Preliminary results for the year ended 31 December 2017 from the Johnson Service Group (JSG) show strong financial performance and established growth platform, according to chief executive officer, Chris Sander.
Revenue over the period increased by 13.3% to £290.9m form £256.7m at end of 2016 while operating profit leapt 16% from £29.8m to £34.8. Pre tax profits scored a 20.5% rise from £25.9m to £31.2m in the 12 months to end of September 2017.
The strong financial performance reflects organic revenue growth of 5.1% and successful delivery of earnings from acquisitions, according to JSG. The board has recommended a 11.8% increase in final dividend to 1.9 pence per share (2016: 1.7 pence) which together with the interim dividend, takes the total dividend for the year up 12.0% to 2.8 penc
e per share (2016: 2.5 pence).
JSG attributes the buoyancy to strategies that include the disposal of its drycleaning division in January 2017 and increased UK geographical coverage through acquisitions.
The acquisition of PLS in Edinburgh last year has extended coverage of high volume linen services to Scotland and Northern England while the acquisition of StarCounty in Wrexham, in December, has increase the geographical coverage of the Stalbridge brand across the north west and west midlands.
Continuing capital investment to increase production capacity and efficiency with new efficient equipment has also bolstered performance along with accelerated investment in 2017 to support the demand from strong organic sales generated during the year. ?
Sander commented: “During the year Johnson Service Group continued to meet its strategic objectives by transforming the Group into a highly focused Textile Services business. In doing so, we have delivered another strong financial performance underpinned by significant organic growth together with growth from acquisitions which continue to extend the geographical coverage of our businesses.
“The operational strategy of continuing to invest capital in modern, highly efficient equipment has helped mitigate cost pressures and supported margin growth. With strong new business sales, the benefit of recent acquisitions and a continued focus on delivering service excellence, we remain confident in the year ahead.”
