23rd Oct 2009 07:00
23 October 2009
THE DAVIS SERVICE GROUP PLC
Interim Management Statement
The Board of The Davis Service Group Plc (''the Group'') today issues its interim management statement for the period from 1 July 2009 in accordance with the UK Listing Authority's Disclosure and Transparency Rules.
Trading has continued broadly in line with the trends we saw in the first half of the year, with reported group revenue modestly ahead of the nine months to 30 September 2008 ("the comparable period") and profits maintained at a similar level. The reported results benefited from the impact of positive exchange translation. Our free cash flow is significantly ahead of last year and we have already exceeded the level of free cash flow delivered in the whole of 2008, which is benefitting interest costs.
As expected our trading performance is proving resilient. The market conditions in our UK hotel business and in Sweden remain similar to those reported at the Half Year, however, excluding these areas the operating profits of our other businesses have grown 3% against the comparable period at constant exchange rates. The margin improvement seen at the Half Year in German Healthcare has been maintained.
The Group is making good progress and now with nine months behind it, the Board views the outcome for the year in a more positive light. With its strong free cash flow and balance sheet, the Board believes that the Group is well placed to benefit as and when growth returns to its markets.
For further information contact:
|
Davis Service Group |
Financial Dynamics |
|
Roger Dye, Chief Executive |
Richard Mountain |
|
Kevin Quinn, Finance Director |
Telephone 020 7269 7291 |
|
Telephone 020 7259 6663 |
Note:
1. Davis Service Group 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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