Strong financial position.
BSS revenue down, market share up
Published: 27 July, 2009
LEICESTER: Market conditions remain challenging. The BSS Group's interim management statement for the first…
16 weeks of the new financial year, covering the period from 1 April 2009 to 17 July 2009, showed revenue to be below that of last year.
Total Group revenue of £369.5m was 5.6% below last year on an equivalent trading day basis.
"We believe all of our businesses are continuing to grow market share but the later cycle industrial and specialist divisions are now being drawn into the downturn while the domestic division is holding up better against last year," said the company.
Further progress was made in optimum resourcing. Like-for-like costs in the period are 7.2% below those of last year.
Further cost savings of £5m are being implemented and represent a further 2% reduction in the cost base. The Group continues to anticipate that financial year 2009-10 will be a year of weaker demand with tough trading conditions in the industrial and specialist sectors.
The Group's financial position remains strong. Net debt to income before interest and taxes and depreciation and amortisation at 31 March 2009 was 1.2 times. There have been no material events or transactions affecting the Group in the period, other than the acquisition of DHS Heating Spares of Leyland for £5.7m in April 2009.
The Group anticipates being cash positive in financial year 2009-10 and its "uncommitted borrowing" facilities as at 31 March 2009 were £110m. These facilities have maturity beyond March 2012.