LONDON (Alliance News) - Industrial maintenance, repair and overhaul products distributor Brammer PLC on Tuesday posted a lower pretax profit for the first half of 2015, as the company's sales took a big hit from the weak euro.
Brammer said its pretax profit for the six months to the end of June was GBP9.1 million, down from GBP11.6 million a year earlier. Sales for the group rose to GBP365.6 million from GBP364.1 million, but this was dragged to only a slight increase from a 7.5% rise in constant currencies.
The company's gross margin dropped by 80 basis points to 30.5% in the half, thanks to customer and product mix effects and due to a competitive market.
The company said sales per working day rose by 7.2% in constant currencies in the half and said it won six key customer contracts in the period.
Brammer said it would pay a flat interim dividend of 3.6 pence per share.
"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, completed in the first half," said Chief Executive Ian Fraser.
"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," Fraser added.
Shares in Brammer were down 4.5% to 300.00 pence in early trade on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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