Brammer on a roll in Europe
Thursday 05 September 1996
It is a strategy that could leave Brammer exposed to the slowdown in large economies such as France or Germany as they whip themselves into shape for the arrival of a single European currency. But the evidence of the latest interim results suggests otherwise.
Pre-tax profits in the six months to June rose by 26 per cent to pounds 12.8m on sales 15 per cent higher at pounds 103m.
True, growth rates in the period have slowed from the 50 per cent seen last year as trading conditions have become more difficult. But Brammer is clearly gaining as it consolidates its leading position by rolling out its distribution network across Europe, where it provides nuts and bolts and bearings and drive belts for just-in-time delivery.
The most recent example of moves to reinforce the business came in April when Brammer bought the 75 per cent of a Spanish distributor it did not already own for pounds 10.5m. With pounds 3.1m of net cash on the balance sheet, more acquisitions should follow.
Brammer is the European leader in testing and computer equipment, a market with good growth prospects as blue-chip customers such as BT, Siemens and Nokia increasingly outsource their information technology services. This division, which accounts for a fifth of profits, was bolstered in July with the acquisition of Hamilton, which specialises in the short- term rental of computer equipment in the Benelux countries, for up to pounds 6.8m.
The shares have been strong performers this year, rising another 9.5p to 594.5p yesterday. "Clean" profits of pounds 26.6m this year would put them on a forward multiple of 15. That looks undemanding and suggests they have further to run.
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 3 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...