1 September 2010 – interim results

The textile services and facilities management group has announced a solid set of results for the six months to 30 June.  Although revenues fell slightly to £113.0m (2009: £117.1m), adjusted operating profits were maintained at £8.0m and a lower finance charge meant that adjusted pre-tax profits were 17% higher at £6.2m (2009: £5.3m).  Earnings per share on the same basis rose to 1.8p (2009: 1.4p)and the interim dividend was increased to 0.27p (2009: 0.25p).  Net debt during the first six months has reduced to £64.6m from £67.7m at the end of 2009 – although well within the group’s existing limits, the aim is to reduce this further.  The textile rental activities have done better than expected whilst the dry-cleaning business is being restructured.  The shares are a SPECULATIVE BUY.