Johnson Service Group posts growth as demand for hotel linen surges
The London-listed textile firm Johnson Service Group has seen demand soar among its hospitality clients, which has delivered a revenue boost of almost £30m.
Johnson, which is headquartered in Cheshire and provides textile rental, cleaning and care, grew its hospitality sector revenue to £172.9m in the six months ending June 30, 2024, up from £143.9m in the same period in 2023. The group said that high demand for hotel linen had helped to drive this growth.
Johnson Service Group said its overall revenue is expected to have increased by 5.7 per cent on 2023 levels.
In a trading update published today, the group said organic growth at its hospitality arm is expected to be 8.5 per cent reflecting a “continuing improvement in volumes across the estate.”
It added its new facility in Crawley is “nearing completion, and eight delivery routes are now operating from the site ahead of processing commencing in the near future.”
“Workwear revenue is stable, with the gradual improvement in customer retention and recent new sales expected to benefit performance in the second half.
“The board is confident that we will report full year adjusted operating profit in line with current market expectations.”
Johnson Service’s bank debt was approximately £75m on June 30, 2024, and the group said that in the absence of any further significant capital deployment it expected it to reduce during its second half.
In March Johnson Service confirmed that a £10m share buyback had been completed, giving a total of £29.8m back to shareholders last year, while acquisitions of Regency in February and Celtic Linen in August, paid off with both “performing well.”