Johnson Service Group profits climb to nearly £40m
Cheshire-based laundry specialist Johnson Service Group is celebrating a “strong financial performance” as with pre-tax profits up 17.5% to £39.7m.
Revenue also climbed 13.3%to £290.9m in the year to December 31 and the board has recommended 11.8% increase in final dividend to 1.9 pence per share (2016: 1.7 pence) which together with the interim dividend, takes the total dividend for the year up 12.0% to 2.8 pence per share (2016: 2.5 pence).
The company, which disposed of its drycleaning division in January, 2017, focused on textile services business with increasing UK geographical coverage.
PLS in Edinburgh, acquired in July 2017, to extend coverage of its high volume linen services to Scotland and Northern England.
In December, the company also bought StarCounty in Wrexham to increase coverage of its Stalbridge brand across the North West and West Midlands.
Chief executive Chris Sander said: “During the year Johnson Service Group continued to meet its strategic objectives by transforming the Group into a highly focused textile services business.
“In doing so, we have delivered another strong financial performance underpinned by significant organic growth together with growth from acquisitions which continue to extend the geographical coverage of our businesses.
“The operational strategy of continuing to invest capital in modern, highly efficient equipment has helped mitigate cost pressures and supported margin growth. With strong new business sales, the benefit of recent acquisitions and a continued focus on delivering service excellence, we remain confident in the year ahead.”
