REG - Johnson Service Grp. - AGM Statement

Johnson ServiceAnnouncement

04/05/2023 07:00

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RNS Number : 3477Y  Johnson Service Group PLC  04 May 2023

4 May 2023

AIM: JSG

Johnson Service Group PLC

("JSG" or "the Group")

 

AGM Statement

 

JSG, a leading UK textile services provider, will be holding its Annual
General Meeting today and will make the following statement:

 

Revenue in the first four months of the year amounted to some £135 million,
22.0% higher than 2022 which was still impacted by COVID-19.  Organic revenue
growth in the same period, which comprises both price increases and volume,
was 6.4% in Workwear and 30.3% in HORECA.

 

Within HORECA, organic growth includes the installation of a further 7,800 new
rooms in the first four months in our Hotel Linen business as volume continues
to improve.

 

We are continuing to closely manage our cost base and have increased the
proportion of the expected usage of gas and electricity that is at fixed
prices to 85% and 87% respectively in the first half and 74% and 68%
respectively in the second half of 2023.  However, we continue to expect that
energy costs will be a higher percentage of revenue in the current year as
hedging benefits enjoyed in 2022 roll off and average pricing remains
elevated.

 

The share buyback programme for up to £27.5 million excluding expenses
announced in September 2022 ends today, in line with the current buyback
authority.  In addition to the £5.6 million deployed in 2022 a further
£19.7 million has been deployed in 2023 bringing the total, as at close of
business on 3 May 2023, to £25.3 million, excluding expenses.  The Board
will continue to review its capital allocation in line with the Group's stated
policy.

 

Notwithstanding continuing cost pressures, we anticipate that, assuming the
trading environment remains unchanged, we will report full year operating
profit slightly ahead of current market expectations.

 

 

 

ENQUIRIES

 Johnson Service Group PLC
 Peter Egan, CEO
 Yvonne Monaghan, CFO
 Tel: 01928 704 600

 Investec Investment Banking (NOMAD)  Camarco (Financial PR)
 David Flin                           Ginny Pulbrook
 Carlton Nelson                       Rosie Driscoll
 Virginia Bull                        Letaba Rimell
 Tel: 020 7597 5970                   Tel: 020 3757 4992/4981

 

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