Berendsen laundry sales shrink in heat of currency markets

27th Feb 2015 10:21

Full year results from laundry services group Berendsen were ill-received by the market after sales were hit by the strength of sterling, even though earnings still delivered growth.Management said they expected currency impact to persist but expect to achieve a further year of good underlying progress in 2015.The FTSE 250 group saw sales shrink 2% to £1.04bn, though they rose 3% at the underlying level.A 40 basis-point gain in operating profit margins led to a 6% gain in operating profits to £158.7m, with pre-tax profits up 2% to £138.5p.Despite the strength of sterling, adjusted earnings per share rose 4% to 62.1p and, with 116% of adjusted profit after tax converted to free cash flow, the board lifted the full year dividend 7% to 30p.Chairman Iain Ferguson said the good operational performance reflected continued momentum towards achieving management's strategic objectives.In the latter part of 2014, a strategy review outlined the scope for further outsourcing potential in the market."We firmly believe that there is still a great deal of opportunity for the group to continue to grow and drive efficiencies in its existing markets and in its current business lines."