Dry cleaning a stain on Johnson Service's performance

6th Jan 2012 15:02

Dry-cleaning, textile rental and facilities management business Johnson Service fell to a 52-week low after it issued a mild profit warning.The group said results for 2011 will be "marginally below" market expectations, largely as a result of a less than sparkling performance by the dry cleaning division, which, in common with many other High Street operators, is finding consumers are being more careful with their money.The facilities management division did slightly better in the second half of the year than it did in the first, while the textile rental business continues to perform well, with strong levels of customer retention and new wins, the company revealed.The group also announced new banking facilities, even though its existing arrangements had over a year to run.The new £78.5m term and revolving facilities agreement will run to the end of May, 2015. The new facilities are expected to be drawn by mid-January 2012 and provide increased headroom for strategic bolt-on acquisitions."We expect to deliver a solid trading performance given the difficult market backdrop," said Executive Chairman, John Talbot. The shares fell 1.37p to 25.25p following the profit warning. jh