Operational Highlights
Workwear underlying revenue grew 3%, with operating margin improving 50bps to 21.4%
o German Workwear grew 9% and UK Workwear saw good productivity improvements
Facility underlying revenue grew 4%, with operating margin unchanged at 25.9%
o Cleanroom delivered double-digit organic revenue growth
UK Flat Linen revenue up 1%, with margin down at 10.9% (12.8%)
o Impacted by churn in Hotels: Improvements targeted under new Business Line structure
Strategic and Financial Highlights
Group underlying adjusted operating profit up 5% and operating profit margin up 30bps
Adjusted EPS of 60.4p (62.1p); impacted by strength of Sterling during the year
99% of adjusted profit after tax converted to free cash flow of £102.5m
Return on invested capital increased by 40bps to 10.3% in line with delivering double-digit ROIC target
Dividend up 5%, ahead of EPS growth and in line with our progressive dividend policy
Iain Ferguson, Chairman of Berendsen, commented:
"We are pleased to report good operational progress for the year, in line with our expectations. Last November, we presented our Strategy Update reconfirming significant market opportunities and announcing the move to a revised four Business Line structure to accelerate the pace of delivery. During the course of 2016, we will be focused on completing the Business Line structure and on implementing a series of new initiatives designed to capture these growth opportunities. The Board expects to achieve a further year of good underlying progress in 2016."
