28th Apr 2011 07:00
28 April 2011
Berendsen plc
Interim Management Statement
The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period from 1 January 2011 prior to its Annual General Meeting today at 11.00am.
Trading in the first three months of the year has been in line with our expectations with revenue ahead by 2% compared to the equivalent period last year, both on an actual and underlying basis, with an encouraging improvement in the operating margin for the Group. The first quarter saw lower interest costs due to our strong cash flow which led to a significant increase in profit before tax as anticipated.
Our markets continued to improve steadily, with the Nordic region seeing robust growth compared to the prior year, with particular strength in Sweden. We saw a good performance in our Continent region, driven by the workwear and facility businesses especially in Poland. Overall growth in the Continent region was held back by the volume loss in German Healthcare we reported last year. In the UK textile business we saw modest growth in the first quarter against stronger comparatives following a good 2010.
As set out in our strategic review in November last year we have begun to position the Group for higher growth rates. We are on track with our move to a business line structure from the current geographical organisation and made good progress during the first quarter of 2011 with further appointments made to key positions.
Our free cash flow continued to be strong and as a result net debt was lower than at the year end, with a small benefit from currency translation.
We have made a good start to the year, with trading in line with our expectations. Revenue is showing modest growth, our markets are improving and we are delivering improved margins. Our strong free cash flow is contributing to the maintenance of a robust balance sheet. The Board believes that the Group is well positioned to achieve further growth in the current year.
For further information contact:
Berendsen plc | Financial Dynamics |
Peter Ventress, Chief Executive | Richard Mountain |
Kevin Quinn, Finance Director | Telephone 020 7269 7291 |
Telephone 020 7259 6663 |
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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.
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