Plumbing supplies distributor predicts it will outperform the market and be cash positive in coming year
Distributor of construction materials to plumbers and contractors BSS group said that revenue had fallen 5.6% in the first 16 weeks of its new financial year, to17 July 2009, although the firm was confident it would outperform the market. Revenue stands at £369.5m.
BSS said its domestic division was beginning to show signs of life while the specialist and industrial divisions were being drawn into the downturn. The firm said it believed all its divisions were continuing to grow market share.
It said costs had fallen 7.2% since last year and that it had made further annualised cost savings of £5m, representing a reduction of 2% in the cost base.
The board is braced for trading conditions to remain tough for the remainder of the financial year but is confident the company will at least outperform the market.
The group said it would be cash positive in financial year 2009/10 and had uncommitted borrowing facilities of £110m at 31 March 2009.