MANCHESTER bearings, belts and replacement parts distributor Brammer, which delivers to factories, quarries and other sites around the world, has announced that it intends to have cut 10 per cent of its workforce of 2,500 by the end of the year.

The company posted interim results showing a pre-tax loss of £2.6m, down from a profit of £11m last year.

Pre-exceptionals profits fell from £11.4m to £6m, on turnover down 10 per cent at £216.3m. The job cuts - which will result in a one-off charge of £8m - are being made as part of the Wythenshawe-based company's cost savings drive, but it says that it also expects to benefit from new contracts later this year.

Chief executive Ian Fraser said: "Approximately 10 per cent of our staff have left or will leave the business, and this, together with careful management of non-personnel costs and short-term working where available, has resulted in an annualised cost saving of over £15m.

"We are well placed to benefit when the inevitable economic recovery occurs, but we are not planning for this - other than in particular market sectors - until well into 2010."

The results prompted Brammer's share price to drop by 8.5p, or 5.3 per cent, to £1.51.

Chairman David Dunn said that that acquisitions were `off the agenda' in the current period.

He added: "In the prevailing environment the focus on costs and cash must remain a high priority. The board continues to have full confidence in Brammer's business model, its strategy, and its excellent long-term prospects for future growth."