Johnson Service to meet market expectations thanks to acquisitions

John Service Group expects its results for the year to the end of December to meet market forecasts, reflecting the positive performance reported in its interim results, and significantly ahead of the previous year following successful acquisitions.

In May, the textile services group paid £65.4m for table linen supplier London Linen Supply and in November, it bought laundry business Ashbon Services for £6.3m.

Notwithstanding the acquisition of Ashbon, the company said net debt at the year end is expected to be slightly lower than the £72.4m reported June 2015.

In addition, Johnson said the National Living Wage will be implemented across the group in April 2016.

“We believe that the effect of this, including the benefits of our mitigation plans, is already reflected in current market expectations.”

Full year results are due to be announced in the week commencing 29 February.

At 0814 GMT, shares were up 0.7% to 88.83p.