The group attributes the fall in profits to the poor performance of Stalbridge Linen Services, which suffered a loss of £3.8million in 2006, compared with a profit of £4.4million in 2005. A new management is now in place and taking action to solve the problems.
However, both corporatewear and facilities management divisions delivered a strong performance and drycleaning has also fared well.
Johnsons Apparelmaster is showing encouraging revenue growth for the second consecutive year.
Commenting on the results, the group’s chairman Simon Sherrard, said that Johnson Service had a number of market leading businesses which had traded satisfactorily during 2006. The problems at Stalbridge were being addressed, but recovery would take longer than previously predicted and so the board had lowered its expectations for 2007. Under the leadership of its new chief executive, Charles Skinner, the group hopes to maximise opportunities for its businesses, and demonstrate its growth potential in 2008.
