Berendsen, the FTSE 250 European textile maintenance company, said that trading continues to be in line with expectations and that it expects to report 'good' year-on-year progress for 2012.
However, the company said that while underlying revenue is up 2% in the 11 months ended November 30th, the reported top line is "down slightly" owing to adverse currency movements.
Revenue from its Core Growth businesses was up 3% year-on-year on an underlying basis during the period.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The trading trends we experienced in the first nine months of the year have continued into the fourth quarter in each of our business lines," the group said.
Operating margins have improved while the group has seen "good growth" in adjusted profit before tax (PBT).
Meanwhile, strong free cash flow means that Berendsen expects to deliver more than £100m in 2012, well above its target of 100% conversion of its adjusted PBT, resulting in a reduction in net debt.
-
Should you sell in May this year?The market adage looks unlikely to apply in 2024, and global equities are proving resilient
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
