Runcorn-based workwear and textile firm Johnson Service Group (JSG) said on Wednesday its group revenue for the six months to June 30, 2024, is expected to rise to £244.1 million from £215 million.

In a pre-close trading update, JSG said full year adjusted operating profit is in line with current market expectation.

JSG reported first-half revenue in its Workwear business of £71.2 million (2023: £71.1 million) and in HORECA (hotel, restaurant and catering) of £172.9 million (2023: £143.9 million). 

On an organic basis, group revenue is expected to have increased by 5.7% on 2023 levels.

“Organic growth in HORECA is expected to be 8.5% reflecting a continuing improvement in volumes across the estate, particularly in Hotel Linen,” said JSG.

“Our new HORECA site in Crawley is nearing completion and eight delivery routes are now operating from the site ahead of processing commencing in the near future. 

“Workwear revenue is stable, with the gradual improvement in customer retention and recent new sales expected to benefit performance in the second half.

“Bank debt (excluding IFRS 16 liabilities) was approximately £75 million at 30 June 2024, and, in the absence of any further significant capital deployment, will reduce during the second half.

“The board is confident that we will report full year adjusted operating profit in line with current market expectations.”