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Johnson Service Group PLC on Tuesday hailed better efficiency and pricing as it reported a significantly higher profit in the first half of 2023.
The Cheshire, England-based textile services provider said pretax profit in the first half of 2023 surged to £13.5 million from £5.1 million a year prior. Revenue rose 22% to £215.0 million from £176.2 million.
The company declared an interim dividend of 0.9 pence per share, up from 0.8p a year prior.
John Service said that inflationary costs were offset by efficiency and pricing, with high energy costs being proactively managed.
Chief Executive Officer Peter Egan highlighted that the company ‘invested £12.9 million across the estate and committed to a new state-of-the-art site in the South-East to further improve operational efficiencies, increase capacity and support innovation’.
‘Our intention to increase our bank facility from £85.0 million to £120.0 million in the coming months provides us with the ability to fund further investment opportunities that may arise,’ he added.
Looking ahead, Johnson Service expects 2023 to be ahead of market expectations and slightly ahead of its July guidance, when it estimated 2023 adjusted operating profit to be ahead of the market outlook.
Johnson Service shares rose 6.2% to 131.70p each on Tuesday morning in London.
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