7th Nov 2014 08:37
LONDON (Alliance News) - Brammer PLC saw its shares plunge in early trade on Friday after the company issued a profit warning on the back of weaker than expected trading in the UK and a deterioration in European markets.
The industrial maintenance, repair and overhaul products supplier saw its shares fall 15% to 288.25 pence, the worst performer in the FTSE All Share index, after it said its underlying pretax profit for the year will be around GBP35 million to GBP36 million, below previous expectations.
It blamed the cut to its profit guidance on weaker trading in the UK, deteriorating market conditions in Europe and the impact of the strength of sterling.
The company said it has been hit by a reduced spend in its UK operations by a small number of major customers. In the four months to the end of October, its sales per working day in the UK dropped 3.1%. The drop was driven by six large customers, generating annual revenue to the company of GBP58 million last year, cutting around GBP14 million from their spend. This hit UK sales by 5%, subsequently damaging gross and trading profit for the division.
At constant currency rates, total sales growth for the group was 15.5%, with sales up nearly 15% in both France and Spain and by nearly 10% in Germany.
By Sam Unsted; [email protected]; @SamUAtAlliance
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