Troubled Johnson in share bomb
Dry cleaning to clothes hire company Johnson Service Group yesterday revealed an 80 per cent plunge in first half profits due to tough trading conditions.
Johnson has been weathering a troubled period following its shares collapse last year.
The group reported pre-tax profit of £0.4m, compared with £2.3m last year as revenue slumped 18 per cent to £130.1m, although this was partly due to the group’s disposal of its corporate wear division in April. Johnson Service raised £87.1m net proceeds in cash from the sale, which allowed the group to reduce its total debt to £118.1m from £168.5m at the start of 2008.
Chief executive John Talbot said: “Our focus was on reducing the leverage of the debt in the group which gives our operating companies the potential to really fulfil.” The group restated that it would not pay a dividend for 2008.
The troubled group, which last month said it would raise up to £10 m through an open offer of about 49.9 million shares at 20p each to prop up the business, said valid acceptances were received for 80 per cent of the shares on offer.
