Companies: BRAM   

Brammer unveiled dire full year figures reflecting only 'reasonable' progress at its industrial services arm, which supplies bearings and parts for production machinery, but a 'very difficult' second half at its Livingston arm, involved in the management of equipment for the likes of Lucent and Cisco. For the year to December, pre-tax profits before goodwill and exceptionals fell 21% to £19.3m. But with £23.7m of one-offs and £2.4m of goodwill added back in, it actually lost £6.8m. The significant downturn in the telecoms market and weakness in the second-hand computer market forced Brammer to write off £22.7m of inventory at Livingston, and the board also wrote off £1m on the exit from a non-core industrial services business. Chief executive Ian Fraser explained, 'we've written off a quarter of the inventory at Livingston', and do not see a recovery in its important telecoms market until 2003. Although sales were lifted 30% to £372.3m, acquisitions accounted for 23% of that growth. One positive to emerge was the fact that all its continental European businesses improved profitability within industrial services. Markets remain tough and priorities for 2002 are cash and cost control, and limiting exposure to its volatile markets. The shares fell 20.5p to 213.5p against a 52-week peak and trough of 517.5p and 195p, in early play. Avoid for now.