TIDMBMTO TIDMBMT TIDMBMTP 
 
T.F. & J.H. BRAIME (HOLDINGS) P.L.C. 
 
       (`Braime' or the 'company' and with it subsidiaries the `group') 
 
             ANNUAL RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2010 
 
At a meeting of the directors held today, the accounts for the year ended 31st 
December 2010 were submitted and approved by the directors. The preliminary 
accounts statement is as follows: 
 
Chairman's statement 
 
Performance of group companies 
 
The group continued to make good progress in 2010. 
 
Over 80% of group sales are made in overseas markets, which have been less 
affected than the UK by the current recession. Many of the sales are to food 
related industries where there is still strong growth. We have also continued 
to benefit from largely favourable exchange rates. 
 
Sales revenue increased by 15% to GBP18.10m from GBP15.70m. Pre tax profit rose to 
GBP1.36m from GBP0.62m and the profit after tax for 2010 was GBP945,000 compared to GBP 
387,000 in 2009. 
 
In view of the above excellent result, the directors have already announced a 
second interim dividend of 4.80p to be paid on 1st April 2011, making a total 
for the tax year ending 5th April 2011 of 7.20p (compared to 4.50p in the 
previous year). As last year, a final dividend will not be paid. 
 
Manufacturing of deep drawn pressings (Braime Pressings Limited) 
 
Following the restructuring of this business, the level of loss made by our 
manufacturing business was reduced compared to 2009 but this reduction was much 
less than had been forecast. 
 
During 2010 we were successful in improving the efficiency of the investment in 
the machinery producing existing work and significant improvements were made to 
the infrastructure and environment of the business. 
 
However, despite the enormous efforts of our staff, we were unable to bring on 
stream in 2010 the two major new contracts which were critical to achieving our 
anticipated improvement. In addition to losing the expected contribution from 
this new work, we also had to absorb much higher than expected costs in 
modifying and commissioning the complex plant required to run the new work. The 
result for 2010 was also badly affected by an unexpectedly large increase in 
material costs, which we were unable to pass on to our customers until 2011. 
 
The first of the new contracts finally came on stream successfully at the end 
of January 2011. We are currently in the midst of final trials for the second 
contract and expect this to be launched in the second quarter of this year. We 
have also secured additional volume for one of our existing product lines. 
 
We are therefore hopeful in 2011, of achieving the substantial progress that we 
had forecast for 2010. 
 
Distribution of components, under our 4B brand, to the bulk material handling 
industry 
 
All of our subsidiaries distributing globally our brand of 4B material handling 
components again enjoyed record years, and the performance of 4B Elevator 
Components Limited in the USA was particularly strong. 
 
The company continues to invest in developing both the diversity of our product 
range and in our distribution network. Specifically, in December 2010, we set 
up a new subsidiary, 4B Australia Pty Limited based in Brisbane. Two weeks 
later our premises were flooded! However, once having overcome this 
inauspicious start, we are showing signs of early progress. 
 
We are seeing a very positive start to 2011 although sales to some markets 
remain affected by the recession. 
 
Our main concerns in 2011 are the impact of the current political turbulence on 
our markets in the Middle East, the effect of the recent tragic natural 
disasters in both Australia and Japan and surging commodity prices, caused by 
the scale of the relatively new phenomenon of global speculation in 
commodities. The price of our key raw materials, steel, plastics and rubber 
have already increased by between 10% and 30% in just the first three months. 
Increases of this magnitude are hard to manage and difficult to pass on in a 
timely manner, they tie up cash in higher stock costs and create great 
uncertainty for both ourselves and our customers. 
 
Investment 
 
In 2010 the group invested GBP263,000 in plant and equipment. Of this, GBP53,000 
was financed by hire purchase agreements, GBP35,000 financed through the sale of 
surplus plant and the balance of GBP175,000 was financed from funds generated 
internally. 
 
At the year end, the company had committed to a further capital investment of GBP 
140,000 and, since the start of the new financial year, the company has placed 
orders for further investments totalling GBP232,000. All of these capital 
investments are being financed by hire purchase agreements. 
 
Cash flow and debt 
 
Although the company generated substantial funds as a result of the large 
improvement in profitability, the cash flow position for the year was negative 
by GBP87,728. 
 
In addition to the GBP175,000 used for capital investments, a further GBP178,000 
was required to finance the higher volume of business activity, being the 
difference between the amounts owed to us by customers and the amount owed to 
our suppliers. 
 
However, the major reason for the net outflow of funds was an increase in 
stocks of GBP732,000. Some of this increase can be justified by exceptional 
circumstances, as we built up stocks to allow for the installation of new 
plant, and as we purchased forward in anticipation of the increases in raw 
materials. But, the steep rise in stocks is of concern and strenuous efforts 
are being made to reverse this trend. 
 
Staff 
 
Our most important resource is our staff and we thank them for their continuing 
effort and support to overcome the constant challenges we face as we try to 
implement major changes and improvements throughout the group. 
 
Board appointments 
 
I am delighted to announce the appointment to the board of my two sons, Carl 
and Alan as Group Sales Director and Group Commercial Director respectively. 
The appointments, made on 13th August 2010, will be subject to their election 
at the AGM. 
 
Carl Braime gained a BSc at London University and an MA at Bristol University, 
before working in South America for three years, becoming fluent in Spanish. 
Since June 2006 Carl has been Sales Manager for Braime Elevator Components 
Limited, further developing our overseas distribution. He is currently 
completing the final year of an Executive MBA at Leeds University. 
 
Alan Braime graduated from Newcastle with a 1st in Economics and qualified as a 
chartered accountant with KPMG in September 2006, prior to joining the 
business. Alan has played an important role in developing the strategy for the 
restructuring of our manufacturing business and is currently leading a project 
looking at the business systems across the group. 
 
Both appointments will bring fresh ideas and new energy to the board, which are 
essential for the continuing development of the business. 
 
Outlook 
 
The directors believe that the new work coming on stream in Braime Pressings 
Limited should result in an improvement in its' financial performance but the 
outcome remains dependent on our ability to successfully complete the launch of 
these contracts and to make the necessary improvements in the operating 
efficiency of our new plant. 
 
The 4B division has started the year very positively but we are concerned about 
the impact of the current levels of instability, particularly related to 
commodity prices, which threaten margins and jeopardise business confidence 
among customers. In this uncertain climate, it will be a challenge to hang on 
to the gains of the previous two years. 
 
Nevertheless we believe overall that we can maintain the improvement in the 
performance of the group, albeit at a much slower rate. 
 
Summarised Consolidated Income Statement for the year ended 31st December 2010 
                                   (audited) 
 
                                                 Note         2010        2009 
 
                                                                 GBP           GBP 
 
Revenue                                                 18,057,661  15,685,218 
 
Changes in inventories of finished goods and               647,108    (406,362) 
work in 
 
progress 
 
Raw materials and consumables used                     (10,358,951) (8,156,328) 
 
Employee benefits costs                                 (3,841,811) (3,685,404) 
 
Depreciation expense                                      (286,938)   (302,865) 
 
Other expenses                                          (2,804,022) (2,434,978) 
 
Profit from operations                                   1,413,047     699,281 
 
Finance costs                                             (302,445)   (285,338) 
 
Finance income                                             250,776     211,049 
 
Profit before tax                                        1,361,378     624,992 
 
Tax expense                                               (416,240)   (237,905) 
 
Profit for the year attributable to equity                 945,138     387,087 
shareholders of the parent company 
 
Basic and diluted earnings per share                 1      65.63p      26.88p 
 
 
 
  Summarised Consolidated Statement of Comprehensive Income for the year ended 
                          31st December 2010(audited) 
 
                                                             2010        2009 
 
                                                                GBP           GBP 
 
Profit for the year                                       945,138     387,087 
 
Actuarial (losses)/gains recognised directly in          (168,000)     76,000 
equity 
 
Foreign exchange losses on re-translation of              (33,254)   (107,605) 
overseas operations 
 
Adjustment in respect of minimum funding                  137,000    (149,000) 
requirement per IFRIC14 
 
Other comprehensive income for the year                   (64,254)   (180,605) 
 
Total comprehensive income for the year                   880,884     206,482 
 
 
 
     Summarised Consolidated Balance Sheet at 31st December 2010(audited) 
 
                          Note       2010        2010        2009        2009 
 
                                        GBP           GBP           GBP           GBP 
 
Assets 
 
Non-current assets 
 
Property, plant and             1,223,980               1,249,460 
equipment 
 
Goodwill                           12,270                  12,270 
 
Employee benefits                       -                       - 
 
Total non-current                           1,236,250               1,261,730 
assets 
 
Current assets 
 
Inventories                     3,593,680               2,862,149 
 
Trade and other                 3,291,602               2,400,384 
receivables 
 
Cash and cash                   1,844,934               1,947,207 
equivalents 
 
Total current assets                        8,730,216               7,209,740 
 
Total assets                                9,966,466               8,471,470 
 
Liabilities 
 
Current liabilities 
 
Bank overdraft                  1,145,421               1,159,966 
 
Trade and other                 2,707,169               2,019,053 
payables 
 
Other financial                   291,553                 344,339 
liabilities 
 
Corporation tax                   171,054                       - 
liability 
 
Total current                               4,315,197               3,523,358 
liabilities 
 
Non-current liabilities 
 
Financial liabilities             389,012                 488,979 
 
Total non-current                             389,012                 488,979 
liabilities 
 
Total liabilities                           4,704,209               4,012,337 
 
Total net assets                            5,262,257               4,459,133 
 
Capital and reserves 
attributable to equity 
holders of the parent 
company 
 
Share capital                                 360,000                 360,000 
 
Capital reserves                               77,319                  77,319 
 
Foreign exchange                              286,292                 319,546 
reserve 
 
Retained earnings                           4,538,646               3,702,268 
 
Total equity                                5,262,257               4,459,133 
 
 
 
 Summarised Consolidated Cash Flow Statement for the year ended 31st December 
                                 2010(audited) 
 
                          Note       2010        2010        2009        2009 
 
                                        GBP           GBP           GBP           GBP 
 
Operating activities 
 
Net profit                                    945,138                 387,087 
 
Adjustments for: 
 
Depreciation                      286,938                 302,865 
 
Grants amortised                   (1,656)                 (1,656) 
 
Foreign exchange losses           (37,785)               (119,426) 
 
Investment income                (250,776)               (211,049) 
 
Interest expense                  302,445                 285,338 
 
Gain on sale of plant,            (35,357)                 (8,748) 
machinery and motor 
vehicles 
 
Adjustment in respect             (22,000)                 57,000 
of defined benefits 
scheme 
 
Income tax expense                416,240                 237,905 
 
                                              658,049                 542,229 
 
Operating profit before                     1,603,187                 929,316 
changes in working 
capital and provisions 
 
(Increase)/decrease in           (891,218)                243,991 
trade and other 
receivables 
 
(Increase)/decrease in           (731,531)                481,862 
inventories 
 
Increase in trade and             713,331                  89,643 
other payables 
 
                                             (909,418)                815,496 
 
Cash generated from                           693,769               1,744,812 
operations 
 
Income taxes paid                            (270,401)               (375,533) 
 
Investing activities 
 
Purchases of plant,              (210,154)               (326,902) 
machinery and motor 
vehicles 
 
Sale of plant,                     35,358                   8,750 
machinery and motor 
vehicles 
 
Interest received                   4,776                  11,049 
 
                                             (170,020)               (307,103) 
 
Financing activities 
 
Repayment of hire                (197,871)               (124,157) 
purchase creditors 
 
Interest paid                     (65,445)                (75,338) 
 
Dividends paid                    (77,760)                (43,200) 
 
                                             (341,076)               (242,695) 
 
(Decrease)/increase in                        (87,728)                819,481 
cash and cash 
equivalents 
 
Cash and cash                                 787,241                 (32,240) 
equivalents, beginning 
of period 
 
Cash and cash                                 699,513                 787,241 
equivalents, end of 
period 
 
 
 
 Consolidated statement of changes in equity for the year ended 31st December 
                                 2010(audited) 
 
                                                Foreign 
                             Share   Capital   Exchange   Retained 
                           Capital   Reserve    Reserve   Earnings      Total 
 
                                 GBP         GBP          GBP          GBP          GBP 
 
Balance at 1st January     360,000    77,319    427,151  3,431,381  4,295,851 
2009 
 
Comprehensive income 
 
Profit                           -         -          -    387,087    387,087 
 
Other comprehensive 
income 
 
Actuarial gains                  -         -          -     76,000     76,000 
recognised directly in 
equity 
 
Foreign exchange losses          -         -   (107,605)         -   (107,605) 
on re-translation of 
overseas operations 
 
Adjustment in respect of         -         -          -   (149,000)  (149,000) 
minimum funding 
requirement per IFRIC14 
 
Total other comprehensive        -         -   (107,605)   (73,000)  (180,605) 
income 
 
Total comprehensive              -         -   (107,605)   314,087    206,482 
income 
 
Transaction with owners 
 
Dividends                        -         -          -    (43,200)   (43,200) 
 
Total transactions with          -         -          -    (43,200)   (43,200) 
owners 
 
Balance at 31st December   360,000    77,319    319,546  3,702,268  4,459,133 
2009 
 
Balance at 1st January     360,000    77,319    319,546  3,702,268  4,459,133 
2010 
 
Comprehensive income 
 
Profit                           -         -          -    945,138    945,138 
 
Other comprehensive 
income 
 
Actuarial losses                 -         -          -  (168,000)   (168,000) 
recognised directly in 
equity 
 
Foreign exchange losses          -         -    (33,254)         -    (33,254) 
on re-translation of 
overseas operations 
 
Adjustment in respect of         -         -          -    137,000    137,000 
minimum funding 
requirement per IFRIC14 
 
Total other comprehensive        -         -    (33,254)   (31,000)   (64,254) 
income 
 
Total comprehensive              -         -    (33,254)   914,138    880,884 
income 
 
Transaction with owners 
 
Dividends                        -         -          -    (77,760)   (77,760) 
 
Total transactions with          -         -          -    (77,760)   (77,760) 
owners 
 
Balance at 31st December   360,000    77,319    286,292  4,538,646  5,262,257 
2010 
 
 
 
Notes 
 
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 (2009 - 1,440,000). There are no potentially 
dilutive shares in issue. 
 
    Dividends paid                                           2010        2009 
 
    Equity shares 
 
    Ordinary shares 
 
    Interim of 3.00p (2009 - 1.50p) per share paid on      14,400       7,200 
    1st April 2010 
 
    Interim of 2.40p (2009 - 1.50p) per share paid on      11,520       7,200 
    15th October 2010 
 
                                                           25,920      14,400 
 
    'A' Ordinary shares 
 
    Interim of 3.00p (2009 - 1.50p) per share paid on      28,800      14,400 
    1st April 2010 
 
    Interim of 2.40p (2009 - 1.50p) per share paid on      23,040      14,400 
    15th October 2010 
 
                                                           51,840      28,800 
 
    Total dividends paid                                   77,760      43,200 
 
 
2.  Cash and cash equivalents                                2010        2009 
 
                                                                GBP           GBP 
 
    Cash at bank and in hand                            1,844,934   1,947,207 
 
    Bank overdrafts                                     1,145,421   1,159,966 
 
                                                          699,513     787,241 
 
 
3. Major non-cash transaction 
 
During the year the group acquired tangible assets of GBP53,050 (2009 - GBP378,354) 
under hire purchase agreements. 
 
 
4. Basis of preparation 
 
The preliminary announcement has been prepared in accordance with applicable 
International Financial Reporting Standards as adopted by the EU and applied in 
accordance with the Companies Act 2006. 
 
The accounting policies adopted are consistent with those of the annual 
financial statements for the year ended 31st December 2009, as described in 
those annual financial statements. 
 
The financial statements have been prepared under the historical cost 
convention. 
 
 
5. Annual general meeting 
 
The annual general meeting of the company will be held in Leeds on Thursday 
19th May 2011. Full details will be included in the published annual report and 
financial statements, which will be sent to shareholders by the 21st April 2011 
and will also be available on the company's web-site (www.braimegroup.com) from 
that date. 
 
30th March 2011 
 
For further information please contact: 
 
T.F. & J.H. Braime (Holdings) P.L.C. 
D. H. Brown FCA - Financial Director 
0113 245 7491 
 
W. H. Ireland Limited 
Katy Mitchell LLB 
0113 394 6628 
 
 
 
END 
 

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