Johnson Service on the prowl

01/09/2010 Robert Tyerman

Workwear rental and facilities management concern Johnson Service Group is feeling acquisitive after losing a first-half £2.2 million pre-tax.

The Cheshire-based company, whose executive chairman John Talbot has been sorting out a raft of problems since coming aboard in late 2007, scored a 17 per cent profits increase to £6.2 million before £7 million in exceptional costs and amortisation and impairment charges in the six months to June, on turnover down 3.5 per cent to £113 million.

Johnson, which has so far cut net debt from £75.3 million to £64.56 million, says its workwear rental (overalls supply) business, with a 30 per cent national market share, has performed ahead of expectations, handling clients ranging from the Compass catering group to steelmaker Corus, and expanded its outlets. The company's well-known dry cleaning side expects its 'Green Earth' eco-friendly division to thrive, while facilities management, which supervises more than £1 billion of corporate spending, sees significant opportunities from the purchase of the ill-fated Jarvis group's facilities management arm from the administrators.

Talbot has newly upped his stake in Johnson from 1.4 per cent to 2.4 per cent by buying at 18.54p. The shares, which traded at nearly £5 five years ago, now change hands at 19p, up 2.75p today, valuing the company at £47.4 million.

They have speculative recovery appeal for the strong-nerved.