UK
Johnson Service Group reports strong half-year growth in revenues and profits. Its textile rental business continued to perform ahead of expectations and drycleaning operations have beeen restructured in line with original cost estimates.
The textile services provider, which also owns drycleaning chain Johnson Cleaners and Jeeves of Belgravia, reported total revenue of £109.2million in the first half of 2015, up by 7.5% from the same period last year.
Adjusted pre-tax profits rose by 18.8% to £10.1m over the same period.
In his operating review, chief executive officer Chris Sander noted that textile rental revenue increased by 15.2% to £85.7m, while adjusted operating profit rose by 14.8% to £12.4m, helped by the £64.9m acquisition of the London Linen business in April 2015.
Revenue in the group’s drycleaning business fell by to £23.5m, reflecting the reduced number of branches following the reorganisation programme, which is now almost complete.
He added that 99 branches have been closed in a three-month period and that the total cost of the programme remains £6.5m in line with original estimates.
Sander said: "We are very pleased with the progress that we have made to date with our partnership with Waitrose, adding a further 50 locations in the period to June. We anticipate that additional locations will be opened throughout the remainder of the year."
HALF YEAR RESULTS: Johnson Service Group chief executive officer Chris Sander
