Textile maintenance business and FTSE 250 constituent Davis Service Group (LSE: DVSG) said trading in the period since 1 July has been in line with the first half of the year with the group’s revenue slightly ahead of the nine months to 30 September 2008, while profits were at about the same level.
Davis Service said cash flow was “significantly ahead” of last year and has already exceeded the level of free cash flow for the whole 2008, which is benefitting interest costs.
The market conditions in the UK hotel business and in Sweden remained weak, but otherwise the operating profits of Davis’ businesses have increased 3% year on year.
The outlook has improved due to the stronger balance sheet and free cash flow with the group saying it saw the outcome for the year “in a more positive light” and was “well placed to benefit when growth returns to market.”
Shares in Davis gained 3.5% following the release of the update.