Business

Timpson cleans up in swoop for Johnson Service Group

Shoe repair and key-cutting firm Timpson has bought the dry-cleaning business of Johnson Service Group for £8.25 million
Shoe repair and key-cutting firm Timpson has bought the dry-cleaning business of Johnson Service Group for £8.25 million Shoe repair and key-cutting firm Timpson has bought the dry-cleaning business of Johnson Service Group for £8.25 million

TIMPSON has snapped up the dry-cleaning business of Johnson Service Group for £8.25 million as it looks to cash in on the British public's dirty laundry.

Best known for shoe repairs and key-cutting, Timpson also offers dry-cleaning, which is one of its fastest growing services.

Johnson said that the deal will enable it to focus on its higher margin work-wear and linen rental business, adding that it will use the proceeds to reduce debt and pay towards its defined benefit pension scheme.

Boss Chris Sander said: "We continue to successfully implement our strategic growth plan, with the disposal of the dry-cleaning business enabling us to focus our efforts on the ongoing expansion of our textile rental activities."

Total revenue of Johnson's dry-cleaning activities in 2015 was £46.2 million and adjusted operating profit came in at £2 million.

But over the last four years the group's dry-cleaning store estate has shrunk from around 500 stores down to 200.

Johnson also took the opportunity to update the market on its full year trading, which it said is expected to come in "slightly ahead of current market expectations".

Timpson has more than a dozen shops in Northern Ireland, mainly located in shopping centres like Castlecourt and Abbey Centre in Belfast and Bow Street Mall in Lisburn.