".. Brammer�s product range is the largest and most comprehensive of any Maintenance, Repair and Overhaul (MRO) supplier in Europe. With over 2,100,000 product lines available from the world�s most respected and reliable manufacturers, we supply top quality bearings, belts & pulleys, chains & sprockets, linear motion, motors, seals, gearboxes, pneumatics, hydraulics, clutches & couplings, tools & maintenance and health & safety products for your key production and operational processes..."

Aerospace, Automotive, Chemicals, Construction & Aggregates, Food & Drink, Glass, Health & Safety, Metals, Petroleum, Pharmaceuticals, Pulp, Paper & Packaging, Recycling Industry, Transport, Utilities..

Might perhaps be regarded as one of those companies that benefit from supplying increased numbers of parts and machine components to a cross section of industries whenever industrial recovery or growth is under way. Share price has surged and plunged a few times in the past.

Established in 1920, Brammer employs over 2500 people in more than 300 locations in 16 countries.

company history

Company website

StockMarketWire.com
Brammer, a European distributor of quality industrial maintenance, repair and overhaul products, expects profits to fall this year despite revenue at constant currency for the four month period to the end of October has risen 2.7% higher, and is 5.7% higher year to date.

There has been a reduced UK performance, particularly in tools and general maintenance last month due to further deterioration in the steel and aerospace sectors which is forecast to continue.

The company says that its cost reduction programme has been extended.

It adds that its markets remain challenging, with a significant deterioration in the UK, which it does not expect this to change in the immediate future.

Full year profits will be lower than last year, reflecting testing market conditions and FX headwinds.

It now expects full year underlying profit before tax for 2015 to be approximately £28m.

Brammer reports that it will continue to focus on our growth drivers, on recovering momentum in its UK business, improving profitability in its Nordic business, and ensuring our cost saving actions protect profitability.

StockMarketWire.com
Brammer posts underlying pre-tax profits of GBP27.6m for the year to the end of December - down from GBP35.1m in 2014.

Sales fell to GBP717.3m from GBP723.6m and earnings per share tell to 15.1p from 20.7p. The dividend is maintained at 10.7p per share.

On a reported basis, EPS fell to 7.3p from 9.2p and pre-tax profits of GBP13.5m were down from GBP17.7m.

Chief executive Ian Fraser said: "Financial year 2015 was tough for Brammer with particularly weak market conditions in the UK and Nordic regions exacerbated by execution problems in our UK business. 2016 has started in similar vein to the final quarter of 2015, with good performance on the continent being offset by continuing difficulties in the UK and Nordic regions. In response to these challenges we initiated a number of actions during 2015, which should lead to improved performance over the course of the current year. We have made management changes in our UK business and expect to see a turnaround during 2016. In our Nordic business we have accelerated the implementation of core growth drivers to help offset the declines in the offshore oil and gas business.

"Our margin improvement programme is proceeding well, with the underlying margin on an upward trend. Our stock reduction programme has progressed well with a reduction of £6.5 million in the first two months. Whilst we expect to make progress in each of these initiatives in the current year, the positive effect of these on the Group's earnings will be offset by the one-off impact of the focus on inventory reduction."

Separately, Brammer announced the appointment of Duncan Magrath as an executive director of the Company with immediate effect. He will take on the role of group finance director in succession to Paul Thwaite following his departure on 31 March, as previously announced.

Brammer says Magrath has a wealth of financial and listed corporate experience and, between 2008 and the end of April 2015, was chief financial officer of Balfour Beatty plc.

Brammer also announced the appointment of Steve Ashmore as an executive director with effect from 4 April. He joins the board as regional managing director with responsibility for operations in UK, Ireland and Iceland.

StockMarketWire.com
Brammer's full year expectations are unchanged but there will be an increased weighting towards the second half, according to a statement issued ahead of today's annual general meeting.

The group said continued challenging trading in the UK and Nordics was partially offset by growth in Continental Europe.

It said underlying gross margin percentage was 20 bps up on last year, but offset by lower rebate accruals as a result of stock reduction programme.

It reports good progress on the stock reduction programme - £16m reduction YTD and on track to deliver £30m reduction by September 2016.

Direct Vending sales exceeded £1m for the first time in April. 1,595 machines installed to end April, with a healthy installation pipeline of 380 machines.

The group says the focus remains on the key operational priorities set out in the March preliminary results statement.

StockMarketWire.com
Brammer has seen a significant slowdown in sales against its expectations since its last trading update on 13 May.

Sales per working day in May were down 3% compared with last year. It saw a weak performance in the UK, which was down 6%, but also more broadly across Continental Europe.

It says that while the last few days of the quarter are very significant for the month's result, based on the performance to the end of last week, it is now clear that the weakness seen in May has not reversed as expected and has continued into June.

The UK started the month positively, but it has experienced a particularly weak performance over the last few days. Underlying margin in May and June month to date was down against the previous year. The underlying margin for the first half is expected to be slightly ahead of the prior year; however, this is more than offset by the impact of lower rebate levels from reduced sales and stock reduction.

As such, it now anticipates adjusted profit before tax in the first half to be below expectations at approximately £5m. As a result of this reduced level of profitability, the group will be close to its net debt/EBITDA bank covenant1 at the period end. It adds: "In the light of current market conditions, we are reviewing the Group's trading outlook for the year as a whole, and the UK in particular (where recovery plans are still at an early stage). We are taking measures to improve profitability and strengthen the Group's balance sheet. Our stock reduction programme continues to make progress and is still expected to deliver a £30m reduction by the end of September 2016.

"The Board is now reviewing whether it is appropriate to declare an interim dividend in respect of the half year and will provide a detailed update on its revised expectations for the full year at the time of the interim results announcement on 4 August 2016."

StockMarketWire.com
Brammer's adjusted pre-tax profits fell by 65% to £5.0m in the six months to the end of June with adjusted operating profits down 52% at £8.4m.

Sales were 1.3% down at £372.3m and on a reported basis the group posts a pre-tax loss of £13.9m against a profit of £9.1m a year ago. The board has decided not to declare an interim dividend to enhance focus on cash generation.

Chairman Bill Whiteley said: "Given the current macro-economic uncertainty, we are not expecting any improvements in market conditions in the UK and Europe beyond a return to levels seen in the first four months of the year.

"The Group will continue to progress its existing operational priorities to improve the UK business, improve underlying gross margins, increase cash generation through stock reduction and reduce net debt. The Group should see increasing benefits from these operational improvements in the second half.

"Against this background, the Board initiated a detailed business review and this will be taken forward by Meinie Oldersma, the new Chief Executive of the Group, to identify the actions needed to improve the operational and financial performance of the business as well as its ongoing capital requirements. The conclusions of this review will be announced in the fourth quarter."

StockMarketWire.com
Brammer has agreed a cash offer 165 pence per share from AI Robin, a wholly-owned subsidiary of funds managed by Advent International Corporation.

The offer, which values the company at £221.5 million, represents a premium of approximately 69.2% to last night's closing price of 97.5 pence.

Brammer said the recent strategic review of its business, initiated by the board, has confirmed a number of key strengths of the group and also identified a number of material operational issues and the key actions needed to address these issues.

The Board of Brammer has considered that addressing the operational issues to deliver a turnaround of the business as a listed company would be complex, require significant structural and behavioural changes, incur significant cash reorganisation costs and take at least three years to implement and would, therefore, carry significant execution risk and uncertainty for a public company.

The Board of Brammer also recognises the financial and commercial value of the partnership with Advent given the latter's operational expertise and significant experience in the distribution and power manufacturing sectors. In addition, Advent's significant equity investment will greatly reduce the Company's debt burden, thereby improving Brammer's operational flexibility.

The Board of Brammer therefore believes that the Offer provides increased value and certainty for Brammer Shareholders compared with the risk-adjusted potential value that could be delivered by the actions designed to turnaround the business as a listed company, which itself is conditional upon a significant refinancing of the Brammer Group.