As part of Johnson Service Group’s strategy to increase future capacity and revenue generating opportunities within its high volume linen business, the group has confirmed that is has now signed a contract with a developer (subject to confirmation of certain utility requirements) for the building and subsequent lease of a new laundry in the North of England, which is expected to come on stream in early 2020.

The UK textile rental provider, in its latest trading update for the six months to 31 December 2018, said that the group remains positive about the future prospects for the business and expects to announce full year results in line with market expectations.

The £3.3m investment in JSG’s Stalbridge Linen unit in London has now been successfully completed on time and on budget. In addition, the recent acquisition of South West Laundry made at the end of August 2018 is being successfully integrated within the group’s Stalbridge brand.

Peter Egan, chief executive officer of JSG, said: “We have continued to trade well during the period, demonstrating the consistency of our business model. Our strategy continues to be driving growth both organically and through acquisition. The capital investment across our estate continues with the planned building of a new laundry which will significantly increase the capacity of our high volume linen business to meet our customers’ needs and to underpin future organic growth.”