Dry cleaning chain returns to firmer ground with £20m profit

Published on Tuesday 9 March 2010 20:17

JOHNSON Service Group, owner of the high street's biggest dry cleaning chain, yesterday claimed it was on a stable footing after returning to the black last year with profits of £20.6 million.

The company said its 501-strong dry cleaning chain Johnsons faced "the toughest challenges" due to the ongoing decline of high streets and the impact of consumer caution.

It closed 22 Johnsons stores and reduced working hours for many shops hit by the recession and plans to shut about 20 outlets this year as leases end.

However, the firm pledged to continue with an opening programme to refocus on sites in better locations, such as drive-ins and those based in supermarkets.

The company opened ten new outlets last year and is aiming for another ten this year, while it will continue to revamp its existing portfolio under its environmentally-friendly "Green Earth" programme.

Sales across the main retail dry cleaning businesses – Johnson Service and Jeeves of Belgravia – dropped 5.1 per cent on a like-for-like basis last year, with underlying earnings down 1.1m at 3.1m.

While Johnson Service Group is well known for its retail offering, the division only accounts for about one-fifth of total profits.

The wider group clawed its way back from bottom-line losses of 6.8m last year thanks to cost cutting efforts.

Its troubled Stalbridge workwear rental and laundry arm returned to profit after "a very difficult few years".