Johnson Service Group's chairman John Talbot has splashed out around £445,000 in the dry cleaning business following strong first half results.
He took 2.4m shares in the company at just over 18.5p a time and now has about 6.2m shares, nearly 2.5% of the whole company.
The purchase came on the same day the company reported a 17% increase in half-year profit and said it is well placed for a successful second half.
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
Adjusted pre-tax profit climbed to £6.2m in the six months ended 30 June 2010 compared to £5.3m a year earlier. Revenue for the period fell to £113m from £117.1m before.
Johnson said its Textile Rental business continues to be very strong while its drycleaning division should now see profit growth in the second half, the group said.
Johnson announced a shake-up at its dry cleaning arm late June with the closure of 20 loss-making branches. The restructuring is expected to cost £6.5m over the next five years.
Talbot said he believed the group is 'well placed for a successful second half,' despite challenging market conditions.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
