Textile rental firm Johnson Service Group has reported double-digit growth and the £20m acquisition of a competitor in the first half of the year.
The AIM-listed company, which provides textile rental, cleaning and care for service and healthcare industries, reported adjusted profit before tax rose by 31.1 per cent to £21.5m in the six months ended 30 June 2024.
Revenue rose by 13.5 per cent year on year to reach £244.1m, while adjusted operating profit rose by 32.6 per cent to reach £25.2m.
Operating profit rose by 39.1 per cent to £22.4m.
The company acquired Empire Linen Services for £20.6m on 2 September, which “expands [its] service offering to luxury hotels in London and the South East.”
This will be further supported by its Enfield depot, which is “in operation”, and a new site in Crawley, which it expects to commence processing in the fourth quarter of 2024.
Peter Egan, chief executive officer of Johnson Service, said: “The group is reporting a strong financial and operational performance for the period, having delivered a significant uplift in year-on-year profitability.”
The boss added: “We remain focused on organic growth initiatives, optimising operational efficiencies through a combination of targeted capital investment and continuous improvement of our working practices whilst also continuing to expand our geographical coverage through the successful execution of earnings enhancing acquisitions, as demonstrated by the acquisition of Empire, announced today, which represents a further step in our strategy to expand the range and scale of services we offer.”
“We expect to exit 2024 with strong progression towards previous levels of adjusted operating margin and adjusted operating profit for the year, before the benefit from Empire, in line with current market expectations,” Egan said.
Its share price has risen more than 28 per cent in the last year and around 2.5 per cent in the past month.