Interim Management Statement

    RNS Number : 4003I
  Brammer PLC
  19 November 2008
   



                                                                                                                                            
           19 November 2008 
    Brammer plc
    Interim Management Statement

    Brammer plc, the leading pan European added value technical distributor today issued its second Interim Management Statement as required
in accordance with the EU Transparency Directive for the period from 1st July 2008 to date. 

    Trading
      
    The Board of Brammer is able to report that trading in the period 1 July to 14 November 2008 has been encouraging despite an economic
environment which has become increasingly difficult.

    We have continued to see reasonable growth with an increase in total revenue of 22% in the four month period to 31 October 2008. This
revenue increase was composed of 5% from organic growth, 5% from acquisitions made during 2008, and 12% from beneficial currency movements.
Key account growth was a healthy 25%. Overall growth in constant currency was 8% in the UK, 7% in Germany, 7% in France, 1% in Spain, 16% in
Benelux, and 23% in the rest of Europe. Gross profit margins were maintained at similar levels to last year, and operating cash flow to the
end of October was in line with management expectations. 

    Revenue growth in the period from 1 January to the end of October 2008 has been 27%, with organic growth of 8%, acquisitive growth of 8%
and a further 11% from currency. 

    Banking

    During November we successfully renegotiated our EUR66 million, 364 day revolving facility to be coterminous with our EUR99 million term
loan, such that we now have committed facilities of EUR165 million through to 28 February 2012, together with a further EUR30 million
overdraft capacity. This ensures that Brammer remains financially strong going forward into 2009 and well placed to take advantage of
opportunities that emerge. Net debt at the end of October was in line with management expectations, equal to approximately half of the total
facilities. 

    Outlook
    Assuming that there is no material change in current market conditions, the Board anticipates that the trading performance of the Group
for the full year ended 31 December 2008 will be in line with expectations.

    During these uncertain economic times the Board intends to increase focus on cost control, cash flow and driving greater efficiencies
from the business. Our recent investment in systems will also help us improve our working capital ratios, in particular our inventory levels
which we are now able to manage on a European basis

    The Board is confident that the Group's strategy of focusing on key accounts, insites and cross selling across Europe to drive
profitable market share gains remains sound for the medium and longer term and will ensure that Brammer is stronger and better when the
economic environment improves.



    Enquiries:    Brammer plc                                        0161 902 5572
                          David Dunn, Chairman
                          Ian Fraser, Chief Executive 
                          Paul Thwaite, Finance Director

    Issued:        Citigate Dewe Rogerson Ltd                020 7638 9571
                         Martin Jackson/Nicola Smith 


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