Johnson Service Group ends year in line with expectations
By Josh White
Date: Friday 17 Jan 2025
(Sharecast News) - Textile service specialist Johnson Service Group reported strong trading for the year ended 31 December in an update on Friday, with total revenue rising more than 10% to £513m, in line with expectations.
The AIM-traded firm said organic revenue growth for the Group was 3.8% compared to 2023.
It said its hotel, restaurant and catering (HoReCa) division delivered revenue of £371m, up from £322.7m in 2023, reflecting organic growth of 5.5%.
The workwear business meanwhile remained stable, recording revenue of £142m compared to £142.6m the prior year.
Customer retention in workwear improved slightly, reaching 93% in December from 92% in June, with recent new sales expected to contribute to growth later in 2025.
The group said it also continued to expand its operations, with its new HoReCa site in Crawley now operational and the transfer of work from its Dorset sites set to begin in the coming weeks.
It added that the Empire business, acquired in September, was performing in line with expectations.
Net debt, excluding IFRS 16 lease liabilities, widened to £70m at year-end from £61.7m in December 2023.
Adjusted operating profit for 2024, along with improved margins, was expected to meet market forecasts.
Looking ahead, JSG said it was cautious about the uncertain economic environment in 2025, particularly regarding inflation, interest rates, and higher tax in the UK from April.
However, it said it believed its resilient business model, operational efficiencies, and ongoing geographical and capacity expansions positioned it well to navigate the challenges and continue progressing in 2025 and beyond.
The company's full-year results were scheduled for release in early March.
At 0829 GMT, shares in Johnson Service Group were up 0.46% at 131p.
Reporting by Josh White for Sharecast.com.
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