FRANCE
Elis, an international multi-service provider, offering textile, hygiene and facility services solutions across Europe and Latin America, announced on 2 May that revenue for the three months ended March 31, 2019 grew by 4.3%.
Xavier Martiré, CEO of Elis, said: “With organic revenue growth of +2.4% in Q1, Elis is starting the year with good momentum in most of its geographies.
In Southern Europe organic growth is up +7.0%, driven by the price increases negotiated in Spain in a context of a strong increase in labour costs.
“In Scandinavia and Eastern Europe, France and Latin America, trends are also very satisfactory. United Kingdom & Ireland slowed down due to lower organic growth in Ireland. In the UK, we continue to increase prices in hospitality and our efforts made in the commercial field continue to bear fruit with an improvement in the client retention rate in workwear. In Germany, workwear remains well-oriented and we continue our efforts to increase prices in the healthcare market.”
He continued: “Elis continued the densification of its network in its existing geographies with small-size acquisitions in Sweden, Denmark, Spain and more recently in Russia. These acquisitions have almost no impact on the debt leverage because of their small size and the reasonable multiples paid.
"Furthermore, in Q1 Elis refinanced part of its debt: The €800mn bond with a 3% coupon and a 2022 maturity has been refinanced with a €500mn bond with a 1.75% coupon and 2024 maturity and a €300mn USPP financing with a 2.70% coupon and a 2029 maturity, leading to a lower average cost of debt and extended maturities. This refinancing has been very well received by the markets and illustrates the confidence of investors in the Group’s strategy and business model.”
