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.
The facilities management division did slightly better in the second half of the year than it did in the first, while the textile rental business continues to perform well, with strong levels of customer retention and new wins, the company revealed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
jh
-
Buying a property is cheaper than renting again – how much could you save?News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
-
Is now a good time to invest in India?Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
