Feb. 22 (Bloomberg) -- Brammer Plc, Europe’s biggest distributor of bearings and power-transmission products, will make acquisitions starting in the second half after profit was boosted by a “strong recovery” in demand from manufacturers, said Chief Executive Officer Ian Fraser.
“We expect to have 10 million pounds of acquisition capacity in 2012,” Fraser said in a telephone interview today. “We might be able to buy companies with 20 to 30 million pounds of revenues,” or four to five companies per annum.”
The CEO is looking to add “small versions of Brammer” that have an 85 percent product match. Brammer, based in Manchester, England, is most interested in expanding in Italy, Austria and Hungary, where it currently has the lowest market share.
Net income for 2010 surged to 13.8 million pounds ($22 million), or 13 pence a share, from 58,000 pounds, or 0.1 penny, a year earlier, the company said today in a statement. Revenue rose 9.9 percent to 468 million pounds.
Brammer had called business in 2009 the “most difficult in recent times” after sales slumped amid the U.K.’s deepest recession since World War II. Earnings that year were held back by a 12.9 million-pound charge for eliminating jobs and reducing inventory, which the company said reduced annual operating costs by 15.8 million pounds.
Brammer declined 2.4 percent to 247 pence as of 10:42 a.m. in London trading. The stock has dropped 1.2 percent this year.
To contact the reporter on this story: Stephen Morris in London at email@example.com.
To contact the editor responsible for this story: Benedikt Kammel at firstname.lastname@example.org