** UK-listed small caps Brammer & Latchways would both benefit greatly from an economic recovery inEurope, says Matthew Tillett, who runs the Allianz UKUnconstrained fund
** Brammer's £426 mln mkt cap belies fact it is biggestdistributor in Europe of industrial maintenance & repairproducts -- from cutting tools to washroom skin care -- in ahighly fragmented market
** PM flags Brammer's strategy of replicating US (bigplayers there WW Grainger & Fastenal ), c.15 yrsahead of Europe in terms of industrial cos outsourcing purchaseof supplies
** Tillett bought into Brammer last yr when co hit by profitwarnings -- one on slow activity in Europe; says co wouldbenefit from recovery there, but can still grow without it; lastprofit warning May (headwinds FX, Norway; shares down 20% since)
** PM recently bought Latchways, maker of fall protectionproducts, e.g. on wings & fuselage of aircraft undergoingmaintenance, & for roofing; notes co has growth end-market ashealth & safety regulations become more onerous, e.g. Europe
** Co also has recovery angle in UK where has big marketshare; exposed to construction late cycle -- roof tends to go onlast followed by safety products -- & UK in early stage ofconstruction recovery (UK more of near-term driver than Europe) (RM: tricia.wright1.thomsonreuters.com@reuters.net)