Runcorn-based workwear and textile firm Johnson Service Group (JSG) said its group revenue in the first three months of the year increased 6.1% to £121.4 million.
Organic revenue growth in the same period was 2.2%.
In an AGM Statement, Johnson Service Group said: “HORECA (Hotel, Restaurant and Catering) volumes have been in line with our expectations and are reflective of the later Easter holidays in 2025.
“Crawley, our new HORECA site, began processing at the beginning of March 2025. Approximately one third of customers that we planned to transfer to the new site were successfully moved by the end of April 2025, in line with the overall project plan.
“Workwear traded in line with our expectations during the first quarter, with customer retention improving and our expectations are that it will trend back to historic levels of 95% during the year.”
On its balance sheet, Johnson Service said: “Bank debt increased from £68.6 million at December 2024 to £84.5 million at the end of March 2025 and is expected to peak mid-year, reflective of the timing of dividend payments, share buybacks, working capital movements and capital expenditure.
“Bank debt at June 2025 is expected to be approximately £100.0 million before reducing to a similar level to March 2025 by December 2025, assuming a total share buyback of £30.0 million is completed by that date.
“We expect gearing to remain below 1x EBITDA throughout 2025. As at 29 April 2025, we have returned £6.3 million to Shareholders under the £15.0 million share buyback programme announced on 5 March 2025.
“Under our capital allocation policy, we keep our capital structure under review taking into account maintaining a strong balance sheet, continuing capital investment in our estate, accretive acquisitions, a progressive dividend policy and distributing any surplus cash to Shareholders.”
The firm added: “Given the encouraging start to the year, which was in line with our expectations, the Board remains confident about delivering another year of progress in 2025 and is on track for an Adjusted Operating Profit margin improvement to at least 14% in 2026.”