News Column

Berendsen Trading In Line With Expectations, Warns On Lower Revenue

June 27, 2014

Anthony Tshibangu

LONDON (Alliance News) - Laundry and textile-maintenance business Berendsen PLC Friday said trading in the first five months of the year has been in line with management's expectations, with pretax profit up on last year, although reported revenue, including the impact of currency translation, fell 1% on the previous year.

FTSE 250-listed Berendsen said underlying revenue for the group, at constant exchange rates, was up 3% compared with the same period a year earlier, while in its Core Growth businesses, underlying revenue increased 3%.

Core Growth is made up of the Workwear, Facility and Flat Linen businesses.

The London-headquartered company said its Workwear arm continued to make progress despite receiving little help from its markets in Continental Europe.

On the other hand, the Facility business, which provides washroom and clean room services, continued to "convert the good opportunities we have for higher levels of organic revenue," Berendsen said.

The UK Flat Linen business increased revenues with continued momentum in underlying volumes in the hotel customer segment. Berendsen said it is also starting to see the revenue benefits of contract wins in Flat Linen outside the UK.

However, Berendsen said that, as it had previously indicated, profits are lower as a result of contract re-pricing in the second half of last year and start-up costs on these new contracts.

Berendsen shares were quoted up 0.5% at 982.50 pence Friday morning.

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Source: Alliance News

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