Strong financial results
Underlying revenue up 3%, with revenue in Core Growth up by 3%
o Facility revenue grew 7%, underlying, with operating margin at 25.9% (25.7%)
o 130bps operating margin improvement in Workwear to 21.1%
o UK Flat Linen revenue up 1%: favourable market conditions
Underlying adjusted operating profit up 6% and operating profit margin up 40 bps
Further progress on delivery of our strategic objectives
4% growth in adjusted EPS despite strength of Sterling
116% of adjusted profit after tax converted to free cash flow
Return on invested capital increased by 60bps to 9.9% in line with targets to deliver double-digit ROIC
Dividend up 7%, ahead of EPS growth and in line with our progressive dividend policy
Significant operational developments
Cleanroom acquisition in UK extending footprint
Productivity improvements in UK Workwear enabled plant consolidation: £1.5 million of costs charged to operating profit
Building our procurement and supply chain strategy
Workwear in Ireland moved from Manage to Value to Core Growth in 2015
Well positioned to generate further shareholder value
Strong balance sheet, with long term debt issued at attractive rates, providing flexibility to support investment
Initiated a review of our markets and targets for a strategy update in Autumn 2015: opportunities re-confirmed
Iain Ferguson, Chairman of Berendsen, commented:
"We delivered a good operational performance in the year, reflecting continued momentum towards achieving our strategic objectives. Our reported results were adversely impacted by currency translation and, although we see this persisting, the Board expects to achieve a further year of good underlying progress in 2015.''
