Cleaner Johnson in good shape

DRY-cleaning firm Johnson Service Group made a net loss of £3.1m in the 12 months to December, although operating profits came in at £22.1m, in line with expectations.

Turnover grew from £219.2m to £231.6m and the company described 2003 as 'a year of progress and achievement'.

Johnson took a charge of £8.4m on business disposals and cut group debt by £18.5m to £43.4m.

'The strategic changes we have made over the last year leave Johnson Service Group with stronger market positions and better growth prospects than it enjoyed at the start of 2003,' said chairman Simon Sherrard.

He said he was confident of strong growth in the group's new businesses of facilities management and corporate hospitality.

The company made several acquisitions last December, including the purchase of Jongor North Limited from receivers.

It was re-branded Johnson Hospitality Services, and is the market leader in the hire of catering equipment, hospitality furniture and related items.

Johnson also took over its supplier Alex Reid and dry cleaner Jeeves International, which has franchises around the world.

The board is recommending a final dividend of 13.6p per share, bringing the total payout for the year to 17.6p.