UK laundry and linen specialist Johnson Service Group (JSG) has reported a 10 per cent increase in revenue to £513 million (€620.7 million) for last year while indicating it was considering a return to the UK stock exchange‘s main market.
The company, which supplies textiles and workwear to the catering and healthcare industries, acquired Irish-based Celtic Linen in 2023 and employs 560 staff across three Irish bases in Belfast, Dublin and Wexford.
It said operating profit rose by 23 per cent to £62.3 million (€75 million).
As well as announcing a further £30 million share buyback, JSG said the board was actively considering a return to the UK’s main stock market – it is currently listed on London’s AIM (Alternative Investment Market) – and would issue a further update following engagement with its main shareholders.
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Chief executive Peter Egan said JSG’s Irish business performed in line with the rest of the group.
He said the company had begun a major refurbishment of its Naas Road plant, acquired as part of the Celtic Linen takeover two years ago, which supplies the horeca [hotel, restaurant and catering] industry in Ireland.
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Mr Egan said the company effectively operated two plants on the one site in Wexford, one supplying the catering industry, the other supplying private and public healthcare sector.
“You can see from our history that we grow organically and inorganically (through acquisitions),” he said, noting the company remained alert to potentially attractive propositions here.
“In line with our inorganic growth strategy, we continue to seek out and acquire earnings enhancing businesses which complement our existing geographic coverage,” Mr Egan said.
In its report, the company signalled a further share buyback planned to return £30 million to shareholders over the next 12 months with the initial £15 million tranche to be launched shortly. It also said it was on track for an adjusted operating profit margin of at least 14 per cent in 2026.
“We also continue to invest in our estate to drive production efficiencies, organic growth and support our high levels of customer service,” Mr Egan said.
“Our scale, expertise and operational excellence mean that we are well placed to capitalise on opportunities and, accordingly, the Board remains confident about delivering another year of progress in 2025,″ Mr Egan said.
Investec described the results as strong “encompassing margin accretion (tracking towards its FY26 target), key customer contract renewals and decisive management cost action /capex (capital expenditure) deployment.”
