Brammer PLC Interim Management Statement (2622R)
November 16 2012 - 1:00AM
UK Regulatory
TIDMBRAM
RNS Number : 2622R
Brammer PLC
16 November 2012
PRESS RELEASE
FOR RELEASE 07.00 16 November 2012
Brammer plc
Interim Management Statement
Brammer plc, Europe's leading distributor of quality industrial
maintenance, repair and overhaul products ("MRO"), today issues its
Interim Management Statement for the period from 1 July 2012 to
date.
Key Highlights
-- Trading in the period in line with management's expectations
-- Buck & Hickman integration, synergy benefits, and cross
selling of tools and general maintenance products on track
-- Focus on Key Accounts, Insites(TM) and cross-selling
underpins significant market share gains
-- 8 pan-European Key Accounts won, making 13 in the year to
date with total potential revenues in excess of EUR80 million per
annum
-- Gross margin (excluding Buck & Hickman) up 130 basis
points July to October, and up 140 basis points year to date
-- Cash flow and net debt remain in line with expectations
Trading
The Board of Brammer is pleased to report that trading in the
four month period from 1 July 2012 has been resilient in the face
of difficult macroeconomic conditions and continues to reflect
significant market share gains as customers increasingly realise
the benefits of using a single source MRO supplier.
During the four month period, which included one month of Buck
& Hickman in 2011, sales growth including Buck & Hickman
was 16%. Sales were ahead 1.2% when including only the incremental
growth associated with Buck & Hickman, whilst sales per working
day ("SPWD"), at constant currency rates were flat versus the same
period last year. SPWD were 1.4% lower in the UK (excluding Buck
& Hickman), down 2.4% in Germany, up 1.5% in France, flat in
Spain, ahead 4.7% in the Benelux, and down 11.4% in the rest of
Europe. Organic SPWD growth for the 10 months to 31 October was
3.8%.
The integration of Buck & Hickman continues on plan and the
associated synergy benefits are being achieved. Our cross-selling
initiatives throughout the four month period have continued to
deliver satisfactory results with fluid power up 5.5% and tools and
general maintenance (excluding Buck & Hickman) 17.7% higher.
Bearing sales were 11% lower reflecting the difficult market
conditions, whilst overall non-bearing sales (excluding Buck &
Hickman) were up 3.5%.
Key Account sales in constant currency terms were up 8.5%
overall during the four month period with good growth in food and
beverage (up 16.1%), metals (up 12.3%), and fast moving consumer
goods (up 15.4%). Automotive sales were up just 1.2%. A further 8
pan-European Key Accounts were won in the period making 13 in the
year to date, with total potential incremental revenues exceeding
EUR80 million per annum.
Gross profit margins for the July to October period, excluding
Buck & Hickman, have risen by 130 basis points, whilst
including Buck & Hickman gross margins are up 20 basis points.
We have made significant cost savings in the fourth quarter,
removing from our sales, distribution and administrative expense an
annualised GBP5.3 million, for which we will take an exceptional
charge of approximately GBP2.7 million. Cash flow and net debt
remain in line with our expectations.
Outlook
Recent trends have continued and sales in the first two weeks of
November have been in line with expectations. While the European
economic outlook remains uncertain, our strategy of focusing on Key
Accounts, Insites(TM) and cross-selling initiatives underpins the
growth momentum driving profitable market share gains for the
medium and longer term. As a result we remain confident in the
outturn for the year as a whole and expect to continue to
outperform the market.
Enquiries: Brammer plc +44 (0) 161 902 5572
Bill Whiteley, Chairman
Ian R Fraser, Chief Executive
Paul Thwaite, Group Finance
Director
This information is provided by RNS
The company news service from the London Stock Exchange
END
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