Profit warning from Brammer as challenging conditions persist
INDUSTRIAL maintenance, repair and overhaul specialist Brammer says it expects full year profits to be around £7m lower due to tough trading conditions in the UK and Nordic region.
The firm, which has operations in Wolverhampton and Stoneleigh Park in Warwickshire, said in a trading update for the four months to the end of October that despite growing revenues by 2.7% in the period – and 5.7% year to date – trading was far from easy with October particularly challenging in the UK due to “further deterioration in steel and aerospace sectors which is forecast to continue” and in the Nordics due to weak demand from the oil and gas sector.
Brammer, which is extending its cost reduction drive, stated: “Our markets remain challenging, with a significant deterioration in the UK, and we do not expect this to change in the immediate future.
“Full year profits will be lower than last year, reflecting testing market conditions and foreign exchange headwinds.”
Having made £35.1m in underlying profits 2014, Brammer added: “We now expect full year underlying profit before tax for 2015 to be approximately £28m.
“Adverse translational exchange rate movements expected to reduce group full year revenue by approximately £43m and underlying operating profit by £2.5m. In addition, we expect to incur an exceptional charge for the full year of £6m as part of our cost initiatives to save £5m against prior year.”
