24th Apr 2014 07:00
24 April 2014
Berendsen plc
Interim Management Statement
The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period from 1 January 2014 prior to its Annual General Meeting today at 11.00am.
Trading in the first three months of the year was in line with management's expectations. Underlying revenue for the Group, at constant exchange rates, was up 3% compared to the equivalent period last year and in our Core Growth businesses, revenue increased 4%. Reported revenue for the Group, including the impact of currency translation, was similar to last year. We made progress in our underlying operating profit with a further encouraging improvement in operating margin in our Core Growth businesses. In Manage for Value, profits were down as expected in the first quarter. Interest costs were lower due to our strong cash flow and our reported profit before tax for the quarter was ahead of last year.
Operating margins were up in each of our Core Growth businesses. Workwear made good progress overall despite continued challenging markets, with the benefits of best practice transfer contributing well to the growth in operating profit. In Facility, we saw a good underlying increase in revenue, converting the good opportunities for organic growth through increased sales efficiency in Mats and Washroom as well as through our strong contract base in Cleanroom. We saw higher levels of revenue growth in our UK Flat Linen business than in 2013, with continued momentum in our hotel customer segment benefiting from economic recovery. As expected revenue was similar to last year in our Manage for Value businesses, but profits were lower as a result of the contract re-pricing in the second half of last year and start-up costs on a number of significant new contracts.
We again delivered good free cash flow, with conversion of our profit after tax into free cash at over 100%. As a result, net debt is lower than at the start of the year, and our financial position remains strong.
We have made a good start to the current year with trading in line with management's expectations and the Board continues to expect to deliver another year of good progress.
Conference Call
A conference call for analysts and investors will be held at 8.00am (UK time) today to discuss this statement.
Participant Details | |
Toll Number | 020 3139 4830 |
Toll-Free Number | 0808 237 0030 |
Participant PIN Code | 24511486# |
Playback Details | |
Playback Number | 020 3426 2807 |
Playback Toll Free Number | 080 8237 0026 |
Playback Pin Code | 647654# |
For further information contact:
Berendsen plc | FTI Consulting |
Peter Ventress, Chief Executive | Richard Mountain |
Kevin Quinn, Finance Director | Telephone 020 3727 1374 |
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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