Johnson Service Group reports year of growth

Expansion was the theme of 2015 at Johnson Service Group, and it paid off in its final results on Tuesday, with its two new acquisitions performing well.

The AIM-traded textile services business saw revenue in the calendar year increase 11.4% to £234.4m, with adjusted operating profit ahead 28% to £27.9m. Adjusted profit before tax was £25.2m, up 26% on the prior year.

Johnson's adjusted fully diluted earnings per share increased 21.2% to 6.3p, from 5.2p. Its reported profit before tax was up 9.5% to £12.7m.

"Our business sustained strong growth momentum in 2015, as demonstrated by the increase in revenue and adjusted profit before tax," said chief executive Chris Sander.

He said the acquisitions of London Linen and Ashbon had successfully increased Johnson's reach and capability in the key hotel, restaurant and catering markets.

"The group remains focused on ensuring the best possible service for our customers and sustainable returns for our shareholders. We are well placed to continue our growth both organically and through earnings enhancing acquisitions," Sander added.

Both acquisitions during the year were immediately earnings enhancing, the company's board confirmed.

Its textile rental division performed ahead of management expectations for the year as well, with high levels of customer retention. Johnson's dry-cleaning division was also successfully completed, with progress made with its Waitrose partnership.

The company's board proposed a final dividend of 1.45p per share, making for a total dividend of 2.1p for 2015, up 23.5% on 2014's 1.7p.