Johnson Service Group planning more acquisitions after strong final year results
Johnson Service Group planning more acquisitions after strong final year results
Runcorn-based workwear and hospitality industry textile business, Johnson Service Group, has delivered strong annual results showing a growth in pre-tax profits to £47.2 million from £37.6 million in 2023.
Top line turnover grew to £513.4m from £465.3m last year.
The business is also planning a move to the main market and a further buyback of its shares to return up to a further £30m to shareholders over the next 12 months, with an initial £15m tranche to be launched shortly.
In September JSG confirmed a £20.6m acquisition of London-based Empire Linen Services.
The group has reported increasing new sales activity and a strengthening pipeline in both HORECA (Hotel, Restaurant and Catering) and Workwear during the year.
With margin improvement on track for target of at least 14.0% in 2026.
The company also said labour costs will rise next year, due to the forthcoming increase in employer national insurance contributions. In the UK is expected to amount to some £6m, which “we will seek to mitigate and manage through operational efficiencies and other measures” the company said in the results commentary.
Peter Egan, Chief Executive Officer of Johnson Service Group PLC, said: “In line with our inorganic growth strategy, we continue to seek out and acquire earnings enhancing businesses which complement our existing geographic coverage. We also continue to invest in our estate to drive production efficiencies, organic growth and support our high levels of customer service.
“Our scale, expertise and operational excellence mean that we are well placed to capitalise on opportunities and, accordingly, the Board remains confident about delivering another year of progress in 2025.”
