Johnson Service Group sees profits rise following acquisition

Johnson Service Group, the Cheshire-headquartered provider of textile services, has reported increased profits in the wake of acquiring table linen and chefswear supplier London Linen.

In the six months to June 30 this year, Runcorn-based Johnson Service Group saw an increase of 18.8% in its pre-tax profit, which rose to £10.1m when adjusted to discount finance costs.

Meanwhile, the group obtained a new bank facility in April 2015 that will mature in 2020 and amount to £100m, which it hopes will provide room for future investment.

Discussing the half-year results, the group’s chief executive officer, Chris Sander, said: “We are very pleased with the encouraging financial performance of the Group in the first half of the year, underpinned by a strong operational performance and the acquisition of London Linen.

“This strategic acquisition has been earnings enhancing from day one, significantly increases our capability to serve the vibrant London restaurant market and complements the range of Textile Rental services offered by our Stalbridge business.”

He added: “The Group continues to invest in additional capacity at existing locations and to seek further acquisitions in the wider Textile Rental market. We expect further progress in the second half and the result for the full year to be slightly ahead of current market expectations.”

Revenue in the six-month period was up from £101.6m in June 2014 to £109.2m, an increase that the firm has put down to two months of revenue contribution from the newly acquired London Linen Supply and also the closure of many of its drycleaning branches, which includes the Johnsons Dry Cleaners brand.