Berendsen earnings improve as board invests in capability

29th Jul 2016 08:39

(ShareCast News) - Berendsen posted interim results for the six months to 30 June on Friday, with revenue ahead 7% at £533.5m, or 3% on an underlying basis.Adjusted operating profit was up 7% to £70.2m, while adjusted profit before tax also improved 7% to £60.2m.Its adjusted earnings per share were ahead 8% to 27p, with the board declaring an interim dividend of 10.5p, up 5%.The FTSE 250 firm said workwear underlying revenue grew 4%, with a margin of 18.2%.It reported 6% revenue growth in Continental Europe, of which Facility underlying revenue grew 3%, including "double digit" growth in the Cleanroom division.UK Flat Linen revenue growth was 2%, although margins were down at 6.0% compared with 8.9%.Berendsen said capability investments were made during the period, and actions initiated to deliver stability and improvement in operations.Its adjusted operating profit included capability investments of £1.5m and further plant consolidation of £2.4m in UK Workwear and German Healthcare."We are pleased to report good progress in line with our expectations, both in operations and in implementing the strategy review we set out in November 2015," said Berendsen chairman Iain Ferguson."The board expects to achieve a further year of good underlying progress in 2016."