JSG report strong performance and confident outlook for the year ahead

Johnson Service Group (JSG) released a trading statement in mid-January.

The Group expect to announce a strong performance, with total revenue for the year ended 31 December 2023 of approximately £464.0 million (compared to £385.7 million in 2022). The HORECA business achieved revenue of £322.0 million (2022: £251.1 million) and the workwear business £142.0 million (2022: £134.6 million).

HORECA volumes have continued to build and they are continuing to add processing capacity at a number of their sites to accommodate additional volume for spring 2024. The new state-of-the-art site in Crawley remains on schedule to open in the second half of 2024.

Celtic Linen, which was acquired on 31 August 2023 and is based in Ireland, has traded well and in line with expectations. The capital investment in its main Wexford site has been completed to budget and employees are welcoming the opportunity to be part of a wider group operating within the textile rental market. As previously highlighted, workwear saw some reduction in customer demand however, in the second half of the year JSG has seen a continuation of the increased sales activity from the summer alongside the renewal of existing customer contracts.

The Group continue to proactively manage their cost base against the backdrop of increasing labour costs.

They are maintaining the policy on fixing their energy pricing and have now secured fixed prices for approximately 80 per cent of our anticipated gas and electricity requirement for 2024 with further agreements, at a reducing level, into 2025 and 2026.

Full year results are likely to be announced in March 2024 and are expected to be in line with current market expectations.

The Board remains confident about future growth and performance over the medium term as JSG continue to expand their geographical coverage and processing capacity.

Johnson Service Group (JSG) released a trading statement in mid-January.

The Group expect to announce a strong performance, with total revenue for the year ended 31 December 2023 of approximately £464.0 million (compared to £385.7 million in 2022). The HORECA business achieved revenue of £322.0 million (2022: £251.1 million) and the workwear business £142.0 million (2022: £134.6 million).

HORECA volumes have continued to build and they are continuing to add processing capacity at a number of their sites to accommodate additional volume for spring 2024. The new state-of-the-art site in Crawley remains on schedule to open in the second half of 2024.

Celtic Linen, which was acquired on 31 August 2023 and is based in Ireland, has traded well and in line with expectations. The capital investment in its main Wexford site has been completed to budget and employees are welcoming the opportunity to be part of a wider group operating within the textile rental market. As previously highlighted, workwear saw some reduction in customer demand however, in the second half of the year JSG has seen a continuation of the increased sales activity from the summer alongside the renewal of existing customer contracts.

The Group continue to proactively manage their cost base against the backdrop of increasing labour costs.

They are maintaining the policy on fixing their energy pricing and have now secured fixed prices for approximately 80 per cent of our anticipated gas and electricity requirement for 2024 with further agreements, at a reducing level, into 2025 and 2026.

Full year results are likely to be announced in March 2024 and are expected to be in line with current market expectations.

The Board remains confident about future growth and performance over the medium term as JSG continue to expand their geographical coverage and processing capacity.

Want to read more?

There are lots of ways to view articles from Laundry & Cleaning Today

Prefer to subscribe and receive a printed copy of Laundry & Cleaning Today? Click here

If you have a story to share or a general enquiry, call 0118 901 4471 or email info@laundryandcleaningtoday.co.uk

Sponsored