JSG start to see increase in business as restrictions ease

Johnson Service Group PLC (JSG) issued a statement at their AGM in May stating that trading in the first four months of the year has continued to be impacted by the various lockdown restrictions although they are ‘now beginning to see an increase in demand as restrictions are starting to ease.’

Workwear volumes in March were 96 per cent of normal levels and there was a slight continuous improvement during April as more businesses were allowed to open. Progress continues to be made on the fitout of their new workwear plant in Exeter – on target for completion in the final quarter of 2021.

In the HORECA sectors, JSG report volumes in the first quarter were 11 per cent of normal, but again seeing an increase in customer activity as restrictions ease. During the last two weeks of April volumes were approaching about 30 per cent of normal activity with further increases expected as the restrictions, particularly on hotel stays, are relaxed.

At the end of April, JSG continued to have 1,450 employees on full or partial furlough, although this number is expected to reduce significantly in the coming weeks as employees return to work in response to increasing volumes.

The Group has also commenced the commissioning of a new hotel linen plant in Leeds. The site is expected to be operational by 17 May to align with restrictions relaxing in England. JSG will transfer the work for their Yorkshire based customers there, which is currently processed in North Wales. The formal statement from the Group said: “We continue to be confident in our ability to be agile and responsive to increasing volumes from our customers as the hospitality market recovers over the coming months. Our strong balance sheet means that we are well positioned to continue to invest in the business to support our long-term growth prospects.”

As planned, Bill Shannon retired from the Board at the conclusion of the AGM. At the same time, Jock Lennox, who was appointed to the Board on 5 January 2021 as an independent non-executive director and chair designate, will become chair of the JSG Board.

Johnson Service Group PLC