Johnson Service Group has said it is "confident" for the future despite a difficult first half that saw sites mothballed, and revenues and profits drop sharply.
The Runcorn-based textile service provider said it mothballed its entire hotel, restaurant and catering department during the national lockdown period, which also saw revenues drop by 34.7% in the six months to June 30.
A £15.2m profit before tax in June 2019 turned into an £18.6m loss.
The firm's workwear department continued to operate throughout lockdown - with 12% reduction in volume in April, steadily improving to 6% in August.
Customer retention levels were 93.8% at the end of July.
The majority of staff were furloughed during the period, with others accepting a temporary 10% salary reduction.
Peter Egan, CEO, said: "Our performance during the period reflects the challenging market conditions inflicted on the business by COVID-19 following a strong start to the year.
"The management team have been highly active in addressing the impact, by taking decisive action to ensure the long-term preservation of the business, shoring up the Group's finances and mothballing sites to ensure that JSG is well placed to react quickly as end markets continue to recover.
"Our new Leeds high volume linen plant is scheduled to open in October and we have identified a new workwear site to replace the Exeter plant destroyed by fire in January 2020, which should open mid-2021.
"Both of these investments demonstrate our long-term commitment to investing for future growth.
"It remains very difficult to predict with any accuracy the timing of a recovery to pre-Covid levels. However, with our strong balance sheet, established market position and reputation for quality service, we remain confident in the group's medium-term growth prospects as the economy and markets that we serve recover."
