BRAM Brammer

 

TIDMBRAM 
 
RNS Number : 5030S 
Brammer PLC 
19 May 2009 
 

 
 
 
 
FROM CITIGATE DEWE ROGERSON FOR 
PRESS RELEASE 
FOR RELEASE 13:0019 May 2009 
Brammer plc 
Interim Management Statement 
 
 
Brammer plc, the leading pan European added value technical distributor today 
issued its Interim Management Statement for the period from 1st January 2009 to 
date.  This statement is being issued to the Group's Annual General Meeting 
which is being held today. 
 
 
Trading 
 
 
The Board of Brammer is able to report that trading in the period 1 January to 
18 May 2009 has reflected the difficult trading conditions prevailing in most of 
our markets. For the 4 month period to 30 April, overall sales at actual 
currency rates are down 5.6%, although there were 2 more working days in the 
period in 2008 compared with 2009. 
 
On a sales per working day basis (SPWD), at actual currency rates, sales are 
down 3%. Excluding the year on year effect of acquisitions, SPWD at actual rates 
are down 6%.  Excluding the benefits of currency and acquisitions, SPWD were 
down 16%.  Key account sales at constant currency were down 5% overall, with 
good growth in food and beverage (up 41%), utilities (up 5%) and FMCG (up 12%) 
offsetting declines in automotive (down 31%) metals (down 23%) and construction 
and aggregates (down 18%).Overall, in constant currency, SPWD were up 3% in the 
UK, and down 27% in Germany, 16% in France, 24% in Spain, 13% in Benelux, and up 
3% in the rest of Europe (down 14% excluding acquisitions). 
 
 
Gross profit margins were maintained at similar levels to last year. In order to 
protect profitability, management has implemented cost reduction programmes in 
all territories. Based on measures completed and initiated so far, we expect 
reported sales, distribution and administration costs, at constant currency, to 
be at least GBP10 million lower than 2008 representing less than 12 months 
payback and this will be taken as an exceptional cost.  Inventory levels have 
been reduced significantly in the period, and close attention to cash management 
remains a priority. Debt facilities, which are secured until 2012, remain 
comfortably in excess of the group's net debt. Discussions are progressing 
satisfactorily with our key lenders regarding the resetting of terms appropriate 
for our needs. 
 
 
Outlook 
 
 
Sales in March and April were slightly down on sales in January and February, 
but current trading is in line with management's expectations. We see some early 
signs that sales overall have stabilised at this new level.  During these 
uncertain economic times the Board intends to continue its focus on cost 
control, cash flow and driving greater efficiencies from the business, whilst 
continuing to support our key growth drivers.We are confident that our strategy 
of focusing on key accounts, insites and cross selling throughout Europe to 
drive profitable market share gains remains sound for the medium and longer term 
and that Brammer will be stronger when the economic environment improves. 
 
 
 
+------------+----------------------------+--------------------------------+ 
| Enquiries: | Brammer plc                | 0161 902 5572                  | 
+------------+----------------------------+--------------------------------+ 
|            | David Dunn, Chairman       |                                | 
+------------+----------------------------+--------------------------------+ 
|            | Ian Fraser, Chief          |                                | 
|            | Executive                  |                                | 
+------------+----------------------------+--------------------------------+ 
|            | Paul Thwaite, Finance      |                                | 
|            | Director                   |                                | 
+------------+----------------------------+--------------------------------+ 
| Issued:    | Citigate Dewe Rogerson Ltd | 020 7638 9571                  | 
|            | Martin Jackson/Nicola      |                                | 
|            | Smith                      |                                | 
+------------+----------------------------+--------------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSEAFSNFLFNEFE 
 

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