Johnson Service shrugs off winter blues

8th Mar 2011 15:37

Johnson Service Group's dry cleaning business was hit by extreme winter weather at both ends of 2010, but a strong performance from the textile hire business drove profits higher.Adjusted pre-tax profits rose to £18.3m from £17.5m the previous year on revenues that slipped to £235.1m from £236.4m.The textile rental business, the largest division, saw adjusted operating profit climb by 13.7%, "a very good performance considering the difficulties faced by many of our customers with higher unemployment, business closures and increased focus on costs," Johnson said. Revenues fell by 1.5% to £115.1m, but efficiency savings helped lift profits.The dry cleaning business, which includes the high street chain Johnsons and the high end dry cleaner Jeeves of Belgravia was hurt by the weather, costing the company an estimated £1.6m in revenue and adjusted profit, with £600,000 of this incurred in January and the rest towards the end of 2011.The facilities management group, which is responsible for maintaining many of the shops on British high streets, had a good year, Johnson said.Johnson Service says it expects a satisfactory result in 2011, though it does not anticipate any upturn in conditions.The company also faces inflationary pressures at its textile division. Chairman John Talbot said that energy costs account are equal to 6% of sales. The textile division is also affected by the recent surge in cotton prices.