Textile and workwear group to invest in new laundry facilities
Johnson Service Group (JSG) has announced plans to build a new laundry in the North of England to support its high volume linen business.
The group, based at Preston Brook, Runcorn, said the new site is expected to come on stream early next year.
It said it has signed a contract with a developer, subject to confirmation of certain utility requirements, for the building, and subsequent lease of the new laundry.
The group, which is a key provider of workwear and linen rental services, said the development is part of its strategy to increase future capacity and revenue generating opportunities in its linen division.
Today’s announcement came in a trading update to the market for the six months to December 31, 2018.
The group said the £3.3m investment in its Stalbridge Linen unit in London, referred to at the half year, has now been successfully completed on time and on budget.
In addition, the recent acquisition of South West Laundry made at the end of August 2018, is being successfully integrated within the Stalbridge brand.
The board said it remains positive about the future prospects for the business and expects to announce full year results in line with market expectations.
JSG chief executive Peter Egan said: “We have continued to trade well during the period, demonstrating the consistency of our business model.
“Our strategy continues to be driving growth both organically and through acquisition.
“The capital investment across our estate continues with the planned building of a new laundry which will significantly increase the capacity of our high volume linen business to meet our customers’ needs and to underpin future organic growth.”
JSG disposed of its dry cleaning business almost two years ago in a deal with Manchester-based high street shoe repair and key cutting business Timpson.
