Berendsen underlying revenue up, but warns on forex

Berendsen has seen a boost in underlying revenue and operating profit growth since its half year results, but has warned about the ongoing effect of exchange rates.

The FTSE 250 textile services company issued a trading update on Thursday for July to October.

Group underlying revenue was up 3% compared to the same period in 2014, and underlying group operating profit was “well ahead”.

While revenue growth was at 2.4% for the year to date at constant exchange rates, foreign exchange did take its toll, with reported revenue down 4%.

“Our reported results continue to be adversely impacted by currency translation and we see little sign of this diminishing,” it warned.

“However, as previously guided, the board expects the group to achieve a further year of good underlying progress.”

The company said trading during the period was in line with management's expectations with good progress in its workwear division, particularly in Germany with growth in revenue and market share.

The sale of one of the company’s UK Workwear sites also offset the £2.1m closure costs of the Croydon plant announced earlier this year.

Shares in Berendsen were up 19p (1.85%) at 0916 GMT to 1,048p.