Johnson sees lift in underlying earnings
JOHNSON Service Group, the Cheshire-based dry-cleaning to facilities management company said it increased profitability and reduced debt in the year to December.
The firm, based near Runcorn, saw sales fall by 0.5% to £235.1m but saw underlying profits rise 19% to £14.5m.
After taking into account exceptional charges relating to restructuring and acquisitions Johnson recorded a pre-tax profit of £4.2m, down from £20.6m the previous year when it was buoyed by a £12m pension credit. The group cut its debt by £8.2m to £59.5m.
Chairman John Talbot said: “I am delighted to be reporting strong final results. Despite the difficult conditions affecting all of our markets we have increased profitability and reduced debt.”
The group said its drycleaning arm was badly affected by the winter weather which had an estimated impact on both revenue and adjusted operating profit of £1.6m.
Textile rental, its largest division providing workwear rental and laundry services, increased adjusted operating profit by 13.7% on revenues close to 2009 levels. The facilities management business increased both revenue and adjusted operating profit. It acquired seven contracts from Jarvis during the year and continues to seek further acquisitions.
Mr Talbot added: “Despite the tough economic environment the group is now in a strong position. It is cash generative and has significantly reduced debt. We believe that there are opportunities to expand each of the group’s divisions in the future.”
The board has proposed a final dividend of 0.55p taking the full year payment to 0.82p, up 9%.
