Resilient sales at BSS
Published: 11 February, 2010
LEICESTER: Interim results for the BSS Group showed revenue up 0.9% to £473.4m for the period October to February.
Like for like revenue, excluding the impact of new branches and acquisitions, was 2.1% below last year, against a 6.8% like-for-like reduction in the six months to 30 September 2009.
Colder weather in December helped sales in the Domestic Division as repair and maintenance activity increased with boiler usage. Snow disruption in January caused some loss of business, primarily domestic contract work, but the adverse impact was offset by the better performance in December, the company said.
The underlying core R & M business that underpins revenue has remained resilient throughout the period the company said in its statement. "We are continuing to focus on margin recovery and believe that price conditions are showing signs of stabilising."
"Costs continue to be tightly managed; like-for-like costs in the period were 5.2% below last year against a 7.8% decrease in the six-month period to 30 September 2009," the company said.
BSS anticipates that government capital expenditure, which will represent around 10% of group revenue in the current financial year, will reduce significantly in the coming years. It is pursuing new revenue streams to offset the expected reduction in public sector activity beyond the current financial year.
The Board expect profits to be in line with market expectations for the year ending 31 March 2010.