PROFITS JOY AT JOHNSON'S.
Byline: NEIL HODGSON Industry ReporterBOOTLE-based cleaning and workwear group Johnson washed away any fears of a sharp downturn today with strong half yearly results.
Turnover rose 7.7% from pounds 102.8m to pounds 110.7m and profits grew by 5.3% from pounds 13.2m to pounds 13.9m in the six months to June 30.
Chief executive Richard Zerny said: "We are pleased to report a satisfactory performance for the group at the half-year stage.
"We remain confident that the inherent strength and stability of our core business will enable us to achieve a satisfactory overall result, despite the worsening economic conditions."
Profits excluded goodwill of pounds 2.2m and exceptional integration and reorganisation costs of pounds 4.3m.
Borrowings fell from pounds 94.6m to pounds 85.5m which Mr Zerny said reflected the cash-generative nature of the business and tight management of capital.
The UK textile rental business increased operating profits by 13.3% to pounds 11.6m, which includes the six months' contribution from acquisition target Semara.
An airline services arm of Semara was sold for around pounds 3m in March.
Dry cleaning services in Britain produced a 0.2% sales increase and an operating profit of pounds 4.2m compared with pounds 4.1m last time.
Mr Zerny said it is clear that economic conditions in Britain and Ireland have deteriorated since Johnson's May annual meeting.
"There is no doubt that this is now affecting some of the markets in which our customers operate."
But he said he is confident the group is strong enough to trade through the problems: "Dry cleaning continues to trade very profitably and remains highly cash generative, " he added.
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UPBEAT: Richard Zerny
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| Title Annotation: | Business |
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| Publication: | Liverpool Echo (Liverpool, England) |
| Date: | Sep 11, 2001 |
| Words: | 286 |
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