26th Oct 2012 07:00
26 October 2012
Berendsen plc
Interim Management Statement
The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period from 1 July 2012. This statement provides an update on the financial performance, and the financial position, of the Group based on management accounts for the three month period up to 30 September 2012 ("the period").
Trading in the period has been in line with our expectations. Revenue for our Core Growth businesses was ahead by 3% compared to the equivalent period last year on an underlying basis (excluding acquisitions and currency impacts), which was consistent with our first half growth rate. For the Group as a whole, underlying revenue was up 2% but was down 2% at the reported level after the impact of currency. We again improved our operating margin and with a lower interest charge, we delivered good growth in adjusted profit before tax.
The trading trends we experienced in the first half of 2012 continued in the third quarter of the year with the performances of the business lines also broadly similar to the first half. In particular, our higher margin Facility business continued to deliver revenue growth in excess of the Group average.
Our free cash flow has been strong in the period, meeting our objective of converting in excess of 100% of our adjusted profit after tax. As a result, net debt at 30 September 2012 was approximately £470 million, down from £514 million at the start of the year. The Group's funding position remains robust with approximately £800 million of private placement notes and facilities, most of which are committed to 2016 and beyond.
The Board continues to expect good year on year progress for the full year 2012.
For further information contact:
Berendsen plc | FTI Consulting |
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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