26th Jun 2009 07:00
26 June 2009
THE DAVIS SERVICE GROUP PLC
Pre-close trading update
The Board of The Davis Service Group Plc ('the Group') releases the following trading update prior to entering its close period for the six months ending 30 June 2009. The Group's half year results will be announced on Friday 28 August 2009.
In the first five months of trading in 2009, our revenue was ahead of 2008 while operating profit was broadly in line with a strong comparable period, benefiting from favourable foreign exchange translation. We are starting to see the impact of the lower interest rates offsetting currency translation in interest. Our free cash flow continues ahead of last year and our balance sheet is strong with banking facilities committed to at least 2012.
As expected, our trading performance remains resilient and we continue to pursue cost cutting actions to meet the ongoing challenges of some of the markets in which we operate. Most of our businesses are proving relatively defensive. In line with the first quarter, our hotel businesses and both our textile maintenance and direct sales operations in Sweden continue to be affected by lower volumes. We are making the expected improvements in profitability in German healthcare although that market remains difficult.
The Group remains focused on meeting the demands of the current testing environment, on maintaining its strong balance sheet and cash generation, and on delivering its expectations for the year.
For further information contact:
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The Davis Service Group Roger Dye, Chief Executive Kevin Quinn, Finance Director Telephone 020 7259 6663
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Financial Dynamics Andrew Lorenz/Susanne Yule Telephone 020 7269 7291 |
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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