5th Dec 2005 12:00
Davis Service Group PLC05 December 2005 FOR IMMEDIATE RELEASE 5 December 2005 DAVIS SERVICE GROUP PLC PRE CLOSE TRADING STATEMENT Prior to Davis Service Group plc (the "Group") entering its full year pre closeperiod and in advance of the Group hosting an analysts' site visit on 6 December2005, it releases the following trading update. Current Trading As stated at the time of our Half Year results announcement the Group continuesto expect to deliver a satisfactory outcome for the current year. UK and Eire Market conditions in the second half of 2005 have remained challenging, and wehave seen a slower rate of volume recovery than expected. The London hotelmarket has not yet fully recovered from the aftermath of the July bombings, andas we disclosed at the Half Year results, we have taken certain actions tominimise the impact on profitability. In Healthcare, budget pressures in theNHS have put periodic pressure on volumes. Workwear continues to face thebiggest impact of pricing and increased costs. The UK's operating margin in thesecond half of 2005 has declined compared to the same period last year. Continental Europe Overall, our business has performed better than expected. This is despite therecontinuing to be little evidence of economic growth. We have achieved higherprofits and margins from our continued focus on efficiency, productivity andcost control, together with the benefit from a number of targeted bolt-onacquisitions. Full Year Results These are expected to be released on 24 February 2006. For further information contact: Davis Service Group Financial Dynamics Roger Dye Chief Executive Richard MountainKevin Quinn Finance Director Telephone 020 7269 7291Telephone 020 7259 6663 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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