BSS Group 17Wk Comparable Revenue +7% To GBP435.3M >BTSM.LN

29th Jul 2010 07:47

LONDON (Dow Jones)--BSS Group PLC (BTSM.LN), a distributor to specialist trades, said Thursday that total revenue for first 17 weeks ended July 28 rose 12%, or 7% on a like-for-like basis, to GBP435.3 million. MAIN FACTS: -New branches contributed 1.2% and acquisitions a further 3.3% of Group revenue growth. -BSS Group has had a strong start to the new financial year with all three divisions showing encouraging like for like growth in revenue and, as anticipated, improving gross margin trends. -Outlook for the Industrial Division remains positive as new revenue from water utilities and drainage, below and above ground, continues to offset the anticipated slowdown in Government capital expenditure; Expects essential R & M work to increase as a result of reduced new build activity in the public sector. -Remains confident the Specialist Division will deliver revenue and profit growth in 2010/11. -Gross margin trend is now positive following selective price increases, purchasing benefits and revisions to trade terms. -Like for like costs in the period (excluding one off transaction costs relating to the Travis Perkins' bid) are 2.6% below last year against a LFL revenue increase of 7.0%. Costs remain tightly managed. -Board believes the Group's focus on revenue growth, margin improvement and tight control of costs would enable it to outperform the market. -Shares closed Wednesday at 439.5 pence valuing the company at GBP546.58 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 29, 2010 02:47 ET (06:47 GMT)