Dry cleaning a stain on Johnson Service's performance

Dry-cleaning, textile rental and facilities management business Johnson Service fell to a 52-week low after it issued a mild profit warning.

The group said results for 2011 will be "marginally below" market expectations, largely as a result of a less than sparkling performance by the dry cleaning division, which, in common with many other High Street operators, is finding consumers are being more careful with their money.

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The group also announced new banking facilities, even though its existing arrangements had over a year to run.

The new £78.5m term and revolving facilities agreement will run to the end of May, 2015. The new facilities are expected to be drawn by mid-January 2012 and provide increased headroom for strategic bolt-on acquisitions.

"We expect to deliver a solid trading performance given the difficult market backdrop," said Executive Chairman, John Talbot.

The shares fell 1.37p to 25.25p following the profit warning.

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