Interim Management Statement (5181D)
May 17 2012 - 1:00AM
UK Regulatory
TIDMBRAM
RNS Number : 5181D
Brammer PLC
17 May 2012
17 May 2012
Brammer plc
Interim Management Statement
Brammer plc, the leading pan-European added value distributor of
industrial maintenance, repair and overhaul products today issues
its Interim Management Statement for the period from 1 January 2012
to date. The figures in this statement cover the four month period
to 30 April 2012.
Highlights
-- Sales and profits well ahead of 2011 driven by the Buck &
Hickman acquisition, continued growth and market share gains.
-- Gross profit margins excluding Buck & Hickman up 1.2%.
-- Overall sales growth in the four month period from 1 January
of 29.4%. Organic growth of 9.9%.
-- Key Account sales up 15.9% in the four month period, now representing 35.8% of total sales.
-- Buck & Hickman acquisition proceeding as planned.
Cross-selling continues to drive growth with Fluid Power up 14.8%
and Tools and General Maintenance (excluding Buck & Hickman) up
25.7%.
-- Four new pan-European Key Accounts won.
Trading
The Board of Brammer is pleased to report continued sales and
profit growth in the period since 1 January, as well as an
improvement in the underlying gross profit margin.
Despite economic uncertainty across Europe, we have continued to
win market share and grow sales at a satisfactory rate. Overall
sales were up 29.4% including Buck & Hickman, and up 9.9%
organically. Overall organic sales per working day (SPWD) growth
for the group was 8.0%. In the UK, SPWD increased by 13.8%
comprising 5% organic and 8.8% from Buck & Hickman. In
continental Europe, SPWD have risen by 5.0% in Germany, 8.3% in
France, 3.5% in Spain, 9.8% in the Benelux, and are broadly flat in
the rest of Europe. This good progress reflects our strategic focus
on market segmentation, Key Account development, Insite(TM)
locations and product extension.
Key Account sales in constant currency terms were up 15.9%
overall, with continued good growth in food and beverage (up 11.2
%), automotive (up 25.5%), and metals (up 11.1%). %). Key Accounts,
following the acquisition of Buck and Hickman, now represent 35.8%
of sales. Four new pan-European Key Accounts with total potential
annual revenues of around EUR20 million were won in the period
taking the total to 44. Non key account revenues grew 6.0%. The
rate of implementation of Insites continues to increase with 30 new
Insites opened this year to date in the UK, Netherlands, Italy,
Germany and France, taking the total, after six closures, to
294.
Our cross-selling initiatives have delivered good results, with
Fluid Power up 14.8%. The integration of Buck & Hickman is
proceeding as planned with organic growth in Tools and General
Maintenance of 25.7%. Bearing sales were down 2.3%, whilst overall
non-bearing sales (excluding Buck & Hickman) were up 10.9%.
Gross profit margins in the underlying business (excluding Buck
& Hickman) have improved by 1.2% year on year, completely
offsetting the anticipated dilutive effect of the acquisition. Net
debt remains in line with our expectations.
Outlook
May has continued in line with the first four months and we
expect to achieve continued sales and profit growth as a result of
the Buck & Hickman acquisition and market share gains during
the rest of the year. Despite the uncertain economic conditions in
Europe and the weakening Euro, the Board is confident that our
proven strategy of focusing on Key Accounts, Insites and
cross-selling to drive profitable market share gains will enable
Brammer to continue to enjoy growth levels significantly ahead of
the market.
Enquiries: Brammer plc 0161 902 5572
David Dunn, Chairman
Ian Fraser, Chief Executive
Paul Thwaite, Finance
Director
Issued: Hudson Sandler 020 7796 4133
Andrew Hayes
Andrew Leach
Katie Matthews
This information is provided by RNS
The company news service from the London Stock Exchange
END
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