Johnson Service Regulatory News (JSG)

26 July 2022

AIM: JSG

Johnson Service Group PLC

('JSG' or 'the Group')

Pre-Close Update

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

Group revenue in the six months to 30 June 2022 was £176.2 million (2021: £99.6 million) reflecting, in particular, the continuing recovery in our HORECA business. On an organic basis, revenue in the first half increased 73.0% on 2021 levels and, on the same basis, was 1.5% behind the pre-pandemic revenue posted in the first half of 2019.

Workwear revenue increased slightly to £66.0 million (2021: £64.5 million) and we anticipate a further increase in the second half.

HORECA volumes in the second quarter were 91% of normal. Total revenue in the six months to 30 June 2022 was £110.2 million (2021: £35.1 million). We continue to see an encouraging pipeline of new business opportunities comprising both new sites from existing customers as well as new customers and we expect to instal further customer locations in the coming months.

Cost inflation, in respect of energy in particular, persists. We have continued to proactively trade in the energy market when appropriate such that 89% of our anticipated gas requirement and 50% of our anticipated electricity requirement for the remainder of this year, is now fixed at prices significantly below the current day ahead rate. We continue to secure and implement price increases across our customer base which, along with additional volume which will better utilise our labour resource and improve processing efficiency, will help offset cost inflation and we will continue to take appropriate mitigating actions as necessary.

Based on our assumption that volumes follow the normal seasonal pattern over the coming months and are not impacted by a reduction in discretionary spending, we expect the full year outturn to be in line with current market expectations. The Board's current intention remains to re-commence dividend payments at the time of the interim results announcement on 1 September 2022.

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