Brammer surges ahead with 41% profit hike
INDUSTRIAL parts group Brammer has reported impressive annual results with profits up by nearly 41% to £29m.
The firm, whose UK distribution centre is in Wolverhampton, 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 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.”
Brammer also said Balfour Beatty finance director Duncan Magrath would be joining the board on March 1.
