1st Nov 2013 07:00
1 November 2013
Berendsen plc
Interim Management Statement
The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period since 1 July 2013, based on management accounts for the three month period up to 30 September 2013 ("the period").
Trading in the period was in line with our expectations. Reported revenue for the Group was up 9% compared to the equivalent period last year. Excluding the benefit of foreign currency exchange translation and the acquisitions we made last year, underlying revenue was ahead by 4%. In both our Core Growth and Manage for Value businesses underlying revenue increased by 4%. We delivered an improvement in operating margin in the period and with lower interest costs due to our strong cash flow, our reported profit before tax for the quarter was well ahead of last year.
In Core Growth, Workwear continued to make top line progress and delivered strong profit growth in the period. Our Facility business saw higher levels of revenue growth than in the first half, with steady progress in Mat and Washroom and a particularly good performance in Cleanroom. We also saw higher levels of revenue growth than in the first half in the UK Flat Linen business, with underlying volumes improving further over the summer period. In our Manage for Value businesses margins were down, as expected, but revenue was up, benefitting from new contracts and stronger summer hotel volumes in Scandinavia.
Our free cash flow remained strong in the period, maintaining conversion of our profit after tax at over 100%. As a result, net debt is substantially lower than at the start of the year. With our strong cash flow and committed funding, the majority of which extends to 2016 or beyond, we are well positioned to support our growth initiatives.
We performed well in the period and the Board remains confident in its expectations of achieving a year of good progress in 2013.
Conference Call
A conference call for analysts and investors will be held at 8.30am (UK time) today to discuss this statement.
Participant Details | |
Toll Number | 020 3139 4830 |
Toll-Free Number | 0808 237 0030 |
Participant PIN Code | 12670869# |
Playback Details | |
Playback Number | 020 3426 2807 |
Playback Toll Free Number | 0808 237 0026 |
Playback Pin Code | 643174# |
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 |
|
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.
Related Shares:
Berendsen