Trading Update

 30 April 2015

Berendsen plc

 Trading Update

The Board of Berendsen plc ("the Group'') today issues a Trading Update for the period from 1 January 2015, 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. Compared to the equivalent period last year, Group revenue, at constant exchange rates, was up 3% and on an underlying basis, before acquisitions, was up 2%. Our Core Growth businesses grew 1% on an underlying basis. Revenue growth in the first quarter in the UK Flat Linen business was impacted by the previously advised contract churn in Hotels. Underlying volume growth in our UK Hotel business remains good. Facility continues to see good underlying development, particularly in our Cleanroom business and the integration of the UK acquisition that we made at the end of last year is progressing well. Workwear continues to make progress despite challenging markets. In Manage for Value, underlying revenue was up as a result of the previously announced new contract wins in Scandinavian hotels. As expected, reported revenue was impacted by the further strengthening of sterling resulting in reported revenue for the Group being down 5% compared to last year.

At constant exchange rates, underlying Group operating profit was in line with the equivalent period last year. In Facility, we have invested in additional sales resource in the first quarter of the year and, while this has impacted the operating margin as expected in the short term, we believe that this will drive a greater degree of sales penetration in markets which offer good opportunities for growth over the longer term. Workwear continues to capture the benefits of best practice transfer, contributing another excellent period of profit growth. Profits of our UK Flat Linen business and our Manage for Value businesses were affected by the contract changes noted above, with profits of the Flat Linen business in the UK lower, but with profits well ahead in those businesses outside the UK.

Interest costs were slightly lower in the first quarter and we are pleased with the underlying progress in our profit before tax. On a reported basis, profit before tax for the quarter was lower than last year, again as a result of currency translation.

Our free cash flow was in line with expectations and we continue to target converting around 100% of our profit after tax into free cash flow for the year as a whole. Our net debt is slightly higher than at the start of the year.

On 19 March 2015, we successfully concluded the renegotiation of our Revolving Credit Facilities (RCF) with a new €510 million facility extending out to March 2020 with the possibility to extend for a further two years. This replaced existing facilities which were due to expire in July 2016. The total facilities available to the Group are £830 million with our new RCF and our private placement notes extending from 2016 to 2025. Our financial position and balance sheet remain strong.

The Group has made a satisfactory start to the current year with trading in line with management's expectations. Our reported results continue to be adversely impacted by currency translation and we see little sign of this diminishing. However, as previously guided, the Board expects to achieve a further year of good underlying progress.

We have today made a separate announcement that Peter Ventress, CEO, will retire from the Board with effect from 31 July 2015 and that his successor, James Drummond, will join the Board on 1 July 2015. Further biographical information about James Drummond can be found in that announcement.

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 50584980#

Playback Details

Playback Number 020 3426 2807

Playback Toll Free Number 0808 237 0026

Playback Pin Code 69454847#

For further information contact:

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.