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Berendsen PLC (BRSN)

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Friday 31 October, 2014

Berendsen PLC

Interim Management Statement

RNS Number : 7647V
Berendsen PLC
31 October 2014
 



 

 

31 October 2014

 

Berendsen plc

 

Interim Management Statement

 

The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period from 1 July 2014, based on the management accounts for the three month period up to 30 September 2014 (''the period'').

 

Trading in the period was in line with management's expectations.  Underlying revenue for the Group, at constant exchange rates, was up 3% compared to the equivalent period last year and in our Core Growth businesses, revenue also increased 3%.  Reported revenue for the Group, including the impact of currency translation, was 3% below the equivalent period last year. We made progress in our underlying operating profit with further year-on-year improvement in operating margin in our Core Growth businesses. Our reported profit before tax, despite the impact of exchange translation, was similar to the corresponding period last year.

 

Workwear made good progress overall despite markets which remain soft, with the benefits of best practice transfer contributing well to the growth in operating profit.  In Facility, we saw a good underlying increase in revenue, converting the opportunities for organic growth. In addition, we extended the footprint of our Cleanroom business, which continues to deliver excellent results, with the acquisition in September of Micronclean Newbury, taking us into the UK Cleanroom market. In Mats and Washroom, we made a further bolt-on acquisition in Poland in October, increasing our contract base.  In aggregate, these acquisitions have annualised revenues of approximately £8m. We continued to grow revenue in the period in our UK Flat Linen business, benefiting from higher underlying volumes. In Manage for Value, revenue and profits were up in the period, recovering from the first half decline as expected, benefiting from the new contract volumes.

 

We delivered good free cash flow in the period moving us towards our target for the year of converting 100% of our profit after tax into free cash flow.  As a result, net debt is lower than at the half year, and our financial position remains strong.

 

We have delivered a good operational performance in the period, which reflects continued momentum towards achieving our strategic objectives. In the year to date, our reported results have been impacted by currency translation and we expect this to continue for the remainder of the year.  However, the Board continues to expect to achieve a year of good underlying progress in line with its previous expectations.

 

Conference Call

 

A conference call for analysts and investors will be held at 8.00am (UK time) today to discuss this statement.

 

Participant Details


Toll Number

0203 139 4830

Toll-Free Number

0808 237 0030

Participant PIN Code

75234531#



Playback Details


Playback Number

020 3426 2807

Playback Toll Free Number

0808 237 0026

Playback Pin Code

651486#

 

 

For further information contact:

 

Berendsen plc

FTI Consulting

Peter Ventress, Chief Executive

Richard Mountain

Kevin Quinn, Finance Director

Telephone 020 3727 1374

Telephone 020 7259 6663

 

 

 

Note:

1.             Berendsen plc is a focused European textile maintenance business with leading positions in most of the countries in which it operates.  As a focused business we are able to mobilise our resources to drive our strategies in our core area of expertise.

2.             All financial information sourced from management accounts; operating profit and earnings per share stated before exceptional items and amortisation of customer contracts and intellectual property rights.

3.             Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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