Trading Statement

RNS Number:7005Q
Brammer PLC
30 January 2002

                                                                 30 January 2002

                                  Brammer plc

                                 Trading update



The Board of Brammer has noted the recent decline in its share price and
confirms that as part of its annual reporting cycle it is Following a
preliminary reviewing of current trading and the Group's performance for the 12
months ending 31 December 2001. The Board now estimates that profit before tax,
goodwill amortisation (£2.4m) and exceptional costs for the period will be
between £19m and £20m. However, in light of trading in the last two months of
2001 and poor indications for the start of 2002 at Livingston, the Board now
anticipates reporting an exceptional charge of between £21m and £24m. This
charge reflects an impairment (net of profits on disposal) relating to
Livingston rental inventory of £20m to £23m of which approximately £1.5m
reflects the reallocation of a provision taken in the first half of 2001, which
will now be treated as an exceptional item in the results for the full year. £1m
of the exceptional charge relates to the termination of our Spindles business.
The vast majority of the exceptional charge will be non-cash.

As well as deciding to downsize Livingston's rental inventory the Board has
decided to seek to increase the services element of this business, thereby
reducing the proportion of rental revenues and associated capital investment.
Whilst difficult markets persist we shall continue to manage Livingston to
produce cash. Total investment in Livingston rental assets in the year was £72m.
This comprised investment in the first half of £50m, £16m in the third quarter
and £6m in quarter four.

In the first half the Group absorbed cash of £7m from operating activities net
of capital expenditure, £4m in the third quarter and generated £19m of cash in
the fourth quarter. Year-end net debt was £82 million.

Brammer Industrial Services performed slightly better than anticipated in the
final two months of the year.

The Board anticipates releasing the preliminary results for the year ended 31
December 2001 before the end of February 2002.

Enquiries:     Brammer plc           0161 928 3363

Ian Fraser, chief executive

John Cumming, finance director


Issued by:     Citigate Dewe Rogerson Ltd          020 7638 9571

Martin Jackson / Nita Shah



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