Brammer gains market share in 'challenging' market

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Brammer, the distributor of industrial maintenance, repair and overhaul products, has announced its preliminary results for the six months ended 30 June 2015 with sales of £365.6 million, up 0.4% on the £364.1m for the corresponding period a year earlier.

Operating profit was £17.2m, 16.5% down on the same period in 2014.

Ian Fraser, chief executive of Brammer, said the company's business outside the UK and Nordic regions performed well with overall sales per working day (SPWD) growth of 13.7% and organic SPWD growth of 5.5%, "reflecting further market share gains in challenging markets".

He said the UK business reversed the deterioration seen in the second half of last year with an organic SPWD decline of 0.2% (compared with a decline of 4.1% in the second half of last year). "However, our Nordic business which is heavily exposed to the oil and gas sector saw organic SPWD decline of 15.9%."

But Brammer's vending programme, Invend, "whilst in its infancy, produced excellent results with strong signings and installations".

Vending customers now represent 5.4% of revenues and grew 29.9%.

Fraser added: "For the remainder of the year, we expect to see continued improvement in our UK business, and solid growth in our continental businesses, but our Nordic business will continue to suffer from ongoing market headwinds.

"We have seen evidence of an improving trend in gross margins since the end of the first quarter, and should benefit from the impact of the cost reduction programme,three completed in the first half. Whilst mindful of tough market conditions and the impact of continuing weakness in the Euro, we remain on track to meet the Board's expectations for the full year. More broadly we expect to see limited industrial output growth in Europe over the next two years, and will therefore continue to focus on our growth driver strategy."