Brammer Share Discussion Threads

[nurdin] 06/8/2012 14:12

High time these started moving...:o)

[report_reader] 04/8/2012 11:06

@Peter_co

I thought that also, until I read the full holdings anouncement.

Legal and General didn't reduce their holdings from 5% to 4%, they reduced only to 4.97%. So only 0.03% reduction, which is probably to do with set weighting criteria of their tracker/active funds.

Read section number 8 "Notified details: A: Voting rights attached to shares"

[peter_co] 04/8/2012 08:54

It's not just about the financials... Small caps have been under performing large caps and. Some very big sellers are reducing their holdings... Loom at the shareholder Change announcements l&g are coming out of this stock in a big way from 5% to 4% announced... If they keep selling the price will come down.. This may be nothing to do with the slightly weaker but still good results just a rebalancing away from small caps... But unless you have the same volume of buyers the price is toast until l&g have finished selling out... Given they still hold 4% that could be a while if they are fully exiting...

[cestnous] 03/8/2012 16:09

Well I for one am holding (at a loss). The Beano is correct in that Europe hasn't stimulated growth, but a rigid stop loss policy is inappropriate in this case I feel. A drop below 221 might make me think again.

[jlo10] 02/8/2012 12:44

It looks oversold to me
Just not sure when it will start rising again
But looks like a buying opportunity is on the horizon

[redartbmud] 02/8/2012 08:23

baxter

Of course, but the real Beano is a much better read, far more true to life!

red

[baxter99] 02/8/2012 06:14

Is the Beano the Investors Chronicle? If it is then it's a buy signal

[report_reader] 01/8/2012 18:43

@jilo10:

Current support level is 221p... it almost tested that but recovered higher. This a business that's still generating an increase on net profits with massive revenue generation potential with their recent acquisition also. If it had poor fundamentals, I'd agree with the above, but it doesn't so I don't.

The only thing affecting this stock at the moment is perceived risk in the Euro, not actual figures for the business. This one should come good within a year as the ECB will get involved eventually. The Euro leaders simply don't want the embarrassment of the Euro failing.. Mean while I'll collect 4.6% dividend.

Isn't the Beano a comic? haha

[jlo10] 01/8/2012 16:31

The Beano now says "sell"

"Brammer was a trading buy idea (255p, 28 June 2012) which required some European Central Bank stimulus to get things moving, instead all we've had so far is talk and little in the way of action. The share price plunge also means that we've gone through our stop loss of 230p and we are bailing out. Sell."

Not very helpful

[northernlass] 01/8/2012 14:19

Sales Boom At Brammer

SALES RISE £55M AT BRAMMER

Brammer, the distributor of industrial maintenance, repair and overhaul products, posted a 20 per cent growth in sales in the first half of the year.

The Manchester-based plc said today (31 July 2012) revenues had risen from £275.2m to £331.1m in the six months to 30 June 2012.

Operating profit rose from £14.8m to £15.8m and pre-tax profit increased £13.7m to £14.4m.

It said today the integration of distributor Buck & Hickman was proceeding as planned and providing significant cross-selling opportunities in the European market with existing customers.

Co-location of Buck & Hickman and Brammer UK branches continued in line with plan, it added, with four branches having been co-located in the first half and a further eight scheduled for the remainder of the year.

Overall profit for the period was broadly flat at £10.9m, up from £10.2m in 2011, while dividend rose from 2.7p to 3p per share which it said reflected the board's confidence in the outlook for the business.

Chief executive Ian Fraser said: "Looking ahead, we are pleased to report that recent trading has been encouraging and the group is well positioned for continued good progress.

"We are nonetheless mindful of economic uncertainties which prevail across Europe".

Source:


BROKERS:

Peel Hunt reiterated its BUY recommendation for Brammer with a target price of 330p

Investec reiterated its BUY recommendation for Brammer with a target price of 335p

P.S.
Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[report_reader] 01/8/2012 12:57

Buy rating from Investec yesterday as a reiterate. Target price 335p

[bluebird123] 01/8/2012 12:35

The webcast presentation and Q & A are worth listening too,just over 40 mins with the ceo & fd.

They make no bones about the difficult environment but highlight the many opportunities still open to them,link here -

[report_reader] 31/7/2012 15:51

I think investors are concentrating on the Net Profit it was £10.9Million, on the previous year it was £10.2Million.

This is an increase of 6.86% over the previous year to 30th of June. Not a massive rise, but none the less it's still a rise on the bottom line.

In this environment, a rise in profits is impressive. And if the situation in the Eurozone begins to improve, then I would expect this company to capitalise on that. All it takes is some QE3 or large ECB stimulus to be injected and this could only benefit Brammer.

With 4.6% Dividend and good fundamentals. I'm not rushing for the sell button. I'm in at 256.35p

[broadwood] 31/7/2012 15:25

Surely an over reaction?



Brammer battered as sales growth slows
Tue 31 Jul 2012


LONDON (SHARECAST) - A slow down in revenue growth in May and June knocked industrial engineering products distributor Brammer for six on Tuesday morning.

Pre-tax profit leapt 19.6% to £17.1m in the first half of 2012 (2011: £14.3m) on record revenues of £331.1m, 20.3% higher than the £275.2m achieved the previous year.

Although on the face of it a 20.3% rise in the top line is an impressive performance in the current environment, it comes as a disappointment after the group announced sales growth of 29.4% in the first four months of the year.

Operating profit rose by 20.1% to £18.5m (2011: £15.4m), while the margin was held at 5.6%. Earnings per share rose by 1p to 11p and the dividend was increased from 2.7p to 3p, which the firm said reflected its confidence in the outlook for the business.

Ian Fraser, Chief Executive said: "Looking ahead, we are pleased to report that recent trading has been encouraging and the group is well positioned for continued good progress. We are nonetheless mindful of economic uncertainties which prevail across Europe.

"Our revenue growth rate in constant currency of 25.1% reflects an excellent performance from Buck & Hickman and good progress in the Brammer growth drivers of Key Accounts, Insites and cross-selling, resulting in continued gains in market share. Our customers are facing increasing challenges in competitive markets and our ability to add value through the Brammer Value Proposition is proving highly attractive and effective."

The firm added: "The performance of Buck & Hickman has exceeded our expectations. Despite the weak market conditions, the Buck & Hickman business performed very well during the first half with like-for-like sales per working day growth of 14.0%."

In Germany, sales per working day (SPWD) on a constant currency basis grew by 3.0%, while operating profit improved by 19.4% to £4.3m. Key Account growth was 13.1%, with Key Accounts now representing 28.9% of total sales. However, here too, there was a slowing down of growth in the final two months of the reporting period, as Key Accounts sales had been running 15.9% higher than a year earlier in the first four months of the year.

In France, SPWD in constant currency increased by 6.1%, whilst operating profit was flat, reflecting investment in sales, distribution and administrative costs to generate future growth, while in Spain SPWD increased by 1.8% and operating profit increased by 16.7% to £2.1m.

SPWD in its Eastern European businesses declined by 4.2%, while operating profit declined by 30% to £1.4m. In Benelux countries SPWD grew by 10.3% although operating profit was flat.

The share price fell by 7.62% to 230.25p by 11:

[goff1969] 31/7/2012 15:03

OPORTUNITY WHEN IT CHANGES DIRECTION

[naked trader] 31/7/2012 12:59

Going in wrong direction = oportunity!

[report_reader] 31/7/2012 12:44

@ZeusEq:

Reveues over £330Million, Pre tax profit over £17Million, Net Profit over £10Million, 4.6% dividend.

I'd see your point of relating the above article to Bram's share price if the above figures didn't exist.

[zeuseq] 31/7/2012 11:50

Back to 2009 lows 70p

[nurdin] 31/7/2012 09:58

Any full year forecasts there?

[broadwood] 31/7/2012 09:35

Peel Hunt Brammer PLC 31/07/12 09:14 Reiterates Buy Buy 0 390.00 330.00

[baxter99] 31/7/2012 09:24

Spotted Brammer earlier this year as a breakout - fundamentals looked good but share price has since fallen - no logic. Now a very good interim and the price plummets again! Growing turnover and profits, low net debt. I am now in.

[shammytime] 31/7/2012 09:18

This will recover to 250 today for sure

[uhound] 31/7/2012 08:32

Sign of the times I guess. Short term traders market.

[jlo10] 31/7/2012 08:28

Yea
I read all that
That's why I was going to buy
I am just trying to rationalise why share price is going down
And will still buy if I can understand it

[redartbmud] 31/7/2012 08:24

jlo

IC is the equivalent of the Beano.

Look at the numbers:

Record group revenue up 20.3% to £331.1 million (2011: £275.2 million). At constant currency total revenue growth is 25.1%. Organic growth in constant currency of 6.7% (including the incremental growth of Buck & Hickman).



· Profit before tax (pre amortisation and exceptional items) increased by 19.6% to £17.1 million (2011: £14.3 million). At constant currency profit before tax increased by 24.5%.


· Operating profit (pre amortisation and exceptional items) increased by 20.1% to £18.5 million (2011: £15.4 million). At constant currency operating profit grew by 24.7%.


red