On 1 September, the group announced its results for the six months ended 30 June 2010. Adjusted profit before tax increased by 17% to £6.2million from £5.3m in the corresponding period of 2009. Total first-half revenue fell from £117.1m to £113m but chief executive John Talbot said that he is pleased with the group’s performance and believes it is well placed for a successful second half.
The textile rental division increased its adjusted operating profit by 13% to £7.6m and Talbot said that business continues to be very strong. He welcomed the turnaround at Stalbridge Linen Services, which has “returned to healthy levels of profitability”. Investment in capital expenditure projects to increase efficiency at both Stalbridge and Johnson Apparelmaster continues.
The severe weather at the beginning of 2010 had an adverse affect on the drycleaning division and first half revenue fell 6% to £38.8m and operating profit reduced to £0.5m from £1.3m previously.
The division is being restructured. A number of loss-making sites are being closed but new stores are also opening. As a result the group expects that total number of stores will fall to around 470 by 31 December 2010 (506 in June). Talbot said that the restructuring would improve the strength of the drycleaning business for the second half and beyond.
He is also confident of better trading for facilities management after the acquisition of contracts from Jarvis, which was in administration.
