Berendsen Share Price (BRSN)

Berendsen: UBS ups target price from 600p to 650p and downgrades from buy to neutral.

"The trading trends we experienced in the first half of 2012 continued in the third quarter of the year with the performances of the business lines also broadly similar to the first half. In particular, our higher margin Facility business continued to deliver revenue growth in excess of the group average. "The board continues to expect good year on year progress for the full year 2012." Free cash flow has been strong during the three month period, and the firm met its objective of converting in excess of 100% of its adjusted profit after tax. As a result, net debt at September 30th was around £470m, down from £514m at the beginning of the year. The group said its funding position remains "robust" with approximately £800m of private placement notes and facilities, most of which are committed to 2016 and beyond.

Berendsen, the work-wear and wash-room facilities provider, has reported that trading in the three months to the end of September was in line with expectations, with group underlying revenue up two per cent, although this was down two per cent at the reported level after the impact of currency. The firm saw a good performance in its Core Growth businesses, with revenue 3% ahead of the same period the previous year on an underlying basis (excluding acquisitions and currency impacts), which was consistent with its first half growth rate. "We again improved our operating margin and with a lower interest charge, we delivered good growth in adjusted profit before tax," the company said.

The trading trends we experienced in the first half of 2012 continued in the third quarter of the year with the performances of the business lines also broadly similar to the first half. In particular, our higher margin Facility business continued to deliver revenue growth in excess of the Group average. Our free cash flow has been strong in the period, meeting our objective of converting in excess of 100% of our adjusted profit after tax. As a result, net debt at 30 September 2012 was approximately £470 million, down from £514 million at the start of the year. The Group's funding position remains robust with approximately £800 million of private placement notes and facilities, most of which are committed to 2016 and beyond. The Board continues to expect good year on year progress for the full year 2012.

Interim Management Statement The Board of Berendsen plc ("the Group'') today issues its interim management statement for the period from 1 July 2012. This statement provides an update on the financial performance, and the financial position, of the Group based on management accounts for the three month period up to 30 September 2012 ("the period"). Trading in the period has been in line with our expectations. Revenue for our Core Growth businesses was ahead by 3% compared to the equivalent period last year on an underlying basis (excluding acquisitions and currency impacts), which was consistent with our first half growth rate. For the Group as a whole, underlying revenue was up 2% but was down 2% at the reported level after the impact of currency. We again improved our operating margin and with a lower interest charge, we delivered good growth in adjusted profit before tax.

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