24th Apr 2014 10:43
LONDON (Alliance News) - Textiles business Berendsen PLC Thursday said it has made a good start to its new financial year, and trading in the first quarter was in line with management expectations.
Berendsen said underlying revenue for the group at constant exchange rates was up 3% in the three month period, led by 4% growth in its core growth businesses. However on a reported basis, which includes currency movements, revenue for the group during the period was flat.
The company said that its underlying operating profit for the period improved, as did its operating margin in its core growth businesses, boosted by good progress in workwear, while in its Manage for Value division, profits were down as expected in the first quarter. It said the lower profit in Manage for Value was due to contract re-pricing in the second half of last year and start-up costs on a number of significant new contracts.
"Interest costs were lower due to our strong cash flow and our reported profit before tax for the quarter was ahead of last year," the company said in a statement.
Berendsen said it saw higher levels of revenue growth in its UK Flat Linen business than in the prior year, with continued momentum in its hotel customer segment.
The company said its net debt is lower than at the start of the year, and its financial position remains strong.
Berendsen shares were up 0.6% at 1,050.00 pence per share before midday Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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