Home / Knowledge / News / Textiles / Davis Workwear delivers stable performance in UK & Ireland
Davis Workwear delivers stable performance in UK & Ireland
14
May '09
The Board of The Davis Service Group Plc (''the Group'') issues its interim management statement which covers the period since 1 January 2009, prior to holding its AGM.

In the first three months of 2009 the Group achieved 8% growth in revenue, with a modest improvement in operating profit, compared to the same period last year. These results benefited from foreign exchange translation, with revenues broadly flat at constant exchange and operating profit approximately £1million lower. Interest costs were higher than last year, with the effect of foreign exchange offsetting the lower interest rates. Our free cash flow is ahead of the same period last year benefiting from tight management of capital expenditure.

Divisional Performance
Nordic
The market conditions for Nordic region outlined in our 26 February 2009 announcement have continued. In Denmark, our broad customer base, much of which is relatively defensive, is delivering a balanced performance and in Norway, although the pace of growth has slowed considerably, we are still finding market opportunities. Sweden is our most challenging market for both textile maintenance and direct sales operations with no sign of the pressures in the economy easing in the short term. The Baltic States and Finland, while small, are making progress despite challenging economic conditions.

Continent
Holland and Poland and our German Workwear business are holding up well and we are working hard to absorb the pressure on volumes from the reductions in customer employment levels. German Healthcare will remain a challenging market for some time, but we are starting to see the operational benefits from restructuring actions. Austria remains stable and the Czech Republic is progressing.

UK & Ireland
As expected, the fall in hotel volumes impacted the first quarter result but we are reducing costs and holding our pricing. Healthcare continues to grow well. Workwear delivered a stable performance, benefiting from a high level of new contract wins, but it is experiencing pressure on underlying volumes. We are nearing completion of the construction of the new decontamination centres which will commence operation later this year. We are taking robust action in Ireland where the market has become progressively more challenging.

Financial Position
We maintain a strong balance sheet and our debt is committed for periods of up to nine years, with significant facilities undrawn.

Outlook
The Group is meeting the demands of the current testing environment and is taking action in the parts of the business that are most directly affected. We are focused on maintaining the strong cash generation of the business, in particular by managing capital expenditure. Performance in the first quarter of the year has been resilient and while the remainder of the year will be challenging, the Board expects to deliver a satisfactory outcome for the year.

Davis Service Group is a focused European textile maintenance business with leading positions in most of the countries in which it operates. As a focused business we are able to mobilise our resources to drive our strategies in our core area of expertise.

Davis Service Group plc


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search