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Annual Results

Berendsen revenues and profits rise

03 March 2017 07:21

Berendsen posts adjusted pre-tax profits of £140.6m for the year to the end of December - up from £135.1m last time.

Underlying revenue grew 2% to £1.1bn - up 9% on a reported basis.

The group said adjusted operating profit of £161m was in line with the trading update in October and reported operating profit grew 7% to £140.7m.

The group said its second half performance was affected by legacy issues in UK textiles (Workwear, Hospitality & Healthcare) and UK textile profits were reduced by £10m compared to the prior year but progress across the rest of the group was maintained.

The dividend is up by 5% to 33.0p, reflecting positive outlook for growth and ongoing balance sheet strength.

Chief executive James Drummond said: "2016 was a difficult year for our UK textile operations, but we are confident that the actions we are taking will drive tangible improvements across all aspects of our operations.

"This will enable us to better serve our existing customers and make the most of the opportunities we see in our markets.

"2017 will be a year of transition: in the first half, we will continue to be impacted by legacy issues in the UK; in the second half, we will start to see benefits coming through from our ongoing investment in plants, people and systems. During 2016 we made significant progress in installing common processes and controls across the Group.

"This will allow greater visibility of the performance across each of our businesses, and will strengthen our ability to share best practice across the Group.

"Over the medium term, our strategy will enable us to progressively capture the sizeable opportunity for margin improvement, particularly in the UK, as we minimise the significant cost of inefficiency in our legacy operations in the UK.

"In addition, the capital investment programme, which we are increasing and accelerating, gives us greater visibility and increasing confidence in our medium term growth opportunities across the Group."

Story provided by StockMarketWire.com

Related Company: BRSN

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