3rd Sep 2013 10:02
LONDON (Alliance News) - Johnson Service Group PLC Tuesday reported a jump in first half profits after last year's figure was hit by big restructuring costs, while revenues declined slightly after it sold its facilities management business and closed over 100 dry cleaning shops in a revamp of that business.
The company is refocusing on textiles services and dry cleaning after a failed foray into facilities management.
It reported a pretax profit of GBP4.4 million for the six months to end-June, up from GBP1.4 million a year earlier when it booked GBP1.9 million in restructuring charges, more than double the GBP800,000 it booked this year.
Excluding the restructuring charges, pretax profit rose to GBP5.5 million, from GBP3.6 million, buoyed by the lack of losses from the facilities management business and improvements in its other two businesses. Revenue declined to GBP96.1 million, from GBP97.1 million, partly reflecting a lower number of drycleaning shops after it restructured that business.
It said revenues rose 5.6% in its textile rental business, with operating profits up 12%, while its drycleaning business, trading from 336 branches by the end of the period rather than 460 a year before, reported lower revenues but swung back to an operating profit.
"We are actively pursuing strategic bolt on acquisition opportunities within the Textile Rental arena to identify businesses which broaden our services and add value for shareholders," Chairman John Talbot said in a statement.
It raised its interim dividend to 0.4 pence, from 0.36 pence.
Net debt fell to GBP53.6 million by the end of June, from GBP57.5 million a year earlier.
The shares were down 2.3% at 48.75 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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