(Alliance News) - Johnson Service Group PLC on Friday said that it expects annual profit to top expectations, on the back of an encouraging workwear market.
The textile services firm said it expects to report revenue in the six months ended June 30 of GBP215.0 million, up 22% from GBP176.2 million a year prior. On an organic basis, revenue is expected to have increased 21%.
The Cheshire, England-based firm said: "Workwear markets have remained relatively stable and, encouragingly, some positive signs on new sales have become evident in recent weeks."
In Horeca, which consists of customers in the hotels, restaurants and the catering industry, its Hotel Linen brand has made progress.
"Horeca volumes have continued to build with some 8,500 rooms installed by Hotel Linen in the first six months of the year. Continuing investment in all our plants is increasing efficiency and capacity to allow for further growth. Regency, our recently acquired luxury linen business, has settled into the group well and we are progressing plans to improve capacity on the site. Our new Horeca site in Crawley is moving forward, with equipment now on order, and remains on schedule for opening in the second half of 2024," Johnson Service said.
Johnson Service also noted it has "more certainty on our costs in the short term", but added that inflation pressure continues to be felt.
"We have now secured fixed prices for 84% of our anticipated gas requirement and 87% of our anticipated electricity requirement for the remainder of this year. In addition, 50% of our anticipated gas requirement and 64% of our anticipated electricity requirement is now fixed for 2024 with further agreements at a lower level in place for 2025," it said.
It expects full-year adjusted operating profit to be slightly ahead of current market expectations.
Adjusted operating profit in 2022 amounted to GBP41.2 million, rising from GBP12.7 million.
Johnson Service Group reports half-year results on September 5.
In addition, the company added Kirsty Homer to its board as an independent non-executive director, with effect August 1. Homer formerly served as HR director at London-listed kitchen and joinery supplier Howden Joinery Group PLC.
Shares in the company were 2.7% higher at 106.60 pence each in London on Friday morning.
By Eric Cunha, Alliance News news editor
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Johnson Service (JSG)
Howden Joinery (HWDN)