The three divisions are reacting differently to the current trading environment.
Drycleaning has seen mixed fortunes during the first half with total sales being slightly below plan but cost-saving policies have reduced the impact of this slight shortfall on profits. Investment in shops and promotion of GreenEarth continues and the GreenEarth branded shops show an encouraging rise in revenue.
Textile rental has been affected both by increased business closures in the first half and by a reduced customer spend, resulting in a net revenue fall at Johnsons Apparelmaster compared to the previous year. The business is still winning new customers and management is acting to reduce costs. The rate of customer cutbacks peaked in April.
The group is pleased with business at Stalbridge Linen, which is achieving every stage in its recovery plan and is expected to return to profitability for the full year.
Trading at facilities management company SGP weakened in the second half of 2008 but contracts signed at the end of that year are now fully established. SGP has continued to win more contracts in the first half of this year, providing a good basis for the second half of 2009 and a strong base for 2010.
