Runcorn-based workwear and textile firm Johnson Service Group (JSG) said its profit before tax rose 38.5% to £18.7 million in the six months to June 30 as revenue increased 13.5% to £244.1 million.

Interim dividend will rise 44.4% to 1.3p per share.

JSG also said it has acquired Empire Linen Services Limited for £20.6 million. Empire provides linen services to luxury hotels in London and the South East of England.

The firm said: “Full year outturn, before the benefit from Empire, (is) expected to be in line with current market expectations.”

Johnson Service Group CEO Peter Egan 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 remain focused on organic growth initiatives, optimising operational efficiencies through a combination of targeted capital investment and continuous improvement of our working practices whilst also continuing to expand our geographical coverage through the successful execution of earnings enhancing acquisitions, as demonstrated by the acquisition of Empire, announced today, which represents a further step in our strategy to expand the range and scale of services we offer.

“Whilst continuing to closely manage variable costs, our team has ensured that customer retention has remained strong. 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.”