Berendsen Share Discussion Threads

[blueliner] 28/10/2011 07:52

IMS this morning



trading in line....continuing good growth in Nordic & Continent regions... more modest UK & Ireland

[blueliner] 27/8/2011 08:57

From UK analyst.....no broker comment though

' the acquisition of ISS in the group's Nordic arm boosted margins significantly. The group endured exceptional costs of 2.9 million pounds restructuring German Healthcare and 3 million pounds via the implementation of a strategic review, with the latter developing the medium and long term ambitions of the group.'

[blueliner] 26/8/2011 18:53

Well the chairman is demonstrating his confidence with a cool 10000 shares bought on the dip today.
My take on results - going very well in Scandinavia & to lesser extent in Poland.
German problems still being addressed.
UK & Ireland flat [more provisions for future decontamination losses] but holding it's own though margins narrowing.

Debt RCF renegotiated until 2016.

Another dividend uplift, I make it a total of 22.1p per share.

Moneyextra also are in denial that Berendson exist, mucks up my figures.

[losos] 26/8/2011 11:53

Stormy - "I like it, shame ADVFN are not up to stream!!"

This is not unusual,generally ADVFN provide an excellant service but sometimes they are below par, their search engine function for Berendsen (by name) found nothing lol!!!

Have been watching BRSN for a while and note that they have just released another management statement which is all good news. OK they've had to spend a load on re-organising the German operation, but still doing well overall.

Seems to be a company that is below the radar of many brokers and financial institutions, think it's time for me to get in.

Comments from al and sundry welcomed :-)

[blueliner] 05/7/2011 11:52

Comment from the Motley Fool UK site dated yesterday, written by Tony Luckett

[onlyonestorm] 30/6/2011 08:04

I like it, shame ADVFN are not up to stream!!

Stormy

[blueliner] 30/6/2011 07:39

Excellent trading update this morning, not flagged on ADVFN



Summary : The Group will deliver a good underlying first half performance, with reported profit before tax expected to be significantly ahead of the same period last year.

[nellie1973] 13/6/2011 10:17

Broker note out-BUY target 585p

[onlyonestorm] 02/5/2011 19:20

Woo Hoo!!!

[blueliner] 28/4/2011 20:17

Way to go....

from UK Analyst
Seymour Pierce maintained its "buy" recommendation for Berendsen (BRSN), the British-based provider of textile maintenance services, with an increased target price of 545p, up from 485p. Commenting on the first three months of the year, the broker said the business has made "steady" progress reporting modest revenue growth, improving margins and strong cash flows. Looking ahead, Seymour added that it was positive with management expecting to achieve further growth in the year

[onlyonestorm] 28/4/2011 14:27

nice positive statement going forward!!

Ilike it!!

Stormy

[onlyonestorm] 12/4/2011 10:01

Ex Divi tomorrow, and what a Divi!!!

Stormy

[blueliner] 09/3/2011 20:02

Just for the record as above..... ex M o n e y A m
'Berendsen raised to neutral from underweight at HSBC, target price upped to 505p from 380p.'

[nellie1973] 09/3/2011 14:51

broker upgrade

[blueliner] 02/3/2011 21:09

Hope Mutandis13 on i i i bb doesn't mind me copying his recent posting on the FY results here. Interesting reading......

Fri 17.33 Finals
'Results were at the top end of expectations, after stripping out some large one off write-offs.

The problem with BRSN is that with the write-off and acquisition costs during the year, net debt has been increased from an already high £485m to £540.2m, representing gearing of 115%. Interest cover is 3.6x (after adding back the goodwill impairment), this is a deterioration from 2009 and below the minimum level I feel comfortable with of 4x.

As with all my holdings I run through the numbers for the Altman Z score. BRSN comes in below the critical 1.8 level with 1.72.

They do make the statement "...We continue to focus on cash delivery and on maintaining a strong balance sheet...". It is difficult to see how they are going to make much headway with a reduction in debt, unless operating cash flow increases considerably in 2011.

Using broad brush numbers:

Net cash from operating activities £230m
Capex incl. intangibles (£170m)
Additional pension payments (£5m)
Dividend payments (£35m)
Further German reorg. costs (£2.3m)
Strategic review costs (8.6m) assumes £10m spent after £1.4m in 2010.

This leaves £9m available to reduce debt, plus any improvement on cash generation from operating activities in 2011.

There is little margin for error and my concern would be the effect of increasing interest rates and a deterioration in their market, possibly calling for more reorganisation costs.

Management have done a good job, making some difficult decisions, but I feel they are battling against an economic headwind. I do wonder if the two recent acquisitions were the best use of their limited resources, but I obviously know little about the opportunities of those businesses and have to take it on trust that the returns will be worth it.

Having sold 75% of my holding sometime ago, there may be a better home for the balance. So I am currently reviewing the investment, especially since the market seems to have warmed to the company with these results. '

[blueliner] 25/2/2011 17:45

Can't believe this afternoon's chart, will have to go thru the FY ann in more detail, thought the write downs would be a drag on the share price

[onlyonestorm] 25/2/2011 13:43

I like it, I like it!!! 14.7p divi as well!!

[nellie1973] 25/2/2011 13:36

Broker upgrade

[blueliner] 18/1/2011 20:35

Didn't realise a name change could have such an effect on a share price, blown the 'naked trader's' short completely out of the water.

[blueliner] 05/1/2011 21:51

Not many followers or posts, but to avoid it slipping off radar completely please use this thread.

[blueliner] 05/1/2011 21:50

Company website


Formerly known as Davis Service Group operating as textile maintenance services companies comprising-
Sunlight Service Group / Spring Grove Services (Ireland) Limited_ UK & Ireland
Sophus Berendsen Group_Continent & Scandinavia