Tough trading in UK and Norway offset by growth in Europe – Brammer

BRAMMER, the supplier to industry of key parts and tools, says tough trading conditions in the UK and Nordic markets, are being offset by growth in continental Europe as it targets £30m of cost reductions.

In a trading update covering the period from January 1 to April 30, the listed company, based at Knutsford in Cheshire, said it was on track to deliver cost reductions of £30m by September with £16m of savings already made.

Direct vending sales exceeded €1m for the first time in April. 1,595 machines installed to end April, with a healthy installation pipeline of 380 machines.

A statement said: “Against a continued expected tough trading environment and the anticipated headwind caused by the focus on inventory reduction, we continue to concentrate on delivering our key operational priorities for 2016, namely reducing our debt levels, implementing our stock reduction programme, turning around our UK business and improving our gross margin alongside the continued application of our growth drivers.
 
“While there will be an increased weighting of the group’s financial results towards the second half, our expectations for the full year, assuming our key plans for improvement in the UK and Nordics are achieved, remain unchanged.”