In our interim management statement on 18 May we anticipated double digit sales growth in both May and June and performance has been in line with our expectations. Overall constant currency sales growth in May was 16.8% followed by 19.5% in June. Growth in sales per working day (SPWD) was 15.4% and 17.6% respectively. We have continued to see good development in every country, with SPWD in the two month period up 7.1% in the UK, 19.3% in Germany, 17.4% in France, 14.9% in Spain, 17.7% in the Netherlands, 33.3% in Poland and 20.3% in the rest of Europe. In addition to a clearly improving trend in our markets, we believe that we are gaining significant market share in most of our territories, driven by Key Account growth, Insite development, and cross-selling. Overall, first half 2010 sales in constant currency were up 8.1%.
Gross profit margins continue to be maintained at similar levels to last year. Costs have continued to be tightly controlled, and we are taking a cautious stance on reinvestment in the business despite the promising sales trends we are seeing. We have continued to reduce inventory levels, which are down around £3 million in constant currency terms versus the end of 2009, and maintained our focus on working capital and cash management. Despite the significant growth in sales and after paying £4.7 million of deferred consideration, and £1.4 million of cash exceptional costs relating to 2009, we expect reported net debt at the half year to be unchanged from 31 December 2009, at approximately £40m
We have seen an improving sequential trend throughout the first half of 2010, with the second quarter substantially ahead of the first quarter. Overall group SPWD in constant currency in Q1 were £1.82 million per working day, consistent with the same period in 2009, whilst Q2 SPWD were £1.91 million per working day, up 14% on the same period in 2009, and up 5% on the normally seasonally stronger Q1. Year on year Key Account growth is now running at 15.7%, and we continue to see a strong recovery in the automotive sector. Insite growth in the first half is 18.3%, and we are achieving substantial market share gains in fluid power and tools and general maintenance.
We are confident that our strategy of focusing on Key Accounts, Insites and cross-selling throughout Europe to drive profitable market share gains remains sound for the medium and longer term, and that Brammer will continue to be able to grow at a rate substantially in excess of the market.
Brammer plc - 0161 902 5572
David Dunn, Chairman
Ian Fraser, Chief Executive
Paul Thwaite, Finance Director
Citigate Dewe Rogerson Ltd - 020 7638 9571
Martin Jackson
Kate Lehane