Profits up for Johnsons despite closures

JOHNSON Service Group, which recently announced a string of dry-cleaning outlet closures, has reported a 28.2% increase in its operating profit to £21.8m.

Adjusted profit before tax increased by 49.3% to £20m for the Preston Brook-Cheshire based firm.

The company’s success has been attributed to a successful entry into the volume hotel linen market with the immediately earnings enhanced acquisition of Bourne in March 2014, which is trading strongly.

All three of Johnsons’ textile rental businesses performed ahead of management expectations.

Meanwhile, there was £8.5m capital invested in a new workwear processing facility in Leeds.

It said the “restructuring” of it dry cleaning operation announced in January was proceeding to plan.

Non-executive chairman of the group Paul Moody, said:  “I am delighted that the Group has delivered another strong set of results for the full year.
 
“The acquisition of Bourne has proven to be very successful and immediately earnings enhancing.
“The strong performance by Textile Rental has continued into 2015 and the recent significant investment in a new workwear processing facility reaffirms our strategic focus on this division.
 
“The restructuring of the Drycleaning division will provide new opportunities to improve the performance of this business.
 
“Overall, the Board expects that the Group will continue to deliver a positive operational and financial performance underpinned by the successful implementation of its strategy in 2015.”

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