11th Nov 2015 12:02
LONDON (Alliance News) - Shares in Brammer PLC were sold on Wednesday after the company said its markets remain challenging and it expects little improvement in the UK in the near term, meaning its profit for 2015 will be lower year-on-year.
The stock was down 9.8% to 185.00 pence.
Brammer said its constant currency revenue in the four months to the end of October was up 2.7%, but it has seen a weaker performance in its UK business, particularly its tools and general maintenance division due to a further deterioration in orders from the steel and aerospace sectors.
The company, which distributes industrial maintenance, repair and overhaul products, said it also saw conditions deteriorate in the Nordic region in the period, hit by the oil and gas industry downturn.
Brammer has extended its cost-cutting programme from the first half into the second and said the outlook for its markets shows little sign of improvement in the short-term. For 2015, it now expects underlying pretax profit to be around GBP28.0 million, down from GBP35.1 million a year earlier.
Brammer also said its revenue for the year will take a hit of around GBP43.0 million from adverse exchange rate movements, and it will book a GBP6.0 million charge from restructuring.
By Sam Unsted; [email protected]; @SamUAtAlliance
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