Increased losses at its Dublin linen cleaning operations hit profits at Connacht Court Group, a division of the Johnson Service textile rental and dry-cleaning group in Britain.

Profits at Connacht fell almost 50 per cent to £600,000 sterling (€988,000) from £1.1 million.

Directors blamed problems at the group's Rathfarnham facility, which employs 150 people. Discussions on plans to relocate and upgrade the plant are expected to start shortly, and £3 million sterling (€4.94 million) has been set aside for the project.

The group hopes a new plant will be open in spring and will help improve results dramatically next year.

The Rathfarnham site has already been sold for £4 million sterling.