Brammer back in black as sales increase
INDUSTRIAL products distributor Brammer returned to profit in 2010 after market share gains led to a 10% increase in sales to £468.4m.
The Wythenshawe-based company, which supplies products to larger firms at 300 locations in 15 different countries, said that it had benefit ted from consolidation in the market and its focus on key account customers – to whom sales grew by 17.2%. These larger customers now account for 36.1% of total sales.
The company was boosted by stronger sales in Europe, with sales per working day in Germany (now its second-biggest market) up by 13.6%, while in Eastern Europe they increased by 17.6%. Sales per working day in the UK climbed by 8%.
As a result of the higher revenues, the firm was able to reverse a £1.5m pre-tax loss experienced in 2009 into a profit of £19.3m from its continuing operations.
It also reduced net debt by £3.2m to £36.7m and is proposing a final dividend payment to shareholders of 4.5p, which is a 25% increase on last year. This would bring the total dividend for the year to 6.6p – an increase of 20% .
The company said that the increased dividend reflected the greater degree of confidence that the board has in its future prospects.
“Our performance in 2010 demonstrated the success of our strategy, with strong organic growth clearly confirming significant market share gains,” said chairman David Dunn.
“There is high morale across the group and it is a credit to all of our employees that, having endured a difficult period through the recent recession, the business has emerged in such good order.”
He added that the early signs for 2011 also looked positive, as the firm achieved organic growth of 20% in January.
“Whilst there is still a high degree of economic uncertainty in Europe, the board remains confident that Brammer’s business model and the strength of its people will continue to deliver satisfactory returns for all of its stakeholders,” said Dunn.
