Firm planning to close Coventry subsidiary sees underlying profits rise by 15.1%
INDUSTRIAL parts and tool distributor Brammer has reported strong half-year results, a month after it announced the closure of its Coventry operation.
The firm said last month it is proposing to close its Buck & Hickman subsidiary in Coventry, putting 85 jobs at risk.
The Manchester-based group plans to consolidate the Coventry site into its Wolverhampton distribution centre and Wythenshawe head office.
This morning the company said it has performed well despite challenging market conditions and raised its interim dividend by 5.9% to 3.6p as a sign of the board’s confidence in future prospects.
Stripping out £5.3m of acquisition-related exceptional costs Brammer’s underlying profits in the six months to the end of June rose 15.1% to £17.5m.
The addition of seven businesses, including the strategic swoop for Scandinavia-based Lönne, helped deliver revenue growth of 10.9% to £364.1m. Including the impact of the one-off items Brammer’s bottom line profits were down £3m to £11.6m.
To support its acquisition war chest the company raised more than £52m in April through a share placing.
Chief executive Ian Fraser said: “In 2014 we have continued to demonstrate our resilience whilst expanding our European footprint into Scandinavia.
“Despite market conditions remaining challenging, we have seen improving growth rates in the last six quarters (excluding the benefit from the acquisition of Lönne) as our strategy of focusing on key accounts, in-sites and cross-selling initiatives continues to deliver results out-performing the market.
“We are mindful of the recent uncertainties regarding growth rates in our European markets in the second half of 2014, but we remain confident our proven strategy will help us continue to gain market share.”
Aside from the Lönne deal, Brammer’s six other six small acquisitions were completed in the half, with total annualised revenues of €31m for a total consideration of €9.5m.
