Interim Management Statement

 

TIDMBRAM 
 
RNS Number : 5323C 
Brammer PLC 
16 November 2009 
 

 
 
 
 
FROM CITIGATE DEWE ROGERSON FOR 
 
 
PRESS RELEASE 
FOR RELEASE 07.00   16 November 2009 
 
Brammer plc 
Interim Management Statement 
 
 
Brammer plc, the leading pan European added value technical distributor today 
issued its Interim Management Statement for the period from 1st July 2009 to 
date. 
 
 
Trading 
The Board of Brammer is able to report that trading in the period 1 July to 14 
November 2009, continues to show signs of stabilisation or improvement in all 
territories. 
 
 
Underlying sales per working day (SPWD) at constant exchange rates for the 
period 1 July to 31 October 2009 were down 19.1%, compared with 21.7% in the 
second quarter to 30 June 2009 and 10.8% in the first quarter to 31 March 2009. 
Key account growth in the same period was 7.2%, which now represents 36% of 
total revenues.  Gross profit margins were maintained at similar levels to last 
year, cost reduction continued as planned, and operating cash flow to the end of 
October was as expected. 
 
 
Balance sheet 
 
Our successful Rights Issue raised GBP35.3 million (net of expenses). This will 
ensure that Brammer retains  a 
strong balance sheet going forward into 2010, will trade well within its 
borrowing covenants, and provides 
flexibility in the future to take advantage of opportunities that emerge. Net 
debt at the end of October (prior to receipt of Rights Issue proceeds) was also 
as expected. 
 
 
Outlook 
 
 
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, 
together with tight control of costs and working capital remains sound and will 
ensure that Brammer emerges stronger and better when the economic environment 
recovers. 
 
 
There are some signs of modest improvement in our markets. However, the Board 
intends to continue to focus on cost control, cash flow and driving greater 
efficiencies from the business.  We have continued to make good progress using 
our investment in systems to reduce inventory levels and further increase 
inventory turns. 
 
 
The Board expects that the trading performance of the Group for the full year 
ended 31 December 2009 will be in line with management expectations. 
 
 
 
 
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 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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