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Annual Results

Brammer profits fall

08 March 2016 08:17

Brammer posts underlying pre-tax profits of GBP£27.6m for the year to the end of December - down from GBP35.1m in 2014.

Sales fell to GBP717.3m from GBP723.6m and earnings per share tell to 15.1p from 20.7p. The dividend is maintained at 10.7p per share.

On a reported basis, EPS fell to 7.3p from 9.2p and pre-tax profits of GBP13.5m were down from GBP17.7m.

Chief executive Ian Fraser said: "Financial year 2015 was tough for Brammer with particularly weak market conditions in the UK and Nordic regions exacerbated by execution problems in our UK business. 2016 has started in similar vein to the final quarter of 2015, with good performance on the continent being offset by continuing difficulties in the UK and Nordic regions. In response to these challenges we initiated a number of actions during 2015, which should lead to improved performance over the course of the current year. We have made management changes in our UK business and expect to see a turnaround during 2016. In our Nordic business we have accelerated the implementation of core growth drivers to help offset the declines in the offshore oil and gas business.

"Our margin improvement programme is proceeding well, with the underlying margin on an upward trend. Our stock reduction programme has progressed well with a reduction of £6.5 million in the first two months. Whilst we expect to make progress in each of these initiatives in the current year, the positive effect of these on the Group's earnings will be offset by the one-off impact of the focus on inventory reduction."

Separately, Brammer announced the appointment of Duncan Magrath as an executive director of the Company with immediate effect. He will take on the role of group finance director in succession to Paul Thwaite following his departure on 31 March, as previously announced.

Brammer says Magrath has a wealth of financial and listed corporate experience and, between 2008 and the end of April 2015, was chief financial officer of Balfour Beatty plc.

Brammer also announced the appointment of Steve Ashmore as an executive director with effect from 4 April. He joins the board as regional managing director with responsibility for operations in UK, Ireland and Iceland.

At 8:17am: (LON:BRAM) Brammer PLC share price was -46.12p at 171.13p

Story provided by StockMarketWire.com

Related Company: BRAM

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