REG - Johnson Service Grp. - AGM Statement

Johnson ServiceAnnouncement

Today 07:00

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RNS Number : 9300G  Johnson Service Group PLC  01 May 2025

1 May 2025

AIM: JSG

Johnson Service Group PLC

("JSG" or "the Group")

 

AGM Statement

 

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

 

Current Trading

Group revenue in the first three months of the year increased by 6.1% to
£121.4 million (2024: £114.4 million).  Organic revenue growth in the same
period was 2.2% (HORECA: 2.2%; Workwear: 2.3%).

 

HORECA volumes have been in line with our expectations and are reflective of
the later Easter holidays in 2025.

 

Crawley, our new HORECA site, began processing at the beginning of March
2025.  Approximately one third of customers that we planned to transfer to
the new site were successfully moved by the end of April 2025, in line with
the overall project plan.

 

Workwear traded in line with our expectations during the first quarter, with
customer retention improving and our expectations are that it will trend back
to historic levels of 95% during the year.

 

Balance Sheet

Bank debt increased from £68.6 million at December 2024 to £84.5 million at
the end of March 2025 and is expected to peak mid-year, reflective of the
timing of dividend payments, share buybacks, working capital movements and
capital expenditure.  Bank debt at June 2025 is expected to be approximately
£100.0 million before reducing to a similar level to March 2025 by December
2025, assuming a total share buyback of £30.0 million is completed by that
date. We expect gearing to remain below 1x EBITDA throughout 2025. As at 29
April 2025, we have returned £6.3 million to Shareholders under the £15.0
million share buyback programme announced on 5 March 2025.

 

Under our capital allocation policy, we keep our capital structure under
review taking into account maintaining a strong balance sheet, continuing
capital investment in our estate, accretive acquisitions, a progressive
dividend policy and distributing any surplus cash to Shareholders.

 

Forthcoming Investor Activities

A site-based investor event is currently being planned for 11 June 2025 at our
new site in Crawley. Further arrangements will be communicated shortly.

 

Main Market

As previously announced, we are engaging with our largest Shareholders
regarding a move to the Main Market. We will make a further announcement on or
before 11 June 2025.

 

Outlook

We remain confident in the prospects of the Group and our ability to manage
the potential economic challenges that may arise in 2025 and beyond.

 

We have a strong, well-invested business and a strong balance sheet to support
future investment opportunities as they arise.

 

Given the encouraging start to the year, which was in line with our
expectations, the Board remains confident about delivering another year of
progress in 2025 and is on track for an Adjusted Operating Profit margin
improvement to at least 14% in 2026.

 

 

 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

 Virginia Bull                        Letaba Rimell

 William Brinkley

 Tel:  020 7597 5970                  Tel:  020 3757 4992 / 4981

 

 

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