Johnson cleans up with revenue and profits soaring

JOHNSON Service Group is celebrating strong growth in revenue and profits.

Revenue for the Cheshire textile services group, in the six months to June 30, grew to £109.2m – up 7.5% on the same period in 2014.

Adjusted profit before tax also soared to £10.1m, a rise of 18% on H1 2014.

Its strong performance has been helped by the £64.9m acquisition of London Linen Supply in April 2 which was boosted earnings immediately.

The successful placing of 30 million new shares also raised net proceeds of £21.1m, while net debt was marginally better than management expectations at £72.4m and a new banking facility signed in April provided significant headroom for future investment.

Chief executive Chris Sander said: “We are very pleased with the encouraging financial performance of the Group in the first half of the year, underpinned by a strong operational performance and the acquisition of London Linen.

“This strategic acquisition has been earnings enhancing from day one, significantly increases our capability to serve the vibrant London restaurant market and complements the range of textile rental services offered by our Stalbridge business.

“The Group continues to invest in additional capacity at existing locations and to seek further acquisitions in the wider textile rental market.”