Johnson Service confident for H2

1st Sep 2010 07:17

Dry cleaning to workwear hire group Johnson Service reported a 17% increase in half-year profit and said it is well placed for a successful second half. Adjusted pre-tax profit climbed to £6.2m in the six months ended 30 June 2010 compared to £5.3m a year earlier. Revenue for the period fell to £113m from £117.1m before. Johnson said its Textile Rental business continues to be very strong while its drycleaning division should now see profit growth in the second half, the group said. Johnson announced a shake-up at its dry cleaning arm late June with the closure of 20 loss-making branches. The restructuring is expected to cost £6.5m over the next five years. Executive chairman John Talbot said he believed the group is "well placed for a successful second half," despite challenging market conditions. Net debt was reduced to 64.6m from 67.7m December 2009 while the interim dividend has been increased 8% to 0.27p.