Linen firm Johnson says profit up 306% to £38m

Runcorn-based workwear and textile firm Johnson Service Group (JSG) said its 2022 revenue increased 42.1% to £385.7 million and adjusted profit before taxation increased 306.4% to £38.2 million.

Full year dividend will be 2.4p, after no 2021 dividend was paid.

Johnson confirmed its ongoing £27.5 million share buyback programme, with £11.4 million deployed to date.

The firm expects results for 2023 to be in line with market expectations.

Johnson Service Group CEO Peter Egan said: “The improved performance we are reporting today demonstrates the resilience of JSG’s business model, operational expertise and strength of our relationships with our customers and business suppliers, alongside the hard work of our employees.

We have invested £22.4 million in our sites to not only improve productivity and processes but also to attract and retain employees with enhanced working environments.

Post the year end we supplemented our organic growth plans with the acquisition of a luxury hotel linen rental business, in line with our acquisition strategy, and the signing of a new lease to increase our capacity in the South East for HORECA (hotel, restaurant and catering). 

“We will continue to assess investment opportunities which will provide supplementary quality services and earnings enhancing outcomes.

We are confident that the actions we have taken have placed the Group in a favourable position as markets continue to recover. 

“After considering the current economic environment, including the recent, and possibly further, increases in UK interest rates and the subsequent impact on our cost of borrowing, the board expects the result for the year to be in line with market expectations.”