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otel linens provider Johnson Service Group upgraded its full-year guidance today as the UK’s post-pandemic tourist rebound helped to drive a 46% rise in its profits to £16.4 million.
In the first six months of the year, revenue jumped to £215 million, thanks to hotels and catering revenue jumping by more than 30% to £143.9 million.
This, CEO Peter Egan told the Standard, was mostly due to a return to normal for hospitality, having still been affected by the Covid-19 pandemic a year earlier.
He also noted that strong June weather boosted business.
“Generally it’s been strong, particularly the early part of the summer when we had the good weather in June,” he said.
Egan added that lower energy prices were a reason for optimism, though he noted that the cost of energy still remained very high.
“It’s welcome all round, because energy costs are significant for customers,, in terms of heating or running a restaurant as well,” he said.
Shares soared by 12%, or 15p, to 139p.
The group acquired Irish linens business Celtic Linens last week, having acquired Regency Linens earlier this year.
Analysts at Investec said: “We’re buoyed by the tone of today’s outlook, with management citing “positive momentum moving into FY23” and confidence re the growth opportunities available.”
Peel Hunt analyst Christopher Bamberry added: “Johnson remains well placed to take market share from its smaller, less-well-capitalised competitors as it continues to invest in plant and bolt-on acquisitions. We reiterate our Add recommendation.”
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