REG - Johnson Service Grp. - Trading Update

Johnson ServiceAnnouncement

17/01/2025 07:00

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RNS Number : 6765T  Johnson Service Group PLC  17 January 2025

17 January 2025

AIM:  JSG

Johnson Service Group PLC

('JSG' or 'the Group')

Trading Update

Strong performance in line with expectations

 

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 2024 increasing by over 10% to approximately £513.0 million
(2023: £465.3 million), in line with our expectations.  The HORECA business
achieved revenue of £371.0 million (2023: £322.7 million) and the Workwear
business £142.0 million (2023: £142.6 million).  On an organic basis, Group
revenue has increased by some 3.8% on 2023 levels.

 

Within HORECA, trading has remained as expected through the final months of
2024 in both the UK and ROI and we expect to report organic revenue growth for
the year of some 5.5%.  Workwear volumes remain stable, with customer
retention levels continuing to gradually improve, to 93% as at December 2024
from 92% at June 2024, and recent new sales expected to benefit performance
later into 2025.

 

Our new HORECA site in Crawley is now operational and the testing of machinery
and processes is underway.  Recruitment and training is well progressed and
the transfer of work from our Dorset sites will commence at pace in the coming
weeks.  The Empire business, acquired at the beginning of September 2024,
continues to trade in line with our expectations.

 

Net debt (excluding IFRS 16 lease liabilities) at 31 December 2024 was
approximately £70.0 million (31 December 2023: £61.7 million).

 

We expect to report full year adjusted operating profit for 2024, together
with an improving margin, in line with current market expectations.

 

As we move into 2025, the outlook for economic growth, inflation and interest
rates is uncertain and, from April, the UK business faces higher costs from
well-documented increases in taxation.  However, we have a strong business
which, as we have previously demonstrated during challenging times, is
resilient and well placed to mitigate and manage these headwinds through
operational efficiencies and other measures.  The fundamental strength of our
business, coupled with continued expansion of our geographical coverage and
processing capacity, leads the Board to remain confident about delivering
another year of progress in 2025 and future growth in the Group's performance
over the medium term.

 

Full year results are expected to be announced in early March 2025.

 

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                        Letaba Rimell
 Virginia Bull
 Tel: 020 7597 5970                    Tel: 020 3757 4992/4981

 

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