Johnson Service Group trading strongly as chairman Moody steps down

Shareholders in textile services provider Johnson Service Group were told of strong trading at its annual general meeting on Thursday.

The AIM-traded firm’s non-executive chairman, Paul Moody, also announced his resignation at the event.

“Following substantial growth in 2017, year to date trading has been strong reflecting both an encouraging underlying performance together with the benefit of acquisitions over the last 12 months,” Paul Moody said of Johnson’s performance.

“We expect the full year results for 2018 to be slightly ahead of current market expectations.”

The board confirmed to investors that Moody had given notice that he was to resign from his position as non-executive chairman, and would leave the group on 3 August.

It said the current senior independent director, Bill Shannon, would be appointed as non-executive chairman with effect from that date.

In the meantime, the board said it would commence a search for a new non-executive director who had the relevant experience to assist in the further development of the group's strategy.

“It has been a privilege to have been part of the Johnsons family for over eight years, the last four as chairman,” Paul Moody added.

“Under Chris Sander's leadership, the business has performed spectacularly well.”

Moody said the strategy that Sander and the board had defined was “clear”, and would continue to drive strong operational and financial performance.

“Combined with the seamless transition from Chris to Peter Egan as CEO, I am confident that a positive future for the business is assured.

“Now is the right time for me to step away as I consider new opportunities.”

Chris Sander, chief executive officer, added that as a member of the board, and for the last four years as chairman, Moody had made a “valued contribution” to the development of Johnson’s strategy.

“During this time we have experienced significant growth and become a market leader in textile services in the UK,” Sander explained.

“The board thanks him for his support to the Executive in pursuing their aims and ambition for the company and wishes him well in whatever he chooses to do.”