19th Dec 2008 07:00
FOR IMMEDIATE RELEASE 19 December 2008
THE DAVIS SERVICE GROUP PLC
Pre-close trading update
Prior to The Davis Service Group Plc ('the Group') entering its close period for the full year ending 31 December 2008, it releases the following trading update.
Current trading
Our businesses are proving their resilience in the current economic circumstances, and we expect to deliver a trading outcome, including the benefits of foreign exchange translation, broadly in line with our expectations for 2008.
Our interest cost and borrowings have increased in Sterling terms due to the retranslation of our borrowings, which are drawn in European currencies to match our European asset base and cash flows. We continue to maintain a strong balance sheet with significant headroom from facilities that are committed to at least June 2012.
Outlook
As we stated in our interim management statement released on 22 October 2008, we remain alert to the changing prospects throughout Europe, recognising that there will be differences in the way they impact the various parts of our business. The economic outlook has become somewhat more difficult since then; we have responded by taking further action to reduce costs and investments in the parts of the business that are directly affected and will seek to do so going forward. The Board remains confident in the long term prospects for the Group.
Forthcoming results
The Group will issue its preliminary results on 27 February 2009.
For further information contact:
|
The Davis Service Group Roger Dye, Chief Executive Kevin Quinn, Finance Director Telephone 020 7259 6663
|
Financial Dynamics Richard Mountain Telephone 020 7269 7121 |
Notes:
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. Sourced from management accounts; operating profit 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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