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 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
- 4 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
- 5 Google search history can now be downloaded in its entirety, mass embarrassment expected
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...