Brammer proves its mettle as profits soar

INDUSTRIAL parts to tool distribution group Brammer has reported sparkling annual results with profits surging nearly 41% to £29m.
 
The Manchester company, which has operations across Europe, said strong organic growth was the engine behind this strong performance.

Turnover for 2011 was up 22% to £571.5m, with 16.4% of this increase coming as a result of new key account wins and more work from existing customers and 5.6% as a result of acquisitions.

Last autumn Brammer paid £27m for Coventry-based tool business Buck & Hickman, and the company said integration was on track and the prospects for this business are even better than it had originally anticipated.

In line with the group’s hike in profits, the dividend was lifted 27.3% to 8.4p per share.

Chairman David Dunn said: “2011 was a highly successful and significant year for Brammer. The group has produced substantially increased sales and profits, acquired an exciting business in Buck & Hickman, and secured new long term borrowing facilities on favourable terms.”

Addressing prospects for this year Mr Dunn said: “2012 will be another economically challenging year but early trading has started well and we are deriving additional benefits from the acquisition of Buck & Hickman.

“The board is confident that Brammer will make further significant progress during the course of the current year.”

 Chief executive Ian Fraser said the company has a good growth momentum coming into this year, having achieved an organic growth rate in sales per working day of 15.9%.

He said Brammer had looked to grow market share and sales in “more defensive segments” such as food and drink, fast moving consumer goods and utilities.

Meanwhile, after 10 years as chairman, Mr Dunn announced he will be standing down in May to be replaced by non-executive director and former Rotork chief executive Bill Whiteley.

Brammer also said Balfour Beatty finance director Duncan Magrath would be joining the board on March 1.