Johnson Services thanks ‘significant investment’ and acquisitions for strong results

Johnson Services Group told markets this morning it EBITDA for the period had also gone up from £104.9m to £131.5m, while adjusted operating profit went over £50m, up from £41m.

Cleaning firm Johnson Services Group posted a bumper year after “significant investment” was made, as it expects profits to be in line with forecasts.

Cheshire-based firm JSG, which provides textile rental, cleaning and care, said its revenue increased by 20.6 per cent to £465.3m in the 12 months to 31 December.

The FTSE-listed firm told markets this morning its earnings before interest, taxes, depreciation, and amortisation (EBITDA)for the period had also gone up from £104.9m to £131.5m, while adjusted operating profit went over £50m, up from £41m.

JSG owed its healthy results to major investments at its sites, saying £33m had been invested through M&A activity with a further £31.1m of capital investment.

The firm said “energy costs remained elevated but less volatile than 2022”, while “customer retention levels were 91 per cent” and “increased activity from prospective customers will have a positive impact” in the 12 months to come.

It also said a £10m share buyback had been completed, giving a total of £29.8m back to shareholders last year, while acquisitions of Regency in February and Celtic Linen in August, paid off with both “performing well.”

Peter Egan, the chief of Johnson Service Group, said the performance showed “the resilience of our business model against a backdrop of macroeconomic pressures, the strength of our relationships with our customers and business suppliers and the hard work of our employees.”

“During the year, significant investment has been made across the business with the improvement of existing sites, a new build to support future growth and the acquisitions of Regency and Celtic Linen”.

He said: “2024 has started positively, with a larger business operating in an expanded geography.  Our scale, expertise, operational excellence and strong balance sheet will allow the business to capitalise on future opportunities.

“Given the encouraging start to the year, the Board expects adjusted operating profit for the year to be in line with current market expectations.”

Its share price in the last year has increased by more than 24 per cent.