Braime Group PLC Annual Report 2016

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FY2016 Annual Report · Braime Group PLC

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T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

REPORT & ACCOUNTS

2016

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T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Contents

Company information

Notice of meeting

Chairman’s statement

Group strategic report

Director’s report

Directors’ remuneration report

Independent auditors’ report

Consolidated income statement

Consolidated statement of
comprehensive income

Consolidated balance sheet

Consolidated cash flow statement

Consolidated statement of
changes in equity

Notes to the accounts

Company balance sheet

Notes to the accounts

Five year record

Explanatory notes of resolutions

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Directors

O. N. A. Braime, MA, (Oxon.), M.B.I.M. (Chairman)
P. J. O. Alcock, B. Eng. (Non-executive director)
A. W. Walker MA, (Cantab.) (Non-executive director)
A. Q. Braime, ACA, BA (Hons.)
C. O. Braime, BSc (Hons.), MSc, MBA
P. Tiffany, ACA, BSc (Hons.)

Secretary

P. Tiffany, ACA, BSc (Hons.)

Registered office

Hunslet Road,
Leeds,
LS10 1JZ.

Independent auditors

Kirk Newsholme,
Chartered Accountants and Statutory Auditors,
4315 Park Approach,
Thorpe Park,
Leeds,
LS15 8GB.

Bankers

Stockbrokers

HSBC,
Leeds City Branch,
33 Park Row,
Leeds,
LS1 1LD.

W. H. Ireland,
Zurich House,
Canal Wharf,
Leeds,
LS11 5DB.

Company registration
number

488001 (England and Wales)

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notice of meeting

Notice is hereby given that the SIXTY SEVENTH
Annual General Meeting of the members of T.F.
& J.H. BRAIME (HOLDINGS) P.L.C. (the ‘company’)
will be held at the registered office of the company at
Hunslet Road, Leeds, LS10 1JZ on Thursday 1st June
2017 at 11.45am.

Ordinary Resolutions

1. To receive and adopt the report of the directors,
the statement of accounts and the directors’
remuneration report, for the year ended 31st
December 2016, and the report of the auditors
thereon.

2. To confirm the dividends paid on 21st October
2016 and 12th May 2017 on the Ordinary and
‘A’ Ordinary shares.

3. a) To re-appoint as a director P. Tiffany, who

is retiring by rotation in accordance with the
Company’s Articles of Association and, being
eligible, offers himself for re-election.

b) To re-appoint as a director P. J. O. Alcock,

who is retiring by rotation in accordance with

the Company’s Articles of Association and, being

eligible, offers himself for re-election.

4. To re-appoint Kirk Newsholme as auditors, to hold
office from the conclusion of this meeting until the
conclusion of the next Annual General Meeting of
the company at which accounts are laid.

5. To authorise the directors to set the remuneration

of the auditors.

By order of the board,
P. Tiffany Secretary
Hunslet Road, Leeds, LS10 1JZ

26th April 2017

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notice of meeting continued

ACCOMPANYING NOTES

1. A member entitled to vote at the meeting is

entitled to appoint a proxy to attend and vote in his
stead. A proxy need not also be a member of the
company. A form of proxy which may be used to
make such appointment and give proxy instructions
accompanies this notice.

2. To be valid, the form of proxy must be received at
the company’s registered office at Hunslet Road,
Leeds LS10 1JZ by no later than 11:45 am on 30th
May 2017.

3. The return of a completed Form of Proxy will not

prevent a shareholder attending the Annual General
Meeting and voting in person if he/she wishes to do so.

4. In accordance with the company’s Articles of

Association, holders of the ‘A’ Ordinary shares are
entitled to attend, but not to vote at this meeting.

5. There will be available for inspection at the registered
office during the company’s usual business hours
(Saturdays, Sundays and public holidays excluded)
from the date of this notice until the date of the
Annual General Meeting and for at least fifteen
minutes prior to and during the meeting:

A statement for the period of twelve months to
31st December 2016 of all transactions of each
director and, so far as he can reasonably ascertain,
of his family interests in the Ordinary shares of the
company.

The service contract of each executive director,
where applicable and the letter of appointment
of each non-executive director.

6. CREST members who wish to appoint a proxy
or proxies through the CREST electronic proxy
appointment service may do so for the Annual
General Meeting and any adjournment(s) thereof
by using the procedures described in the CREST
Manual. CREST Personal Members or other CREST
sponsored members, and those CREST members
who have appointed a service provider(s), should
refer to their CREST sponsor or voting service
provider(s), who will be able to take the appropriate
action on their behalf.

In order for a proxy appointment or instruction
made using the CREST service to be valid, the
appropriate CREST message (a ‘CREST Proxy
Instruction’) must be properly authenticated in
accordance with CRESTCo’s specifications, and
must contain the information required for such
instruction, as described in the CREST Manual.
The message, regardless of whether it constitutes
the appointment of a proxy or is an amendment
to the instruction given to a previously appointed
proxy must, in order to be valid, be transmitted
so as to be received by the issuer’s agent (ID
7RA11) by 11.30am on 30th May 2017. For this
purpose, the time of receipt will be taken to be
the time (as determined by the timestamp applied
to the message by the CREST Application Host)
from which the issuer’s agent is able to retrieve
the message by enquiry to CREST in the manner
prescribed by CREST. After this time any change
of instructions to proxies appointed through CREST
should be communicated to the appointee through
other means.

CREST members and, where applicable, their
CREST sponsors, or voting service providers
should note that CRESTCo does not make available
special procedures in CREST for any particular
message. Normal system timings and limitations
will, therefore, apply in relation to the input of
CREST Proxy Instructions. It is the responsibility
of the CREST member concerned to take (or, if
the CREST member is a CREST personal member,
or sponsored member, or has appointed a voting
service provider, to procure that his CREST sponsor
or voting service provider(s) take(s)) such action
as shall be necessary to ensure that a message is
transmitted by means of the CREST system by any
particular time. In this connection, CREST members
and, where applicable, their CREST sponsors or
voting system providers are referred, in particular,
to those sections of the CREST Manual concerning
practical limitations of the CREST system and
timings.

The company may treat as invalid a CREST

Proxy Instruction in the circumstances set out in
Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Chairman’s statement

Overall performance of the group

Sales revenue in 2016 increased by 7.3% to £28.4m
compared to £26.5m in 2015 and the profit from
operations increased to £1.4m from £0.9m in the
previous year.

The group revenue continues to grow year on year.
To do so in 2016 it required an increase in both stocks
and debtors, by £400,000 and £208,000 respectively,
although the increase in debtors was more than offset
by an increase in the creditors of £272,000.

The profit before tax in 2016 reduced to £1.27m
compared to £1.95m in 2015 however the prior year
result had benefitted from the exceptional profit of
£1.16m from the sale of part of the Hunslet site.

Results from some subsidiaries of the group were
below expectations but the performance in other parts
of the group more than offset this and, overall, the
2016 result was positive. The group also benefited,
like many UK exporters, from the immediate fall
in pound sterling following the result of the EU
Referendum.

Dividends

The directors have decided to increase the total
dividend for 2016 by 2.2% to 9.30p. The first interim
dividend of 2.90p, paid in October 2016, was
unchanged but the second interim dividend will be
increased to 6.40p (2015 - 6.20p).

Capex

During 2016, the group invested £1.1m in plant
and equipment. Further major investments are
planned for 2017, focusing on improving productivity
in manufacturing and extending our overseas
distribution. The final ‘go ahead’ for these investments
and their timing are dependent on maintaining
adequate cash flow and the availability of long term
finance.

Cash flow

Continuous monitoring of the cash flow and the
headroom between the actual borrowings and the
agreed maximum borrowing facility with our bankers
is increasingly important. Although the group has
distinct ‘seasonal’ periods when outgoings peak,
the timing of payments for exceptional purchases
fluctuate throughout the year.

In 2016, the group generated a £1.9m cash inflow
from operations and, after taking account of the net
increase in working capital required, the payment of
other financial costs and the dividend, the group was
cash positive by £427,000.

Group stocks increased by 7.0%, roughly in line
with the 7.3% increase in sales revenue, but overall
group stocks remain high. Reducing them is an
important potential source of funds required for
ongoing investment, while maintaining adequate
stock is a pre-requisite of achieving the all-important
delivery performance required by our customers.
Achieving this balance is a never-ending battle and
rightly remains a key individual responsibility for the
managing directors of each subsidiary and for the
group directors.

Staff

The positive and proactive contribution of all
individual staff at all levels and in all parts of the group
is crucial to the continuing success of the business.

Every year customers look for improvements in pricing
and for higher standards of quality and delivery. This
puts pressure on management, office staff and on
everyone involved in production. This in turn impacts
family life as many of our technical and sales staff are
required to spend more time travelling away from
home.

We thank them all for their ongoing effort.

Braime Pressings Limited

The new transfer line came on stream in the third
quarter of 2016 but initially did not achieve its
potential throughput. Combined with exceptional
demand, this resulted in additional shifts which
disproportionally increased manufacturing costs and
resulted in a disappointing result. With the significant
contribution being made by new senior staff, the
situation is gradually improving in 2017.

Additionally the company has secured a large contract
for a new product line which we are confident we can
produce competitively based on our existing skill set.
When this product comes on stream in late 2017, it
will make a major positive contribution.

Chairman’s statement continued

4B material handling division

The results from the subsidiaries making up the 4B
division were mixed in 2016.

4B USA, operating in both North and South America,
enjoyed a strong year, as did both 4B Africa and 4B
Australia. In contrast, 4B France had a poor year due
to weak demand resulting from a lower than expected
harvest. The result from the UK division,
4B Braime, was initially damaged by the very high
value of sterling in the first half of 2016 and only
partially rectified in the second part of 2016 by the
effective 10% devaluation in June. 4B Asia Pacific
faced major additional short term costs but is now
meeting our positive long term expectations.

Overall the 4B group had a positive year which
illustrates the benefit provided by the diversity of
products it offers to customers and the wide range of
industries and regions which make up its customer
base.

Brexit

As 80% of group sales are made in overseas markets,
the company benefited substantially from the steep
fall in the value of pound sterling following the
referendum. The lower value of sterling considerably
increased the margins both on direct overseas sales
and those made through an overseas subsidiary.
Additionally, the contribution of the individual
overseas subsidiaries are enhanced when converted
back into sterling and consolidated in the group result.

The medium term effects of Brexit will be much more
complex. The company imports the majority of its raw
materials for manufacture and imports some products
for re-sale in the UK. In both cases, it will be difficult
to pass on the magnitude of these cost increases to
customers.

Where the company buys products from overseas
suppliers in euros or dollars and then resells the
products in export markets, the effect may be neutral
- but may not be if the products involved have to be
imported and processed first in the UK before being
re-exported. The company may have to look at different
locations for stocking and processing products. Until
agreements are finalised with the EU, and probably
beyond that, there is going to remain a great deal of
uncertainty as to the overall effect on the group.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

That said, only 25% of group sales are made to the
EU compared to 55% to other overseas markets
and the likelihood is that the group will be a major
beneficiary from Brexit. Moreover, the group had
already identified the overseas markets outside the
EU as the regions with the greatest potential for future
growth and has for some time been focused on their
development. Brexit offers a major opportunity that
the group needs to seize.

Ironically the one major risk is that the currency
market itself decides that on balance the UK is going
to be a long term “winner” from Brexit and the fall in
the pound is reversed, just at the same time as the
UK faces new tariffs. In the long term, the level of
the pound relative to other currencies is likely to play
a bigger factor than the possible implementation of
tariffs by the EU.

Outlook

We continue to invest in the future, in improving
productivity, in developing new markets and in
introducing new innovative products.

In spite of the current level of uncertainty and ever
increasing competition, the group has started this
financial year positively and overall is currently
performing ahead of both last year and the 2017
budget.

O. N. A. Braime, Chairman

26th April 2017

Group strategic report

The Chairman’s Statement on pages 6 to 7 provides
a review of the business for the year and future
developments.

Principal activities and risks and uncertainties

The group comprises two core segments; the
manufacture of deep drawn metal presswork and
the distribution of material handling components and
monitoring equipment.

The metal presswork segment operates across several
industries including the automotive sector. The
market remains challenging 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.

The material handling components subsidiaries trade
from six countries and export to over fifty countries.
The division maintains its competitive edge in a price
sensitive market through the provision of engineering
expertise and by working closely with our suppliers
to supply innovative components of the highest
standard. In addition, ranges of complementary
products are sold into different industries. These
monitoring systems are developed and improved on a
regular basis.

Raw material price risk

The group is exposed to medium to long term
fluctuations in steel prices and to mitigate this
volatility, the company 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.

Operational risk

Solid reporting systems and accurate and timely
management information is reviewed by the directors
monthly.

Brexit impact

The group is prepared for the economic and political
uncertainty in the future resulting from the UK vote
to leave the EU. The group still maintains its long
term strategic aim of growing core products and aims
to continue to expand its operations with new and
existing customers, this is commented upon in detail in
the Chairman’s Statement.

Financial instruments

The group’s operations expose it to a variety of
financial risks including the effect of changes in
interest rate on debt, foreign exchange rates, credit
risk and liquidity risk.

The group does not have material exposure in any of
the areas identified above.

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 centralized 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.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Group strategic report continued

Credit risk
The group’s principal financial assets are bank balances,
cash and trade debtors, 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 debtors. 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 affects on financial performance
of the company.

Our business model

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.

The two segments are very different and serve different
markets, however together they add strength and balance
to the group.

Performance of Braime Pressings Limited,
manufacturer of deep drawn metal presswork

At the start of 2016, the management team was
strengthened and a significant new press line was installed
following the fire in 2015. The year started out with low
demand from Europe for new or replacement parts for
commercial vehicles due to the uncertainty surrounding
Brexit. This can be seem from the year on year decrease
in external revenues, however the forecast improvements
in productivity have enabled the business to increase
EBITDA year on year.

Performance of the 4B division, world wide
distributor of components and monitoring
systems for the material handling industry

The 4B division continued to increase sales revenue in
2016 with growth across all the subsidiaries. This was
particularly encouraging given the movement in exchange
rates many of the subsidiaries had to manage throughout
the year.

The outlook for 2017 remains positive with further growth
anticipated from our overseas subsidiaries.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Group strategic report continued

Taxation

The effective rate of tax is 33% (2015 – 21.00%). The
effective rate is above the standard UK tax rate of 20%
(2015 – 20.25%) due to the blending effect of the
different rates of tax applied by each of the countries
in which the group operates. In any financial year the
effective rate will depend on the mix of countries in
which profits are made.

Capital expenditure

In 2016, the group invested £1.1m in plant and
equipment continuing the recent substantial
investment in new manufacturing machinery. The plan
for 2017 is to make further tactical investments in key
equipment and maximise productivity.

Cash flow

Inventories increased by £399,841 and debtors by
£207,920; these calls on working capital were partly
offset by an increase in our creditors of £272,025.
In total the business generated funds from operations
of £1.9m net of the movement in working capital.

After the payment of other financial costs and the
dividend, the net cash position was £742,000; a net
inflow of £427,000.

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.

Balance sheet

Net assets of the group have increased to £10.0m
(2015 - £8.6m), this is due to the strong profit
performance in the year. A foreign exchange gain
of £598,000 (2015 – £(147,000)) was recorded on
the re-translation of the net assets of the overseas
operations.

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

Turnover growth

Gross margin

Operating profit

Stock days

Debtor days

On time delivery
achievement – 4B division

Note

2016

2015

7.3%

8.9%

45.3%

44.7%

£1.39m £0.90m

144 days 143 days

55 days 51 days

80%

69%

Turnover growth

Notes to KPI’s
1.
The group aims to increase shareholder value by
measuring the year on year growth in group revenue.
Whilst the growth in 2016 has been lower than 2015,
this is due to uncertainty in the general economic
environment resulting from the EU referendum and
US presidential election.

Gross margin

2.
Gross profit (revenue less change in inventories
and raw materials used) as a percentage of turnover
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.

Operating profit

3.
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.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Group strategic report continued

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.

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.

O. N. A. Braime, Chairman

26th April 2017

Stock days

4.
The average value of stock divided by the cost
of goods sold 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. In 2016 whilst increased
revenues have required an increase in the overall
stock levels, the group has maintained stock days in
line with prior years.

Debtor days

5.
The average value of debtors divided by revenue
expressed as a number of days. This is an important
indicator of working capital requirements. In 2016
there has been an increase in the debtor days,
however they are still averaging within standard
payment terms of 60 days.

On time delivery achievement

6.
The percentage of customer orders delivered on or
before the required date. On time delivery is a key
customer service requirement in the material handling
division and continuous improvement is required in
an increasingly competitive market. 2016 has seen
a significant improvement and senior management
continue to focus on improving this to meet customer
expectations.

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. During the
period of this report the group has not incurred any
fines or penalties or been investigated for any breach
of environmental regulations.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Directors’ report

The directors present their annual report and financial statements for the year ended 31st December 2016.

RESULTS AND DIVIDENDS

The profit for the year after taxation and transferred to reserves was £854,517 (2015 – £1,541,534). No dividend
is to be proposed at the Annual General Meeting.

DIRECTORS

The directors who served during the year and their beneficial interests in the shares of the company are detailed
below:

O. N. A. Braime
Ordinary shares
P. J. O. Alcock
Ordinary shares
‘A’ Ordinary shares
A. W. Walker
Ordinary shares
‘A’ Ordinary shares
A. Q. Braime
Ordinary shares
C. O. Braime
Ordinary shares

31st December 2016

1st January 2016

143,400

1,000
5,000

100
300

35,175

1,000
5,000

100
300

35,175

In accordance with the company’s Articles of Association P. J. O. Alcock retires by rotation and, being eligible
offers himself for re-election.

P. Tiffany was appointed to the board on 1st December 2016 and having been appointed since the last Annual
General Meeting, also offers himself for re-election.

M. L. Mills resigned his position from the board as of 24th February 2016.

None of the directors had a beneficial interest in any contract to which the company or a subsidiary company
was a party during the financial year.

The company has made qualifying third party indemnity provisions for the benefit of its directors and officers.

SUBSTANTIAL SHAREHOLDINGS

The company has been notified that as at 31st March 2017, apart from the directors, only the following persons
are beneficially interested in more than 3% of the Ordinary shares of the company:

J M Finn Nominees Limited
Hargreaves Lansdown (Nominees) Limited
Mrs P. V. Smith
Ferlim Nominees Limited Des. POOLED
Mr. M. C. J. Barnes

Ordinary
shares held
71,000
29,176
27,500
26,083
16,555

Percentage
14.79%
6.08%
5.73%
5.43%
3.45%

Directors’ report continued

CORPORATE GOVERNANCE

As an AIM listed group T.F. & J.H. Braime (Holdings)
P.L.C. is not required to comply with the Corporate
Governance Code 2014. However, the group applies
those principles of good governance it believes
appropriate to a group of this size.

INTERNAL CONTROLS

The board is responsible for the group’s system
of internal control and reviewing its effectiveness.
Identification and evaluation of risks is an integral
part of the board’s planning process. Controls within
the group are designed to provide the board with
reasonable assurance regarding the maintenance
of proper accounting records, the reliability of
financial information and the safeguarding of assets.
The group’s system of internal control is designed
to manage rather than eliminate the risk of failure
to achieve business objectives. It can only provide
reasonable and not absolute assurance against
material loss or misstatement. The board considers
that the size of the group does not justify an internal
audit function, but continues to keep the need for
an internal audit function under review. The board
has conducted a review of the effectiveness of the
company’s risk management and internal control
systems.

GOING CONCERN

The group’s business activities, together with the
factors likely to affect its future development,
performance and position are set out in the group
strategic report on pages 8 to 11. The financial
position of the group, its cash flows, liquidity position
and borrowing facilities are also described in the
group strategic report. In addition, note 17 to the
financial statements includes the group’s objectives,
policies and processes for managing its capital; its
financial risk management objectives; details of its
financial instruments and hedging activities; and its
exposure to credit risk and liquidity risk.

Growth is being seen in many of the geographic areas
in which the group operates. The exchange rate
between sterling, the US dollar and the euro and the
price of raw materials creates uncertainty over the
future gross margin of the group.

T.F. J.H. BRAIME (HOLDINGS) P.L.C.

The group’s net cash figure increased from an opening
figure of £315,980 to a credit position of £742,474 as
at 31st December 2016.

During the period the group funding of working
capital increased by £335,736 principally arising from
an increase in inventory which was only partly offset
by increases in trade and other payables. Overall cash
derived from operating activities generated £1.9m net
of the increased working capital funding.

At 31st December 2016, the available headroom
within the group’s borrowing facilities amounted to
£1,756,420. The directors are of the continued view
that through its group banking partner it has sufficient
access to financial resources.

The group has contracts with a number of customers
and suppliers across different geographic areas and
industries which act to mitigate the volatility in any
one area. The group’s forecasts and projections,
taking account reasonably possible changes in trading
performance, show that there is no substantial risk
that the group will not be able to operate within the
level of its current facilities.

After due consideration, the directors confirm that
they have a reasonable expectation that the company
and the group have adequate resources to continue
in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going
concern basis in preparing the company’s and the
group’s financial statements.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Directors’ report continued

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors are responsible for preparing the
annual report, the directors’ report, the directors’
remuneration report and the financial statements
in accordance with applicable laws and regulations.

Company law requires the directors to prepare
financial statements for each financial year. Under that
law the directors have prepared the group financial
statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the
European Union and the rules of the London Stock
Exchange for companies trading on the AIM.

The directors have chosen to prepare financial
statements for the company in accordance with
UK Generally Accepted Accounting Practice. Under
company law the directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
group and the company and of the profit or loss of the
group for that period.

They are also responsible for safeguarding the assets
of the group and the company and hence for taking
reasonable steps for the prevention and detection of
fraud and other irregularities.

The directors are responsible for the maintenance
and integrity of the company’s website. Legislation in
the United Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.

Each of the directors at the date of this report
confirms that:

(a) so far as the director is aware, there is no relevant
audit information of which the company’s auditors
are unaware; and

(b) he has taken all the steps that he ought to have

taken as a director in order to make himself aware
of any relevant audit information and to establish
that the company’s auditors are aware of that
information.

In preparing these financial statements, the directors
are required to:

This confirmation is given and should be interpreted
in accordance with the provision of Section 418 of the
Companies Act 2006.

• select suitable accounting policies and then apply

SUBSCRIPTIONS AND DONATIONS

Charitable donations amounting to £1,467 (2015 -
£2,233) were paid during the year. There were no
donations to political organisations.

AUDITORS

A resolution proposing Kirk Newsholme be
re-appointed as auditors of the company will be put to
the Annual General Meeting.

By order of the board
P. Tiffany, Director

26th April 2017

them consistently;

• make judgements and accounting estimates that

are reasonable and prudent;

• state whether applicable United Kingdom

Accounting Standards have been followed by the
parent company and applicable IFRSs as adopted
by the European Union have been followed by the
group, subject to any material departures disclosed
and explained in the financial statements; and
• prepare the financial statements on the going

concern basis unless it is inappropriate to presume
that the company will continue in business.

The directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the group’s and company’s transactions and
disclose with reasonable accuracy at any time the
financial position of the group and company and to
enable them to ensure that the financial statements
and the directors’ remuneration report comply with
the Companies Act 2006 and, as regards the group
financial statements, Article 4 of the IAS Regulation.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Directors’ remuneration report

INFORMATION NOT SUBJECT TO AUDIT

Service contracts

The purpose of this report is to inform shareholders
of the company’s policy with regard to executive
remuneration and to provide full details of the salary
and other benefits received by individual directors.
The directors have adopted the principles of good
governance as set out in the Combined Code and
the Directors’ Remuneration Report Regulations 2002.
However, following the company’s move to AIM
compliance with this report is no longer mandatory.

Other than P. Tiffany, the executive directors do
not have service contracts with the company or its
subsidiaries. The executive directors are subject
to election by the shareholders at the first Annual
General Meeting following their appointment and
thereafter at least at every third subsequent Annual
General Meeting. No compensation other than that
prescribed by legislation is payable on termination
of their employment.

Remuneration committee

Executive directors’ pay is subject to the decision of
the whole board and not of a separate remuneration
committee. The directors believe that this is adequate
for a group of this size.

Mr. P. J. O. Alcock’s service contract, as a non-
executive director, expires annually on 10th January.
The renewal of this contract is subject to approval of
the whole board and has been approved for a further
twelve months to 10th January 2018.

The renewal of Mr. A. W. Walker’s service contract
is subject to approval of the whole board and has
been previously approved until 30th March 2019.

Statement of company’s policy on
directors’ remuneration

The board’s policy is that the remuneration of the
directors should reflect market rates applicable to
a business of its size and complexity. This information
is assessed by the board based on their commercial
contacts within the industry and the local business
community. It is intended that this policy will remain
in place for the following financial year and
subsequent periods.

There are no formal performance related elements,
entitlements to share options or entitlements under
long-term incentive plans in directors’ remuneration.
All employees of the group, including directors, may
however receive a discretionary bonus which reflects
the results of the group.

The only elements of remuneration that are
pensionable are salary and bonuses.

There are no performance conditions relating to the
non-executive directors’ fees.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Directors’ remuneration report continued

INFORMATION SUBJECT TO AUDIT
Directors’ remuneration

The remuneration of the individual directors who served during the period was as follows:

Estimated
taxable
value of
benefits
in kind
£

Fees
£

Salary
£

Total
2016
£

Total
2015
£

Pension
contributions
2015
£

2016
£

-
-
-
-
-

206,503
106,277
106,292
13,505
22,549

3,259
1,162
825
142
1,310

209,762
107,439
107,117
13,647
23,859

188,138
95,752
95,393
-
106,090

-
10,958
10,958
1,050
5,794

-
9,727
9,727
-
8,901

Executive directors
O. N .A. Braime
A. Q. Braime
C. O. Braime
P. Tiffany
M. L. Mills

P. J. O. Alcock
A. W. Walker

25,500
25,500
51,000

-
-
455,126

-
-
6,698

25,500
25,500
512,824

24,000
24,000
533,373

-
-

-
-
28,760 28,355

Paid by the company

51,000

48,000

The estimated taxable value of benefits in kind includes private medical cover. Pension contributions represent
amounts paid to defined contribution pension schemes.

Approval

The directors’ remuneration report was approved by the board on 26th April 2017.

P. Tiffany, Director

Independent auditors’ report

TO THE SHAREHOLDERS OF
T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

We have audited the financial statements of T.F.
& J.H. Braime (Holdings) P.L.C. for the year ended
31st December 2016 which comprise the consolidated
income statement, the consolidated statement of
comprehensive income, the consolidated and parent
company balance sheets, the consolidated cash flow
statement, the consolidated statement of changes in
equity and the related notes. The financial reporting
framework that has been applied in the preparation
of the group financial statements is applicable law
and International Financial Reporting Standards
(IFRSs) as adopted by the European Union. The
financial reporting framework that has been applied
in the preparation of the parent company financial
statements is applicable law and United Kingdom
Accounting Standards (United Kingdom Generally
Accepted Accounting Practice) including Financial
Reporting Standard 102 “The Financial Reporting
Standard applicable in the UK and Republic of
Ireland”.

This report is made solely to the company’s members,
as a body, in accordance with Chapter 3 of Part 16 of
the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s
members those matters we are required to state to
them in a Report of the Auditors and for no other
purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone
other than the company and the company’s members
as a body, for our audit work, for this report, or for the
opinions we have formed.

Respective responsibilities of directors
and auditors
As explained more fully in the statement of directors’
responsibilities set out on page 14, the directors
are responsible for the preparation of the financial
statements and for being satisfied that they give a
true and fair view. Our responsibility is to audit and
express an opinion on the financial statements in
accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing
Practices Board’s Ethical Standards for Auditors.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the
amounts and disclosures in the financial statements
sufficient to give reasonable assurance that
the financial statements are free from material
misstatement, whether caused by fraud or error.
This includes an assessment of; whether the
accounting policies are appropriate to the group’s and
the parent company’s circumstances and have been
consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates
made by the directors; and the overall presentation
of the financial statements. In addition, we read
all the financial and non-financial information
in the Chairman’s Statement, Group Strategic
Report and the Report of the Directors to identify
material inconsistencies with the audited financial
statements and to identify any information that is
apparently materially incorrect based on, or materially
inconsistent with, the knowledge acquired by us in
the course of performing the audit. If we become
aware of any apparent material misstatements or
inconsistencies we consider the implications for our
report.

Opinion on financial statements

In our opinion:
•

•

the financial statements give a true and fair view
of the state of the group’s and of the parent
company’s affairs as at 31st December 2016 and
of the group’s profit for the year then ended;
the group financial statements have been properly
prepared in accordance with IFRSs as adopted by
the European Union;
the parent company financial statements have
been properly prepared in accordance with
United Kingdom Generally Accepted Accounting
Practice; and
the financial statements have been prepared
in accordance with the requirements of the
Companies Act 2006; and, as regards the
group financial statements, Article 4 of the IAS
Regulation.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Independent auditors’ report continued

Other matters

The company voluntarily prepares a directors’
remuneration report in accordance with the provisions
of the Companies Act 2006. The directors have
requested that we audit the part of the directors
remuneration report specified by the Companies Act
2006 to be audited as if the company were a listed
company. In our opinion the part of the directors
remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.

Neill Rayland BA FCA
(Senior Statutory Auditor),
for and on behalf of Kirk Newsholme,
Chartered Accountants and Statutory Auditors,
4315 Park Approach,
Thorpe Park,
Leeds,
LS15 8GB.

26th April 2017

Opinion on other matter prescribed by the
Companies Act 2006

In our opinion:
• the information given in the Chairman’s Statement,

Group Strategic Report and the Report of the
Directors for the financial year for which the
financial statements are prepared is consistent with
the financial statements.

• the Group Strategic Report and the Report of the
Directors have been prepared in accordance with
applicable legal requirements.

Matters on which we are required to report
by exception

In light of the knowledge and understanding of
the company, and the group, and its environment
obtained in the course of the audit, we have not
identified material misstatements in the Report of the
Directors of the Strategic Report.

We have nothing to report in respect of the following
matters where the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept

by the parent company, or returns adequate for our
audit have not been received from branches not
visited by us; or

• the parent company financial statements are not in

agreement with the accounting records and returns;
or

• certain disclosures of directors’ remuneration

specified by law are not made; or

• we have not received all the information and

explanations we require for our audit.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Consolidated income statement
for the year ended 31st December 2016

Revenue

Changes in inventories of finished goods and work in progress
Raw materials and consumables used
Employee benefits costs
Depreciation expense
Other expenses

Profit from operations

Profit on disposal of tangible fixed assets
Finance expense
Finance income

Profit before tax

Tax expense

Profit for the year

Profit attributable to:
Owners of the parent
Non-controlling interests

Note

2016

£ £

2015

4
4

28,415,449

26,470,084

337,116
(15,890,401)
(6,726,428)
(801,376)
(3,940,015)

886,480
(15,529,776)
(6,022,492)
(758,589)
(4,148,272)

1,394,345

897,435

-
(150,142)
29,902

1,158,140
(116,830)
11,726

1,274,105

1,950,471

(419,588)

(408,937)

854,517

1,541,534

932,101
(77,584)

1,584,748
(43,214)

854,517

1,541,534

Basic and diluted earnings per share

59.34p

107.05p

Consolidated statement of comprehensive income
for the year ended 31st December 2016

2016

Note

2015

Profit for the year

£ £

854,517

1,541,534

Items that will not be reclassified subsequently to profit or loss
Net remeasurement gain on post employment benefits

19.11

10,000

Items that may be reclassified subsequently to profit or loss
Foreign exchange gains/(losses) on re-translation of overseas operations

Other comprehensive income for the year

597,976

(146,822)

607,976

(136,822)

Total comprehensive income for the year

1,462,493

1,404,712

Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests

1,540,077
(77,584)
1,462,493

1,447,926
(43,214)
1,404,712

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

The notes on pages 23 to 51 form part of these financial statements

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Consolidated balance sheet
at 31st December 2016

Assets
Non-current assets
Property, plant and equipment
Goodwill
Financial assets
Total non-current assets

Current assets
Inventories
Trade and other receivables
Financial assets
Cash and cash equivalents
Total current assets

Total assets

Liabilities
Current liabilities
Bank overdraft
Trade and other payables
Other financial liabilities
Corporation tax liability
Total current liabilities

Non-current liabilities
Financial liabilities
Deferred income tax liability
Total non-current liabilities

Total liabilities

Total net assets

Note

2016
£

2016

£ £

2015

10
11
9

5,357,772
12,270
-

6,119,495
5,213,019
51,877
742,474

4,677,456
12,270
51,877

5,370,042

4,741,603

5,719,654
5,005,099
57,777
931,018

12,126,865

17,496,907

11,713,548

16,455,151

12
13

-
4,181,683
1,730,288
146,703

615,038
4,053,220
1,498,171
66,854

6,058,674

6,233,283

14
15

1,360,947
117,724

1,363,524
230,235

1,478,671

7,537,345

9,959,562

Capital and reserves attributable to equity holders of the parent company

Share capital
Capital reserve
Foreign exchange reserve
Retained earnings
Total equity attributable to the shareholders of the parent
Non-controlling interests
Total equity

360,000
257,319
539,395
9,005,528
10,162,242
(202,680)
9,959,562

1,593,759

7,827,042

8,628,109

360,000
257,319
(58,581)
8,194,467
8,753,205
(125,096)
8,628,109

The financial statements on pages 19 to 51 were approved and authorised for issue by the board of directors
on 26th April 2017 and were signed on its behalf by:

O. N. A. Braime, Director

P. Tiffany, Director

Company Registration Number 488001

The notes on pages 23 to 51 form part of these financial statements

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Consolidated cash flow statement
for the year ended 31st December 2016

Operating activities
Net profit
Adjustments for:
Depreciation
Grants amortised
Foreign exchange gains/(losses)
Finance income
Finance expense
Gain on sale of land and buildings,
plant, machinery and motor vehicles
Adjustment in respect of
defined benefits scheme
Income tax expense
Income taxes paid

Operating profit before changes
in working capital and provisions

Note

2016
£

2015
£

854,517

1,541,534

4
4

801,376
(6,568)
525,324
(29,902)
150,142

(12,538)

12,000
419,588
(491,778)

758,589
(1,656)
(146,677)
(11,726)
116,830

(1,158,140)

13,000
408,937
(490,525)

1,367,644

2,222,161

(511,368)

1,030,166

Increase in trade and other receivables
Increase in inventories
Increase in trade and other payables

(207,920)
(399,841)
272,025

(93,991)
(831,471)
329,488

Cash generated from operations

Investing activities
Purchases of property, plant,
machinery and motor vehicles
Sale of land and buildings, plant,
machinery and motor vehicles
Interest received

Financing activities
Proceeds from long term borrowings
Loan financing repayments
Repayment of borrowings
Repayment of hire purchase creditors
Interest paid
Dividends paid

(335,736)
1,886,425

(595,974)
434,192

(998,617)

(1,010,401)

12,538
27,902

-
57,777
(101,917)
(176,432)
(150,142)
(131,040)

1,190,561
8,726

(958,177)

188,886

300,000
90,346
(171,020)
(130,335)
(116,830)
(131,040)

Increase in cash and cash equivalents
Cash and cash equivalents,
beginning of period
Cash and cash equivalents,
end of period

(501,754)
426,494

315,980

742,474

(158,879)
464,199

(148,219)

315,980

The notes on pages 23 to 51 form part of these financial statements

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Consolidated statement of changes in equity
for the year ended 31st December 2016

Note

Foreign
Share Capital Exchange
Capital Reserve Reserve
£

Retained
Earnings
£

Non-
Controlling
Interests
£

Total
£

Total
Equity
£

Balance at 1st January 2015

360,000 257,319

88,241 6,730,759 7,436,319

(81,882) 7,354,437

Comprehensive income
Profit

Other comprehensive income
Net pension remeasurement
gain recognised directly in equity
Foreign exchange losses on
re-translation of overseas subsidiaries
consolidated operations
Total other comprehensive income
Total comprehensive income

Transactions with owners
Dividends
Total transactions with owners

-
-
-

-
-

- 1,584,748 1,584,748

(43,214) 1,541,534

10,000

(146,822)
- (146,822)
- (146,822)
(136,822)
- (146,822) 1,594,748 1,447,926

-
10,000

-
-

(146,822)
(136,822)
(43,214) 1,404,712

-
-

(131,040)
(131,040)

-
-

(131,040)
(131,040)

Balance at 1st January 2016

360,000 257,319 (58,581) 8,194,467 8,753,205 (125,096) 8,628,109

Comprehensive income
Profit

Other comprehensive income
Net pension remeasurement
gain recognised directly in equity
Foreign exchange gains on
re-translation of overseas subsidiaries
consolidated operations
Total other comprehensive income
Total comprehensive income

Transactions with owners
Dividends
Total transactions with owners

-
-
-

-
-

932,101

932,101 (77,584) 854,517

10,000

- 597,976
- 597,976
- 597,976

-
10,000

597,976
607,976
942,101 1,540,077 (77,584) 1,462,493

597,976
607,976

-
-

(131,040)
(131,040)

-
-

(131,040)
(131,040)

Balance at 31st December 2016

360,000 257,319 539,395 9,005,528 10,162,242 (202,680) 9,959,562

The capital reserve arose on the listing of the company’s shares on the London Stock Exchange and the cancellation of the 180,000
5% Cumulative Preference shares at a redemption price of £1.125 per share. The foreign exchange reserve relates to the differences
arising on the re-translation of overseas subsidiaries consolidated within the group financial statements. The retained earnings
reserve includes the accumulated profit and losses of the group.

There was no movement in the share capital of the company.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts

1.3 Critical accounting estimates and
assumptions

Estimates and judgements are continually evaluated
and are based on historical experience and other
factors, including expectations of future events
that are believed to be reasonable under the
circumstances.

The group makes estimates and assumptions
concerning the future. The resulting accounting
estimates will, by definition seldom equal the actual
results. The estimates and assumptions that have
a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within
the next financial year are discussed below:

Retirement benefit obligations
The group operates a defined benefit pension scheme
(note 19). Asset valuations are based on the fair
value of the assets. The valuation of the liabilities
of the scheme are based on statistical and actuarial
calculations, using various assumptions including
discount rates, future salary and pension increases,
life expectancy of scheme members and cash
commutations. The actuarial assumptions may differ
materially from actual experience due to changes
in economic and market conditions, variations in
actual mortality, higher or lower cash withdrawal
rates and other changes in factors assessed. Any of
these differences could impact the assets or liabilities
recognised in the balance sheet in future periods.

Inventory
Inventories are stated at the lower of cost and net
realisable value. The assessment of net realisable
value requires forecasts of future demand and the
selling prices of inventory.

1. ACCOUNTING POLICIES

1.1 General company information

T.F. & J.H. Braime (Holdings) P.L.C. (‘the company’)
and its subsidiaries (together ‘the group’) manufacture
metal presswork and handle the distribution of bulk
material handling components through trading from
locations in Australia, England, France, South Africa,
Thailand and the United States.

The company is incorporated and domiciled in the
UK. The company’s registered number is 488001.
The address of its registered office is Hunslet Road,
Leeds, LS10 1JZ.

The company is a public limited company and has
its primary listing on the AIM division of the London
Stock Exchange.

The group consolidated financial statements were
authorised for issue by the board on 26th April 2017.

1.2 Basis of preparation

The principal accounting policies adopted in the
preparation of the consolidated financial statements
are set out below. The policies have been consistently
applied to all the years presented, unless otherwise
stated.

These 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 preparation of financial statements in conformity
with IFRS requires the use of certain critical
accounting estimates. The areas involving a higher
degree of judgement or complexity, or areas where
assumptions and estimates are significant to the
consolidated financial statements are disclosed in
paragraph 1.3 below entitled critical accounting
estimates and assumptions.

The company has elected to prepare its parent
company financial statements in accordance with
UK GAAP; these are presented on pages 52 to 60.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

• Clarifications to IFRS 15, ‘Revenue from contracts
with customers’; effective on or after 1st January
2018.

• Amendments to IFRS 2, ‘Classification and
measurements of share-based payment
transactions’; effective on or after 1st January
2018.
IFRS 14, ‘Regulatory deferral accounts’.
IFRS 16. ‘Leases’; 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 is not expected to have a material
impact on the group’s reported financial performance
or position. However, they may give rise to additional
disclosures being made in the financial statements.

1.5 Revenue

Revenue arises solely from sale of goods net of local
taxes.

Revenue is recognised when the risks and rewards of
owning the goods have passed to the customer, which
is generally on delivery.

1.4 Changes to accounting policy and
disclosure

(a) New and amended standards adopted by the

group.

The group has adopted the following new and
amended IFRS’s as of 1st January 2016.

• Amendments to IFRS 11 ‘Accounting for

acquisitions of interests in joint operations’;
effective on or after 1st January 2016.

• Amendment to IAS 27 ‘Equity method in separate
financial statements’; effective on or after 1st
January 2016.

• Amendments to IAS 16 and IAS 38 ‘Clarification
of acceptable methods of depreciation and
amortisation’; effective on or after 1st January
2016.

• Amendments to IAS 16 and IAS 41 ‘Agriculture:
Bearer Plants’; effective on or after 1st January
2016.

• Amendments to IFRS 10, IFRS 12 and IAS 28

‘Investment entities: Applying the consolidation
exceptions’; effective on or after 1st January 2016.
IAS 1 ‘Disclosure initiative’; effective on or after
1st January 2016.

•

• Annual improvements to IFRS’s 2012-14 cycle

IFRS 5, IFRS 7, IAS 19 and IAS 34; effective on or
after 1st January 2016.

The impact of these new and amended IFRS’s has not
had a material impact on these financial statements.

(b) New standards, amendments and interpretations
issued but not effective for the financial year
beginning 1st January 2016 and not early
adopted.

•

IAS 12, ‘Recognition of deferred tax assets for
unrealised losses’; effective on or after 1st January
2017.

• Amendments to IAS 7, ‘Disclosure initiative’;

•

effective on or after 1st January 2017
IFRS 9, ‘Financial instruments’; effective on or after
1st January 2018.
IFRS 15, ‘Revenue from contracts with customers’;
effective on or after 1st January 2018.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
Notes to the accounts continued

1.6 Basis of consolidation

Subsidiaries are all entities over which the group
has the power to govern the financial and operating
policies generally accompanying a shareholding of
more than one half of the voting rights. Subsidiaries
are fully consolidated from the date on which control
is transferred to the group. They are de-consolidated
from the date that control ceases. The consolidated
financial statements of T.F. & J.H. Braime (Holdings)
P.L.C. incorporate the financial statements of the
parent company as well as those entities controlled by
the group by full consolidation.

The group uses the acquisition method of accounting
to account for business combinations. The
consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred,
the liabilities incurred and the equity interests issued
by the group. The consideration transferred includes
the fair value of any asset or liability resulting from a
contingent consideration arrangement. Acquisition
related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured
initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the group
recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net assets.

The excess of the consideration transferred, the
amount of any non-controlling interest in the acquiree
and the acquisition date fair value of any previous
equity interest in the acquireee over the fair value
of the group’s share of the identifiable net assets
acquired is recorded as goodwill. If this is less than
the fair value of the net assets of the subsidiary
acquired in the case of a bargain purchase, the
difference is recognised directly in the income
statement.

Inter-company transactions, balances and unrealised
gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated.
Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with
the policies adopted by the group.

Non-controlling interests in the net assets of the
consolidated subsidiaries are identified separately
from the group’s equity therein. Non-controlling
interests consist of the amount of those interests at
the date of the original business combination and the
minority’s share of changes in equity since the date
of the combination. Where losses are accumulated,
all earnings and losses of the subsidiaries are
attributed to the parent and the non-controlling
interest in proportion to their ownership.

1.7 Foreign currency

T.F. & J.H. Braime (Holdings) P.L.C. consolidated
financial statements are presented in sterling (£),
which is also the functional currency of the parent
company.

In the separate financial statements of the
consolidated entities, foreign currency transactions
are translated into the functional currency of the
individual entity using the month end exchange
rates as an approximation to that prevailing at the
dates of the transactions (spot exchange rate).
Foreign exchange gains and losses resulting from
the settlement of such transactions and from the
translation of monetary assets and liabilities at year-
end exchange rates are recognised in the income
statement under ‘other income’ or ‘other expenses’,
respectively.

In the consolidated financial statements, all separate
financial statements of subsidiaries originally
presented in a currency different from the group’s
presentation currency, have been converted into
sterling. Assets and liabilities have been translated into
sterling at the closing rate at the balance sheet date.
Income and expenses have been converted into the
group’s presentation currency using average rates of
exchange. Any differences arising from this procedure
have been charged/(credited) to the currency
translation reserve in equity.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

1.8 Financial assets

The group considers that its financial assets comprise
loans and receivables only. These assets are
non-derivative financial assets with fixed or
determinable payments, not quoted in an active
market. They arise principally through the provision
of goods and services to customers (trade debtors)
but also incorporate other types of contractual
monetary assets. They are carried at cost less
provision for impairment.

Impairment provisions are recognised when there
is objective evidence (such as significant financial
difficulties on the part of the counterparty or default
or significant delay in payment) that the group will
be unable to collect all of the amounts due under
the terms receivable, the amount of such a provision
being the difference between the net carrying amount
and the present value of the future expected cash
flows associated with the impaired receivable.
For trade receivables, which are reported net,
such provisions are recorded in a separate allowance
account with the loss being recognised within
administrative expenses in the income statement.
On confirmation that the trade receivable will not
be collectable, the gross carrying value of the asset
is written off against the associated provision.

Financial assets are recognised when the group
enters into a contractual agreement with a third
party through an instrument. All interest received
is recognised as finance income in the income
statement.

1.9 Financial liabilities

The group’s financial liabilities include bank loans
and overdrafts, other loans, trade and other payables,
finance leasing liabilities and forward currency
contracts. They are included in balance sheet line
items ‘bank overdraft’, ‘trade and other payables’,
‘long-term financial liabilities’ and ‘other financial
liabilities’.

Financial liabilities are recognised when the group
becomes a party to the contractual agreements of the
instrument. All interest related charges are recognised
as an expense in ‘finance cost’ in the income
statement.

Bank loans are raised for support of long term funding
of the group’s operations. They are recognised at
fair value, net of direct issue costs. Finance charges,
including premiums payable on settlement or
redemption and direct issue costs, are charged to
the income statement using the effective interest
method and are added to the carrying amount of the
instrument to the extent that they are not settled in
the period in which they arise.

Forward currency contracts are held at fair value
and are used to hedge exchange risk arising on
foreign currency transactions denominated in a
currency other than the transacting entities’ functional
currency. No adjustment is made for the fair value of
forward currency contracts where such adjustment
is clearly not material to the results presented in the
financial statements (note 17)

Trade payables are recognised initially at their fair
value and subsequently measured at amortised cost
less settlement payments.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash at bank and
in hand as well as short term highly liquid investments
such as money market instruments and bank deposits.
For the purposes of the cash flow statement cash and
cash equivalents include bank overdrafts.

1.11 Borrowing costs

All borrowing costs are expensed as incurred.

1.12 Pension obligations and short term
employee benefits

Pensions to employees are provided through a
defined benefit plan as well as a defined contribution
plan.

A defined benefit plan is a pension plan that defines
an amount of pension benefit that an employee will
receive on retirement, usually dependent on one or
more factors such as age, years of service and salary.
The legal obligation for any benefits from this kind of
pension plan remains with the group, even if the plan
assets for funding the defined benefit plan have been
acquired. Plan assets may include assets specifically
designated to a long term benefit fund as well as
qualifying insurance policies.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

1.13 Leased assets

Where substantially all of the risks and rewards
incidental to ownership of a leased asset have been
transferred to the group (a ‘finance lease’
or ‘hire purchase contract’), the asset is treated as
if it had been purchased outright. The amount initially
recognised as an asset is the present value of the
minimum lease payments payable over the term of the
lease. The corresponding lease commitment is shown
as a liability. Lease payments are analysed between
capital and interest. The interest element is charged
to the consolidated income statement over the period
of the lease and is calculated so that it represents a
constant proportion of the lease liability. The capital
element reduces the balance owed to the lessor.

Where substantially all of the risks and rewards
incidental to ownership are retained by the lessor
(an ‘operating lease’), the total rentals payable under
the lease are charged to the income statement on
a straight-line basis over the lease term.

The land and buildings elements of property leases
are considered separately for the purposes of lease
classification.

1.14 Impairment of non-financial assets

The group’s property, plant and equipment are
subject to impairment testing.

An asset is impaired where there is objective evidence
that, as a result of one or more events that occurred
after initial recognition, the estimated recoverable
value of the asset has been reduced.

Individual assets or cash-generating units with an
indefinite useful life or those not yet available for
use are tested for impairment at least annually.
All individual assets or cash-generating units are
tested for impairment whenever events or changes
in circumstances indicate that the carrying amount
may not be recoverable.

A defined contribution plan is a pension plan under
which the group pays fixed contributions into an
independent entity. The group has no legal or
constructive obligations to pay further contributions
after payment of the fixed contribution.

The asset or liability recognised in the balance sheet
for defined benefit pension plans is the present value
of the defined benefit obligation (DBO) at the balance
sheet date less the fair value of plan assets, together
with adjustments for past service costs. The DBO is
calculated annually by independent actuaries using
the projected unit credit method. The present value
of the DBO is determined by discounting the
estimated future cash outflows using interest rates of
high quality corporate bonds that are denominated
in the currency in which the benefits will be paid and
that have terms to maturity approximating to the terms
of the related pension liability.

Remeasurement gains and losses are recognised
immediately and in full in other comprehensive
income. Past service costs are recognised immediately
in the consolidated income statement, unless the
changes to the pension plan are conditional on the
employees remaining in service for a specified period
of time (the vesting period). In this case, the past
service costs are amortised on a straight-line basis
over the vesting period.

If the group will not benefit from a scheme surplus in
the form of refunds from the plan or reduced future
contributions, an adjustment is made in respect of the
minimum funding requirement and no asset resulting
from the above policy is recognised.

The contribution recognised in respect of defined
contribution plans are expensed as they fall
due. Liabilities and assets may be recognised if
underpayment or prepayment has occurred and are
included in current liabilities or current assets as they
are normally of a short-term nature.

Short-term employee benefits are recognised for
the number of paid leave days (usually holiday
entitlement) remaining at the balance sheet date.
They are included in current pension and other
employee obligations at the undiscounted amount
that the group expects to pay as a result of the unused
entitlement.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

An impairment loss is recognised for the amount
by which the asset’s or cash-generating unit’s
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of fair value,
reflecting market conditions less costs to sell and
value in use, based on an internal discounted cash
flow evaluation. Impairment losses are charged
pro-rata to the assets in the cash-generating unit.
All assets are subsequently re-assessed for indications
that an impairment loss previously recognised may
no longer exist.

discounting, at tax rates that are expected to apply
to their respective period of realisation, provided they
are enacted or substantively enacted at the balance
sheet date.

Most changes in deferred tax assets or liabilities are
recognised as components of tax expense in the
income statement. Only changes in deferred tax
assets or liabilities that relate to a change in value of
assets or liabilities that are charged or credited directly
to equity are charged or credited directly to equity.

1.15 Research and development

1.17 Dividends

Equity dividends are recognised when they become
legally payable. In the case of dividends to equity
shareholders, they are recognised when paid.

In the case of final dividends, this is when approved
by the shareholders at the Annual General Meeting.

1.18 Property, plant and equipment

Property, plant and equipment (other than freehold
land) are carried at acquisition cost less subsequent
depreciation and impairment losses. No depreciation
has been charged in respect of certain land and
buildings as the directors have assessed that those
assets have residual values equal to or greater than
current carrying values.

The useful lives of property, plant and equipment
can be summarised as follows:

• Land and buildings – 25 - 50 years
• Plant, machinery

and motor vehicles

– 3 - 5 years on a straight
line basis

Costs associated with research activities are expensed
in the consolidated income statement as they occur.

1.16 Income taxes

Current income tax assets and/or liabilities comprise
those obligations to, or claims from, fiscal authorities
relating to the current or prior reporting period,
that are unpaid at the balance sheet date. They are
calculated according to the tax rates and tax laws
applicable to the fiscal periods to which they relate,
based on the taxable profit for the year. All changes
to current tax assets or liabilities are recognised as a
component of tax expense in the consolidated income
statement.

Deferred income taxes are calculated using the liability
method on temporary differences. This involves the
comparison of the carrying amounts of assets and
liabilities in the consolidated financial statements
with their respective tax bases. This applies also
to temporary differences associated with shares in
subsidiaries if reversal of these temporary differences
can be controlled by the group and it is probable that
reversal will not occur in the foreseeable future. In
addition, tax losses available to be carried forward
as well as other income tax credits to the group are
assessed for recognition as deferred tax assets.

Deferred tax liabilities where material are always
provided for in full. Deferred tax assets are recognised
to the extent that it is probable that they will be able
to be offset against future taxable income. Deferred
tax assets and liabilities are calculated, without

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

obligations, the likelihood that an outflow will be
required in settlement is determined by considering
the class of obligations as a whole. In addition, long
term provisions are discounted to their present values,
where time value of money is material.

All provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate.

In those cases where the possible outflow of
economic resource as a result of present obligations
is considered improbable or remote, or the amount
to be provided for cannot be measured reliably,
no liability is recognised in the consolidated balance
sheet. These contingent liabilities are recognised
in the course of the allocation of purchase price to
the assets and liabilities acquired in the business
combination. They are subsequently measured at the
higher amount of a comparable provision as described
above and the amount initially recognised, less any
amortisation.

Probable inflows of economic benefits to the group
that do not yet meet the recognition criteria of an
asset are considered contingent assets.

1.19 Inventories

Inventories comprise raw materials, supplies and
purchased goods. Cost includes all expenses directly
attributable to the manufacturing process as well
as suitable portions of related production overheads,
based on normal operating capacity. Financing costs
are not taken into consideration. At the balance
sheet date, inventories are carried at the lower of
cost and net realisable value. Net realisable value is
the estimated selling price in the ordinary course of
business less any applicable selling expenses.

1.20 Government grants

Government grants received on capital expenditure
are generally deducted in arriving at the carrying
amount of the asset purchased. Grants for revenue
expenditure are netted against the cost incurred by
the group.

Where retention of a government grant is dependent
on the group satisfying certain criteria, it is initially
recognised as deferred income. When the criteria
for retention has been satisfied, the deferred income
balance is released to the consolidated income
statement or netted against the asset purchased as
appropriate.

1.21 Other provisions, contingent liabilities
and contingent assets

Other provisions are recognised when present
obligations will probably lead to an outflow of
economic resources from the group and they can
be estimated reliably. Restructuring provisions are
recognised only if a detailed formal plan for the
restructuring has been developed and implemented,
or management has at least announced the plan’s
main features to those affected by it. Provisions are
not recognised for future operating losses.

Provisions are measured at the estimated expenditure
required to settle the present obligation, based on the
most reliable evidence available at the balance sheet
date, including the risks and uncertainties associated
with the present obligation. Any reimbursement
expected to be received in the course of settlement of
the present obligation is recognised, if virtually certain
as a separate asset, not exceeding the amount of the
related provision. Where there are a number of similar

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

2. PROFIT FROM OPERATIONS

This has been arrived at after charging/(crediting):
Depreciation
Foreign exchange differences
Research and development costs
Write-down of inventory to net realisable value
Inventory recognised as an expense
Fees payable to the company’s auditor:
• for the audit of the company’s annual accounts
• the audit of the company’s subsidiaries, pursuant to legislation
• other services pursuant to legislation
Profit on disposal of fixed assets
Operating lease payments

Note

2016
£

2015
£

801,376
(233,582)
40,662
158,213
15,553,285

758,589
5,686
152,545
54,356
14,643,296

6,000
31,000
3,000
(12,538)
117,794

5,250
26,750
3,000
(1,158,140)
173,312

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

SEGMENTAL INFORMATION

Segmental information is presented in respect of the group’s business segments, which are based on the group’s
management and internal reporting structure as at 31st December 2016.

The chief operating decision-maker has been identified as the board of directors (‘the board’). The board
reviews the group’s internal reporting in order to assess performance and allocate resources. Management has
determined the operating segments based on these reports and on the internal reporting structure.

The board assesses performance based on a measure of earnings before tax. Other information provided to the
board is measured in a manner consistent with that in the financial statements. Total segment assets exclude
assets and liabilities that are managed on a central basis. These balances are part of the reconciliation to the total
balance sheet assets and liabilities. Inter-segment pricing is determined on an arms-length basis.

The group comprises the following segments: the manufacture of metal presswork and the distribution of bulk
material handling components.

Central Manufacturing Distribution
2016
£

2016
£

Total
2016
£

Revenue
External
Inter company
Total

Profit
EBITDA
Finance costs
Finance income
Depreciation
Tax expense
(Loss)/profit for the period

Assets
Total assets
Additions to non current assets
Liabilities
Total liabilities

-
472,671
472,671

3,564,987
2,659,476
6,224,463

24,850,462
4,443,233
29,293,695

28,415,449
7,575,380
35,990,829

(143,881)
(73,959)
-
(279,022)
(40,740)
(537,602)

180,991
(25,867)
2,489
(140,585)
98,242
115,270

2,158,611
(50,316)
27,413
(381,769)
(477,090)
1,276,849

2,195,721
(150,142)
29,902
(801,376)
(419,588)
854,517

4,497,238
1,022,501

1,008,429
-

11,991,240
347,010

17,496,907
1,369,511

1,022,777

2,139,638

4,374,930

7,537,345

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

Revenue
External
Inter company
Total

Profit
EBITDA
Gain on sale of tangible fixed assets
Finance costs
Finance income
Depreciation
Tax expense
(Loss)/profit for the period

Assets
Total assets
Additions to non current assets
Liabilities
Total liabilities

Central
2015
£

Manufacturing
2015
£

Distribution
2015
£

Total
2015
£

-
122,593
122,593

3,955,447
3,267,777
7,223,224

22,514,637
4,411,488
26,926,125

26,470,084
7,801,858
34,271,942

(102,140)
-
(48,347)
-
-
(44,540)
(195,027)

35,632
1,149,629
(30,566)
3,666
(432,370)
-
725,991

1,722,532
8,511
(37,917)
8,060
(326,219)
(364,397)
1,010,570

1,656,024
1,158,140
(116,830)
11,726
(758,589)
(408,937)
1,541,534

1,314,918
-

4,588,122
1,146,385

10,552,111
265,722

16,455,151
1,412,107

701,606

2,839,750

4,285,686

7,827,042

Geographical analysis
The group is domiciled in the UK. Analysis of revenues from external customers by continent is provided below:

UK
Europe
Americas
Africa
Asia
Australasia

Revenue
2016
£,000

5,808
7,083
12,223
1,291
859
1,151
28,415

Non-current
assets
2016
£,000

Revenue
2015
£,000

Non-current
assets
2015
£,000

3,460
81
1,468
199
102
60
5,370

6,704
6,207
10,701
995
865
998
26,470

3,010
66
1,523
35
68
40
4,742

There is one group customer which accounts for more than 10% of the group’s revenues.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

FINANCE INCOME AND EXPENSE

Finance expense
Bank borrowings
Hire purchase interest

Finance income
Bank interest received
Other finance income

TAX EXPENSE

Note

2016
£

127,184
22,958

2016
£

2015
£

101,001
15,829

2015
£

150,142

116,830

19.6

27,902
2,000

8,726
3,000

29,902

11,726

2016
£

2015
£

Current tax expense
UK corporation tax
UK tax expense on profits for the year
Prior year adjustment

Foreign corporation tax
Foreign tax expense on profits for the year
Prior year adjustment

96,870
-

448,978
(10,839)

-
-

96,870

376,560
(6,235)

438,139

535,009

Current tax charge

Deferred tax – origination and
reversal of timing differences
Prior year rate difference

Total tax charge

15
15

(114,571)
(850)

42,046
(3,434)

(115,421)
419,588

370,325

38,612
408,937

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation
tax in the UK applied to profits for the year are as follows:

Profit before tax
Expected tax charge based on the standard rate
of corporation tax in the UK of 20% (2015 – 20.25%)
Expenses not deductible for tax purposes
Income not taxable
Tax credits on research and development
Profit on property disposal non taxable
Foreign tax
Utilisation of tax losses
Deferred tax not provided
Prior year adjustment
Rate differences

2016
£
1,274,105

2015
£
1,950,471

254,821
49,983
(1,338)
(24,298)
(178,852)
160,964
-
122,174
(10,839)
46,973
419,588

394,971
14,760
(336)
(24,239)
(137,492)
161,282
(5,058)
14,497
(6,235)
(3,213)
408,937

No deferred tax asset arising on tax losses, accelerated depreciation in excess of capital allowances or deferred
tax liability in respect of the pension provision has been recognised as their future realisation is relatively
uncertain. The amounts not recognised are estimated at £10,000, £45,000 and £(4,000) respectively (2015 -
£11,000, £6,000 and £(9,000)) calculated at a rate of 17% (2015 – 18%).

6. EMPLOYEES
The average number of employees of the group during the year was made up as follows:

Office and management
Manufacturing

Staff costs (including directors) comprise:
Wages and salaries
Defined contribution pension cost
Defined benefit pension cost
Other long-term employee benefits
Ex-gratia pensions
Employer’s national insurance contributions and similar taxes

Included in other expenses

Directors’ remuneration:
Emoluments of qualifying services
Company pension contributions to money purchase schemes

Note

19.6

2016

No.
88
70
158

£
5,864,367
192,292
51,000
25,808
-
638,970
6,772,437
(46,009)
6,726,428

2015
No.
81
64
145

£
5,300,358
147,076
67,000
25,198
11,948
566,673
6,118,253
(95,761)
6,022,492

512,824
28,760
541,584

533,373
28,355
561,728

The number of directors for whom retirement benefits are accruing under money purchase pension schemes
amounts to 3 (2015 – 3) and under defined benefit pension schemes amounted to nil (2015 – nil). Further
details of directors remuneration are included in the remuneration report.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

7. PROPERTY, PLANT AND EQUIPMENT

At 31st December 2016
Cost
Accumulated depreciation
Net book value

At 31st December 2015
Cost
Accumulated depreciation
Net book value

Year ended 31st December 2016
Opening net book value
Additions
Depreciation
Exchange differences
Closing net book value

Year ended 31st December 2015
Opening net book value
Additions
Disposals
Depreciation
Exchange differences
Closing net book value

Plant,
machinery
and motor
vehicles
£

Land and
buildings
£

Total
£

3,033,034
141,860
2,891,174

9,105,922
6,639,324
2,466,598

12,138,956
6,781,184
5,357,772

2,755,211
122,426
2,632,785

7,717,038
5,672,367
2,044,671

10,472,249
5,794,793
4,677,456

2,632,785
272,660
(18,845)
4,574
2,891,174

2,044,671
1,096,851
(782,531)
107,607
2,466,598

4,677,456
1,369,511
(801,376)
112,181
5,357,772

1,974,532
722,626
(30,771)
(31,515)
(2,087)
2,632,785

2,081,974
689,481
(1,650)
(727,074)
1,940
2,044,671

4,056,506
1,412,107
(32,421)
(758,589)
(147)
4,677,456

The net book value of tangible fixed assets includes an amount of £833,059 (2015 - £504,264) in respect of
assets held under finance leases and hire purchase contracts. The related depreciation charge on these assets
for the year was £159,884 (2015 - £120,272).

Assets in the course of construction which have not been depreciated total £195,571.

The total cost of non-depreciable assets included in freehold land and buildings was £2,876,428 (2015 -
£1,356,863).

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

8. SUBSIDIARIES

Subsidiary

Principal activity

Proportion of shares held
2016 and 2015

Ordinary Preference
Shares

Shares
Registered in and operating from Hunslet Road, Leeds, West Yorkshire, LS10 1JZ, England:
100%
Braime Pressings Limited

Manufacture of metal presswork

100%

4B Braime Components Limited

Distribution of bulk material
handling components

100%

ii Registered at Hunslet Road, Leeds, West Yorkshire, LS10 1JZ England and operating from the USA:

4B Elevator Components Limited

Distribution of bulk material
handling components

100%

iii

Incorporated in and operating from 9 Route de Corbie, 80800 Lamotte Warfusee, France:
4B-France sarl

Distribution of bulk material
handling components

Incorporated in and operating from 899/1 Moo 20, Soi Chongsiri, Bangplee-Tam Ru Road,
Samutprakam, 10540, Thailand:
4B Asia Pacific Company Limited

Distribution of bulk material
handling components

100%

48%

Incorporated in and operating from 14 Newport Business Park, Mica Drive, Kya Sand,
2163 Johannesburg, South Africa:
4B Africa Elevator
Components (Pty) Limited

Distribution of bulk material
handling components

100%

Incorporated in and operating from Unit 1, 18 Overlord Place, Acacia Ridge, Queensland 4110, Australia:
4B Australia Pty Limited

Distribution of bulk material
handling components

100%

While only 48% of the ordinary shares are held in 4B Asia Pacific Company Limited the company controls 89%
of the voting rights. As a consequence no single investor directly controls the investee however, given the
operational management that the company demonstrates, it has the ability to direct the relevant activities and
the decision making process such that it has power over the investee.

FINANCIAL ASSETS

Secured loan to third party
Amount due on loan within one year
Other loans (unsecured) due within one year

Amount due on the loan within one to two years
Amount due on the loan within two to five years
Total amount due after more than one year

2016
£

51,877
-
51,877
-
-
-
51,877

2015
£

49,977
7,800
57,777
51,877
-
51,877
109,654

The remaining secured loan accrues interest at 3.25% above the Bank of England base rate. The loan is repaid
quarterly and is due to be fully repaid by the end of 2017.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

10. INVENTORIES

Raw materials
Work in progress
Finished goods
Goods in transit

2016
£
298,886
56,426
5,625,245
138,938
6,119,495

2016
£
286,091
34,988
5,309,569
89,006
5,719,654

During the twelve months ended 31st December 2016 the group recognised a charge of finished goods
inventories of £158,213 (2015 – £54,356) to reflect the ageing of certain stock items.

11. TRADE AND OTHER RECEIVABLES

Trade debtors
Other debtors
Prepayments

2016
£
4,640,021
376,610
196,388
5,213,019

2015
£
3,943,878
758,739
302,482
5,005,099

Where possible credit insurance is obtained and sales to customers kept within agreed credit limits. Experience
over the last five years has shown that bad debts in any one year have not exceeded £10,000.

The risk in relation to credit risk is considered low and is supported by the low level of bad debts experienced,
both pre and post credit insurance claims, by the group in any one year. There are no material bad debt provisions
and no material past due balances.

12. TRADE AND OTHER PAYABLES – CURRENT

Trade creditors
Other taxes and social security costs
Other creditors
Accruals

13. OTHER FINANCIAL LIABILITIES – CURRENT

Bank loans - secured
Hire purchase
Other creditors

2016
£
2,741,240
190,602
304,335
945,506
4,181,683

2016
£
278,062
226,192
1,226,034
1,730,288

2015
£
2,605,917
316,552
267,662
863,089
4,053,220

2015
£
245,815
169,884
1,082,472
1,498,171

Note

An analysis of the interest rate payable on financial liabilities and information about fair values is given in note 17.

Other creditors comprise of an invoice discounting facility which has been secured by a fixed and floating charge
over certain assets of certain group companies.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

14. FINANCIAL LIABILITIES – NON-CURRENT

Bank loans – secured
Hire purchase
Government grants

Note

2016
£
870,900
490,047
-
1,360,947

2015
£
1,005,064
351,892
6,568
1,363,524

Obligations under finance lease and hire purchase contracts comprise amounts payable as follows:

In one year or less, or on demand
In more than one year but not more than five years

Obligations under bank loan agreements comprise amounts payable as follows:

Within one year
One to two years
Two to five years
Over five years

2016
£
226,192
490,047
716,239

2015
£
169,884
351,892
521,776

2016
£
278,062
258,099
466,494
146,307
1,148,962

2015
£
245,815
243,903
540,938
220,223
1,250,879

Terms and conditions of outstanding loans were as follows:

US dollar bank loan
US dollar unsecured bank loan

US dollar term loan

GBP term loan

Interest
Rate
%
4.25% fixed
3.00% fixed
2.25% over
LIBOR
2.50% over
Bank of England
base rate
2.75% over
Bank of England
base rate

Year of
maturity

2018
2022

2016
£
91,143
39,971

2015
£
123,265
39,955

2023

694,952

668,062

2019

123,562

159,597

2020

199,333

260,000

The 4.25% fixed US dollar bank loan is secured on specific plant and equipment held by 4B Elevator Components
Limited. The US dollar term loan and the GBP term loans form part of the group funding arrangements. These
loans are secured by a fixed and floating charge over certain assets of certain group companies.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

15. DEFERRED INCOME TAX LIABILITY

Accelerated capital allowances in excess of depreciation
Rolled over capital gains

Balance at 1st January 2016
Exchange differences
Credit to income statement during the year
Balance at 31st December 2016

Note

2016
£
35,898
81,826
117,724

2015
£
159,636
70,599
230,235

Deferred tax
£
230,235
2,910
(115,421)
117,724

Deferred tax has been recognised at a rate of 39% (2015 – 39%) on accelerated capital allowances in 4B Elevator
Components Limited and 17% (2015 – 18%) in respect of the company and Braime Pressings Limited.

16. SHARE CAPITAL

Authorised:
480,000 Ordinary shares of 25p each
1,200,000 ‘A’ Ordinary shares of 25p each

Allotted, called up and fully paid:
480,000 Ordinary shares of 25p each
960,000 ‘A’ Ordinary shares of 25p each

2016

£
120,000
300,000
420,000

2015

£
120,000
300,000
420,000

120,000
240,000
360,000

The ‘A’ Ordinary shares rank pari passu in all respects with Ordinary shares except that the holders of ‘A’
Ordinary shares are not entitled to vote at general meetings. Holders of Ordinary shares are entitled to one vote
for every four shares held.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

17. FINANCIAL INSTRUMENTS

Level 1 - quoted prices (unadjusted) in active markets

The group’s activities expose it to a variety of financial
risks: market risk (including currency risk and cash
flow interest rate risk), credit risk and liquidity risk.

The group holds financial instruments in order to
finance its operations and to manage the interest rate
and currency risks arising from those operations.

All financial assets and liabilities are initially measured
at transaction price (including transaction costs). If an
arrangement constitutes a financing transaction, the
financial asset or financial liability is measured at the
present value of the future payments discounted at a
market rate of interest for a similar debt instrument.

Trade and other receivables net of impairment losses,
loans, cash and bank balances, trade and other
payables are subsequently measured at the amortised
cost equivalent to the undiscounted amount of cash or
other consideration expected to be paid or received.

Bank loans are initially measured at the present value
of future payment, discounted at a market rate of
interest and subsequently measured at amortised
costs using the effective interest method.

Whilst finance leasing liabilities within notes 13 and
14 are included within financial liabilities they do not
constitute a financial instrument.

There is no formal policy for matching foreign
currency cash flows, or matching exposure to foreign
currency net assets or liabilities although a careful
watch is kept on the positions. As shown below
the group’s currency exposure at the year end is
£2,126,552 (2015 - £72,090) and is primarily euros
and US dollars to sterling.

The group’s policy is to ensure a balance of financial
instruments to meet its operating requirements.
This has been achieved during the period. Unutilised
committed borrowing facilities have been maintained
in order to provide flexibility in the management of
liquidity.

Fair values

There is no material difference between the carrying
value and the fair value of the group’s financial assets
and liabilities. Financial instruments carried at fair
value are required to be measured by reference to the
following levels:

for identical assets or liabilities;

Level 2 - inputs other than quoted prices included
within level 1 that are observable for the
asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices); and

Level 3 - inputs for the asset or liability that are not
based on observable market data
(unobservable inputs).

The level within which the financial asset or liability
is classified is determined based on the lowest level
of significant input to one fair value measurement.
The only instruments entered into by the group are
included in level 2 and consist of fixed interest term
loans and foreign currency forward contracts.

Forward contracts

Forward currency contracts of £nil were outstanding
at 31st December 2016 (31st December 2015 -
£1,361,211). The fair value of the forward currency
contracts is £nil (2015 - £41,785), of which £25,000
was included within trade and other payables in
respect of these financial statements in 2015.

Fixed interest term loans

As at 31st December 2016 fixed interest rate term
loans amounted to £91,143 and £39,971 (2015 -
£163,220) (see note 14). The directors are of the
opinion that the fair value of these fixed interest rate
loans is not materially different to their stated carrying
values.

Maturity analysis

Other than is disclosed in note 14 regarding bank
loans and obligations under finance lease and hire
purchase agreements all financial instruments fall due
within one year.

In addition to the maturity analysis disclosed in note
14 the interest due on hire purchase agreements
repayable within one year totals £24,674 (2015 -
£21,205), the interest due on finance lease and hire
purchase agreements after one year but not more than
five years totals £46,173 (2015 - £41,747). Likewise
the interest due on bank loans repayable within one
year totals £28,071 (2015 - £31,937), the interest due
on bank loans repayable after one year but not more
than five years totals £69,214 (2015 - £60,199), and
the interest due on bank loans repayable after more
than five years totals £2,215 (2015 - £6,303).

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

Interest rate and currency of financial assets and liabilities

The currency and interest rate profile of the group’s interest bearing financial assets is shown below:

Currency

As at 31st December 2016

Sterling
Euro
US dollar
Other

Floating rate
financial
assets
£

Fixed rate
financial
assets
£

Total
£

(1,169,259)
288,448
1,320,912
351,469
791,570

-
-
-
-
-

(1,169,259)
288,448
1,320,912
351,469
791,570

Negative sterling floating rate financial assets relate to bank overdrafts available for offset against credit currency
balances where a legal right of set-off exists.

As at 31st December 2015

Sterling
Euro
US dollar
Other

124,944
227,538
400,922
279,468
1,032,872

-
-
-
-
-

124,944
227,538
400,922
279,468
1,032,872

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

Interest rate and currency of financial assets and liabilities

The currency and interest rate profile of the group’s interest bearing financial liabilities is shown below:

Floating rate
financial
liabilities
£

Fixed rate
financial
liabilities
£

Total
£

1,528,810
20,121
-
63,805
1,612,736

652,433
-
826,066
-
1,478,499

2,181,243
20,121
826,066
63,805
3,091,235

1,935,078
344,247
505,844
-
2,785,169

477,875
-
163,220
43,901
684,996

2,412,953
344,247
669,064
43,901
3,470,165

Currency

As at 31st December 2016

Sterling
Euro
US dollar
Other

As at 31st December 2015

Sterling
Euro
US dollar
Other

Floating rate financial liabilities comprise bank borrowings.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

Currency exposure

The monetary assets and liabilities of the group that are not denominated in the functional currency of the
operating unit concerned are shown below.

Non interest bearing financial assets and liabilities

Sterling
£

Euro US dollar
£

Other
currencies
£

Total
£

Functional currency
At 31st December 2016

Sterling
Euro
US dollar

At 31st December 2015

Sterling
Euro
US dollar

Risk sensitivity

-
(1,035,690)
558,441
(477,249)

630,814
-
(19,895)
610,919

(66,729)
-
-
(66,729)

2,059,611
-
-
2,059,611

2,623,696
(1,035,690)
538,546
2,126,552

-
(961,068)
91,381
(869,687)

151,930 (1,005,800)
-
-
(38,322)
-
113,608 (1,005,800)

1,833,969
-
-
1,833,969

980,099
(961,068)
53,059
72,090

A change in interest rates of 1% in any of the three currencies invested or borrowed will not affect the income
statement by a figure greater or less than £25,000 (2015 - 30,000).

A weakening in the value of sterling by 10% will benefit the operating profit by a figure not exceeding £238,000
(2015 - £30,000). A strengthening of sterling by 10% will reduce the operating profit by a figure not greater than
£290,000 (2015 - £20,000).

These amounts are estimates. Actual results in the future may differ materially from these due to development
in the global financial markets which may cause fluctuations in interest and exchange rates to vary. The amounts
stated above should not be considered a projection of likely future events and losses.

Borrowing facilities

The group has the following undrawn committed borrowing facilities:

Expiring in one year or less

2016
£
1,756,420

2015
£
1,142,497

These facilities are for the purposes of working capital flexibility and are reviewed annually.

Group bank loans and overdrafts and invoice discounting facilities have been secured by a fixed and floating
charge over certain assets of certain group companies.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

Foreign currency risk

Foreign exchange risk arises because the group
has operations located in various parts of the world
whose functional currency is not the same as the
group’s primary functional currency (sterling).
Although its global market penetration arguably
reduces the group’s risk in that it has diversified into
several markets, the net assets from such overseas
operations are exposed to currency risk giving rise
to gains or losses on re-translation into sterling. Only
in exceptional circumstances will the group consider
hedging its net investments in overseas operations as
generally it does not consider that the cash flow risk
created from such hedging techniques warrants the
reduction in volatility in consolidated net assets.

Foreign exchange risk also arises when individual
group operations enter into transactions denominated
in a currency other than their functional currency. It
is group policy that all such transactions should be
hedged locally by entering into forward contracts with
group treasury. Where it is considered that the risk to
the group is significant, group treasury will enter into a
matching forward contract with a reputable bank.

It is group policy that transactions between group
entities are generally denominated in the buying
group entity’s functional currency thereby giving rise
to foreign exchange risk in the income statement
of both the purchasing group entity and the group.
Although the purchasing group entity might hedge
this exposure with group treasury, no external
hedge is entered into at group level as there is no
exposure to consolidated net assets from intra-group
transactions.

Liquidity risk

The liquidity risk of each group entity is managed
centrally by the group treasury function. Each
operation has a facility with group treasury, the
amount of the facility being based on budgets.
The budgets are set locally and agreed by the board

annually in advance, enabling the group’s cash
requirements to be anticipated. Where facilities of
group entities need to be increased, approval must
be sought from the group finance director. Where
the amount of the facility is above a certain level
agreement of the board is needed.

All surplus cash is held centrally to maximize the
returns on deposits through economics of scale. The
type of cash instrument used and its maturity date will
depend on the group’s forecast cash requirements.
The group maintains a draw down facility with a major
banking corporation to manage any unexpected short-
term cash shortfalls.

Interest rate risk

The group finances its operations through a mixture
of retained profit, bank borrowings and finance
lease arrangements. The group generally borrows
at floating rates but some borrowing arrangements
provide fixed interest payments for a proportion of its
debt over a specified period. This enables the group
to forecast borrowing costs with a degree of certainty.

Credit risk

The group is mainly exposed to credit risk from credit
sales. It is group policy, implemented locally, to insure
sales when insurance cover is available.

Quantitative disclosures have been made in note 11.

The group does not enter into complex derivatives to
manage credit risk.

Capital risk

The group’s objective when maintaining capital, being
the share capital and capital reserves, is to safeguard
the group’s ability to continue as a going concern so
that it is able to provide returns for shareholders and
benefits for other stakeholders.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.Notes to the accounts continued

18. 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 (2015 – 1,440,000). There are no potentially dilutive shares in issue.

Dividends paid

Equity shares
Ordinary shares

Interim of 6.20p (2015 – 6.20p) per share paid on 12th May 2016
Interim of 2.90p (2015 – 2.90p) per share paid on 21st October 2016

‘A’ Ordinary shares

Interim of 6.20p (2015 – 6.20p) per share paid on 12th May 2016
Interim of 2.90p (2015 – 2.90p) per share paid on 21st October 2016

Total dividends paid

2016
£

2015
£

29,760
13,920
43,680

59,520
27,840
87,360

131,040

An interim dividend of 6.40p per Ordinary and ‘A’ Ordinary share will be paid on 12th May 2017.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

19.3 The scheme exposes the company to a number
of risks:

• Investment risk. The scheme holds investments in
asset classes such as equities, which have volatile
market values and while these assets are expected
to provide real returns over the long-term the short-
term volatility can cause additional funding to be
required if a deficit emerges.

• Interest rate risk. The scheme’s liabilities are
assessed using market yields on high quality
corporate bonds to discount the liabilities. As the
scheme holds assets such as equities or annuity
policies the value of the assets and liabilities may
not move in the same way.

• Inflation risk. A significant proportion of the benefits
under the scheme are linked to inflation. Although
the scheme’s assets are expected to provide a
good hedge against inflation over the long-term,
movements over the short-term could lead to
deficits emerging.

• Mortality risk. In the event that members live longer
than assumed a deficit will emerge in the scheme.

There were no plan amendments, curtailments or
settlements during the period.

19.4 The expected return on assets is equivalent to
the discount rate used to value the schemes liabilities
and based on the yield available on high quality
corporate bands of appropriate term and currency.

19. PENSION COSTS

19.1 The group operates a funded defined benefit
pension scheme, Braime Pressings Limited Retirement
Benefits Scheme, which provides benefits based on
final salary and length of service on retirement, leaving
service or death on behalf of certain companies in
the T.F. & J.H. Braime (Holdings) P.L.C. group. The
assets of the scheme are held separately from those
of the group, being predominantly invested with an
insurance company. The scheme is funded to cover
future pension liabilities.

19.2 The scheme is subject to the Statutory
Funding Objective under the Pensions Act 2004.
A valuation of the scheme is carried out at least
once every three years to determine whether the
Statutory Funding Objective is met. As part of the
process the group must agree with the trustees of the
scheme the contributions to be paid to address any
shortfall against the Statutory Funding Objective and
contributions to pay for future accrual of benefits. A
qualified actuary determines the contributions payable
to the scheme. The most recent actuarial valuation
was conducted at 6th April 2013. The market value
of scheme assets at 6th April 2013 was £7,808,000.
The funding level at 6th April 2013 was 101% on an
ongoing basis.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised within the consolidated
statement of comprehensive income.

The scheme is managed by a board of Trustees
appointed in part by the group. The Trustees have
responsibility for obtaining valuations of the fund,
administering benefit payments and investing the
scheme’s assets. The Trustees delegate some of
these functions to their professional advisers where
appropriate

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.
T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

19.5 The amounts recognised in the balance sheet are as follows:

Fair value of scheme assets
Present value of funded obligations
Surplus
Adjustment in respect of minimum funding requirement
Net asset

Note

19.8
19.7

2016
£
8,781,000
(8,758,000)
23,000
(23,000)
-

2015
£
7,271,000
(7,221,000)
50,000
(50,000)
-

19.6 The amounts recognised in the consolidated income statement are as follows:

Current service cost
Total included in employee benefits expense

Interest on liabilities
Interest on assets

Past service cost
Total amounts recognised in the consolidated income statement

Note

19.7 Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Current service cost
Contributions by scheme participants
Past service cost
Interest cost
Benefits paid
Remeasurement gains based on experience
Remeasurement gains due to changes in demographic assumptions
Remeasurement loss/(gain) from changes to financial assumptions
Closing defined benefit obligation

19.8 Changes in the fair value of plan assets are as follows:

Opening fair value of scheme assets
Interest on assets
Return on scheme assets in excess of interest
Benefits paid
Employer contributions
Contributions by scheme participants
Closing fair value of scheme assets

2016
£
51,000
51,000

2015
£
51,000
51,000

264,000
(266,000)
(2,000)

255,000
(258,000)
(3,000)

-
49,000

16,000
64,000

2016
£
7,221,000
51,000
9,000
-
264,000
(196,000)
(1,000)
(214,000)
1,624,000
8,758,000

2016
£
7,271,000
266,000
1,392,000
(196,000)
39,000
9,000
8,781,000

2015
£
7,796,000
51,000
8,000
16,000
255,000
(596,000)
-
-
(309,000)
7,221,000

2015
£
7,847,000
258,000
(300,000)
(596,000)
54,000
8,000
7,271,000

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

19.9 Analysis of fair value of plan assets between asset categories is as follows:

Annuity policies in payment
Equities – unquoted - overseas
Equities – unquoted - UK
Cash
Money market funds – unquoted
With profit deferred annuities
Total

% of Total
Assets
60.3%
9.8%
2.2%
2.2%
-
25.5%
100.0%

2016
£
5,298,000
857,000
195,000
191,000
2,000
2,238,000
8,781,000

2015
£
4,874,000
659,000
167,000
129,000
2,000
1,440,000
7,271,000

The assets do not include any investment in shares of the company.

19.10 The actual return on scheme assets is as follows:

Actual return/(loss) on scheme assets

19.11 Amount recognised in the statement of comprehensive income is as follows:

Gain/(loss) on scheme assets in excess of interest
Remeasurement (loss)/gain from changes to financial assumptions
Changes in effect of asset ceiling
Experience gains
Gains from changes to demographic assumptions
Total amount recognised in statement of comprehensive income

2016
£
1,658,000

2015
£
(42,000)

2016
£
1,392,000
(1,624,000)
27,000
1,000
214,000
10,000

2015
£
(300,000)
309,000
1,000
-
-
10,000

19.12 Cumulative amount of remeasurement gains and losses recognised in the statement of comprehensive
income is as follows:

Remeasurement gains

19.13 Amounts for the current period and previous periods are as follows:

2016
£
327,000

2015
£
317,000

Present value of funded obligations
Fair value of scheme assets
Surplus
Experience gains on plan liabilities
Gains from changes to
demographic assumptions
Changes in assumptions used to
value scheme liabilities
Gains/(losses) on scheme assets
in excess of interest

2016
£ ,000
(8,758)
8,781
23
1

2015
£,000
(7,221)
7,271
50
-

2014
£,000
(7,796)
7,847
51
-

2013
£,000
(6,505)
6,513
8
45

2012
£,000
(6,295)
6,328
33
-

214

(106)

(1,624)

309

(995)

118

(573)

1,392

(300)

1,082

(51)

566

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

19.14 Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

Discount rate
Salary increase
Inflation
Expected return on scheme assets
LP15 pension increase
Revaluation in deferment
Post retirement mortality table

2016

2015

2014

2013

2012

2.60%
4.65%
3.65%
2.60%
3.50%
3.65%
110%
52NA
YoU mc
min
1.0%

3.70%
4.45%
3.45%
3.70%
3.30%
3.45%
120%
PNA00
YoU mc
min
1.0%

3.40%
4.30%
3.30%
3.40%
3.20%
3.30%
120%
PNXA00
YoU mc
min
1.0%

4.40%
4.70%
3.70%
5.00%
3.55%
3.70%
120%
PNXA00
YoU mc
min
1.0%

4.10%
4.10%
3.10%
4.10%
3.10%
3.10%
120%
PNXA00
YoU mc
min
1.0%

19.15 The group is required to agree a schedule of contributions with the Trustees of the scheme following a
valuation which must be carried out at least once every three years. The next valuation of the scheme is due
as at 6th April 2016 and is currently being completed. In the event that the actuarial valuation reveals a larger
deficit than expected the company may be required to increase contributions above those set out in the existing
schedule of contributions. Conversely, if the position is better than expected contributions may be reduced.

The employer’s best estimate of contributions expected to be paid to the plan during the annual period
beginning after the balance sheet date is £42,000.

The weighted average duration of the defined benefit obligation is approximately 17.9 years.

19.16 The amounts recognised in the balance sheet are as follows:

Net asset at start of period
Pension cost
Employer contributions
Remeasurement gain recognised
recognised in the statement of comprehensive income
Net asset at end of period

Note

19.6

19.11

2016
£
-
(49,000)
39,000

2015
£
-
(64,000)
54,000

10,000
-

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

19.17 Sensitivity of the value placed on the surplus (before minimum funding requirement adjustment)

Adjustments to assumptions

Discount rate
Plus 0.50%
Minus 0.50%

Inflation
Plus 0.50%
Minus 0.50%

Salary increase
Plus 0.50%
Minus 0.50%

Life expectancy
Plus 1.0 years
Minus 1.0 years

Approximate
effect on surplus
£

159,000
(182,000)

(286,000)
281,000

(83,000)
79,000

(19,000)
24,000

% With-profit deferred annuities converted on retirement using guaranteed annuity rates
Plus 10.00%
Minus 10.00%

204,000
(204,000)

Note that the above sensitivities are approximate and only show the likely effect of an assumption being adjusted
whilst all other assumptions remain the same.

The sensitivity analysis shown above was determined using the same method as per the calculation of liabilities
for the balance sheet disclosures, but using assumptions adjusted as detailed above.

20. OPERATING LEASES

The group has entered into commercial leases on certain properties, motor vehicles and items of plant and
equipment. At the balance sheet date, the group had outstanding commitments for minimum lease payments
under non-cancellable operating leases, which fall due as follows:

Not later than one year
Later than one year and not later than five years
Over five years

2016
£

2015
£

132,328
148,904
22,750 -
303,982

173,028
197,186

370,214

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued

21. NOTES SUPPORTING CONSOLIDATED CASH FLOW STATEMENT

Cash and cash equivalents
Cash at bank and in hand
Bank overdrafts

2016

£ £

2015

742,474
-
742,474

931,018
(615,038)
315,980

Major non-cash transaction
During the year the group acquired tangible assets of £370,895 subject to finance (2015 - £254,782) under hire
purchase agreements.

22. CAPITAL COMMITMENTS

There were capital commitments of £nil (2014 - £426,817) which are contracted but not provided for in these
financial statements.

23. RELATED PARTY TRANSACTIONS

The key management of the company are considered to be the directors of the company.

Key management compensation is disclosed in the directors’ remuneration report.

During the year certain group companies made sales and recharged expenses to 4B Asia Pacific Company
Limited, a 48% owned subsidiary of T.F. & J.H. Braime (Holdings) P.L.C., totalling £399,185. Group companies
also made purchases of £22,552 from 4B Asia Pacific Company Limited.

As at 31st December 2016 amounts due from 4B Asia Pacific Company Limited totalled £962,065, exclusive of
provision of £405,000 and £38,445 was due to 4B Asia Pacific Company Limited.

There were no other related party transactions during the year.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Company balance sheet
at 31st December 2016

Note

2016
£

2015
£

Fixed assets
Property, plant and equipment
Investment property
Investments

Current assets
Debtors: due within one year
Debtors: due after more than one year
Cash at bank and in hand

3
4
5

8
9

Creditors: amounts falling due
within one year
Amount owed to subsidiary companies
Other creditors falling due within one year 10

Net current (liabilities)/assets

Total assets less current liabilities

Creditors: amounts falling due
after more than one year
Provisions for liabilities

Capital and reserves
Called up share capital
Capital redemption reserve
Retained earnings
Shareholders’ funds

11
12

2,130,175
4,533,081
598,351
7,261,607

-
1,349,619
598,351
1,947,970

1,316,345
-
2,887
1,319,232

2,603,965
335,565
2,939,530

31,507
3,256,084
18,860
3,306,451

-
306,697
306,697

(1,620,298)

5,641,309

615,397
340,198
4,685,714

360,000
180,000
4,145,714
4,685,714

2,999,754

4,947,724

1,345,708
75,312
3,526,704

360,000
180,000
2,986,704
3,526,704

Company’s profit for the financial year

1,290,050

125,425

These financial statements were approved and authorised for issue by the board of directors on 26th April 2017
and signed on its behalf by:

O. N. A. Braime, Director

P. Tiffany, Director

The notes on pages 54 to 60 form part of these financial statements

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Company statement of changes in equity
for the year ended 31st December 2016

Capital
Called up Redemption
Reserve
£

Share Capital

Retained
Earnings
£

Total
£

Balance at 1st January 2015
Comprehensive income for the financial year – profit
Dividends paid
Balance at 31st December 2015

Comprehensive income for the financial year – profit
Dividends paid
Balance at 31st December 2016

360,000
-
-
360,000

-
-
360,000

180,000
-
-
180,000

3,523,319
2,992,319
125,425
125,425
(131,040)
(131,040)
2,986,704 3,526,704

-
-
180,000

1,290,050
1,290,050
(131,040)
(131,040)
4,145,714 4,685,714

The capital redemption reserve represents the nominal value of preference share capital repurchased by the
company.

The retained earnings represents cumulative profit or losses net of dividends and other adjustments. Included
within retained earnings is a non-distributable amount of £299,686.

T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Notes to the accounts continued