Elis, the international multi-service provider, offering textile, hygiene and facility services solutions in Europe and Latin America, has reported a “very satisfactory” half-year financial performance in its results for the six months ended June 30, 2019. The group’s revenue rose by 4.5% driven by 3.0% organic growth.
Elis reports a very good level of activity in France, Southern Europe, Latin America and Scandinavia & Eastern Europe, and a further improvement in the retention rate in the workwear segment in the UK.
Xavier Martiré, CEO of Elis said: “The 2019 half-year results are very satisfactory. In a context of high cost inflation, Elis demonstrated its ability to increase prices while sustaining strong commercial activity, resulting in organic growth of +3.0% in H1. Margin is down -20 basis points; this slight decrease, attributable to the time lag between the cost increase observed since January and the gradual implementation of price increases throughout the first half, will be offset in H2.
“In 2019, we entered the final stage of the capex (capital expenditure) plan related to Berendsen; as expected, total investments will reach 20% of revenue this year and will then return to a normative level of approximately 18%. Moreover, the refinancing of the 800-million-euro bond maturing in 2022, announced in April 2019, enables the Group to extend the average maturity of its debt, spread its repayment over time and reduce its overall cost of debt. Therefore, Elis’ cash generation, which will already improve in 2019, will accelerate significantly in 2020.
“The good H1 results enable us to confirm our 2019 annual guidance. We expect organic revenue growth of c. 3% and an EBITDA margin between 31.2% and 31.6%.”