28th Oct 2011 07:00
28 October 2011
Berendsen plc
Interim Management Statement
The Board of Berendsen plc ("the Group'') today issues an Interim Management Statement, covering the period since 1 July 2011. The statement provides an update on the financial performance, and financial position, of the Group based on management accounts for the three month period up to 30 September 2011 ("the period").
Revenue for the period was ahead by 2%, both on a reported and constant currency organic basis, consistent with our first half. We also maintained the margin improvement we saw with growth in underlying operating profit of 4% for the period. Our interest charge is modestly higher in the third quarter as expected, following the successful refinancing we completed on 29 July 2011. At the reported level, our adjusted profit before tax continues to be well ahead of last year.
We have seen good growth in the Nordic region, especially in Sweden, and in our Continent region, where both Holland and Poland are performing particularly well. In the UK and Ireland we continue to grow modestly, with good progress in our UK Healthcare textile maintenance business.
Our free cash flow has been strong, converting in excess of 100% of our adjusted profit after tax to free cash flow, and as a result net debt as at 30 September 2011 was approximately £520 million, down from £540 million at the start of the year. The Group's funding position, following the refinancing of our revolving credit facilities referred to above, remains robust.
Implementation of the Strategic Review we announced in November 2010 is progressing well and we are on track to complete the move to a business line structure from the start of next year.
Trading since our Interim Results Announcement on 26 August 2011 has been in line with expectations, with similar trends across the different business areas and the Board continues to expect good year-on-year progress for the full year 2011.
For further information contact:
Berendsen plc | FTI Consulting |
Peter Ventress, Chief Executive | Andrew Lorenz |
Kevin Quinn, Finance Director | Nina Delangle |
Telephone 020 7259 6663 | Telephone 020 7269 7291 |
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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