BRAM.L Regulatory News (BRAM)

17 May 2012

Brammer plc, the leading pan-European added value distributor of industrial maintenance, repair and overhaul products today issues its Interim Management Statement for the period from 1 January 2012 to date. The figures in this statement cover the four month period to 30 April 2012.

Highlights

·; Sales and profits well ahead of 2011 driven by the Buck & Hickman acquisition, continued growth and market share gains.

·; Gross profit margins excluding Buck & Hickman up 1.2%.

·; Overall sales growth in the four month period from 1 January of 29.4%. Organic growth of 9.9%.

·; Key Account sales up 15.9% in the four month period, now representing 35.8% of total sales.

·; Buck & Hickman acquisition proceeding as planned. Cross-selling continues to drive growth with Fluid Power up 14.8% and Tools and General Maintenance (excluding Buck & Hickman) up 25.7%.

·; Four new pan-European Key Accounts won.

Trading

The Board of Brammer is pleased to report continued sales and profit growth in the period since 1 January, as well as an improvement in the underlying gross profit margin.

Despite economic uncertainty across Europe, we have continued to win market share and grow sales at a satisfactory rate. Overall sales were up 29.4% including Buck & Hickman, and up 9.9% organically. Overall organic sales per working day (SPWD) growth for the group was 8.0%. In the UK, SPWD increased by 13.8% comprising 5% organic and 8.8% from Buck & Hickman. In continental Europe, SPWD have risen by 5.0% in Germany, 8.3% in France, 3.5% in Spain, 9.8% in the Benelux, and are broadly flat in the rest of Europe. This good progress reflects our strategic focus on market segmentation, Key Account development, InsiteTM locations and product extension.

Key Account sales in constant currency terms were up 15.9% overall, with continued good growth in food and beverage (up 11.2 %), automotive (up 25.5%), and metals (up 11.1%). %). Key Accounts, following the acquisition of Buck and Hickman, now represent 35.8% of sales. Four new pan-European Key Accounts with total potential annual revenues of around €20 million were won in the period taking the total to 44. Non key account revenues grew 6.0%. The rate of implementation of Insites continues to increase with 30 new Insites opened this year to date in the UK, Netherlands, Italy, Germany and France, taking the total, after six closures, to 294.

Our cross-selling initiatives have delivered good results, with Fluid Power up 14.8%. The integration of Buck & Hickman is proceeding as planned with organic growth in Tools and General Maintenance of 25.7%. Bearing sales were down 2.3%, whilst overall non-bearing sales (excluding Buck & Hickman) were up 10.9%.

Gross profit margins in the underlying business (excluding Buck & Hickman) have improved by 1.2% year on year, completely offsetting the anticipated dilutive effect of the acquisition. Net debt remains in line with our expectations.

Outlook

May has continued in line with the first four months and we expect to achieve continued sales and profit growth as a result of the Buck & Hickman acquisition and market share gains during the rest of the year. Despite the uncertain economic conditions in Europe and the weakening Euro, the Board is confident that our proven strategy of focusing on Key Accounts, Insites and cross-selling to drive profitable market share gains will enable Brammer to continue to enjoy growth levels significantly ahead of the market.