Brammer share price halves after profit warning

SHARES in listed tool supplier Brammer have fallen more than 50% since trading opened, after it announced a profit warning.

The company said this morning that it has seen a “significant slowdown” in sales since April and that half year pre-tax profits will stand below expectations at around £5m.

Its share price has tumbled from yesterday’s close of 142.75p to a new 52-week low of 61.25p, wiping more than £100m from the company’s value.

Knutsford-headquartered Brammer supplies parts for industry, from ball bearings to gear boxes and tools.

Sales were down 3% on May last year, with weak performance across the UK – down 6%, and across Europe.

Around 60% of its sales come from Europe, but the collapse in oil prices has reduced demand for industrial parts among oil and gas customers throughout the Nordic region.

Close