Berendsen Share Discussion Threads

[cockneyrebel] 29/4/2012 10:40

cheers philanderer :-)

CR

[philanderer] 29/4/2012 09:55

Yep , very wet and windy here Wiwaxy..... going to get a good soaking watching QPR get beaten at Stamford Bridge :-(

[wiwaxy] 29/4/2012 09:50

Thanks for that philanderer.
Nice bit of good news on a rainy weekend.

[philanderer] 29/4/2012 09:45

Tipped in the Telegraph this morning.

"Questor share tip: The Berendsen story is all about rising margins"

Berendsen, which used to be known as Davis Service Group, provides textiles cleaning services in the UK and Nordic countries.

By Garry White
7:00AM BST 29 Apr 2012

Berendsen
520½p

Questor says BUY

[philanderer] 27/4/2012 08:42

JP Morgan Cazenove reiterating 'overweight' for BRSN.

[philanderer] 26/4/2012 12:22

Sharecast:


LONDON (SHARECAST) - Unfavourable currency movements prevented Berendsen from achieving like-for-like (LFL) revenue growth in the first quarter but did not stop it from boosting its operating margin.

The workwear and wash-room services firm's top line was unchanged from the first quarter of 2011, but once you strip out currency effects the group enjoyed a 2% year-on-year rise in underlying revenue, in line with its expectations.

The company also said it delivered an encouraging improvement in operating margin although it experienced slightly higher interest costs due to the signing of a new revolving credit facilities in July last year to secure long term funding. Reported profit before tax for the quarter was moderately ahead of last year.

The Workwear business continues to make steady progress overall, with some pockets of stronger growth emerging. The Facility business is seeing good levels of revenue growth and the UK Flat Linen businesses are delivering in line with expectations, although the first quarter is typically the firm's slowest. The company said the Manage for Value businesses have responded well to the challenges of improving margins and generating cash.

Free cash flow was strong during the period, with net debt below £500m and bank facilities over £800m.

"We have made a solid start to the current year with trading in line with our expectations and the board believes that the group is well positioned to achieve further growth," the firm said.

[philanderer] 26/4/2012 11:47

26th april Oriel Securities 'buy' tp 600p

reiterates

[philanderer] 26/4/2012 09:26

26th april Investec buy tp 570p

reiterates

[philanderer] 26/4/2012 09:14

Downgrade from Seymour Pierce

Buy to Add .... target price unchanged at 545p

[philanderer] 26/4/2012 08:33

Solid yet again.

"..We are pleased with the progress our new business line teams are making and our focus on sales and growth initiatives is gaining momentum. In our Core Growth businesses, Workwear continues to make steady progress overall, with some pockets of stronger growth emerging."

[blueliner] 26/4/2012 07:43

IMS this morning, in line.



Net debt has now reduced from £540M y/e 2010
to £514M y/e 2011
now 4 months on less than £500M.

[philanderer] 24/4/2012 20:06

No problem ... hopefully Panmure will upgrade after the statement on thursday ;-)

[wiwaxy] 24/4/2012 17:03

Thanks Philanderer..Oops, always said I lived in the past.

[philanderer] 24/4/2012 16:56

Wiwaxy , I had Panmure issuing that tp of 582p on 27th february ??

[wiwaxy] 24/4/2012 09:52

Panmure Gordon - buy - raises target, 510p to 582p

[cockneyrebel] 23/4/2012 17:19

Yep, 26th, Investgate has that date too.

CR

[philanderer] 23/4/2012 17:14

UT: 35k @ 525p

[philanderer] 23/4/2012 09:33

Ah , thanks battlebus..... I`was going by the Yahoo Finance diary :-S

Last year the IMS was the 28th april, so only a few days anyway.

[battlebus2] 23/4/2012 09:03

AGM not to the 26th usually the two together.

[cockneyrebel] 22/4/2012 14:11

cheers philanderer :-)

CR

[philanderer] 22/4/2012 00:20

Mail on Sunday:

MIDAS UPDATE: Investors clean up as Berendsen shares rise by 32%

Followers of Midas have reaped big rewards after a revamp at Berendsen, which supplies and cleans workwear ranging from overalls to nurses' uniforms.
Two years ago, the company, which was then called Davis Service Group, was drifting. Costs were too high and profits routinely disappointed. A new chief executive, Peter Ventress, was appointed to shake up the business and he set to work with gusto.
The company, which operates under the Sunlight brand in Britain, is best known for renting out and cleaning workwear.

But it also operates across the Continent and Ventress believes there is significant potential for growth.

The market there is worth about £8billion, but most European businesses own their workwear rather than rent it.

As outsourcing becomes more popular and as health and safety constraints become more rigorous, Ventress expects more companies to rent instead. The group recently won a contract with the Berlin Fire Brigade and hopes similar deals will follow.
Berendsen has moved into related areas too, supplying towels and other washroom facilities to hotels, hospitals and offices and providing doormats for retailers.
It has recently launched a clean room service, supplying uniforms to companies such as drug manufacturers that require workwear to be absolutely germ-free.

Midas verdict:

Midas recommended Berendsen, as Davis, in December 2010, when the shares were 405p.

Today they are 32 per cent higher at 535p. In February, the group said profits for 2011 had risen 15 per cent to £112 million, while the dividend was ten per cent higher at 23.4p.

Further growth is expected this year and next. Investors might want to hedge their bets and sell a quarter of their stock, but keep the rest as Ventress is determined to make this company bigger and better.

[philanderer] 20/4/2012 17:25

UT = 12,715 @ 535p

Ready for that IMS monday morning.

[philanderer] 17/4/2012 11:51

Target price of 568p on that Barcap initiation.

[blueliner] 17/4/2012 08:28

I'm not getting too excited by the 'Olympic' contract, particularily the athlete's gear etc. It's more of a prestige thing. Doing this type of work can be a PITA as daily volumes can vary enormously, the categories challenging and you have to have the facilities avail to to express it through.
Presumably the accommodation flatlinen has been included, this is better and can be easily managed on a rental basis.
Revenue could be lucrative, although a one off, the contract price level will reflect Sunlight's dominance particularily in the South East.
In the meanwhile the region's hotels demand for extra linen will go straight through to the bottom line, very nice.