Johnson Service Group hails ‘strong’ sales as it acquires rival in £20m deal
The London-listed group told shareholders on Tuesday that revenues grew by 13.5% to £244.1 million for the first half of 2024.
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Your support makes all the difference.Johnson Service Group has cheered a jump in sales over the first half of the year, as it expanded its luxury hotel services operations with a deal to buy a rival.
Bosses at the textile rental and cleaning business hailed a “strong” performance as it also reported a significant rise in profits.
The London-listed group told shareholders on Tuesday that revenues grew by 13.5% to £244.1 million for the first half of 2024.
Organic revenues rose by 5.7% as it also benefited from acquisitions.
Johnson said sales volumes increased across its hotel, restaurant and catering arm despite “unseasonably poor weather” in the second quarter.
We have had some significant independent and group sales wins during the second quarter of 2024 which will positively impact the remainder of the year and into 2025
Meanwhile, workwear trade “remained stable” during the half-year, with the company pointing towards improving sales momentum from new and existing customers.
The firm reported that pre-tax profits grew by 38.5% to £18.5 million for the six-month period.
It came as Johnson also confirmed it has acquired competitor Empire Linen Services for £20.6 million.
Empire provides linen services to luxury hotels in London and the South East and employs around 170 workers.
Peter Egan, chief executive of the company, said: “The group is reporting a strong financial and operational performance for the period, having delivered a significant uplift in year-on-year profitability.
“This result is testament to the resilience of our business model, the strength of our relationships with our customers and suppliers and the hard work of our employees.
“We have had some significant independent and group sales wins during the second quarter of 2024 which will positively impact the remainder of the year and into 2025.
“We expect to exit 2024 with strong progression towards previous levels of adjusted operating margin and adjusted operating profit for the year, before the benefit from Empire, in line with current market expectations.”
Shares in the London-listed company moved 0.4% higher in early trading.