Linen firm Johnson optimistic; H1 revenue falls to £99m

Runcorn-based workwear and textile firm Johnson Service Group (JSG) announced that its 2021 first-half revenue fell to £99.6 million compared to £114.8 million in the first six months of 2020.

First-half loss before taxation was £14 million, down from a £18.6 million loss in H1 2020.

Johnson Service Group CEO Peter Egan said: “During the first half, we have experienced a consistently robust performance from our workwear business and a notable return of demand in HORECA (hotel, restaurant and catering), particularly driven by the staycation activity in early summer. 

“It remains difficult to give guidance for the coming months however, in the absence of increased restrictions, we expect that we will announce results for the year towards the higher end of current market expectations.

With our established customer base and well invested infrastructure, coupled with a strong balance sheet and £175 million of committed bank facilities, we are well placed to drive growth in our performance as we move through the remainder of the year and beyond.”

In its outlook, Johnson Service Group said: “Whilst HORECA volumes still remain less predictable than in the past, primarily as a result of ongoing uncertainties around travel and other restrictions, since the end of June we have continued to experience increased demand across our sites. 

“We anticipate that, in the absence of further lockdowns or local restrictions, volumes will continue to improve over the coming months.

“Along with many other businesses, we are seeing inflationary pressures on some of our costs …

We continue to take proactive actions to adapt our operations and we remain confident in our medium and long-term growth prospects. 

“We also anticipate that there will continue to be further opportunities for consolidation of the market and, given our strong balance sheet, we look forward to taking advantage of opportunities as they arise.”

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