Johnson Services Group sells dry cleaning company Alex Reid

Textile services and facilities management provider Johnson Service Group has sold its shares in dry cleaning subsidiary Alex Reid for a cash consideration of 2.1m pounds.

Textile services and facilities management provider Johnson Service Group has sold its shares in dry cleaning subsidiary Alex Reid for a cash consideration of 2.1m pounds.

The proceeds from the sale of shares, which were sold to detergent supplier Christeyns UK on a debt-free basis, will be used to reduce the company's debt.

The consideration is subject to adjustments to reflect the actual net assets of Alex Reid at completion.

The total revenue of Alex Reid for the year ending December 31st 2011 was £12.1m of which £3.6m was related to inter-company contracts. Adjusted operating profit was £0.2m.

As of June 30th 2012, Alex Reid had net assets excluding debt and inter-company debt, of £2.3m.

Johnson Cleaners UK, Johnson Services Group's retail dry cleaning business has signed a three years supply agreement with Christeyns on terms similar to those in operation between Alex Reid and Johnson Cleaners prior to the disposal.

Commenting on the disposal, John Talbot, Executive Chairman of Johnson Service Group, said: "In July we announced the conclusion of a strategic review of our dry cleaning business. As part of that review, it was decided that Alex Reid was not a core business for the group going forward. We are pleased that we have secured a multi-year agreement to continue to use the services of Alex Reid under its new ownership."

Shares in Johnson Services Group were down 0.37% to 33.62p per share at 12:50 on Thursday.

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

Interest rates are now at 4%, and they could rise further in the months ahead.
3 Feb 2023
NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023