Johnson Service Regulatory News (JSG)

14 July 2023

AIM: JSG

Johnson Service Group PLC

('JSG' or 'the Group')

Pre-Close Update - Adjusted Operating Profit Expected To Be Slightly Ahead

JSG, a leading UK textile services provider, today releases an update on trading.

Group revenue in the six months to 30 June 2023 is expected to be £215.0 million (2022: £176.2 million), with revenue in our Workwear business of £71.0 million (2022: £66.0 million) and in HORECA £144.0 million (2022: £110.2 million). On an organic basis, revenue is expected to have increased by 20.6% on 2022 levels.

Workwear markets have remained relatively stable and, encouragingly, some positive signs on new sales have become evident in recent weeks.

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.

Whilst inflationary pressures continue and energy markets remain volatile, we do have more certainty on our costs in the short term. 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.

This more predictable cost base, together with current anticipated volume over the busy summer months, gives us confidence that, assuming the trading environment remains unchanged, we will report full year adjusted operating profit slightly ahead of current market expectations.

The results for the six months to 30 June 2023 will be announced on 5 September 2023.

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