DRY cleaning to workwear hire company Johnson Service Group today announced a refinancing of its bank facilities – and a warning that its results could fall below expectations due to tough trading conditions at its Prescot-based dry cleaning arm.

The Runcorn-based group, which also includes a facilities management arm, announced today that it has agreed with its banks – Lloyds Banking Group, The Royal Bank of Scotland and Santander – to amend its current facilities which were due to expire in April 2013, giving it the option of acquisitions to strengthen the business.

Its new deal is worth £78.5m in a term loan of £53.5m and a revolving loan of £25m, which includes an overdraft facility of £5m, and will run until May 31, 2015.

The firm welcomed its new facility and said it is continuing to reduce its debt levels which stood at £59.5m in December 2010 and were expected to have fallen to below £50m by the end of December last year.

However, the group today also warned that its results are expected to be “marginally below market expectations” with the dry cleaning division accounting for most of the shortfall.

A statement said: “Dry cleaning continues to introduce new services and initiatives to its locations to stimulate revenue, but the tough trading conditions on the high street have limited their impact.”

It added: “The facilities management division is expected to improve slightly on its first half performance. Textile rental continues to perform well with strong levels of customer retention and new wins.”

Executive chairman John Talbot said today: “We expect to deliver a solid trading performance given the difficult market backdrop.

“We are delighted with the new banking facilities, which demonstrate continued support from the three banks and provide increased headroom to make strategic acquisitions for the long term benefit of the business.”