Brammer hits 14-year low after warning on profit, dividend and covenants

A significant slowdown in sales in May and June has not reversed, with a "particularly weak" performance since the Brexit vote result.

Underlying profit margins in May and June so far have been down against the previous year, with underlying margin for the first-half expected to be slightly ahead of the prior year.

Group adjusted pre-tax profit in half year to end-June are now expected to be roughly £5m, which is below target, after the impact of lower rebate levels from reduced sales and stock reduction.

As a result of the smaller profits, Brammer said it will be close to its net debt/EBITDA bank covenant at the period end.

"In the light of current market conditions, we are reviewing the group's trading outlook for the year as a whole, and the UK in particular - where recovery plans are still at an early stage," the company said in a statement.

"We are taking measures to improve profitability and strengthen the group's balance sheet. Our stock reduction programme continues to make progress and is still expected to deliver a £30m reduction by the end of September 2016."

Brammer shares lost more than half their value, dipping below 60p just afetr midday on Wednesday, their lowest level since 2002.