Johnson Service Regulatory News (JSG)

11 January 2023

AIM: JSG

Johnson Service Group PLC

('JSG' or 'the Group')

Pre-Close Update

"Full year outturn is expected to be in line"

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

Trading continued to improve during the second half of 2022, and we expect to announce full year revenue of approximately £385 million (2021: £271.4 million). Revenue in our Workwear business is expected to be £134.5 million and in HORECA, £250.5 million. On an organic basis, revenue is expected to have increased by almost 40% on 2021 levels and, on the same basis, be 2.6% higher than the pre-pandemic revenue posted for 2019.

HORECA volumes have increased slightly and were over 93% of normal in the final quarter, helped by the installation of new customers during the second half.

Whilst cost inflation remains a challenge, we continue to take appropriate actions to mitigate the impact. We have also traded further in the energy market such that some 65% of our anticipated gas requirement and 55% of our anticipated electricity requirement for 2023 is now fixed.

Year end net debt, excluding IFRS 16 liabilities, is expected to be approximately £14 million. The share buyback programme announced in September is ongoing with £5.6 million of cash utilised as at 31 December 2022.

The full year outturn is expected to be in line with current market expectations.

Full year results are expected to be announced in March 2023.

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