Focus on key clients pays dividends for Brammer
Industrial products distributor Brammer – whose UK national distribution centre is in Wolverhampton – has announced a transformation in its fortunes.
The firm has swung from a pre-tax loss of £2.6m in the first half of 2009 to a profit of £9m in the same period this year.
The company also improved its top line, with revenues increasing by 6% to £230m.
“Brammer has enjoyed a strong start to the year with our performance continuing to vindicate our strategy of focusing on our key growth drivers, and the work done in 2009 to reduce costs,” said the company’s chairman David Dunn.
“These results also demonstrate our ability to grow in what are still generally weak economic conditions.
“We believe all of the principles of our strategy remain sound and we have a growing conviction that higher levels of organic growth are attainable.”
The company said that revenues were up 8% on a constant currency basis due largely to an improved performance in the second quarter of the year, when sales grew by 15.8%.
The company said that its decision to concentrate on key accounts had paid dividends, with sales to its major customers improving by 15.7%.
It also said that a focus on the more resilient market sectors had reaped rewards, with Mr Dunn pointing out that its biggest single category now is the food and drink supplied to company stores.
He added that the firm remained “cautiously optimistic” that the growth achieved in the first half would continue as it attempted to grow its market presence – particularly in Europe.
“Brammer has only around 3% of the market and we expect to continue to enjoy a sales performance which betters the market as we capitalise on our leadership position,” said Mr Dunn.
The company announced an interim dividend of 2.1p per share which is a 14% increase on last year’s figure of 1.84p.
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