Acquisitions drive Johnson Service Group profits up 45.1%

North West textile rental business Johnson Service Group PLC has achieved double-digit revenue and profit growth in a year of strategic acquisitions.

During the 12 months to December 31 2016, the Cheshire-headquartered company recorded a pre-tax profit of £33.8m in comparison to £23.3m the year previous, an increase of 45.1%.

Revenues, meanwhile, leapt year on year by 36.4% to £256.7m.

The growth follows a hat trick of acquisitions for Johnson Service Group.

In the first six months of 2016, the company snapped up Zip Textiles, Afonwen and Chester Textiles, boosting its presence in the high-volume hotel linen rental market.

All three transactions were reported to be immediately earnings enhancing and expanded the group’s reach geographically.

Chris Sander, the CEO of Halton-based Johnson Service Group, said: “These are strong results, with profit delivery ahead of original market expectations, reflecting both encouraging organic growth and the benefits of recent acquisitions.

“These acquisitions have expanded our geographic coverage and helped to further build our presence in specific market segments, especially high volume linen.

He added: “We expect further benefits to come from our acquisitions as we complete the integration and investment programme.”

Speaking further, Mr Sander said he is confident the group is “very well positioned” for the new financial year.

He continued: “Performance to date has been in line with our expectations. The disposal of Drycleaning in January leaves us focused on driving the growth of our higher margin textile rental activities and we will continue to look at further complementary acquisitions and investment opportunities.”

The company’s drycleaning business was snapped up by high street cobbler Timpson for £8.25m.

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