Johnson Service Group confident for the year ahead 28 Feb 2018

Johnson Service Group (JSG) has announced their preliminary results for 2017. 

Their strong financial performance reflects organic revenue growth of 5.1 per cent and successful delivery of earnings from acquisitions. 

Johnsons JSG service group news business

JSG has six brands in workwear and linen rental services including Stalbridge and London Linen, who provide premium linen hire and laundry services to caterers, hotels and restaurants. 

They serve over 3,500 restaurants in London. The Bourne, Afonwen and PLS brands provide high quality linen to some 1,900 hotels across the UK, delivering over eight million items of linen each week and supply linen for some 150,000 hotel rooms. 

The Board has recommended a 11.8 per cent increase in final dividend to 1.9 pence per share which, together with the interim dividend, takes the total dividend for the year up 12.0 per cent to 2.8 pence per share (compared to a 2016 dividend of 2.5 pence). 

Chris Sander, chief executive officer of the textile services provider, commented: “During the year Johnson Service Group continued to meet its strategic objectives by transforming the Group into a highly focused textile services business. 

In doing so, we have delivered another strong financial performance underpinned by significant organic growth together with growth from acquisitions which continue to extend the geographical coverage of our businesses. 

The operational strategy of continuing to invest capital in modern, highly efficient equipment has helped mitigate cost pressures and supported margin growth. With strong new business sales, the benefit of recent acquisitions and a continued focus on delivering service excellence, we remain confident in the year ahead.” They report that operations are delivering on their strategic aims of streamlining the Group into pure textile services and increasing the Group’s geographical spread. 

This has been achieved through the disposal of their drycleaning division in January 2017 and acquiring PLS in Edinburgh in July 2017 and StarCounty in Wrexham in December 2017, to extend coverage of the high-volume linen services to Scotland, Northern England, the North West and the West Midlands. 

They accelerated their capital investment programme in 2017 to support the demands from strong organic sales generated during the year. Their growth plans were further supported by investing in people and resources such as the appointment of Peter Egan as chief operating officer and through the newly created role of operations director for high volume linen to drive operational efficiencies. They have further plans in place with their internal Academy, continued investment in IT systems and a review of brands to maximise and extend national brand recognition. 

Johnson Service Group say they are confident for the year ahead with a balance sheet strong to support future growth. Performance continues to be in line with management expectations and acquisitions have provided increased spare capacity at the Group’s current plants.

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