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Trading Update

27th Oct 2016 07:00

RNS Number : 5652N
Berendsen PLC
27 October 2016
 

This announcement contains inside information

27 October 2016

 

Berendsen plc

TRADING UPDATE

 

Berendsen, Europe's leading textile service business, today issues a trading update for the period from 1 July to 30 September 2016.

 

Reported revenue for the period, compared to the prior year, increased by 12.9%, with underlying growth, at constant exchange rates and before acquisitions, of 2.4%. Reported revenue for the first nine months increased by 10.1%, with underlying growth of 2.8%.

 

The Facility business line built on the good momentum from the first half. The Hospitality and Healthcare business lines continued to be impacted by the legacy UK flat linen operations, as outlined in the half-year results statement. Continued operational instability during the peak Summer months resulted in higher than expected costs being incurred in order to maintain customer service levels. Similar issues also impacted some parts of the Workwear business line in the UK. As a result, the Board now expects adjusted operating profit for the year to be c.£160 million (2015: £153.8 million).

 

The Berendsen Excellence strategy being implemented across the Group addresses the issues outlined above, as well as delivering continuous improvement across the Group, through: customer focus; operational excellence; organisational capability; and effective use of capital. As part of this strategy, the Group is undergoing an organisational capability review to assess and strengthen the workforce, with particular focus in the short term on the UK operations. This will create the operational stability required for the implementation of the Group's superior operating model and enhance the returns of the capital investment programme.

 

During the period the Group made a small bolt-on acquisition in the Facility business line, whilst also disposing of a small non-core Hospitality business in the UK.

 

Conference Call

A conference call for analysts and investors will be held at 8.00am (UK time) today, 27 October 2016:

Participant details

 

Dial in number:

020 3139 4830

Participant PIN Code:

63886051#

 

Replay details

 

Dial in number:

020 3426 2807

Conference Number:

678634#

 

For further information contact:

Berendsen

Peter Young - Director of Investor Relations

Email: [email protected]

Tel: +44 (0)7825 297 198

 

FTI Consulting

Richard Mountain

Telephone: +44 (0)20 3727 1374

 

Notes to editors:

1. Berendsen is Europe's leading textile service business, developing and delivering value-added textile, hygiene and safety solutions to 150,000 customers in 16 countries across Europe. Berendsen operates with 4 business lines in the Workwear, Facility, Hospitality and Healthcare markets. Berendsen has over 100 years of experience in the industry and today employs over 15,000 employees.

2. Adjusted operating profit: 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.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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