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19 Nov 2008 07:00
19 November 2008
Brammer plc
Interim Management Statement
Brammer plc, the leading pan European added value technical distributor today issued its second Interim Management Statement as required in accordance with the EU Transparency Directive for the period from 1st July 2008 to date.
Trading
The Board of Brammer is able to report that trading in the period 1 July to 14 November 2008 has been encouraging despite an economic environment which has become increasingly difficult.
We have continued to see reasonable growth with an increase in total revenue of 22% in the four month period to 31 October 2008. This revenue increase was composed of 5% from organic growth, 5% from acquisitions made during 2008, and 12% from beneficial currency movements. Key account growth was a healthy 25%. Overall growth in constant currency was 8% in the UK, 7% in Germany, 7% in France, 1% in Spain, 16% in Benelux, and 23% in the rest of Europe. Gross profit margins were maintained at similar levels to last year, and operating cash flow to the end of October was in line with management expectations.
Revenue growth in the period from 1 January to the end of October 2008 has been 27%, with organic growth of 8%, acquisitive growth of 8% and a further 11% from currency.
Banking
During November we successfully renegotiated our €66 million, 364 day revolving facility to be coterminous with our €99 million term loan, such that we now have committed facilities of €165 million through to 28 February 2012, together with a further €30 million overdraft capacity. This ensures that Brammer remains financially strong going forward into 2009 and well placed to take advantage of opportunities that emerge. Net debt at the end of October was in line with management expectations, equal to approximately half of the total facilities.
Outlook
Assuming that there is no material change in current market conditions, the Board anticipates that the trading performance of the Group for the full year ended 31 December 2008 will be in line with expectations.
During these uncertain economic times the Board intends to increase focus on cost control, cash flow and driving greater efficiencies from the business. Our recent investment in systems will also help us improve our working capital ratios, in particular our inventory levels which we are now able to manage on a European basis
The Board is confident that the Group's strategy of focusing on key accounts, insites and cross selling across Europe to drive profitable market share gains remains sound for the medium and longer term and will ensure that Brammer is stronger and better when the economic environment improves.
Enquiries: Brammer plc 0161 902 5572
David Dunn, Chairman
Ian Fraser, Chief Executive
Paul Thwaite, Finance Director
Issued: Citigate Dewe Rogerson Ltd 020 7638 9571
Martin Jackson/Nicola Smith
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