The facilities management division has acquired three PFI contracts and two special purpose companies from Jarvis PLC (in administration) towards the end of the second quarter. It has also reached agreement with Jarvis to manage a further five contracts and the related SPCs under licence, pending acquisition.
In drycleaning the group has been working to optimise the performance of Johnson Cleaners stores in its more marginal locations and introduced initiatives for increasing revenue.
However, the division has also identified loss-making stores that have declined at a faster rate. The group is closing 20 of these stores as well as closing additional stores where the lease is expiring.
As a result of this restructuring, which also includes new store openings, the drycleaning portfolio is expected to comprise around 470 stores at the end of December 2010.
Johnson Service Group expects to announce first half results on 1 September. The group continues to trade in line with the Board’s expectations for 2010.
