BRAM Brammer

 

TIDMBRAM 
 
RNS Number : 0780M 
Brammer PLC 
18 May 2010 
 

 
 
FROM CITIGATE DEWE ROGERSON FOR 
PRESS RELEASE 
FOR RELEASE 07.00 
                                   18 May 2010 
                          Interim Management Statement 
 
Brammer plc, the leading pan European added value technical distributor today 
issues its Interim Management Statement for the period from 1st January 2010 to 
date.  This statement is being issued to the Group's Annual General Meeting 
which is being held today. 
 
Key Highlights 
 
·     Trading ahead of our expectations 
·     Overall sales growth rate YTD of 3.5% with double digit growth in April 
·     All countries have shown an improving sales trend 
·     Double digit growth in Key Accounts sales 
·     Seven new pan-European Key Accounts won with total potential annual 
revenues in excess of GBP40 million 
·     Continued reduction in inventory levels 
·     Profits year to date well ahead of last year 
 
Trading 
The Board of Brammer is pleased to report that trading in the period since 1 
January has been ahead of our expectations, and reflects improving conditions in 
the majority of our markets together with significant market share gains.  For 
the four month period to 30 April, overall sales YTD at constant currency rates 
were up 3.5% versus the same period last year.  Sales per working day (SPWD) at 
constant currency rates were up 2.2%, with an accelerating trend, January SPWD 
being down 7.4%, February up 1%, March up 5.8% and April up 10.1%. Overall, in 
constant currency terms, sales were up 6.4% in the UK, 6.7% in France, 4.2% in 
Spain, 1.5% in the Benelux, 5.5% in the rest of Europe, and down 0.7% in 
Germany. All countries have shown improving trends, with Germany, Spain, Poland, 
and the majority of our smaller businesses all achieving double digit percentage 
year on year growth in April. Our cross selling initiatives have delivered good 
results, with fluid power up 5.5%, and tools and general maintenance up 25.1%. 
 
Key Account sales in constant currency terms were up 13.3% overall, with good 
growth in food and beverage (up 24.3%), automotive (up 23.2%), metals (up 
23.0%), packaging (up 16.3%) and fast moving consumer goods (up 25.1%).  Seven 
new pan-European Key Accounts were won in the period, with total potential 
annual revenues exceeding GBP40 million. 
 
Gross profit margins have been maintained at similar levels to last year, and we 
have continued to keep tight control of costs, with sales, distribution and 
administration expenses being slightly below the same period last year. 
Inventory levels have been reduced further in the period, reflecting a 
continuation of the inventory reduction projects initiated last year, and net 
debt remains in line with our expectations. 
 
Outlook 
 
May has started well and we expect to achieve double digit sales growth in both 
May and June.  As a result we anticipate half year profits will be ahead of our 
current expectations. We believe all of our markets have now stabilised, and 
most have begun to recover. However, the strength and durability of any recovery 
remains uncertain, and we remain cautious as to the extent to which the improved 
momentum can be maintained in the second half. 
 
Notwithstanding our good progress, 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 
continue to enjoy growth levels significantly better than the market. 
 
 
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/ Kate Lehane 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSEAKSXFALEEFF 
 

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