Johnson Service Share News (JSG)

(Sharecast News) - Johnson Service Group reported "consistent, strong" financial performance in its preliminary results on Monday, as its revenue rose 9.2% on an adjusted basis to ?350.6m for 2019.
The AIM-traded firm said its adjusted operating profit was 14.8% higher at ?52.8m, while its adjusted diluted earnings per share were 12.9% firmer for the 12 months ended 31 December at 10.5p.

It said its full-year dividend was also 12.9% higher, at 3.5p per share.

The company's net debt, pre IFRS 15, narrowed to ?87.7m from ?98.4m, although after the effect of IFRS 16, it widened to ?127.7m.

On a statutory basis, operating profit was 16.7% higher at ?42.7m, and diluted earnings per share were ahead 15.3% at 8.3p.

Johnson Service said it make "significant" capital investment during the year, in a bid to improve its productivity and increase its processing capacity at a number of sites.

It noted the acquisition of the hotel, restaurant and cafe linen business, Fresh Linen, on 30 November, which further expanded its nationwide presence.

The firm also said the new hotel linen site in Leeds remained on track for the second quarter of 2020.

"We have continued to deliver strong organic growth complemented by the impact of our recent acquisitions," said chief executive officer Peter Egan.

"The combination of these has yielded another solid financial year with impressive growth in group revenues, operating profit and earnings per share.

"The group's trading performance since the year end has been in line with management expectations."

Egan said the company was "looking forward" to the opening of its new Leeds site, which he said would bring further capacity on stream, and were continuing to plan for investment in its other sites, to increase capacity further.

"We anticipate that the group will deliver organic growth across both divisions, whilst continuing to focus on customer satisfaction and investment to optimise operational efficiencies.

"This, alongside our proven track record in identifying earnings enhancing acquisitions, gives us confidence for the future success of the group."

At 1200 GMT, shares in Johnson Service Group were up 8.74% at 199p.