Johnson Service Group ups guidance after strong first half

JSG, which provides workwear and protective wear, as well as linen for the hospitality industries, had announced back in July that full-year profits would be ahead of market expectations.

"Recognising the volumes processed over the busy summer months, improving efficiencies and a somewhat more predictable outlook on the cost base, together with our assumption that the trading environment remains unchanged, we expect the full-year outturn to be slightly ahead of the guidance provided in our July trading update," said chief executive Peter Egan.

The improved outlook was also bolstered by JSG's recent €31.5m acquisition of Celtic Linen, a leading supplier of textile rental services in Ireland, announced last week.

As disclosed in the detailed trading update in July, revenue for the six months to 30 June rose 22% year-on-year to £215m, while adjusted pre-tax profit increased 46% to £16.4m.

The company declared an interim dividend of 0.9p per share, up from 0.8p last year.

JSG has bought back £19.7m of shares since the start of the. year, and has returned £25.3m to shareholders over the past 12 months.

It said that, even these returns and recent investments, it still has "significant headroom" under its committed facilities, and has decided to launch a second share buyback programme for up to £10m for the period up until March 2024.

The stock was up 3% at 127.7p within the opening hour in London.