Another year of steady progress for Berendsen (BRSN), a FTSE 250 constituent whose mundane business activities are never likely to attract column inches, but one that has delivered consistent returns, free cash flows and a progressive dividend policy. Although currency translations weighed on reported revenue for the textile services specialist, strip out these effects and sales were heading in the right direction, while underlying operating profit was 5 per cent to the good on the back of continued margin improvement.
Management highlighted a 40 basis point rise in the group's return on invested capital to 10.3 per cent, reaching its double-digit target, together with increased penetration of the large German workwear market.
Berendsen is also moving ahead with the implementation of its business line restructure that was outlined in November, including the establishment of a dedicated administrative structure for two existing business strands - hospitality and healthcare. A number of important personnel appointments have already been made and management is confident the changes will enhance operational performance across the group.
Prior to these figures, analysts at JPMorgan Cazenove predicted adjusted EPS of 64.1p for 2016, rising to 68.5p in 2017.
| BERENDSEN (BRSN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,165p | MARKET VALUE: | £2.01bn | |
| TOUCH: | 1,163-1,165p | 12-MONTH HIGH: | 1,165p | LOW: 947p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 298p* | NET DEBT: | 71% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 0.99 | 79.3 | 33.8 | 23.4 |
| 2012 | 0.99 | 91.7 | 41.3 | 25.5 |
| 2013 | 1.05 | 112 | 49.8 | 28.0 |
| 2014 | 1.04 | 117 | 52.6 | 30.0 |
| 2015 | 1.01 | 113 | 51.9 | 31.5 |
| % change | -3 | -3 | -1 | +5 |
Ex-div: 7 Apr Payment: 6 May *Includes intangible assets of £393m, or 228p a share | ||||
