Brammer hails ‘excellent’ half-year figures

INDUSTRIAL services group Brammer hailed an “excellent” result as half year profits surged 52% from £9m to £13.7m.

Boosted by strong growth across all its markets, the listed Altrincham-based firm said it made a good start to the second-half.

Brammer, a pan-European supplier of industrial products such as gearboxes, belts, pulleys, and bearings to the construction, metals and automotive sectors, raised its interim dividend 29% to 2.7p per share..

Revenue rose 19.7% to £275.2m, fuelled by higher sales across its key accounts, said the company, which has operations in the UK, Germany, France, Spain, Benelux and Eastern Europe.

The company, whose key accounts include soft-drink maker Coca-Cola and consumer products giant Procter & Gamble , also said it was looking at a number of bolt-on acquisition opportunities.

Chairman David Dunn said the first half’s trading had been “excellent” and despite the challenging economic outlook the company has good growth potential.

Dunn said: “Brammer is the leading European supplier of technical components and related services to the MRO (maintenance, repair and operating inventory) market and with only a small market share there is the opportunity for considerable further growth.

“Our customer proposition is unique and delivers real value to our customers as well as shareholders. We are strongly cash generative and have a healthy balance sheet.”

He said firm had made a good start to the second half, be “are nonetheless mindful of economic uncertainties which prevail across Europe.”

Brammer said it had renegotiated its syndicated banking facility and had agreed a €100m five-year facility.