REG - Johnson Service Grp. - Pre-Close Trading Update

Johnson ServiceAnnouncement

16/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240116:nRSP7683Za&default-theme=true

RNS Number : 7683Z  Johnson Service Group PLC  16 January 2024

16 January 2024

AIM:  JSG

Johnson Service Group PLC

('JSG' or 'the Group')

Pre-Close Trading Update

Strong performance in line with expectations and confident outlook for the
year ahead

 

JSG, a leading textile services provider in the UK and Republic of Ireland
('ROI'), today releases an update on trading.

 

We expect to announce a strong performance, with total revenue for the year
ended 31 December 2023 of approximately £464.0 million (2022: £385.7
million).  The HORECA business achieved revenue of £322.0 million (2022:
£251.1 million) and the Workwear business £142.0 million (2022: £134.6
million).  On an organic basis, revenue has increased by more than 16 per
cent on 2022 levels.

 

HORECA volumes have continued to build and we are continuing to add processing
capacity at a number of our sites to accommodate additional volume as we move
into the spring of 2024.  Our new state-of-the-art site in Crawley is
progressing well and remains on schedule to open in the second half of 2024.

 

Celtic Linen, which was acquired on 31 August 2023 and is based in ROI, has
traded well and in line with our expectations.  The capital investment in its
main Wexford site has been completed to budget and employees are welcoming the
opportunity to be part of a wider group operating within the textile rental
market.

 

As previously highlighted, Workwear saw some reduction in customer demand
however, in the second half of the year we have seen a continuation of the
increased sales activity that we benefited from in the summer alongside the
renewal of existing customer contracts.  Our sales activity is also supported
by the launch of a range of innovative garments for specific sectors and our
strong commitment to high levels of customer service.

 

We are continuing to proactively manage our cost base against the backdrop of
increasing labour costs.  We are maintaining our policy on fixing our energy
pricing, where possible, on a gradual basis such that the closer we are to a
date, the higher our fixed percentage will be.  We have now secured fixed
prices for approximately 80 per cent of our anticipated gas and electricity
requirement for 2024 with further agreements, at a reducing level, into 2025
and 2026.

 

Bank debt (excluding IFRS 16) at 31 December 2023 was approximately £62.0
million (31 December 2022: £13.7 million) and reflects the completed share
buy-back programmes which returned £29.7 million to Shareholders during 2023,
the acquisitions of Celtic Linen and Regency Laundry and continued significant
investment in our plant network.

 

We expect to report full year adjusted operating profit in line with current
market expectations.  The Board remains confident about future growth and
performance over the medium term as we continue to expand our geographical
coverage and processing capacity.

 

Full year results are expected to be announced in March 2024.

 

 

 

ENQUIRIES

 Johnson Service Group PLC
 Peter Egan, CEO
 Yvonne Monaghan, CFO
 Tel: 020 3757 4992/4981 (on the day)
 Tel: 01928 704 600 (thereafter)

 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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFFFVLLIIELIS