Brammer launches rights issue

The industrial services group Brammer said yesterday it would raise £38.3m from a rights issue to reduce debt. The company said its current trading was in line with expectations. It plans to issue 53.1m shares at 72p. The issue is at a 57 per cent discount to its Monday closing price of 167.5p. Brammer, which supplies mechanical parts for firms such as Bosche, TRW, and Kraft, said sales had fallen from last year, but it was seeing a return to stability in demand.
“There are also signs that confidence is rising in the world’s key economies that the worst of the economic downturn has passed,” the company said in a statement.