Accelerating growth at Brammer

Technical distributor Brammer says sales growth was strong in the second quarter. Brammer is cautiously optimistic that these improving growth trends will continue in the second half. Sterling's more recent strength against the Euro may hold back some of this growth. Revenues rose 6% to £230m in the first half of 2010 with much of that growth coming in the second quarter. Underlying pre-tax profit rose by 60% to £9.7m. Overheads rose more slowly than revenues. Net debt fell from £69.4m to £40.2m in the 12 months to June 2010. Brammer raised £35.3m from a rights issue in November 2009. The interim dividend has been increased from 1.84p a share - restated for the rights issue - to 2.1p a share. Brammer has appointed KBC Peel Hunt, which forecasts full year profit of £20m, as joint broker.