JOHNSON Service Group (JSG) says tough conditions on the high street have hit sales at its Prescot-based Johnson Cleaners arm.
Issuing a pre-close statement yesterday, the group said like-for-like dry cleaning sales fell 3.9% in the second half of the year.
The company says a cost-cutting programme achieved annualised savings of £2m which it expects to increase to £4m in 2009. JSG reversed plans to sell the dry-cleaning business last September despite falling profits.
Overall, JSG said it expects trading conditions to remain challenging but expects its pre-tax profit will be “satisfactory”.
The group’s textile rental division had a strong 2008 but its facilities management division’s profits were hit by the economic slowdown, which has forced retailers to curtail capital projects.
In June, Johnson said it was seeking to raise £40m in two share offers to shore up its balance sheet, which saw strong take-up. Its year-end debt is expected to be £78.5m, down from £118.1m last June.
