Interim figures give optimistic picture of BSS Group
Distributor BSS Group has reported total revenue up by 4.4% to £437 million for the period 1 October 2008 to 31 January 2009, the first 18 weeks of the second half of the financial year, on an equivalent working-day basis. Like-for-like revenue, excluding the impact of new branches and acquisitions was 0.2% below last year, against 3.3% like-for-like growth in the six months to 30 September 2008.
The industrial division saw like-for-like growth in revenue in the period of 2.8%. The rate of growth was affected by deflation on copper and steel prices.
TThe company reports the outlook for the industrial division remaining positive at this stage. New contracts have been secured, and many customers continue to have full order books. BSS Group expects a slowdown in private-sector non-residential new-build business later in 2009, but public-sector repairs and maintenance activity (R&M) activity is expected to remain resilient. The division continues to diversify, and new growth opportunities are being pursued.
TFor the domestic division, total revenue, including new branches, was 4.6% up on last year on an equivalent working-day basis, with like-for-like revenue 1.1% down on last year.
TThe domestic division has grown its share of the R&M market through tactical trading initiatives, steady contract performance, a focus on customer service and the ability to win more business from existing customers — plus the positive impact of new branch openings (14 opened in the period and 25 opened in the year to date).
TParts sales have enjoyed double-digit growth as consumers have sought to repair as opposed to replacing existing boilers and heating systems. BSS Group sees a more challenging outlook in 2009, but is positioned to trade through a recessionary market. The core business is primarily focused on the R&M market, and a significant proportion of revenue is generated from long-term contracts. The cost base is being reduced, with year-end headcount expected to be 5% below peak levels, excluding new branches.
TThe board currently expected the financial position of the group to strengthen in the current year and profits to be in line with last year.
