Nordic region blamed for Brammer profit slump
INDUSTRIAL maintenance, repair and overhaul specialist Brammer has taken a 19.4% hit in its pre-tax profits – down to £14.1m (2014: £17.5m).
The firm, which has operations in Wolverhampton and Stoneleigh Park in Warwickshire, blamed adverse currency exchange rate conditions and difficult trading conditions in the Nordic region for the reverse.
In a trading update issued this morning covering the first six months ended June 30, total group revenue was reported to be up 0.4% to £365.6m (2014: £364.1m), up 7.5% at constant exchange rates (CER).
Adverse translational exchange rate movements reduced group revenue by £25m and underlying operating profit by £1m.
The company, which shed 170 staff as part of a cost reduction programme in May, incurred an exceptional charge of £3.6m, but overall savings at year end as a result of the move are expected to be £5m.
Chief executive Ian Fraser said: “Our business outside the UK and Nordic regions performed well with overall sales per working day (SPWD) growth of 13.7% at CER and organic SPWD growth of 5.5%, reflecting further market share gains in challenging markets.
“Our UK business reversed the deterioration seen in the second half of last year with an organic SPWD decline of 0.2% (compared with a decline of 4.1% in the second half of last year).
“However our Nordic business which is heavily exposed to the oil and gas sector saw organic SPWD decline of 15.9%.
“For the remainder of the year, we expect to see continued improvement in our UK business, and solid growth in our continental businesses, but our Nordic business will continue to suffer from on-going market headwinds.”
