BOOTLE dry cleaning to work-wear group Johnson Services revealed today it could sell off its dry cleaning division. The Mildmay Road business said it had received an approach for the operation "that may or may not lead to an offer being received." Figures for the year to December 31 released today show weak consumer demand caused a 2.7% decline in like-for-like sales throughout the dry cleaning estate, although the group as a whole posted improved sales and profits. Turnover jumped 19% from £364m to £432m and profits edged 2% ahead from £15.4m to £15.7m. The total dividend will rise 5% to 19.4p per share. Dry cleaning was the core of the business, but diversification has added workwear cleaning and rental in the Apparelmaster brand; hotel, catering and corporate hospitality; corporatewear; and a facilities management operation. Chairman Simon Sherrard said today: "The group remains focused on further developing its business-to-business operations, which have high levels of recurring revenues and real growth potential. "Our corporatewear and facilities management businesses are performing well in growth markets, and conditions in the workwear rental sector are improving. Our dry cleaning business remains unpredictable." He added: "We are confident in the future of the group and remain well placed to deliver another satisfactory outcome for the year as a whole." The dry cleaning arm includes the Johnsons, Sketchley and Jeeves brands from 587 locations around the UK. Revenues rose 4% to £101m, but like-for-like sales dropped 2.7%. Corporatewear revenues soared by 132% and adjusted operating profit growth by 178%. During the year the group made eight acquisitions for a total of £62.2m as part of its move to refocus on growth markets. Mr Sherrard said all the additions are meeting or exceeding initial expectations. He also revealed that the group's pensions deficit rose by £11.3m to a total of £34m. neilhodgson@liverpoolecho.co.uk |