Financial Highlights

Half Year Ended 30 June 2016 


6 months to 30 June




Constant currency change**














Operating profit*






Profit before tax*


















Operating (loss)/profit




(Loss)/profit before tax








* pre amortisation of acquired intangibles, impairment of goodwill, acquisition related costs and exceptional items

** at constant currency at €1.286:£1


Financial summary

  • Total Group revenue up 1.8% to £372.3 million (2015: £365.6 million), down 1.3% at constant  exchange rates (“CER”)
  • Sales per working day (“SPWD”) down 3% at CER
  • Gross margin down 1.0 percentage point to 29.5% (2015: 30.5%) due to impact of lower supplier rebates following the stock reduction programme
  • Adjusted profit before tax of £5.0 million in line with recent trading update; reported loss before tax of £13.9 million, after non-cash Nordic goodwill impairment of £16.9 million
  • Adjusted operating cash generation of £24.7 million (2015: £4.2 million), reflects approximately £14 million cash generated from ongoing stock reduction programme
  • Closing net debt of £107.7 million (December 2015: £104.3 million; June 2015: £90.8 million) after £13.5 million adverse exchange movement
  • Leverage ratio of 2.8x, within financial covenant level of 3.0x
  • The Board has decided not to declare an interim dividend to enhance focus on cash generation

Operational summary

  • Meinie Oldersma joined the Board as Group Chief Executive Officer with effect from 1st August 2016; he is experienced in the distribution industry and implementing organisational change
  • Business review initiated by the Board to identify the actions needed to improve the operational and financial performance of the business as well as the appropriate capital structure to support its future development
  • Turnaround plan now being implemented in the UK
  • Good progress in stock reduction programme with £26 million reduction at constant currency resulting in cash generation of approximately £14 million in the first half. On track to deliver £30 million stock reduction by 30 September 2016
  • Renewed focus on our core business to improve bearings sales and overall margin
  • Despite slower than expected conversion rates, demand for Brammer InvendTM has remained strong and revenue growth continues to be in line with expectations. In line with the Group priorities, installation rates in the second half are expected to be below those in the first half