28th Feb 2014 11:56
LONDON (Alliance News) - Berendsen PLC said Friday it reports strong revenue and profit results as it continues to make progress toward its strategic investments, and expects a similar story for 2014.
Berendsen said revenues for the year to December 31, 2013 rose 7%, or 3% on an underlying growth at constant exchange rate, to GBP1.05 billion, up from GBP985.1 million the previous year.
Adjusted operating profit also saw a boost, up 12% to GBP158.9 million from GBP142.4 million, 7% on constant exchange rate.
Pretax profit grew 23% during the year, said Berendsen, to GBP112.4 million from GBP91.7 million.
The firm has also boosted its full-year dividend per share to 28.0 pence from 25.5 pence last year, a 10% rise.
During the year the firm said it has increased its facility revenue by 5% with an operating margin of 25.7%, up from 25.4%. The firm notes that its UK flat linen division has seen growth of 4% as it benefited from more favourable market conditions, and that 137% of its reported adjusted profit after tax has been converted to free cash flow, significantly reducing its net debt.
Iain Ferguson, Chairman of Berendsen, said, "We are pleased to have delivered a strong set of results, as we make progress towards our strategic objectives. Our focus remains on the many further opportunities to improve our business. The board expects to achieve another year of good progress in 2014."
The company's strategic plan includes factors such as, delivering sustainable growth, improving capital efficiency and maintaining a sound financial position, improving financial returns by leveraging operational efficiency and reducing its impact on the environment.
Shares in the firm were trading up 6.1% at 1054 pence Friday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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