The company behind the Johnson Cleaners chain and the predominantly London-based upmarket Jeeves of Belgravia stores said its dry-cleaning revenues were down 1.8% at £77.3m last year, with operating profits flat at £2m.

Highlighting a tough economic backdrop, Johnson Service Group cited falls in business in the aftermath of “negative newsflow” during 2011.

“High-street trading remained tough in 2011, as economic conditions put severe pressure on disposable incomes, which consequently impacted upon the number of visitors to the high street and ultimately on the quality of businesses continuing to operate,” the company said in its full-year results.

As the makeup of high streets changes and fewer people shop there, the company is looking to more convenient, car-friendly locations for its dry cleaners such as petrol stations and big supermarkets.

Meanwhile workers squeezed by a combination of near-stagnant wages and high inflation appear to be cutting back on dry-cleaning spending, for example by waiting longer before getting suits laundered.

Against that backdrop, Johnson said it had slowed down its store refurbishment programme and closed some stores altogether “as we continue to actively withdraw from poorer locations and focus our attention on more convenient sites”.

In contrast, Johnson’s luxury London business echoes other evidence of a growing north-south economic divide. Its Jeeves of Belgravia business enjoyed a “year of high activity”, opening new stores in St Paul’s last year and Notting Hill this year. It is also tapping into another bracket of society seemingly untouched by the economic downturn, with a new branch in the Premier League footballer-dominated area of Alderley Edge, Cheshire.

Shares in Johnson Service, which also hires out work uniforms and linen to the hospitality industry, ticked higher in early trading after the overall group reported a rise in profits and raised its dividend.

Adjusted profit before tax rose 3.4% to £15m while the final 2011 dividend was increased a fifth to 0.67p, making 1p for the full year.

The chairman, John Talbot, said: “I am pleased with these results given the very difficult market conditions.” But he added that market conditions were not expected to improve in 2012.

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