Interim Management Statement (6909G)
17 May 2011 - 4:00PM
UK Regulatory
TIDMBRAM
RNS Number : 6909G
Brammer PLC
17 May 2011
PRESS RELEASE
FOR RELEASE 07.00 17 May 2011
Brammer plc
Interim Management Statement
Brammer plc, the leading pan-European added value technical
distributor today issues its Interim Management Statement for the
period from 1 January 2011 to date.
Key Highlights
-- Sales and profits ahead of our expectations driven by
improving conditions and market share gains
-- Gross profit margins maintained at historic levels
-- Overall sales per working day (SPWD) grew 18.5% in the four
month period from 1 January
-- All countries have shown an improving sales trend
-- Key Accounts SPWD up 25.6% in the four month period, now
representing 39% of sales
-- Base business up 14.1%, driven by strong growth in fluid
power and tools and general maintenance
-- Four new pan-European Key Accounts won
-- Continued improvement in inventory turns
Trading
The Board of Brammer is pleased to report that sales and profits
in the period since 1 January have been ahead of our expectations,
and reflect improving conditions in the majority of our markets
together with significant market share gains.
SPWD have accelerated progressively during 2011, and we are now
trading 4% ahead of the peak levels achieved in mid 2008. In the
last four months, SPWD have risen by 16.8% in the UK, 22.8% in
Germany, 13.6% in France, 14.4% in Spain, 14.8% in the Benelux, and
25.7% in the rest of Europe averaging 18.5% growth overall.
Key Account SPWD in constant currency terms were up 25.6%
overall, with good growth in food and beverage (up 21.7%),
automotive (up 43.1%), and metals (up 41.9%). Key Accounts now
represent 39% of sales. Four new pan-European Key Accounts were won
in the period, with total potential annual revenues of around EUR30
million in the longer term. Base business SPWD growth was a
pleasing 14.1%.
Our cross-selling initiatives have delivered good results, with
fluid power up 24.8%, and tools and general maintenance up 28.1%.
Bearing sales were up 16.4%, whilst overall non-bearing sales were
up 18.5%.
Gross profit margins have been maintained at similar levels to
last year, and we have continued to improve inventory turns. Net
debt remains in line with our expectations.
Outlook
May has started well and we expect to achieve further strong
sales growth as a result of market share gains during the rest of
this year. We believe all of our markets are now in growth and that
our rate of market share gain has increased. We are confident that
our long term strategy of focusing on Key Accounts, Insites and
cross-selling throughout Europe to drive profitable market share
gains remains sound and that Brammer will continue to enjoy growth
levels significantly ahead of 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
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