Dry-cleaning, textile rental and facilities management business Johnson Service said all of its divisions are trading well in challenging market conditions as it increased its interim dividend payout to 0.33p.

For the half year ended 30 June 2011 adjusted operating profit rose to £8.4m from £8m the year before. Adjusted pre-tax profit increased to £6.5m from £6.2m. Revenue improved to £117.3m from £113m.

Net debt was reduced to £51.0m in the half-year period from £64.6m a year earlier. The pension deficit was slashed to £3.2m from £11.2m at the end of 2010.

Executive chairman John Talbot commented, "These are strong results, especially given the difficult market conditions. We have increased revenue and profit, significantly reduced net debt and are therefore recommending a 22% increase to our interim dividend."

An interim dividend of 0.33p has been offered, up from 27p previously.

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