Partner Article

Johnson Service Group clean up with increased profits

The textile services firm, Johnson Service Group, based in Cheshire, reported a 214% jump in pre-tax profits, falling debt and an 11% boost to its interim dividend.

The group, which has its headquarters in Runcorn, saw its revenues for the six months to June 30 fall 1% to £96.1m, due to the closure since 2012 of 124 under-performing drycleaning stores.

Pre-tax profits soared 214.3% to £4.4m and net debt fell from £58.5m to £53.6m, and the disposal of the group’s facilities management (FM) division after the reporting period for £32.2m has reduced debts to £25.6m.

The group’s pension deficit has also reduced, from £14m in December, to £7.9m.

Textile rental, trading as Johnsons Apparelmaster and Stalbridge Linen Services, grew revenues by 5.6% to £67.6m and achieved an 11.7% increase in adjusted operating profit of £8.6m.

The group is now exploring acquisitions to bolster its textile business.

Drycleaning saw revenues fall from £33.1m to £28.5m due to the reduced estate, but an adjusted operating profit of £700,000 compared with a £100,000 loss previously.

Executive chairman John Talbot said: “I am pleased to report a strong result for the first half, in line with our expectations and significantly ahead of 2012, as the results of a number of strategic initiatives come to fruition.

“The disposal of the FM activities represents a major step in the board’s strategy to refocus the group on our original core business of textile services and to reduce the debt.”

This was posted in Bdaily's Members' News section by Simon Malia .