JSG report strong performance in line with expectations

Johnson Service Group plc (JSG) released their trading update in mid- January. The announcement stated that they expect to announce a strong performance, with total revenue for the year ended 31 December 2024 increasing by over 10 per cent to approximately £513.0 million (2023: £465.3 million), in line with their expectations.

The HORECA business achieved revenue of £371.0 million (2023: £322.7 million) and the workwear business £142.0 million (2023: £142.6 million). On an organic basis, Group revenue increased by some 3.8 per cent on 2023 levels. As set out in the statement: “Within HORECA, trading has remained as expected through the final months of 2024 in both the UK and ROI and we expect to report organic revenue growth for the year of some 5.5 per cent.

Workwear volumes remain stable, with customer retention levels continuing to gradually improve, to 93 per cent as at December 2024 from 92 per cent at June 2024, and recent new sales expected to benefit performance later into 2025.

“Our new HORECA site in Crawley is now operational and the testing of machinery and processes is underway. Recruitment and training is well progressed and the transfer of work from our Dorset sites will commence at pace in the coming weeks. The Empire business, acquired at the beginning of September 2024, continues to trade in line with our expectations.

“We expect to report full year adjusted operating profit for 2024, together with an improving margin, in line with current market expectations.”

Their outlook for economic growth, inflation and interest rates is uncertain for 2025 and, from April, the UK business faces higher costs from well-documented increases in taxation.

However, they believe that they have a strong business which, as previously demonstrated during challenging times, is resilient and well placed to mitigate and manage these headwinds through operational efficiencies and other measures.

The Board remains confident about delivering another year of progress in 2025 and future growth in the Group’s performance over the medium term. Full year results are expected to be announced in early March 2025.