority      Total 
  for the                       Capital     Reserve      Reserve     Earnings      Total     Interests     Equity 
  year ended 31st 
  December 
  2018 
                                GBP'000     GBP'000      GBP'000      GBP'000    GBP'000       GBP'000    GBP'000 
---------------------------  ----------  ----------  -----------  -----------  ---------  ------------  --------- 
 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 
  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.      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 2018 and those which management expects to apply in the Group's full financial statements to 31st December 2019.

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 2018 but is derived from the accounts. Statutory accounts for the period ended 31st December 2018 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 2018, which have been applied consistently throughout the current and preceding periods. The Group has adopted the following new and amended standards as of 1st January 2019.

   --        IFRS 16, 'Leases'; effective on or after 1st January 2019. 

-- IFRIC Interpretation 23, 'Uncertainty over income tax treatments'; effective on or after 1st January 2019.

-- Amendments to IAS 28, 'Long-term interest in associates and joint ventures'; effective on or after 1st January 2019.

   --        IFRS 17, 'Insurance contracts'; effective on or after 1st January 2019. 

-- Amendments to IFRS 9, 'Prepayment features with negative compensation'; effective on or after 1st January 2019.

Other than in respect of the application of IFRS 16, the application and interpretations surrounding the other standards has not had a material impact on the Group's reported financial performance or position.

IFRS 16, 'Leases'. This accounting standard became mandatory for financial years commencing on or after 1st January 2019. Under the new standard, an asset (the right to use the leased item, known as Right of use (RoU) asset) and a financial liability to pay rentals are recognised in the balance sheet. The Group currently leases properties, vehicles and software under a series of operating lease contracts which are impacted by the new standard. These types of lease can no longer be recognised as operating leases and have been brought onto the Group's balance sheet from 1st January 2019. The Group has elected to apply permitted 'practical expedients' with respect to the following types of leases: Short-term leases (leases of less than 12 months) and leases with less than 12 months remaining as at 1st January 2019 and leases for which the asset is of low value, have not been included within the scope of the new standard.

The adoption of IFRS 16 affects the reported balance sheet assets and liabilities only. There is no material impact on the reported profit of the Group, as a result of the new standard.

   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 Braime Group PLC as the numerator.

The weighted average number of outstanding shares used for basic earnings per share amounted to 1,440,000 (2018 - 1,440,000). There are no potentially dilutive shares in issue.

 
                                                               6 months 
                                                                     to 
                                                              30th June 
                                                                   2019 
                                                                GBP'000 
------------------------------------------------------  --------------- 
 Dividends paid on equity shares 
 Ordinary shares 
 Interim of 8.00p per share paid on 17th May 2019                    38 
 
 'A' Ordinary shares 
 Interim of 8.00p per share paid on 17th May 2019                    77 
------------------------------------------------------  --------------- 
 Total dividends paid                                               115 
------------------------------------------------------  --------------- 
 
                                                                Year to 
                                                          31st December 
                                                                   2018 
                                                                GBP'000 
------------------------------------------------------  --------------- 
 Dividends paid on equity shares 
 Ordinary shares 
 Interim of 7.10p per share paid on 18th May 2018                    34 
 Interim of 3.50p per share paid on 19th October 2018                17 
------------------------------------------------------  --------------- 
                                                                     51 
------------------------------------------------------  --------------- 
 
 'A' Ordinary shares 
 Interim of 7.10p per share paid on 18th May 2018                    68 
 Interim of 3.50p per share paid on 19th October 2018                34 
------------------------------------------------------  --------------- 
                                                                    102 
------------------------------------------------------  --------------- 
 Total dividends paid                                               153 
------------------------------------------------------  --------------- 
 
   3.      Cash and cash equivalents 
 
                               Unaudited     Unaudited          Audited 
                                6 months      6 months          year to 
                                      to            to    31st December 
                               30th June     30th June             2018 
                                    2019          2018 
                                 GBP'000       GBP'000          GBP'000 
--------------------------  ------------  ------------  --------------- 
 Cash at bank and in hand            935           938            2,313 
 Bank overdrafts                   (508)             -            (832) 
--------------------------  ------------  ------------  --------------- 
                                     427           938            1,481 
--------------------------  ------------  ------------  --------------- 
 
   4.      Segmental information 
 
 
 
                                                               Unaudited 6 months to 
                                                                      30th June 2019 
                                    Central   Manufacturing   Distribution     Total 
                                    GBP'000         GBP'000        GBP'000   GBP'000 
---------------------------------  --------  --------------  -------------  -------- 
 
 Revenue 
 External                                 -           1,913         15,164    17,077 
 Inter company                          997           1,427          2,877     5,301 
---------------------------------  --------  --------------  -------------  -------- 
 
 Total                                  997           3,340         18,041    22,378 
---------------------------------  --------  --------------  -------------  -------- 
 
 Profit 
 EBITDA                                 115             133          1,574     1,822 
 Finance costs                        (110)             (9)           (97)     (216) 
 Finance income                           -               -              1         1 
 Depreciation                         (248)             (8)          (280)     (536) 
 Tax expense                              -               -          (315)     (315) 
---------------------------------  --------  --------------  -------------  -------- 
 
 (Loss)/profit for the period         (243)             116            883       756 
---------------------------------  --------  --------------  -------------  -------- 
 
 Assets 
 Total assets                         5,668           1,994         15,600    23,262 
 Additions to non-current assets        560               -            119       679 
 Liabilities 
 Total liabilities                    1,332           2,916          5,076     9,324 
 

In 2019, we revised PLC intercompany charges across the Group to align recharges with the business activity resulting in a larger recharge to 4B division.

 
                                                               Unaudited 6 months to 
                                                                      30th June 2018 
                                    Central   Manufacturing   Distribution     Total 
                                    GBP'000         GBP'000        GBP'000   GBP'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 
 
 
                                                                     Audited year to 
                                                                  31st December 2018 
                                    Central   Manufacturing   Distribution     Total 
                                    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                         (464)               -          (324)     (788) 
 Tax expense                           (19)            (55)          (714)     (788) 
---------------------------------  --------  --------------  -------------  -------- 
 
 (Loss)/profit 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 
 

For further information please contact:

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

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September 19, 2019 07:10 ET (11:10 GMT)

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