|
Johnson Service Group PLC on Friday said it expects to report revenue growth of more than 10% in 2024, with adjusted operating profit meeting market expectations, though it is preparing for increased costs in its UK operations from April due to higher taxes and employment costs. The Cheshire, England-based textile rental and services provider, operating across the UK and Ireland, estimated revenue of £513 million for 2024, up 10% from £465.3 million in 2023, in line with company expectations. On an organic basis, revenue growth was 3.8%. The Horeca division, which serves the hospitality and catering sectors, saw a 15% increase in revenue to £371.0 million from £322.7 million. The Workwear division saw ‘volumes remain stable’, with revenue slipping 0.4% to £142.0 million from £142.6 million. JSG said customer retention in the Workwear business improved to 93% by December 2024, up from 92% at midyear, with recent sales expected to ‘benefit’ performance later in 2025. JSG said its new Horeca site in Crawley, south England, is now operational, with work transitioning from Dorset sites in the coming weeks. It added that the Empire business, acquired in September, is trading in line with expectations. Net debt, excluding lease liabilities, was about £70 million at year-end, up from £61.7 million a year before. Referring to the increase in taxation in the UK from April, JSG acknowledged the potential headwinds from uncertain economic growth, inflation, and interest rates. However, the company said it is ‘resilient and well-placed’ to said headwinds through operational efficiencies and expects to deliver progress in 2025. The firm will announce its full-year results in early March. Shares in JSG were up 0.9% at 131.60 pence each in London on Friday morning. Copyright 2025 Alliance News Ltd. All Rights reserved.
|
