2nd Sep 2015 06:47
LONDON (Alliance News) - Textile services company Johnson Service Group PLC on Wednesday said its pretax profit was dragged lower by one-off costs it booked in the first half, though revenue for the group was higher and it said it expects to beat market forecasts for the full year.
Johnson Service said its pretax profit in the six months to the end of June was GBP1.2 million, down from GBP6.4 million a year earlier thanks primarily to it booking GBP6.8 million in restructuring costs related to its drycleaning business.
Revenue for the company was up to GBP109.2 million from GBP101.6 million, driven by an above-expectations performance from its textile rental business and an improved outcome for the drycleaning arm, the restructuring of which remains on budget.
The company said London Linen Supply Ltd, the table linen and chef's wear supplier it acquired for GBP65.4 million back in May, was trading well and said it intends to add further capacity by pursuing more acquisitions in the textile rental business in the future.
"We are very pleased with the encouraging financial performance of the group in the first half of the year, underpinned by a strong operational performance and the acquisition of London Linen. This strategic acquisition has been earnings enhancing from day one, significantly increases our capability to serve the vibrant London restaurant market and complements the range of textile rental services offered by our Stalbridge business," said Chief Executive Chris Sander.
Sander added the company expects to make further progress in the second half and said its full-year results will come in slightly ahead of current market forecasts.
The confidence in its outlook prompted the company to hike its interim dividend to 0.65 pence per share from 0.50p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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