This is one I have mentioned in passing in an earlier posting back in April entitled If greed is good then boring is... which featured Berendsen (BRSN) as one of the boring stock examples. They have today reported an update statement before entering its close period for the half year ending 30 June 2014 and prior to its half year results announcement, which will be issued on 29 August 2014.
In this they report that they are trading in line with expectations with a 3% rise in underlying revenues overall and in their core business at constant exchange rates. However, in common with many UK businesses with overseas operations, they have been hit by the rise in Sterling this year. This means that their actual reported revenues will be down by 1% in the period as a result. They do however talk about improved margins in their growth businesses and some improvement in their more mature cash cow businesses like work wear and flat linen (sheets and towels) in the UK from new business. In linen overseas they flag revenue gains from contract wins but lower profits due to lower pricing and start up losses for new operations. They suggest their interest costs were down thanks to strong cash flow and that their reported pre tax profits were ahead over the first five months. So it sounds like steady as she goes and the Company said in closing:
"Whilst our reported results will be influenced by the impact of currency translation, on an underlying basis, we have made good progress for the first half of the year in line with management's expectations, and the Board continues to expect to achieve further good progress for the year as a whole."
They seem fairly valued having come back recently with other mid cap stocks so at 983 pence they are on around 14 to 15x earnings with a well covered 3% yield which is expected to grow by around 7% per annum. Nothing in this statement to get upset or excited about either way but then that is what you would expect from a staid stock like this. But as I said before boring can sometimes be brilliant - see chart below and the link to my earlier post for more details and the file below to download a fact sheet on them.