 saw shares plunge over 15 percent on Friday, after a "difficult" year for the textiles industry.){kind=link}
Textile service company Berendsen (LON:BRSN) saw shares plunge over 15 percent on Friday, after a “difficult” year for the textiles industry impacted full-year results.
Underlying operating profit fell 4 percent to £161 million over 2016, in line with a previous trading update in October. Reported operating profit grew 7 percent to £140.7 million, with reported revenue up 9 percent to £1,110.
In a statement, the company reiterated that the first half of 2017 would continue to be impacted by legacy operations but added that performance was likely to improve in the second half.
James Drummond, the group’s CEO, called 2016 a “difficult year for textile operations”, adding that:
“2017 will be a year of transition: in the first half, we will continue to be impacted by legacy issues in the UK; in the second half, we will start to see benefits coming through from our ongoing investment in plants, people and systems.”
In the wake of the full year report, Berendsen had its hold rating reiterated by analysts at HSBC on Friday. HSBC have a 940p target price on the stock.
Analysts at Peel Hunt also reacted to the news, restating an ‘add’ rating in a research note issued to investors. Peel Hunt’s price objective would indicate a potential upside of 2.31% from the company’s previous close.
Berendsen shares are currently trading down 16.3 percent on the weaker than expected figures, at 778.50 (0925GMT). The company raised its dividend per share 5 percent to 33 pence.