Johnson Service Group H1 revenue and profits grow

3rd Sep 2024 09:28

(Sharecast News) - Textile rental and cleaning business Johnson Service Group said on Tuesday that both revenue and profits had grown in the six months ended 30 June, leaving it confident of both its full-year performance and longer-term growth prospects.

Johnson Services said interim revenues were up 13.5% at £244.1m, while adjusted operating profits rose 32.6% to £25.2m and adjusted pre-tax profits surged 31.11% to £21.5m. Adjusted operating profit margins expanded from 8.8% to 10.3%.

The AIM-listed group highlighted that it had seen improved new sales activity and a strengthening pipeline in both its hotel, restaurant and catering and workwear units throughout the half.

Chief executive Peter Egan said: "The group is reporting a strong financial and operational performance for the period, having delivered a significant uplift in year-on-year profitability. This result is testament to the resilience of our business model, the strength of our relationships with our customers and suppliers and the hard work of our employees.

"Whilst continuing to closely manage variable costs, our team has ensured that customer retention has remained strong. We have had some significant independent and group sales wins during the second quarter of 2024 which will positively impact the remainder of the year and into 2025."

As of 0930 BST, Johnson Service shares were 0.63% higher at 160.0p.

Reporting by Iain Gilbert at Sharecast.com