29th Jun 2016 07:26
LONDON (Alliance News) - Industrial maintenance, repair and overhauls products distributor Brammer PLC on Wednesday said sales have slowed significantly and issued a profit warning for the first half, hammering its share price.
Brammer shares plunged on the news, down 52% to 69.00 pence in early trade on Wednesday and setting a new 52-week low of 61.25p.
Brammer said sales per working day in May were down 3.0% year-on-year, with a weak performance in the UK and sluggish trading in Europe. This weakness has continued into June and underlying margins for the business have weakened as a result.
Brammer said its adjusted pretax profit for the first half of 2016 is now set to miss expectations, and it will review its trading outlook for the year as a whole, including taking measures to improve profitability and strengthen its balance sheet.
It also added it was considering whether it will be appropriate to pay an interim dividend given its current trading situation and will update on that when it posts half-year results on August 4.
By Sam Unsted; [email protected]; @SamUAtAlliance
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