Workwear firm sees profits pass the £15m mark

Profits before tax were up by 8.6% to £15.2m at workwear specialist Johnson Services Group.

The Cheshire based firm saw a 9.8% increase in revenue to just over £167m according to its interim results for the period to June of this year.

And adjusted profit before tax was up by 10.4% to just over £20m.

The firm said it had seen a strong financial performance and as a result interim dividend increased by 15% to 1.15 pence per share.

The company said there has been significant capital investment which has increased production capacity at selected sites to support the demand from strong organic growth

Performance in the two months since the period end means that full year results are expected to be slightly ahead of current market expectations.

Chief executive Peter Egan said: “This is a strong performance reflecting excellent sales growth, the benefits of recent acquisitions and continued high levels of customer retention across all market sectors.

“We are particularly pleased with the strength and quality of our organic performance which has been achieved by investing capital in our operations giving increased production capacity to meet growing customer demand.

“We will continue to invest in our sites, including the completion of the new Leeds plant, allowing us to benefit from production efficiency gains as well as creating additional capacity in order to further increase revenues going forward.

“There is good momentum in the group and we have started the second half strongly. In view of the encouraging performance over the summer months we anticipate that the results for the year will be slightly ahead of current expectations.”