Brammer buoyant after £40m contract wins
NORTH West industrial distribution group Brammer expects to beat its half-year profit forecasts after winning new orders from European companies worth £40m.
The group, based in Wythenshawe, Manchester, supplies which supplies replacement factory parts such as bearings, belts, motors and gearboxes, said it had also experienced ‘double digit’ growth in some of its major markets.
The company revealed in an interim management statement today that its overall sales growth in the four months to April had been 3.5%.
It achieved ‘double digit’ growth of 10.1% last month – which helped compensate for a 7.4% fall in January – and expects this to continue both this month and in June.
Brammer also expects to beat its profit forecasts due to the ongoing success of its inventory reduction programme in reducing costs.
The statement adds: “Overall, in constant currency terms, sales were up 6.4% in the UK, 6.7% in France, 4.2% in Spain, 1.5% in the Benelux, 5.5% in the rest of Europe, and down 0.7% in Germany.
“All countries have shown improving trends, with Germany, Spain, Poland, and the majority of our smaller businesses all achieving double digit percentage year on year growth in April. Our cross selling initiatives have delivered good results, with fluid power up 5.5%, and tools and general maintenance up 25.1%.”
“As a result we anticipate half year profits will be ahead of our current expectations.
“We believe all of our markets have now stabilised, and most have begun to recover. However, the strength and durability of any recovery remains uncertain, and we remain cautious as to the extent to which the improved momentum can be maintained in the second half.”
