Facilities management specialist sees pre-tax profits rise

They may be better known for their network of High Street dry cleaning branches, but the Johnson Service Group is also a profitable facilities management company. And, despite difficult trading conditions, the Group recently reported an 18.9 per cent increase in profits as it expands its operations creating more facilities management jobs.

Profits up almost 20 per cent in 2010

The textile services and facilities management specialist posted adjusted pre-tax profits of £14.5m for 2010, a rise of 18.9 per cent. Although revenue for the year fell from £236.4 million to £235.1 million, adjusted operating profits rose from £17.5 million to £18.3 million.

Executive chairman John Talbot said: "Despite the difficult conditions affecting all of our markets we have increased profitability and reduced debt. Textile rental, our largest division, increased adjusted operating profit by 13.7 per cent on revenues close to 2009 levels.

“This is a very good performance considering the difficulties faced by many of our customers with higher unemployment, business closures and increased focus on costs.”

Facilities management props up difficult dry cleaning trade

Mr Talbot continued: "Dry cleaning was badly affected by the bad weather at the beginning and end of the year which had an estimated impact on both revenue and adjusted operating profit of £1.6m.

"We have rationalised the branch network and introduced a number of initiatives to improve profitability going forward.

Whilst the retail business may have suffered, the award of seven new Private Finance Initiative (PFI) contracts from Jarvis helped boost the facilities management side of the business. The Group reported that the facilities management contracts had been successfully integrated into the business, raising profits by 9 per cent.

Mr Talbot concluded: "Facilities management had a good year, increasing both revenue and adjusted operating profit despite difficult market conditions.”