Johnson Service Group flags rise in half-year revenue

10th Jul 2024 11:31

(Sharecast News) - Textile service provider Johnson Service Group issued a positive trading update for the six months ended 30 June on Wednesday, anticipating revenue of £244.1m, up from £215m a year earlier.

The AIM-traded firm said the workwear division's revenue remained stable at £71.2m, while the hotel, restaurant and catering (HoReCa) division saw significant growth, with revenue rising to £172.9m from £143.9m year-on-year.

On an organic basis, the group's revenue was expected to have grown by 5.7% year-on-year.

The HoReCa division experienced robust organic growth of 8.5%, driven by increasing volumes across its estate, particularly in hotel linen.

It said its new HoReCa facility in Crawley was nearing completion, with eight delivery routes already operational ahead of the start of processing.

The workwear division's revenue remained stable, with customer retention improving gradually and recent new sales expected to positively impact performance in the second half.

Bank debt, excluding IFRS 16 liabilities, stood at £75m as of 30 June and was expected to narrow in the second half in the absence of significant capital expenditures.

The board said it was confident that the full-year adjusted operating profit would be in line with current market expectations.

Johnson Service Group said it would announce its results for the six months ended 30 June on 3 September.

At 1108 BST, shares in Johnson Service Group were up 0.92% at 162.07p.

Reporting by Josh White for Sharecast.com.