As with many other UK-listed companies, adverse currency effects caused a headache for Berendsen (BRSN) in 2014. The negative currency effects masked full-year underlying revenue growth of 3 per cent and a 6 per cent rise in adjusted operating profit to £159m.
Berendsen's Facility business - which produces washroom products, doormats and cleanroom clothing - was the fastest-growing segment in 2014, helped along by a foray into the UK cleanroom market and a bolt-on acquisition in Poland. Revenue rose 7 per cent on a constant currency basis, while adjusted operating profit was up 8 per cent. The sales mix for the segment's Mats product line - which accounts for more than half of divisional revenues - shifted more towards higher-margin premium products.
The group focused on cutting costs and improving efficiency in its core Workwear division, leading to a 130 basis point increase in the division's operating margin to 21.1 per cent. The division's continued efficiency drive has resulted in a 5 per cent increase in sales per person. Management intends to expand the division's German presence this year, where Berendsen is starting to win bigger contracts.
Broker Oriel expects adjusted EPS of 63p this year, up from 52.6p in 2014.
BERENDSEN (BRSN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,102p | MARKET VALUE: | £1.9bn | |
| TOUCH: | 1,100-1,102p | 12-MONTH HIGH: | 1,161p | LOW: 896p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 290p* | NET DEBT: | 74% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 1.0 | 34.6 | 12.9 | 21.2 |
| 2011 | 1.0 | 79.3 | 33.8 | 23.4 |
| 2012 (restated) | 1.0 | 91.7 | 41.3 | 25.5 |
| 2013 | 1.1 | 112.4 | 49.8 | 28.0 |
| 2014 | 1.0 | 117.0 | 52.6 | 30.0 |
| % change | -2 | +4 | +6 | +7 |
Ex-div: 9 Apr Payment: 8 May *Includes intangible assets of £427m, or 248p a share | ||||
