Cost-cutting saves £12m at Brammer

REPLACEMENT parts group Brammer said today that sales for the first half are down but margins remain static following the introduction of cost-cutting at the group.

The Manchester-based company, dubbed the RAC of industry, said excluding the benefits of currency and acquisitions “sales per working day” in the six months to June 30 are down 17.8%.

It said that following the implementation of cost reduction programmes it expects sales, distribution and administrative costs for the first half to be £6m lower, and £12m less for the full year. It also expects net debt to be down £15m to £69m.

It added that sales have reached stability and the company continues its focus on cost control, cash flow and driving greater efficiencies from the business. 

The group said: “We are confident that our strategy of focusing on key accounts and cross selling throughout Europe to drive profitable market share gains remains sound for the medium and longer term, and that Brammer will be able to take advantage of the opportunities available when the economic environment improves.”

Brammer will announce its interim result on August 28.