Profits expected to plunge to £5m for Brammer as sales dip

BRAMMER, the Cheshire-based supplier to industry of key parts and tools, is reporting a “significant slowdown” in sales since April.

Group adjusted pre tax profits in the first half of the year were expected to below expectations at about £5m.

Meanwhile, the company is on course to deliver a £30m stock reduction by the end of September.

Sales were down 3% on May last year and there was a weak performance across the UK – down 6%, and also broadly across Europe.

Brammer trading update said: “Whilst the last few days of the quarter are very significant for the month’s result, based on the performance to the end of last week, it is now clear that the weakness seen in May has not reversed as expected and has continued into June.

“The UK started the month positively, but it has experienced a particularly weak performance over the last few days. Underlying margin in May and June month to date was down against the previous year.

 “The underlying margin for the first half is expected to be slightly ahead of the prior year; however, this is more than offset by the impact of lower rebate levels from reduced sales and stock reduction.

“The Board is now reviewing whether it is appropriate to declare an interim dividend in respect of the half year and will provide a detailed update on its revised expectations for the full year at the time of the interim results announcement on August 4 2016.”

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