JSG H1 results deliver consistent and strong performance 04 Sep 2019

Johnson Service Group H1 performance

Johnson Service Group results announced this week show a consistent growth story for the company with a strong financial performance in H1.

Pre-tax profit rose 8.6 per cent to £15.2m for the six months ending 30 June, while revenue rose 9.8 per cent to £167.1m. As a result, it proposed a 15 per cent dividend hike to 1.15p a share.

JSG supplies workwear to companies across the UK, as well as linen and cleaning services for hotels and restaurants.

Their interim statement highlighted operational highlights including; excellent sales growth and high levels of customer retention; an expanding national geographic coverage providing them with the opportunity to acquire groups of contracts and utilising capacity; demand supported by significant capital investment in H1 to increase production capacity; and an ongoing development and implementation of new IT systems.

Their new high-volume plant in Leeds is on track for launch in Q2 2020. The site is 45,000 sq. feet with an anticipated production of circa 300,000 pieces per week of volume from current Leeds distribution hub and circa 200,000 pieces per week from other sites.

Peter Egan, chief executive officer of Johnson Service Group, commented: “This is a strong performance reflecting excellent sales growth, the benefits of recent acquisitions and continued high levels of customer retention across all market sectors. We are particularly pleased with the strength and quality of our organic performance which has been achieved by investing capital in our operations giving increased production capacity to meet growing customer demand.

“We will continue to invest in our sites, including the completion of the new Leeds plant, allowing us to benefit from production efficiency gains as well as creating additional capacity in order to further increase revenues going forward. 

“There is good momentum in the Group and we have started the second half strongly. In view of the encouraging performance over the summer months we anticipate that the results for the year will be slightly ahead of current expectations.”

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