Johnson Service Group cleans up despite spotty interim performance

1 mins. to read
Johnson Service Group cleans up despite spotty interim performance

AIM-listed textiles specialist Johnson Service Group (LON:JSG) saw its share price climb by 5.2% to 109.20p (as of 12:00 BST) after posting results for the six months ended 30th June. Revenues for the half year were down by 32% but there was a continued resurgence after the period end as plants reopened and service levels started to return during July and August.

CEO Peter Egan commented: “Our performance during the period reflects the challenging market conditions inflicted on the business by COVID-19 following a strong start to the year. The management team have been highly active in addressing the impact, by taking decisive action to ensure the long-term preservation of the business, shoring up the Group’s finances and mothballing sites to ensure that JSG is well placed to react quickly as end markets continue to recover.

“Our new Leeds high volume linen plant is scheduled to open in October and we have identified a new Workwear site to replace the Exeter plant destroyed by fire in January 2020, which should open mid-2021. Both of these investments demonstrate our long-term commitment to investing for future growth.

“It remains very difficult to predict with any accuracy the timing of a recovery to pre-COVID levels. However, with our strong balance sheet, established market position and reputation for quality service, we remain confident in the Group’s medium-term growth prospects as the economy and markets that we serve recover”.

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